I went shopping last month, buying into ascending stocks, as well as growth plays that had pulled back. I initiated positions in Amazon (NASDAQ:AMZN), Celsius Holdings (NASDAQ:CELH), and Matson (NYSE:MATX).
The three companies have little in common, but isn't that what a diversified portfolio looks like? Let's take a closer look at the three stocks I bought in June.
Image source: Getty Images.
Amazon.com
I've been an avid Amazon shopper since the 1990s, and buying into the world's leading online retailer last month is something that I obviously should have done decades ago. Amazon is a company that needs no introduction, so let me dive right into its all-weather praises.
Amazon obviously was a big winner through the pandemic when we were relying on the home delivery of groceries, essentials, and naturally non-essential goodies. Net sales soared 38% last year, its strongest top-line growth in nine years.
We're not cutting Amazon loose just because it's safer to be outside in 2021. Growth accelerated, climbing 44% through the first three months of this year.
Amazon's consistency is the star here. When the going is good, we buy more on Amazon. When the going is rough, we lean on Amazon's low prices and efficiencies to save time and money when we desperately need both.
Amazon has posted double-digit revenue growth for 21 consecutive years. The streak would be longer, but it was triple-digit top-line gains before that.
Yes, Jeffrey Bezos officially stepped down as CEO earlier this week, and I'm not concerned. The system is in place. The moat is strong. Amazon will just keep growing.
Celsius Holdings
The first time I wrote about Celsius Holdings was two months ago when I tapped it as a stock to avoid heading into its first-quarter financial results in early May. Taking a critical stance on the beverage distributor seemed like a smart call, especially since the shares plummeted 22% after its previous report. Was a functional beverage maker really worth 27 times trailing sales?
I was wrong. Celsius came through with blowout results, growing its net sales by a better-than-expected 78%. The growing appeal of its fruit-flavored canned sparkling water -- that when combined with exercise improves metabolism and helps burn body fat -- was expanding beyond gyms and specialty retailers.
Celsius went from a stock I thought could be shorted to one that was on my short list of stocks to buy. I wasn't sure when I would pounce on the shares, but that opportunity presented itself in June when the stock plunged after announcing a secondary stock offering.
Celsius Holdings pricing the new shares at $62.50 was a surprise for a stock that closed at $72.73 the day before the offering. The bigger shock was that I was able to get in even below the new offering price during the frantic sell-off. I'm still concerned about the valuation here and the threat of copycats, but leading niche beverage giants have a funny way of sticking around.
Matson
I'll be honest and say that I wasn't familiar with Matson a month ago. I'm not someone who follows the container shipping and logistics market.
But a headline flying through my financial newsfeed on June 24 caught my attention. Matson was boosting its quarterly dividend by 30%, pushing the stock's yield to 1.9%. The board also authorized the repurchase of 7% of its outstanding shares.
A company isn't that aggressive returning money to its shareholders in two different ways unless business is booming, the stock has fallen out of favor, or it's trying to thwart an activist investor or potential takeover. I'm interested in all scenarios, but thankfully, it was the first one where Matson's fundamentals are on the rise.
I didn't have to wait long for validation. Matson reported fresh news this week after Thursday's market close. Its preliminary financial results for the second quarter that ended last week shows that the Honolulu-based ocean-shipping specialist is benefiting from a rebound in Hawaii's tourism sector, as well as its healthy shipments business with China. It expects to post a quarterly profit per share between $3.58 and $3.73 when it makes things official in a couple weeks.
Analysts were only targeting net income of $2.23 a share. I don't have to know my aft from my starboard to know that this is a monster beat.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.
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