2 Stocks That Could Create Lasting Generational Wealth
Return on invested capital (ROIC) may be my favorite metric when looking for stocks with the ability to create lasting generational wealth. It measures a company's profitability compared to its debt and equity, and typically highlights the degree to which its management is able to effectively invest its capital in money-making projects.
Stocks that generate a high ROIC have handily outperformed their lower-ranked peers since 2003 and are at an advantage to continue doing so in the future. Two stocks that fit this high-ROIC framework are energy drink maker Celsius (NASDAQ: CELH) and beauty products retailer Ulta Beauty (NASDAQ: ULTA).
However, in addition to the high profitability that Celsius and Ulta Beauty bring to the table, their share prices are down 66% and 34%, respectively, from their 52-week highs. Here's why that combination of circumstances makes now the perfect time to buy these two businesses.
Source Fool.com
