3 Ultra-Profitable Businesses to Invest in for the Long Haul
One thing you should always consider when choosing a stock is how profitable the underlying business is. If its profit margins are low, then it could easily swing to a loss if it faces headwinds or the economy as a whole struggles. A higher profit margin can also create an important buffer for the business, allowing it to reduce prices if it needs to be more competitive or to better handle inflationary pressures.
Three businesses that are performing exceptionally well with profit margins of 20% and higher include AbbVie (NYSE: ABBV), Nvidia (NASDAQ: NVDA), and Visa (NYSE: V). These are stocks that should do well this year regardless of inflation and could make for excellent long-term investments.
Drugmaker AbbVie has reported $13.3 billion in earnings over the trailing 12 months, which is nearly one-quarter (23%) of its top line of $57.8 billion during that time. The business has been expanding over the years, helped by its $63 billion purchase of Botox-maker Allergan in 2019, which diversifies its operations and gives it a new growth opportunity.
Source Fool.com
