2024 Tax Refund Insights and Stock Investment Options

Investing tax refunds wisely can yield long-term gains. Stocks like AbbVie, Alibaba, and FedEx are highlighted as strong options. With potential for growth, these companies present intriguing opportunities for investors.

Date: 07-03-2025

AI Rating: 7

Earnings Potential of AbbVie: AbbVie currently boasts a market cap around $370 billion and pays a dividend yield of 3.1%. Investors previously expressed concern over its loss of patent protection for the drug Humira. However, its newer drugs, Skyrizi and Rinvoq, generated $17.7 billion in revenue last year, showcasing strong replacement performance. Trading at 17 times expected future earnings, AbbVie appears to hold promising long-term investment potential.

Alibaba's Growth Trajectory: Alibaba has recently surged over 60% in six months, drawing the attention of growth investors. Although last quarter's sales growth of 8% reached $38.4 billion, the announcement of an AI chatbot exceeds competitors and a partnership with Apple could pave the way for more robust growth. Priced at just 13 times future profits with a dividend yield of 1.5%, Alibaba may be a compelling buy for investors.

FedEx's E-commerce Potential: FedEx, with a dividend yield of 2.1%, is underscored as a long-term buy despite recent declines in sales and operating income, down 1% and 23% respectively. Forecasted growth in e-commerce at an annual rate of around 19% presents solid upside potential. Currently priced at a forward P/E ratio of 12, there is potential for investment as efficiency improvements and AI advancements are anticipated.

No specific data is mentioned regarding Earnings Per Share (EPS), Revenue Growth, Net Income, Profit Margins, Free Cash Flow (FCF), or Return on Equity (ROE) in the report.

Stocks: ABBV BABA FDX