Cryptocurrencies have been under stress of late.
Bitcoin recently fell to a year-low of US$18,866 and is down nearly 61% from 2022’s high of US$48,234 set on 28 March.
When compared with its all-time high of US$68,000 in November last year, the world’s biggest cryptocurrency has plunged by more than 72%.
Meanwhile, retail crypto lending platform Celsius has hired consultants to advise on a potential bankruptcy filing, while Singapore-based crypto hedge fund Three Arrows Capital has gone into liquidation.
Investing in cryptocurrencies is not for the faint-hearted as the sector is largely unregulated and subject to significant risks.
Alternatively, you can park your money in stocks with strong brand names, great track records and good prospects to grow your portfolio over the long term.
Here are five US stocks that have delivered stellar returns and possess much lower risk than cryptocurrencies.
Domino’s Pizza (NYSE: DPZ)
Domino’s holds the pole position in the global quick-service restaurant (QSR) pizza industry and has 18,848 stores around the world as of 31 December 2021.
The company holds a 20% global market share in the QSR pizza market and is present in more than 90 markets globally.
Domino’s has steadily grown its franchise over the years and its shares have delivered an astounding compound annual growth rate (CAGR) of 29.4% over the last decade.
For the first quarter of 2022 (1Q2022), the company opened a net 1,242 stores around the world.
Revenue inched up 2.8% year on year to US$1 billion but net profit fell by 22.8% year on year due to higher cost of sales.
The company believes it has significant potential for growth and can open a further 1,400+ stores in the US and more than 10,000 stores in its top international markets.
Microsoft (NASDAQ: MSFT)
Microsoft is a technology company that’s well known for its Microsoft Office software suite that includes both word processors and spreadsheets.
The company also manufactures hardware and offers a cloud computing service called Microsoft Azure.
The blue-chip stock has done phenomenally well in the last 10 years, with its share price registering a 23.7% CAGR over this period.
Microsoft continues to report impressive numbers for the first nine months of its fiscal 2022 (9M2022).
Total revenue rose 20.1% year on year to US$146.4 billion while net profit climbed 25% year on year to US$56 billion.
The nearly US$2 trillion behemoth is also active in acquisitions and had announced four acquisitions in this calendar year alone.
Apple (NASDAQ: AAPL)
Apple needs no introduction and is currently the world’s most valuable company with a market capitalisation of US$2.2 trillion.
The technology giant manufactures a range of products from smartphones to tablets and smartwatches, while also providing services such as Apple TV and a cloud service (iCloud).
Apple’s shares have returned 20.7% CAGR over the last decade and the company is still demonstrating growth.
For its fiscal 2022’s first half ended 31 March 2022, the company reported a 10% year on year increase in revenue to US$221.2 billion.
Operating profit increased by 17.1% year on year while net profit improved by 13.8% year on year to US$59.6 billion.
Of note, Apple’s Services revenue grew 20.4% year on year and took up 17.8% of total revenue.
Monster Beverage (NASDAQ: MNST)
Monster Beverage is an energy drink manufacturer with brands such as Monster, Predator, Burn, and Reign.
The company’s share price has powered its way to a 14.2% CAGR over the last decade.
Monster reported record annual sales of US$5.54 billion for FY2021, up 20.5% year on year.
Operating profit increased by 10.1% year on year to US$1.8 billion but net profit dipped by 2.3% year on year due to higher tax provisions.
For 1Q2022, this momentum continued as the company reported a 22% year on year jump in revenue to US$1.52 billion.
However, the rising cost of sales and higher operating expenses caused net profit to fall by 6.7% year on year to US$294 million.
The company had just concluded the acquisition of CANarchy Craft Brewery Collective LLC, a craft beer and hard seltzer company, for US$330.4 million.
It also plans to impose a market-wide increase in pricing effective 1 September 2022.
McDonald’s Corporation (NYSE: MCD)
I am sure most of you are familiar with McDonald’s “golden arches”.
The company is one of the largest fast-food restaurant chains with more than 40,000 outlets in over 100 countries.
The fast-food specialist saw its share price rise by 10.8% CAGR over the last 10 years.
For 1Q2022, global comparable store sales increased by 11.8% year on year, with total revenue increasing by 11% year on year.
Operating income inched up 1% year on year due to higher company-operated restaurant expenses.
McDonald’s declared a quarterly dividend of US$1.38 per share, bringing the full-year 2022 dividend to US$5.52.
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Disclaimer: Royston Yang owns shares of Apple.
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