FX.co ★ Promising investments: top 6 companies with high profit potential

Baidu

Baidu, the leading search engine in China, tops the list of companies for long-term investments. The company is one of the pioneers in the market of online advertising and marketing in China. Its main focus is on the development of such innovations as artificial intelligence (AI) and cloud and entertainment services. Early this year, Baidu announced the plan to establish Jidu Auto, a venture with Chinese automaker Geely. The new company will be involved in the production of electric vehicles. In the first quarter of 2021, Baidu's revenue skyrocketed by an impressive 62,468.29%, following the revaluation of the company’s long-term investments in Kuaishou Technology. Baidu's estimated revenue for the second quarter is 29-32.5 billion yuans. Experts recommend buying Baidu securities at $250.82 per share with potential upside of 26%.

MasterCard

One more company with high profit potential is international payment system operator MasterCard. The company processes interbank payments, provides retail banking services, and issues brand cards. MasterCard carries out more than 90 billion financial transactions annually. Notably, the total volume of transactions conducted through its payment system exceeds $6 trillion a year. In the first quarter of 2021, MasterCard's revenue reached $4.16 billion, up by 3.6% from 2020. MasterCard is believed to benefit from the global economic recovery after the COVID-19 pandemic and the growing number of online payments. According to experts, it is worth buying the company's shares at $434.7 with potential upside of 17%.

Danaher

Danaher has become one of the leaders in the US healthcare market. The company produces medical equipment and supplies. Danaher offers analytical instruments for screening, genomic and cellular analysis, as well as for ensuring the safety of the environment and food. The company showed dazzling performance last year. It acquired biopharmaceutical business Cytiva for $20.7 billion. The deal is believed to be one of the most successful in the healthcare industry. It brought the company an additional $3.2 billion in revenue. In the first quarter of 2021, Danaher's revenue expanded by 57.9% and its net income increased by 186%. The company’s earnings are expected to grow exponentially in the near future. Experts recommend buying Danaher shares at $302.07 with a 23% upside potential.

Merck & Co

Merck & Co is another promising pharmaceutical company. The company develops innovative solutions in healthcare and the treatment of oncological diseases. In 2020, Merck & Co yielded impressive profits owing to its new product, Keytruda, used for treating various types of cancer. Sales of Keytruda are projected to increase as soon as the drug is tested. The company also holds an exclusive patent for the drug that is valid until the end of 2028. This year, Merck & Co joined the race to develop a vaccine against COVID-19 in the United States, receiving $268.8 million in funding from the US Department of Health and Human Services. Experts say it is worth investing in Merck & Co at the price of $90.5 per share and with a 19% upside potential.

NextEra Energy

NextEra Energy, an American energy company, is considered to be the largest in the world. The renewable energy sector has grown exponentially after President Joe Biden initiated the transition to green energy in the United States. The total capacity of NextEra Energy’s wind, solar, and other power plants is 54 GW where 50% accounts for green energy. In the near future, the trend for renewable and environmentally friendly energy resources, supported by the governments of several countries, is expected to prevail. According to analysts, NextEra Energy will increase its investments to meet the growing demand. Investors should consider purchasing the company's shares at $109.3 per unit and with upside potential of 50%.

Deutsche Post

Germany’s Deutsche Post, the world’s leader delivering firm, closes the top 6 promising companies. Deutsche Post is engaged in domestic and international shipping of goods. It also provides e-commerce and supply chain management services. Last year, the company generated a huge profit on express delivery. At the end of 2020, Deutsche Post's revenue soared to €66.8 billion, up by 5.5% from 2019. Deutsche Post follows global trends, using digitalization and expanding e-commerce services. In the next 4 years, the company is ready to spend €2 billion on digital transformation. Experts recommend buying Deutsche Post securities at €80 per share with a 43% upside potential.