Investing in expensive stocks may not be trendy in the current investment environment. Expensive shares need huge capital and new investors tend to prefer exchange-traded funds (ETFs). To get around capital constraints for investors, companies like Tesla, Apple, and Google are adopting a stock-split approach. Also, recent events like the pandemic and regional conflicts have changed investors’ mindsets. More are now taking a quick profit approach like day trading, swing trading, or forex trading
The top stock trading teachers do not rule out the importance of expensive stocks. They consider investing a large amount to buy a few shares as a mature long-term approach. Buying the most expensive stocks means showing confidence in a company’s future. But, the company should also show a trend of providing adequate shareholder returns.
Buying the most expensive stocks may reduce stress in the long term, since they’re usually buy-and-hold assets. You don’t need to stick to the trading screen for all the trading days in a year to see your stock performance. Neither is there a need to read a lot of financial news articles to predict stock exchange behavior. Now, let’s take a look at the 15 most expensive stocks in the USA:
(Caution: Please exercise judgment before deciding to buy stocks. The details in this article are for educational purposes only. The stock prices are in US dollars available as of October 7, 2022.)
Regeneron is a company in the domain of medical science. It deals with scientific research and innovation since 1988. Several groundbreaking medicines are the trademark of the company helping ailing patients worldwide.
The company has provided around 1,039% shareholder return in the last 10 years. Despite the decrease of 44% in revenue for the second quarter of 2022, the company is optimistic ahead. This is due to their historical performance and commitment to long-term goals.
Cable One provides broadband communication solutions to customers with high quality in mind. It has over a million residential customers receiving internet and online streaming services. It has expanded its service spectrum to include small to mid-sized organizations. These businesses receive cost-effective solutions and a service they can always rely on.
They reported an increase in revenue of 6.8% in the second quarter of 2022 as compared to a similar period last year. The residential customer base also increased by 4.4%. The company is currently on a repurchase spree and bought back about 95,000 of its common stock in 2022.
First Citizens Bank is a wholly-owned subsidiary of First Citizens BancShares Inc. They are in existence for 120 years, helping people to achieve their financial goals. One of their plans is to repurchase their 1.2 million class A shares over the next 12 months. They expect to report the third quarter results on 27 October 2022.
Alleghany derives revenue from various sources including insurance, reinsurance, acquisition, and investment opportunities. The company reported underwriting profits of $165 million in the second quarter of 2022. (2021: $174 million). A decrease of 16.9% was also seen in net investment income.
In March 2022, Berkshire Hathaway announced its plan to acquire Alleghany. This resulted in a huge jump in its stock price as shown below:
MercadoLibre is an e-commerce and online payment solution provider covering Latin America. The number of unique buyers reached about 41 million as per the second quarter results. Operating margins stood at 9.6% which is way higher than 6.1% during the first quarter of 2022.
Source: Yahoo Finance
Market corporation relies on insurance, investment, and business ventures to earn revenue. It started in 1930 to provide insurance products but has evolved over the decades. For the second quarter ending 2022, the earned premiums showed decent growth. Yet, the company posted a loss due to unrealized losses on equity portfolios.
Mettler Toledo provides instruments used in quality control and logistical operations. They have around 16,000 employees and a significant global presence. The company posted a 6% increase in sales for the second quarter of 2022 and expects it to be 8% for the third quarter.
White Mountains is another company in our top 15 list with insurance as a primary business. As per the second quarter results for 2022, the book value per share decreased by 5%. This was due to realized and unrealized losses on investment of around $30 million. Last year, there was a gain of $6.1 million in investments.
Chipotle grill started in 1993 and has evolved into 3,000 restaurants in North America, the UK and Europe. In the second quarter of 2022, it showed increased revenue by 17% and the operating margin stood at 15.3%. The expected date for third-quarter results is 25th October 2022.
Booking holdings started its journey in 1997 and today it is among the Fortune 500 companies. The gross travel booking for the second quarter of 2022 was $34.5 billion. This was a gigantic increase of 56% from the prior-year quarter. The CEO termed the quarter’s results as a recovery from the pandemic and expects a record Q3 revenue.
TPL is one of the biggest owners of land in Texas. They earn revenue through the management of land resources and water services. In Q2 of 2022, the company reported a net income of $118.9 million. This was a 108% increase from the comparative prior period.
Auto Zone is a big name in the automotive industry with a presence of about over 4 decades. They are a leading distributor and retailer of automotive parts in the US. They reported a net income of $810 million for the period ending August 27, 2022. ($786 million in 2021).
Seaboard corporation works in pork production, container shipment, and commodity trading in Africa. In Q2 ending July 2nd, 2022, the company’s net earnings were $108 million. This was a decrease from $176 million in the prior period.
NVR has been providing real estate development services since 1948. It operates in 15 states throughout the USA. In Q2 of 2022, the company posted a net income of $433.3 million, an increase of 35% from the same quarter the prior year.
Berkshire provides insurance, transportation, and utility services through its subsidiaries worldwide. Shareholders can convert Class A shares into 1,500 Class B shares at the holder’s option. It has never undertaken a stock split which is why the share price is so high.
Expensive stocks may be quite worthwhile investments for niche investors. You can buy them using your regular margin account. In the USA, the top three most expensive stocks are as follows:
Notice something about the average volume for the top-three stocks above? The volume is lower for the most expensive stocks. This is because such stocks are not bought and sold often. Therefore, you might need to choose other stocks if you’re more into trading and making quick profits. You may need the services of a good stock broker on how to pick stocks for trading.
We have put together details of 6 top American stock trading brokers. You can choose a broker based on your desired service. They all provide informative newsletters to meet your stock education requirements.
Stock trading is not a piece of cake, be it expensive stocks or penny stocks. This is why we encourage our readers to be aware of the nitty-gritty details of the stock market. To continue your education in stocks, we’ve put together an informative piece for learners that explains the stock market in simple terms.
Mustafa K. is an accounting professional with over a decade of experience in financial audits, compliance, and advisory. Currently, a tax associate and finance writer.