In October, Buy These 3 Stocks says Forbes.
As October 2024 approaches, with the stock market unfolding its complexities and possibilities for investors, Forbes takes a look at stock picks in today's market scene.
It would be based on (a) financial performance assessment and (b) growth potential projections, amidst an evolving global economic conditions and promising sector developments.
Selection Criteria.
To choose stocks for “buy” considerations, following indicators were used: (see below)
Revenue growth.
Profit margins.
Debt levels.
Market standing.
Competitive edge.
Industry trends.
Technological advancements.
Potential regulatory effects.
Last but not least, each stock is also considered and selected based on its:
Potential to yield short-term profits.
Create long-term value.
Forbes - Oct 2024 Top Picks.
Forbes - Top 5 stock picks
With the judging criteria clearly spelt out, please find Forbes’ top picks for your reference only.
Personal due diligence is still a must due to varying risk appetite and budget (of course!).
Due to limited real estate, my post will cover the first 3 picks.
If you would like to read about the other two recommendations, please leave a comment ok. Thanks
1. $NVIDIA Corp(NVDA)$
Business Overview
Key metrics:
Sector/Industry: Technology/Semiconductors
Market cap: $1.2 trillion
P/E ratio: 49
Dividend yield: 0.04%
Nvidia is a leading designer of graphics processing units (GPUs) for:
Gaming and professional markets.
System-on-chip units (SoCs) for mobile computing and automotive markets.
It has become a key player in (a) artificial intelligence, (b) data centers and (c) autonomous driving technologies.
Why NVDA ?
Artificial Intelligence.
Its position as a top stock pick is rooted in its dominance of the GPU market and its pivotal role in driving AI and machine learning advancements.
Although it’s recent earnings miss and capital depreciation, rather than being cause for concern, present a more attractive entry point for investors than just a month ago.
This temporary setback in gaming GPU sales has created an opportunity to invest in a company with strong long-term growth prospects at a more appealing valuation.
Data centres.
It's products are essential for developing cutting-edge technologies, particularly in the rapidly growing field of generative AI.
As this technology expands across industries from content creation to healthcare and finance, demand for Nvidia's high-performance computing solutions will continue to surge.
The company's data center business has been experiencing remarkable growth, overtaking gaming as its most significant revenue segment.
This shift reflects the increasing adoption of AI-driven cloud services and reinforces Nvidia's strong position in the market.
Autonomous driving.
Beyond AI and data centers, Nvidia is also making significant strides in the automotive sector with its DRIVEIVE 0.0% platform for autonomous vehicles.
As the automotive industry moves towards self-driving cars and advanced driver assistance systems, Nvidia is well-positioned to capitalize on this trend.
It's consistent innovation, demonstrated by new architectures like Hopper and upcoming products like the Grace CPU, coupled with its expanding market opportunities in emerging technologies like edge AI and 5G, position it well for continued growth.
Given these factors, along with Nvidia's strong financial performance and its crucial role in shaping the future of technology, it stands out as a compelling investment option for October and beyond.
In my 18 Sep 2024 post (titled - Nvidia: is there Life after stock split ? - click to read & Repost ok), I have shared that historically - Nvidia stock price will dip before skyrocketing.
Truth be told, its stock price has indeed been bouncing within permissible range.
Is October 2024 really the time to buy into Nvidia again? Hm…
2. $Amazon.com(AMZN)$.
Business Overview
Key metrics:
Sector/Industry: Consumer Cyclical/Internet Retail
Market cap: $1.5 trillion
P/E ratio: 50
Dividend yield: N/A
It is a multinational technology company focusing on (a) e-commerce, (b) cloud computing, (c) digital streaming and (d) artificial intelligence.
Incidentally, it is one of the world's most valuable companies and a leader in multiple market segments.
Why AMZN ?
Amazon stands out as a top stock pick for October due to its:
Remarkably diverse.
Robust business model.
That have proven resilient in the face of economic uncertainties.
e-Commerce.
At the heart of Amazon's appeal is its dominant e-Commerce platform, that continues to benefit from the ongoing shift towards online shopping.
This trend, accelerated by the pandemic, shows no signs of slowing down as consumers increasingly value the convenience and wide selection offered by Amazon's marketplace.
The company's recent Prime Big Deal Days event, held on 16-17 Jul 2024, demonstrated Amazon’s ability to drive sales and engage customers even in a challenging economic environment.
Web services.
Amazon Web Services (AWS), the company's cloud computing arm, remains a powerhouse in the industry and a significant driver of Amazon's profitability.
AWS's growth has been awe-inspiring, with the division reporting a +12% YoY increase in net sales to $22.1 billion in Q2 2024.
Fueled by the increasing adoption of cloud services across industries as businesses seek to digitize their operations and leverage advanced technologies like artificial intelligence and machine learning.
Amazon's recent partnerships cum collaboration with Anthropic to develop advanced AI models, further solidify its position at the forefront of AI innovation and cloud computing.
Advertising revenue.
Amazon's advertising business has emerged as another significant growth engine, with ad revenue surging +22% YoY to $10.7 billion in Q2 2024.
Rapid expansion is driven by Amazon's unique position to offer highly targeted advertising based on consumer shopping behavior, making it an increasingly attractive platform for marketers.
Other ventures.
Amazon have been progressively been making inroads into new sectors: (see below)
Healthcare with its acquisition of One Medical.
Applied technologies eg. Drone delivery and autonomous vehicles.
These attempts showcase its commitment to long-term growth and innovation.
Amazon's focus on operational efficiency, evidenced by recent cost-cutting measures and streamlining of its fulfillment network, has improved its profit margins.
This makes Amazon an ever more attractive investment option.
As Amazon continues to leverage its vast ecosystem, innovate across multiple fronts and expand into new markets, it presents a compelling opportunity for investors looking for a stock with solid growth potential and a track record of disrupting traditional industries.
3. $Microsoft(MSFT)$ .
Business Overview
Key metrics:
Sector/Industry: Technology/Software Infrastructure
Market cap: $2.8 trillion
P/E ratio: 33
Dividend yield: 0.8%
A multinational technology corporation that (a) develops, (b) manufactures and (c) sells computer software, consumer electronics and personal computers.
Best known for its software products — including (1) MS Windows operating system, (2) MS Office suite and (3) Internet Explorer & Edge web browsers.
Why MSFT ?
Microsoft stands out as a top pick for October 2024 due to its:
Robust performance across multiple business segments.
Strategic positioning in high-growth tech sectors.
The company's Azure cloud platform continues to be a significant growth driver, with cloud services revenue increasing by +28% YoY in most recent quarter.
Impressive growth is fueled by:
Ongoing digital transformation across industries.
Increasing adoption of AI and machine learning technologies.
Azure's strong market position (2nd only to AWS) in cloud computing space. — to capitalize on the expanding cloud computing market, projected to reach $1.6 trillion by 2030.
MS Office 365.
The company's successful transition to a subscription-based model for its MS Office products, now part of the Microsoft 365 suite, has created a stable and growing revenue stream.
The pivot has improved the predictability of Microsoft's earnings and enhanced customer retention & lifetime value.
Recent integration of AI capabilities into Microsoft 365 (including the GPT-4 powered Copilot), has further differentiated its offerings and could drive increased adoption and upselling opportunities.
The AI integration extends beyond productivity tools, with Microsoft leveraging its partnership with OpenAI to infuse AI capabilities across its product lineup, including (1) search engine “Bing” and (2) Windows operating system.
Gaming.
Microsoft gaming division has seen significant growth and strategic expansion, especially when it successfully and officially acquired Activision Blizzard on 13 Oct 2023 for a tidy sum of $68.7 billion.
The purchase has substantially bolstered Microsoft's position in the gaming industry, adding popular franchises like “Call of Duty” & “World of Warcraft” to its portfolio.
Last but not least, its Xbox Game Pass subscription service continues to gain traction, with more than 25 million subscribers as of the latest reports.
Future technology.
Microsoft's investments in “future” mixed reality technology aims to position the company at the forefront of emerging technologies that could reshape how users interact with digital content.
These includes its HoloLens device and its Metaverse-focused Mesh platform development.
Financial health.
Financially, Microsoft's (a) strong balance sheet, (b) consistent dividend growth and (c) ongoing share repurchase program make it an attractive option for growth and value investors.
Its dividend has grown annually for the past 18 years, with a ‘5-year growth rate of 10.2%.
Microsoft's diverse revenue streams, spanning cloud services, productivity software, operating systems and gaming, provide resilience against market fluctuations.
Additionally, its (1) strategic focus on AI and (2) partnerships with leading AI research organizations position it to capitalize on the next wave of technological innovation.
With its solid fundamentals, strong market position, and continued innovation across multiple fronts, Microsoft presents a compelling investment opportunity for those looking to capitalize on the ongoing digital transformation and the future of technology.
My viewpoints: (mine only)
Forbes “recommendations” are a no-brainer.
They are the best in breed in each of the stock’s Sector or Industry..
Nvidia (Technology / Semiconductor).
Amazon (Consumer cyclical/ Internet retail).
Microsoft (Technology / Software infrastructure)
Founded in April 1993, July 1994, and April 1975 respectively., these three S&P 500 companies have remained since November 2002, November 1999, and August 1986, respectively as well.
They deserve the recognition & recommendation accorded by Forbes.
For a “breakthrough / refreshing” content, wished that Forbes’ could recommend alternatives that are equally valuable, full of potentials and more pocket friendly.
Do these “alternatives’ even exists? I think so but it will take a lot of work to sieve out the good, the bad and the “to be avoided at all costs”. Therein lies US market’s “beauty in diversity” !
Must Read: Click on below titles to access. Give a like & help to repost ok. Thanks.
Do you think the 3 stocks recommended by Forbes are no brainers too?
Do you think $Palantir Technologies Inc.(PLTR)$ is a possible alternate recommendation ?
If you find this post interesting, give it wings! ️ Repost and share the insights ?
Do consider “Follow me” and get firsthand read of my daily new post. Thank you.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Pls "Re-post" so that more get to know. Tks! Rating is important (to me).
Consider "Follow me" and get first hand read of my Daily new posts? Thanks!). Tks!!