Top Stock Picks for 2024: Experts Recommend No-Brainer Investments

2 No-Brainer Stocks I'd Buy Right Now Without Hesitation | The Motley Fool

The S&P 500 confirmed a bull market earlier this year and registered double-digit gains in the first half as investors piled into growth stocks. Those in the technology industry, especially companies focused on artificial intelligence (AI), scored the biggest wins. But if you didn't benefit, don't worry. You still can find plenty of solid investment opportunities in the space -- ones that could boost your portfolio in the near term and over time as this exciting field develops. In fact, right now, two players make excellent buys. They are involved in AI, but they aren't entirely dependent upon it. They're leaders in their areas, have solid moats, and have proven their strengths over time. I consider them no-brainer stocks to buy without hesitation right now because you can comfortably hold on to these market giants for years -- and, with them, you're likely to score a victory in the years to come. Amazon (AMZN -0.34%) is a giant in two high-growth markets: e-commerce and cloud computing. The company's extensive infrastructure and fulfillment network as well as its Prime membership program offer it a significant moat, or competitive advantage, in the e-commerce world. Members turn to Amazon for just about everything -- from groceries to entertainment -- and Amazon continues to use its efficiency efforts to drive down prices and speed up delivery times. All of this keeps customers coming back. But the company's biggest profit driver is Amazon Web Services (AWS), its cloud computing business. AWS is the world's No. 1 cloud services provider, and recently reached a $100 billion annual revenue run rate -- thanks to its investments in AI. AWS offers customers a full portfolio of AI products and services including the basics like chips as well as a fully managed service to customize large language models according to their needs. Amazon's e-commerce and cloud businesses have helped the company generate earnings increases, into the billions of dollars, over the years. And one recent tough time -- during rising inflation in 2022 -- prompted Amazon to revamp its cost structure, a move that helped it soar back to growth last year. And this stronger cost structure should help the company excel in the years to come. Today, Amazon stock is trading for 40x forward earnings estimates. It's not the cheapest tech stock around, but Amazon's leadership, strong moat, and future prospects make it worth the price -- and an excellent stock to get in on now, to benefit as its next chapters of growth unfold. When people think of the word "apple," they may think of the company Apple (AAPL 0.06%) before the piece of fruit. That's how strong this brand is -- thanks to a portfolio of market leading products, from the iPhone to the Mac. This brand strength offers Apple a moat that's proven itself over time. For example, Apple fans will wait for the next version of the iPhone and won't switch to another brand even if it's less expensive. All of this has helped Apple reach an installed base of active devices of more than 2.2 billion. This is positive because the sales of devices results in revenue growth, but it also leads to something much more for Apple. I'm talking about services revenue. The company offers a variety of services -- from cloud storage to digital content -- to users, and this means those 2.2 billion devices could generate recurrent revenue for the company. Services revenue has been showing its strength, reaching record highs quarter after quarter in recent times. And another positive point about services revenue is its higher margin than hardware sales -- so the company can generate significant profit from these sales. Finally, Apple recently announced the upcoming release of a suite of AI features, putting the company on the map when it comes to AI -- and offering a potential new growth driver. Right now, Apple shares trade for 33x forward earnings estimates, a very reasonable price to pay for this market leader that should continue to deliver revenue gains over time. And that's why it's a no-brainer addition to any portfolio right now.

2 No-Brainer Stocks I'd Buy Right Now Without Hesitation

The S&P 500 confirmed a bull market earlier this year and registered double-digit gains in the first half as investors piled into growth stocks. Those in the technology industry, especially companies focused on artificial intelligence (AI), scored the biggest wins. But if you didn't benefit, don't worry. You still can find plenty of solid investment opportunities in the space -- ones that could boost your portfolio in the near term and over time as this exciting field develops. In fact, right now, two players make excellent buys. They are involved in AI, but they aren't entirely dependent upon it. They're leaders in their areas, have solid moats, and have proven their strengths over time. I consider them no-brainer stocks to buy without hesitation right now because you can comfortably hold on to these market giants for years -- and, with them, you're likely to score a victory in the years to come. Amazon (NASDAQ: AMZN) is a giant in two high-growth markets: e-commerce and cloud computing. The company's extensive infrastructure and fulfillment network as well as its Prime membership program offer it a significant moat, or competitive advantage, in the e-commerce world. Members turn to Amazon for just about everything -- from groceries to entertainment -- and Amazon continues to use its efficiency efforts to drive down prices and speed up delivery times. All of this keeps customers coming back. But the company's biggest profit driver is Amazon Web Services (AWS), its cloud computing business. AWS is the world's No. 1 cloud services provider, and recently reached a $100 billion annual revenue run rate -- thanks to its investments in AI. AWS offers customers a full portfolio of AI products and services including the basics like chips as well as a fully managed service to customize large language models according to their needs. Amazon's e-commerce and cloud businesses have helped the company generate earnings increases, into the billions of dollars, over the years. And one recent tough time -- during rising inflation in 2022 -- prompted Amazon to revamp its cost structure, a move that helped it soar back to growth last year. And this stronger cost structure should help the company excel in the years to come. Today, Amazon stock is trading for 40x forward earnings estimates. It's not the cheapest tech stock around, but Amazon's leadership, strong moat, and future prospects make it worth the price -- and an excellent stock to get in on now, to benefit as its next chapters of growth unfold. 2. Apple When people think of the word "apple," they may think of the company Apple (NASDAQ: AAPL) before the piece of fruit. That's how strong this brand is -- thanks to a portfolio of market leading products, from the iPhone to the Mac. This brand strength offers Apple a moat that's proven itself over time. For example, Apple fans will wait for the next version of the iPhone and won't switch to another brand even if it's less expensive. All of this has helped Apple reach an installed base of active devices of more than 2.2 billion. This is positive because the sales of devices results in revenue growth, but it also leads to something much more for Apple. I'm talking about services revenue. The company offers a variety of services -- from cloud storage to digital content -- to users, and this means those 2.2 billion devices could generate recurrent revenue for the company. Services revenue has been showing its strength, reaching record highs quarter after quarter in recent times. And another positive point about services revenue is its higher margin than hardware sales -- so the company can generate significant profit from these sales. Finally, Apple recently announced the upcoming release of a suite of AI features, putting the company on the map when it comes to AI -- and offering a potential new growth driver. Right now, Apple shares trade for 33x forward earnings estimates, a very reasonable price to pay for this market leader that should continue to deliver revenue gains over time. And that's why it's a no-brainer addition to any portfolio right now. The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Amazon wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $722,626!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Apple. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

2 Stocks That Can Help You to Get Richer in 2024

The stock market has fluctuated greatly this year. The S&P 500 is up 15% since January yet has dipped 3% since mid-July after a slight sell-off in the tech market. Tech stocks became a haven for many investors amid economic uncertainty in recent months. However, easing inflation has seen Wall Street reshuffle its investments and venture outside the long-term security of tech. As a result, now could be an excellent time to take advantage of the dip and make an investment in some of tech's best performers. Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) are two attractive stocks, dipping 5% and 4%, respectively, since mid-July. These companies have made promising inroads in their respective markets this year and could see significant stock growth as we head into earnings season next month. They're both stocks that can help you get richer in 2024. 1. Amazon: Trading at one of its best values over the last decade It seemed as if Amazon could do no wrong over the last year. The company has delivered multiple quarters of impressive earnings growth alongside significant investments in some of the fastest-growing markets. Amazon has benefited from a long list of cost-cutting measures that brought its retail business back to profitability and a steady expansion in the budding artificial intelligence (AI) market. The company's revenue increased 13% in the first quarter of 2024, beating Wall Street forecasts by $750 million. Meanwhile, operating income spiked 220% to more than $15 billion. The solid gains came from key parts of its business, such as third-party seller services, selling ads on its streaming platform Prime Video, subscription services, and its cloud business with Amazon Web Services (AWS). Amazon has delivered an impressive turnaround in its business after suffering a market downturn in 2022 that led to steep profit declines. The company's free cash flow has risen 170% in the last 12 months, illustrating its ability to successfully navigate unexpected headwinds. The e-commerce giant has used its boosted cash reserves to reinvest in its business, expanding AWS' reach by building data centers in new regions, enhancing its AI offerings, and venturing into chip development. Amazon will report its Q2 2024 earnings on Aug. 3, which will likely follow recent trends in beating estimates. Data by YCharts. Moreover, the above chart shows Amazon is potentially the best-valued stock among its AI rivals. Not only does it have the lowest price-to-sales ratio (P/S) among these companies, but its figure for the metric is also the closest to its 10-year average. As a result, Amazon's stock is a bargain right now, compared to its potential, and could make you rich in 2024. 2. Apple: Carving out a lucrative role in AI Apple's stock didn't rally many investors in the first half of 2024, with its share price dipping about 1% from Jan. 1 to the start of June. However, recent announcements have made Wall Street bullish again, boosting the stock by 17% since last month. Apple was largely left out of the rally many tech stocks enjoyed thanks to AI last year. The iPhone maker initially struggled to find its function in the market as companies like Amazon and Microsoft found their AI niches in cloud computing. However, while many of the company's peers are focused on providing businesses with AI services, Apple is prioritizing the consumer market. The company hosted its annual Worldwide Developer Conference in June, where it announced Apple Intelligence, with the apt tagline, "AI for the rest of us." Apple Intelligence is a range of generative features coming to the company's products, including writing tools with enhanced language capabilities, image generation, access to OpenAI's ChatGPT, and a complete overhaul to Siri. Apple Intelligence will launch this fall and coincide with the September release of Apple's newest iPhone, its first smartphone designed with a focus on AI. The coming iPhone is among just a few products with access to Apple Intelligence, as the generative features will be reserved for the company's newest devices. Apple's AI strategy is designed to encourage consumers to upgrade their current devices, which could lead to a significant earnings boost in its next quarter. In addition to potential stock growth from AI, Apple will release its Q3 2024 earnings at the beginning of August. Recent reports have indicated a possible jump in iPhone and Mac sales this quarter, which could lead to a turnaround for the company's product segments after a recent slump. As a result, it could be worth investing in Apple's stock now before earnings season and the launch of its next iPhone. The company's shares are trading at 35 times its earnings, indicating they're not exactly a bargain. However, that figure has come down over the last week. Meanwhile, Apple's long-term potential suggests its stock is worth its premium price, making it worthy of buying this year. The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Amazon wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $722,626!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

2 Stocks That Can Help You to Get Richer in 2024 | The Motley Fool

These companies could deliver significant stock gains as they head into earnings season next month. The stock market has fluctuated greatly this year. The S&P 500 is up 15% since January yet has dipped 3% since mid-July after a slight sell-off in the tech market. Tech stocks became a haven for many investors amid economic uncertainty in recent months. However, easing inflation has seen Wall Street reshuffle its investments and venture outside the long-term security of tech. As a result, now could be an excellent time to take advantage of the dip and make an investment in some of tech's best performers. Amazon (AMZN -0.32%) and Apple (AAPL -0.16%) are two attractive stocks, dipping 5% and 4%, respectively, since mid-July. These companies have made promising inroads in their respective markets this year and could see significant stock growth as we head into earnings season next month. They're both stocks that can help you get richer in 2024. It seemed as if Amazon could do no wrong over the last year. The company has delivered multiple quarters of impressive earnings growth alongside significant investments in some of the fastest-growing markets. Amazon has benefited from a long list of cost-cutting measures that brought its retail business back to profitability and a steady expansion in the budding artificial intelligence (AI) market. The company's revenue increased 13% in the first quarter of 2024, beating Wall Street forecasts by $750 million. Meanwhile, operating income spiked 220% to more than $15 billion. The solid gains came from key parts of its business, such as third-party seller services, selling ads on its streaming platform Prime Video, subscription services, and its cloud business with Amazon Web Services (AWS). Amazon has delivered an impressive turnaround in its business after suffering a market downturn in 2022 that led to steep profit declines. The company's free cash flow has risen 170% in the last 12 months, illustrating its ability to successfully navigate unexpected headwinds. The e-commerce giant has used its boosted cash reserves to reinvest in its business, expanding AWS' reach by building data centers in new regions, enhancing its AI offerings, and venturing into chip development. Amazon will report its Q2 2024 earnings on Aug. 3, which will likely follow recent trends in beating estimates. Moreover, the above chart shows Amazon is potentially the best-valued stock among its AI rivals. Not only does it have the lowest price-to-sales ratio (P/S) among these companies, but its figure for the metric is also the closest to its 10-year average. As a result, Amazon's stock is a bargain right now, compared to its potential, and could make you rich in 2024. Apple's stock didn't rally many investors in the first half of 2024, with its share price dipping about 1% from Jan. 1 to the start of June. However, recent announcements have made Wall Street bullish again, boosting the stock by 17% since last month. Apple was largely left out of the rally many tech stocks enjoyed thanks to AI last year. The iPhone maker initially struggled to find its function in the market as companies like Amazon and Microsoft found their AI niches in cloud computing. However, while many of the company's peers are focused on providing businesses with AI services, Apple is prioritizing the consumer market. The company hosted its annual Worldwide Developer Conference in June, where it announced Apple Intelligence, with the apt tagline, "AI for the rest of us." Apple Intelligence is a range of generative features coming to the company's products, including writing tools with enhanced language capabilities, image generation, access to OpenAI's ChatGPT, and a complete overhaul to Siri. Apple Intelligence will launch this fall and coincide with the September release of Apple's newest iPhone, its first smartphone designed with a focus on AI. The coming iPhone is among just a few products with access to Apple Intelligence, as the generative features will be reserved for the company's newest devices. Apple's AI strategy is designed to encourage consumers to upgrade their current devices, which could lead to a significant earnings boost in its next quarter. In addition to potential stock growth from AI, Apple will release its Q3 2024 earnings at the beginning of August. Recent reports have indicated a possible jump in iPhone and Mac sales this quarter, which could lead to a turnaround for the company's product segments after a recent slump. As a result, it could be worth investing in Apple's stock now before earnings season and the launch of its next iPhone. The company's shares are trading at 35 times its earnings, indicating they're not exactly a bargain. However, that figure has come down over the last week. Meanwhile, Apple's long-term potential suggests its stock is worth its premium price, making it worthy of buying this year.