If you’re planning to invest a considerable sum in the stock market, take a look at the following businesses first. These elite enterprises are proven wealth builders, and their stocks are all smart buys today.
Microsoft
If you’re searching for a low-risk way to profit from the growth of artificial intelligence (AI), look no further than Microsoft(NASDAQ: MSFT). Thanks in part to its collaboration with ChatGPT-maker OpenAI, the technology titan is well positioned to deliver AI-fueled gains to its shareholders.
Since making a multibillion-dollar investment in OpenAI in early 2023, Microsoft has worked fervently to integrate the AI upstart’s state-of-the-art tech into its popular products and services. By infusing AI into software like Outlook, Word, Excel, and Teams, Microsoft is helping the hundreds of millions of people who use these tools become more productive and efficient.
The cost savings and innovation benefits are potentially enormous for the businesses and individuals who adopt AI. In turn, demand for the cloud services that power AI is projected to surge. The global cloud computing market will grow by roughly 18% annually to $2.5 trillion by 2032, according to Acumen Research and Consulting. Here, too, Microsoft stands to benefit. With its Azure cloud platform an established leader in this booming industry, Microsoft is set to profit handsomely from the rapid growth of the cloud market in the decade ahead.
Eli Lilly
For the nearly 70% of American adults who are obese or overweight, Eli Lilly‘s (NYSE: LLY) new anti-obesity drug could be life-changing. These weight-related conditions tend to increase a person’s chances of suffering from dangerous illnesses like diabetes and heart disease. Eli Lilly wants to help people live longer and healthier lives by making it faster and easier to lose excess weight.
The healthcare giant’s once-weekly injection for chronic weight management in adults, Zepbound, works by activating hormone receptors that lessen appetite. The results can be staggering. Participants who received the highest dose of the treatment lost an average of 48 pounds during a 72-week clinical study.
Better still, people who took Zepbound and followed a reduced-calorie diet and exercise plan saw their cholesterol and blood pressure profiles improve. Additionally, tirzepatide, the active ingredient in Zepbound, has been shown to improve glycemic control in adults with type 2 diabetes. These results suggest that Eli Lilly’s weight loss drug could have positive effects on several important health markers.
The healthcare leader’s earnings, in turn, are expected to soar by over 50% annually over the next half-decade, according to Yahoo! Finance. Invest today, and you can claim your share of Eli Lilly’s future profits.
Costco Wholesale
If you’d like to add a defensive stock to fortify your diversified portfolio, consider Costco Wholesale(NASDAQ: COST). Bargain-hunting shoppers appreciate the discount retailer’s low-priced wares, while investors prize its steadily growing sales and profits.
Costco offers one of the most compelling shopping experiences in all of retail. Curated, quality merchandise and ultra-low prices appeal to increasingly cost-conscious consumers. A constantly shifting assortment of goods for sale adds a treasure hunt-like dynamic to further allure customers.
Costco’s popular membership program provides another reason for people to shop at its stores. Paying a membership fee incentivizes people to maximize their return on investment by shopping at Costco — and boosting their savings by taking advantage of its low prices — as much as possible.
Moreover, the company’s membership fees comprise the lion’s share of its profits. These profits, combined with the retail giant’s tremendous scale, are what enable Costco to offer such affordable prices.
With an ever-rising number of shoppers set to frequent its stores in the coming years, Costco’s stock is a terrific buy today.
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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale 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.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
