When considering the fact that there will be slow economic growth in the U.S in coming quarters with some expecting mild recession, it is important to note that some economists around the world are predicting slow economic growth just like this in the US. Finding stable growth stocks may be difficult for investors due to high interest rates. Since early 2023, growth stocks have outperformed value stocks and many investors believe this will continue when the Federal Reserve cuts its interest rates eventually.
Apple, famous for its iPhone, iPad, Apple Watch and Mac computers also has an important services segment which contains items such as the App Store, Apple Music and iCloud. Analyst Angelo Zino sees Apple as a strong long-term investment because its margins are improving, it has a connected ecosystem, AI opportunities and growing market.
Nvidia, a fancy chip designer, has grown immensely in stock over the last fifteen years. On a yearly basis, there was a growth of 262% in revenue for Nvidia’s first fiscal quarter while its net income increased by 628%. Analyst Zino points out the company’s expanding market and opportunities ahead concerning software and AI.
The parent company of Google and YouTube – Alphabet, is a monster in online search as well as advertising. For the second quarter, Alphabet announced a growth of 13.6% in revenues, with Google Cloud revenue growing by 28.8%. According to Zino, Alphabet will maintain a minimum revenue growth of greater than 10% until 2025 thanks to the improvements in AI that will enhance Google’s ad ecosystem and its cloud services.
Broadcom is the global provider of analog semiconductors. According to an analyst Zino, Broadcom will gain a great deal from the investments in AI infrastructure. He anticipates that the networking part of Broadcom and other parts will bring in $11 billion worth of revenue for fiscal year 2024. Additionally, Zino states that VMware integration has been going on well with improving margins and financial visibility.
Earlier this month, JPMorgan Chase flagged its intentions to assume control over First Republic Bank as part of its push into the realm of banking mergers and acquisitions. Over the past few quarters, this institution has consistently reported a growth rate in revenues that is greater than 10%. Kenneth Leon (an analyst) predicts that revenue will increase by 19% in 2024 and 1.1% in 2025.
Visa, the world’s largest credit card issuer, owns the most extensive electronic payment network on the planet. Analyst Alexander Yokum is glowing about Visa’s inventive nature and anticipates a rise in demand for its services. He thinks that Visa will keep benefiting from the progressive attrition from cash and that additional value-added services can be provided by the company.
Mastercard stands out among other companies that provide credit cards and payment services. Its net income rose by 15% while its revenues increased by 11% in the second quarter. The company’s management team is recognized for being very professional which makes it transparent according to Yokum who also believes that in future earnings would probably grow more than the revenue by 4% each year.
The platform for video streaming that rules the roost, Netflix has 277 million customers who pay for its service. In the second quarter, Netflix released an increase of 8 million subscribers and a revenue boost of 16.8%. According to analyst Kenneth Leon, Netflix is the best online streaming medium and is anticipated to widen its margins while increasing revenue in double digits for the next few years.
T-Mobile is the second largest U.S. wireless company. The analyst Keith Snyder predicts that T-Mobile will outshine rivals such as Verizon Communications and AT&T Inc. because of its impressive churn levels and capacity for generating free cash flow. In addition, the advanced 5G technology deployed by T-Mobile provides it with a competitive edge over other carriers.
As a major bank in America, Wells Fargo concentrates in enhancing operational efficiency and shareholder returns. According to Yokum, an analyst, there are prospects for share buybacks, although the bank’s exposure to commercial real estate has dropped by 22 percent within four years which constitutes risks. The analyst also anticipates that 2025 will be the year when EPS growth comes back.