Experts and investors are bullish on U.S. stocks at this point. For example, multi-billionaire Ken Fisher recently called on investors to avoid selling their stocks. In fact, he says, “Bull markets typically have a long way to run after breakeven points—often with big returns.” Fundstrat’s Tom Lee said the August jobs report was “supportive of (a) #softlanding = good for #equities.” Even JPMorgan increased 3,239 of its equity positions and only decreased 2,528 of its holdings. Given the bullishness of these experts, I believe that now is a great time for long-term investors to buy the best forever stocks. These stocks are very well-positioned to thrive over the long term, regardless of what happens to the economy.
Best Forever Stocks: Salesforce (CRM)
That’s because AI will make the company’s products indispensable for its users. I’ve come to that conclusion after CNBC reported that AI, more than any other tool, can identify the best prospective clients for sales teams to contact. In other words, the technology, using thousands of data points, can determine which companies are most likely to need the products and/or services that a salesperson is pitching.
As a result, CRM’s AI-equipped tools will greatly boost its customers’ top lines. It will also allow them to hire many fewer salespeople, resulting in a healthier bottom line. In addition, CRM has been partnering with IBM (NYSE:IBM) to allow its customers to adopt the latter firm’s AI offerings.
General Electric (GE)
General Electric (NYSE:GE) has plenty of powerful catalysts in front of it. For one, there’s the travel boom. Two, it’s seeing increased popularity of air travel. And it’s also seeing an expansion of wind power, and increased utilization of electricity. While the travel boom in the developed world is likely to slow, the other trends will probably only intensify.
Evidence of these trends abound. For example, in April Airbus (OTCMKTS:EADSY) decided “to build a second assembly line at its factory in China,” and Air India in February ordered a record 500 jets. The use of wind power is rapidly growing in the U.S. the EU and many other countries, and Elon Musk recently forecast that U.S. electricity demand would ” triple by around 2045,” while America would face an electricity shortage in 2025.
Early next year, GE is expected to split into an aviation firm and a power/wind power/grid company. I recommend that investors hold onto the shares of both of those companies, which will both be among the best forever stocks to own.
Best Forever Stocks: Lululemon (LULU)
Lululemon’s (NASDAQ:LULU) top and bottom lines continue to grow rapidly. Specifically, the apparel maker’s top line climbed 18% last quarter versus the same period a year earlier to $2.2 billion, while its income from operations soared an impressive 19% year-over-year. Impressively, the company’s revenue from its women’s, men’s, and accessory products jumped 16%, 15%, and 44% year-over-year, respectively. Those data points indicate that all the main facets of the company’s business are growing rapidly.
Better, according to Winsight Grocery Business, the Amazon Clinic “could be a big challenge to supermarkets and drug stores, which capture more than four out of every five shoppers in the (pharmacy) space.” In addition, on Amazon’s Q1 earnings call, CEO Andy Jassy noted that the traditional process of obtaining prescription medicine has been quite onerous. He also believes Amazon can make the prescription process far more streamlined, with telemedicine offerings.
Meanwhile, Morgan Stanley is predicting that Amazon’s cloud infrastructure unit, AWS, will announce additional AI features during its “AWS re: Invent” event, which is slated to take place on Nov. 27. That could be a significant, positive catalyst for AMZN stock.
Best Forever Stocks: Workday (WDAY)
Workday’s (NASDAQ:WDAY) subscription revenue just jumped 19% versus the same period a year earlier to $1.62 billion. Better its total subscription revenue backlog soared 32.5% year-over-year to $17.85 billion. The company also raised its fiscal 2024 subscription revenue guidance to a new range of $6.57 billion to $6.59 billion, which would be about 18% year-over-year growth. It also expects to post third-quarter subscription revenue of $1.67 billion to $1.68 billion, or 17% growth, as noted by Seeking Alpha.
Helping, Citi analyst Steven Enders just raised his price target on the WDAY stock to $247 from $220. He says that despite a challenging environment, the company is still executing in an “impressive” fashion, adding that, “Profitability and cash flows were solid, helped by both the top line upside and timing of expenses/collections.”
Axon (NASDAQ:AXON) is a leading provider of police body cams, software, and markets Tasers. For understandable reasons, given the tremendous controversy and very expensive lawsuits that police departments’ actions can trigger, body cams and Tasers have become ubiquitous among police officers. Given the company’s strong brand and the fact that it’s very well-entrenched with many of the company’s largest police departments, it’s highly likely to continue to be very successful going forward.
In its most recent quarter, the company posted EPS of $1.11, which beat expectations by 49 cents. Revenue – up about 31% year over year to $375 million – beat expectations by $24.54 million. It also raised its full-year revenue forecast to a new range of $1.51 billion to $1.53 billion. That’s higher than the company’s prior guidance for a range of $1.44 billion to $1.46 billion.
First Solar (FSLR)
First Solar (NASDAQ:FSLR) is one of the world’s leading makers of solar panels. It’s also benefiting from the large subsidies that the U.S. is providing to solar panels manufactured in America. Granted, the market is currently bearish on solar power because high-interest rates have stifled the growth of U.S. rooftop solar. But utility-scale solar, which represents the lion’s share of the demand for new solar panels, is still thriving.
In its most recent earnings release, the company posted EPS of $1.59, which beat estimates by 65 cents. Revenues – up about 30% year over year $811 million – batboy $91.59 million. Going forward, FSLR expects to see net sales of $3.4 billion to $3.6 billion, as compared to expectations of $3.46 billion. It also expects to see EPS of $7 to $8, as compared to estimates for $7.24.
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