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Now Is the Time to Buy Stocks: Experts’ 3 Top Picks

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The future of the U.S. economy appears promising, marked by significant investments and rapid industrial growth. President Biden’s policies are revitalizing American manufacturing, particularly in green industries and microchip production, aiming to bring these crucial sectors back from China. While there are concerns about rising debt and inflation, the positive indicators, such as record-low unemployment and substantial investment in advanced technologies, paint a hopeful picture for sustained growth. Despite challenges, the U.S. economy’s transformation is poised to bolster domestic industries, offering a blueprint for economic revitalization.

Knowing that the economy will continue to be very strong, investing in the stock market makes a lot of sense. The only question is which stocks will deliver the best returns. Read more to find out why experts say these three stocks are top picks to buy.

Spotify Technology (SPOT)

Close up view of a smartphone with Spotify (SPOT) logo on display. Laptop and headphone on background. New technology, social media, network, liquid music concept.

Source: Fabio Principe / Shutterstock.com

Spotify Technology (NYSE:SPOT), the Swedish giant music streaming service, has been a household name for years. For the past year, however, the company has translated its brand recognition into profits, as seen by its $300 SPOT stock price, with over 25 analysts recommending it as a strong buy.

SPOT capitalized on the success of the music streaming industry in recent years, which is projected to bring in $29.6 billion in 2024. Expected to rise to $33.97 billion by 2027, the industry has a three-year compounded annual growth rate (CAGR) of 4.7% with solid revenue expectations. Spotify is expected to be the primary beneficiary as it is the market leader with a 31.7% share.

In the first quarter of 2024, Spotify reported financial growth across the board. Starting with revenue, Spotify announced it generated $3.64 billion in sales or a 19.53% increase year over year. Additional successes were noted in net income and diluted earnings per share (EPS) of $197 million and 97 cents, respectively, equating to increases of over 180% year over year. Spotify outperformed industry estimates in the past quarter.

Part of the success achieved in Q1 was outlined through acquiring and maintaining its user base. Though Spotify already has the most extensive customer base in the industry, lifting free users to paid memberships has been a critical detail in Spotify’s plans. In previous quarters, Spotify consistently increased both its user base and premium subscription membership. Current users stand at 236 million, up 31 million in the past year alone. Constant growth, while also captivating users, has allowed Spotify to achieve consistent success in operations in the past year. This will continue through 2024.

Ford Motor (F)

Ford dealership sign against a blue sky.

Source: D K Grove / Shutterstock.com

Ford Motor (NYSE:F) is an American multinational vehicle manufacturer based in Dearborn, Michigan. Henry Ford formed and founded the company on Jun. 16, 1903. The company sells cars and commercial vehicles under the Ford brand.

In Q4, Ford achieved robust sales growth, with total vehicle sales reaching almost 2 million, a 7.1% increase from the previous year. Strong performance in trucks, electric and hybrid vehicles underscored Ford’s market leadership, as shown by its stock price rising by 6.67% year-to-date (YTD) and trailing gross profits of $15 million.

Ford’s February 2024 report unveils an 81% surge in all-electric vehicle (EV) sales, with 6,368 units sold. This shift underscores a strategic move towards electrification, as EVs now constitute 3.8% of Ford’s total volume. Despite challenges like production adjustments, Ford’s momentum is sustained, especially with the success of models like the Mustang Mach-E and F-150 Lightning paving the way for future growth and infrastructure collaborations.

Ford is one of the top picks, ready to ride the EV boom in the coming years. 23 analysts give this stock a buy rating.

Amazon (AMZN)

Amazon LOGO ON THE SIDE OF A BUILDING.

Source: Sundry Photography / Shutterstock.com

Amazon (NASDAQ:AMZN) is an online retailer focusing on B2C (business-to-consumer) sales. In addition to the retail side, AMZN operates Amazon Web Services, or AWS. It also produces the Kindle, consumer-centric technology under the “Fire” brand, and Ring. It also has Amazon Prime, a subscription-based service that leads to a stable source of revenue. Its stock is currently priced around $185, with a market cap of $1.9 trillion. AMZN stock is up 24.77% YTD as of the market close on May 14.

AMZN saw steady revenue growth last year, with year-over-year (YOY) quarterly growth of 12.5%. However, coming off a lackluster fiscal year in 2022, YOY quarterly earnings growth is much more impressive at 228.8%. It has a profit margin of 6.38%, with a relatively high operating margin of 10.68%. Additionally, nine analysts have suggested an average price target of $226.66, representing growth of 21.16%. 

Future growth and leadership changes make AMZN a stock to watch, but it remains a great buy — this is evident from the fact that over 60 analysts have made it a strong buy.

On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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