The U.S. economy is showing promise for a positive future with a potential productivity boom. Recent data suggests increased productivity due to technological advancements, lower inflation, a surge in innovative entrepreneurship and hybrid work models. This trend could lead to sustained economic growth, higher wages and other positive outcomes. Although confidence may take time to solidify, current indicators point towards a positive trajectory for the U.S. economy. These key tech stocks for new investors will deliver profits no matter the economic situation.
Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) emerges as an attractive investment option within the dynamic software sector. Functioning as a comprehensive software company, Microsoft excels in developing and supporting an extensive range of software, devices and services. Over the past year, MSFT has demonstrated robust performance, posting an impressive 62.91%growth.
Microsoft has a 12-month median price target of $465.00, reflecting a 14.10% increase from its current value of $407.26. This aligns with the upward trajectory of the global information technology market.
In Q2 2024, Microsoft reported robust financials. The company registered a revenue of $62 billion and net income of $21.9 billion, marking increases of 18% and 33% YOY, respectively. This growth is largely attributed to the strategic scaling of artificial intelligence deployments, such as its collaboration with OpenAI.
Recently MSFT struck a partnership with Mistral AI to accelerate AI innovation by granting Mistral AI access to Azure’s cutting-edge infrastructure, fostering commercial growth, global expansion and collaborative research. The collaboration focuses on supercomputing infrastructure, market scaling through Models as a Service and joint AI research and development. Invest in MSFT for high returns now and long into the future.
Apple (AAPL)
Apple (NASDAQ:AAPL) is a premium technology provider and has recently acquired a significant foothold in the complementary SaaS market. It is a sector leader, providing product-based solutions to personal, private and public markets.
Apple’s quarterly earnings have regularly surpassed expectations by sizable margins, leading to 39 analysts predicting an upside of 11.1%. It maintains a profit margin of 26.16%, with an EPS of 6.42. Insiders and institutions hold 62.62% of total equity showing market confidence, validated by a return on equity of 154.27%.
The SaaS sector’s valuation is expected to be $908.21 billion by 2030, with the technology sector projected to hit $12.4 trillion, with a CAGR of 18.7% and 8.3% respectively. In 2023, Apple had a revenue of $383.28 billion, with SaaS taking up $85 billion, and iPhone sales contributing $200 billion. However, it’s important to note the lower profit margins on iPhone sales. Along with this, Apple has supposedly been testing a ChatGPT-esq AI program called “Ask”. Combined with the release of a preliminary version of Apple Vision, Apple is clearly innovating and looking to expand into new markets.
Apple has held steady for the last few years, and at the current, lowered valuation, is a great pick for investors who are starting to build their portfolios.
Mastercard (MA)
Mastercard (NYSE:MA) is a worldwide payment technology corporation specializing in payment transaction processing. It is valued at $472.21.
MA has shown superb financials including boasting a revenue growth of 12.87% YOY. Both these metrics are excellent being 155.48% and 154.88% larger than the sector median respectively. The gross profit margin was also adequate at 100%. These metrics indicate MA is growing while turning an immense profit and is valuable in a portfolio.
The digital payment industry is valued at $3,073 billion as of 2024 and is projected to expand at a CAGR of 10.73% with estimates of it being valued at $4,620.00 billion by 2028.
Mastercard serves 210 countries, many of which have emerging economies and still use cash. As these economies digitize, MA’s presence will allow it to gain market share and, thus, elevate profits. MA has recently been approved to process payments in China, a dominant economy with a large-scale population. Overall, if MA capitalizes on its market grasp internationally and maintains its substantial financials it has the prospect of making investors rich, inclining me to give it a “Buy” rating. New investors should hop on the train early as they will bask in the profits when all is said and done.
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.