The stock market has done incredibly well in 2024 and Standard & Poor’s 500 It’s up 25% year-to-date. Fortunately for investors looking to inject capital into the market, things calmed down in December, with the S&P down 1% since the beginning of the month. Looking deeper, some companies are facing challenges that have caused their stock prices to decline.
Hoping for a discount in stock price is only part of the equation for finding the best stocks to buy. Investors should also look for companies with competitive advantages and strong track records of success. The short-term challenges have created opportunities to buy shares in these two companies at a discount.
For investors with $1,000 to put to work in the market, buying one or both of these stocks could be a wise decision.
If you opened a PDF file, you used a Adobe (Nasdaq:ADBE) project. Although this ubiquitous file type may be Adobe’s most popular application, the company’s creative suite is the primary driver of financial results. Products like Photoshop and Premiere Pro are industry standards for creative fields, even as competition increases over time.
Evidence of Adobe’s position in the market is evident in its financial results. Like all businesses, there are sometimes short-term bumps in the road, but over the long term, Adobe has been remarkably consistent. Consider revenue, net income, and… Free cash flow Over the past five years.
While Adobe’s track record is impressive, the investment is about the future and the biggest potential disruptor to Adobe’s market dominance artificial intelligence (Amnesty International). Many tasks that creators might do within Adobe products can already be automated by AI, and AI’s capabilities are growing every day.
Adobe has chosen to embrace this new technology and has worked hard to integrate its AI product, Firefly, into its software suite. Instead of looking at AI as a replacement for Adobe products, the company believes it can be an adjunct to the creative process by taking care of some of the more menial tasks, freeing up the creator to be creative.
Time will tell how successful this strategy will be, and the market seems to be waiting to find out. Adobe is currently trading for a price-to-earnings (P/E) ratio of 36. Although this is not a cheap multiple, it is lower than Adobe’s five-year average P/E ratio of 47. For investors who believe… That Adobe will be able to harness the power of AI, rather than being disrupted by it, at today’s price could be a bargain.
Very similar to the Dutch company Adobe ASML (Nasdaq: ASML) It is a leader in its industry. ASML manufactures the lithography machines needed to manufacture all semiconductor wafers. When it comes to the most advanced semiconductors, ASML is the only company in the world that makes the extreme ultraviolet (EUV) lithography machines needed for these cutting-edge chips.
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