The best US stocks to buy in 2024 include technology giants. The US stock market, commonly called the world's biggest and most liquid market, consists of various stocks in which an investor can take a stake to diversify their portfolio and improve returns. As the world economy recovers from the post-pandemic environment, finding the best US stocks to buy in 2024 has been a significant focus for Indian investors. This guide presents a detailed account of the best US stocks you can buy in the next year to offer exceptional returns.
What are US Stocks?
US stocks are public equity securities of companies based in the United States or those that generate a significant portion of their revenue in the US. They are listed and traded on the NYSE and the Nasdaq, among others. By holding a US stock, investors own a portion of the underlying company, providing them access to the financial activity and value generated by US corporations. US stocks form a widely favored investment choice due to offering a share in the world’s largest economy and business innovation driven by US companies. For individual investors, venturing into a portfolio comprised of diversified US stocks is an effective way to accrue wealth over the long term and gain exposure to the online potential of the American public market.
Top 10 US Stocks in India
Hence, for Indian investors looking to get their feet in some of the most innovative and resilient companies globally, investing in the best US stocks in 2024 appears to make an attractive candidate. In addition, their superior strength, solid business model, and financial performance suggest they are well-positioned for long-term expansion. This brings us to a more detailed assessment of the top US stocks to invest in 2024.
1. Apple Inc. (AAPL):
Apple is one of the leading examples of innovation in the technology industry and is well-known for its unprecedented products and services. The company’s primary products are iPhone, iPad, and Mac computers, among others, as well as digital services and software. Apple is keen on providing excellent design, user experience, and product ecosystem integration, and it has built a vast customer base and serviceability across the globe. The multiple-year revenue growth, strengthening services area, product ecosystem, and leading position in the technology industry, investing in Apple is a wise decision for those looking to benefit from the robust future growth expectations.
● Apple Inc. (AAPL): $306.52B Liabilities, $351.02B Assets, $21.05B CapEx, 0.66% Div Yield, 8.2 Sector P/B, 1.8% Sector Div Yield
2. Microsoft Corporation (MSFT):
CEO Satya Nadella has successfully revived Microsoft from a struggling software behemoth to a rising diversified technology juggernaut. While its old Windows OS and Office productivity suite remain the company’s bread and butter, Microsoft’s Azure cloud solution has been its key growth driver lately. Microsoft’s direction to the cloud is particularly urgent because consumers and enterprises are embracing the cloud more than ever before. This strategy choice will help the company grow its sales and boost shareholder value.
● Microsoft Corp. (MSFT): $290.89B Liabilities, $424.69B Assets, $19.86B CapEx, 1.01% Div Yield, 8.2 Sector P/B, 1.8% Sector Div Yield
3. Amazon.com, Inc. (AMZN):
Amazon has profoundly changed the face of the retail and technology sector. The company’s e-commerce platform has forever changed shopping habits, and its cloud computing arm, Amazon Web Services, is currently a leading provider of efficacious cloud infrastructure services. Moreover, Amazon also does digital streaming, artificial intelligence, and logistics, giving it a bright future. There is a growing move to online shopping and cloud-based services. Amazon should see significant positive impacts from that transformation, thus making its shares attractive.
● Amazon.com Inc. (AMZN): $335.35B Liabilities, $493.98B Assets, $62.73B CapEx, N/A Div Yield, 8.2 Sector P/B, 1.8% Sector Div Yield
4. Tesla, Inc. (TSLA):
Tesla’s aspiration to accelerate the world’s exposure to sustainable energy made it a leader in the electric vehicle sector. The company’s achievements in creating innovative automotive design, battery technology, and energy storage solutions have proven to stand out. Tesla has faced difficulties getting its products to the market on time and competition from established car manufacturers. However, it is still a driving force of disruption in the automotive industry. The charismatic CEO of Elon Musk and the company’s focus on cutting-edge disruption make Tesla a good investment position for people who believe in the future of clean transport and green energy.
● Tesla, Inc. (TSLA): $62.43B Liabilities, $112.55B Assets, $9.36B CapEx, N/A Div Yield, 8.2 Sector P/B, 1.8% Sector Div Yield
5. Johnson & Johnson (JNJ):
is a diversified healthcare business that produces pharmaceuticals, medical devices, and consumer health items. Johnson & Johnson is a well-known individual name in the healthcare world, with a tradition of innovation and concern for individuals. Johnson & Johnson has encountered legal difficulties and regulatory setbacks in recent years. However, the company’s recognition and product line for well-known names helps ensure a strong foundation for a spin. As consumers demand more health products and services, spin is well-positioned to grab the trend and give value to shareholders.
● Johnson & Johnson (JNJ): $109.97B Liabilities, $178.06B Assets, $5.96B CapEx, 2.55% Div Yield, 5.2 Sector P/B, 2.3% Sector Div Yield
6. Exxon Mobil Corporation (XOM):
Exxon Mobil is a leading company in the oil and gas sector. It runs various subsidiaries across the exploration, production, refining, and distribution sectors. Despite the challenges associated with the walk to renewable energy production, fossil fuel companies such as Exxon Mobil will play a central role in meeting the ever-growing global energy demand. This is possible by increasing operational efficiency, minimizing costs, and substantial investments in technological projects. Moreover, its investments in regulated renewable energy sources and Carbon capture technologies propose a commitment to sustainability and cleaner energy.
● Exxon Mobil Corp (XOM): $131.14B Liabilities, $321.76B Assets, $16.59B CapEx, 6.45% Div Yield, 1.7 Sector P/B, 4.1% Sector Div Yield
7. Walmart Inc. (WMT):
Walmart is the largest retailer globally, comprising numerous outlets, websites, and membership-based stores. The firm has competed rigorously against top online retailers such as Amazon to continue being a leading retailer. Walmart has invested in e-commerce, an omnichannel retail approach, and an efficient supply chain to meet market demand and changing client needs. Furthermore, the company prefers providing low prices and convenient shopping.
● Walmart Inc. (WMT): $251.53B Liabilities, $264.39B Assets, $10.98B CapEx, 1.54% Div Yield, 5.2 Sector P/B, 2.3% Sector Div Yield
8. Meta Platforms Inc.: Meta Platforms Inc., formerly known as Facebook, Inc., is a global technology company that develops social media and other digital products and services. The company operates some of the world's most popular social media platforms, including Facebook, Instagram, WhatsApp, and Messenger.
Meta's business model is primarily driven by digital advertising, with the company's extensive user base and targeted advertising capabilities allowing it to generate significant revenue from advertisers. The company has continuously invested in developing new technologies and features to enhance user engagement and expand its reach across various digital platforms.
● Meta Platforms Inc. (FB): $142.50B Liabilities, $162.83B Assets, $32.00B CapEx, N/A Div Yield, 8.2 Sector P/B, 1.8% Sector Div Yield
9. JPMorgan Chase & Co.: is a leading global financial services firm and one of the largest banking institutions in the United States. The company provides a wide range of financial products and services, including retail banking, commercial banking, corporate and investment banking, asset management, and wealth management.
As a diversified financial services conglomerate, JPMorgan Chase operates in various segments, including Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking, and Asset & Wealth Management. The company's extensive global footprint, strong brand recognition, and diverse revenue streams have contributed to its position as a dominant player in the financial services industry.
● JPMorgan Chase & Co. (JPM): $3,170.00B Liabilities, $3,912.00B Assets, $13.23B CapEx, 2.64% Div Yield, 1.1 Sector P/B, 3.5% Sector Div Yield
10. Visa Inc. (V):
The world’s largest payment processing network, Visa, enables electronic transactions between consumers, merchants, and financial institutions. As the global economy moves towards digital payments and increased e-commerce, Visa will profit from rising transaction volumes and payment solution adoption around the globe. Additionally, the firm has been investing highly in technology and cybersecurity and expanding internationally, reinforcing and restraining its standing in the global payments market. Given that consumer behavior is constantly changing, Visa’s mission as a trustworthy intermediary in the digital economy has never been more vital, and the stock should be bought.
● Visa, Inc. (V): $29.65B Liabilities, $73.88B Assets, $1.12B CapEx, 0.72% Div Yield, 8.2 Sector P/B, 1.8% Sector Div Yield
Why Invest in Top US Stocks?
Investing in the top US stocks can offer several compelling benefits for investors:
● Access to Industry-Leading Corporations: The US stock market comprises the largest, most innovative, and most successful corporations in the world in many significant sectors, including technology, healthcare, finance, consumer goods, and more. Investing in the top US stocks offers exposure to the industry leaders driving global trends and will be responsible for shaping the future.
● Potential for Stronger Long-Term Returns: The US stock market has produced healthy returns throughout history, outperforming other developed markets on average over time. The S&P 500, which tracks the performance of the 500 largest US publicly traded companies, has returned on average over 13% annually throughout the previous decade. It offers the potential to benefit as the top US stocks set the pace for upward growth.
● Diversification Benefits: a commitment to US stocks as part of a broader diversified investing strategy offers diversification benefits. Coastal assures consumers they are fully diversified because it can boost risk across multiple industries worldwide.
● Liquidity and Transparency: The US stock market is the world's most significant and most liquid. Investors can easily trade their positions due to the overall market and buy and sell holdings. Additionally, the US stock market has a high level of transparency and regulation, which increases investors' trust in their investments.
Factors to Consider Before Investing in US Stocks
The following factors play a significant role when investors consider investing in US stocks:
● Company Fundaments: This factor consists of a company’s financial situation, income and earnings growth, competitiveness, the quality of the management team, and long-term growth potential. The investor must see the business in which he bought shares grow.
● Valuation Metrics: A stock should be valued by specific fixed metrics, such as a price-earnings ratio, price-book ratio, price-sales ratio, and other metrics. The stock you bought should not be expensive according to its intrinsic value and profit potential.
● Industry Trends: A look at the industry, where the company is located, and the growth position in the industry. Then, they look at the factors that affect this industry, peculiarly known and destructively known children, and how a corporate person can navigate them.
● Overall economic conditions: Monitor the macroeconomic conditions and indicators integrating with interest rate, market volatility, inflation, and GDP growth. US stocks are susceptible to macroeconomic metrics; thus, the investment strategy should be realigned considering the current US economic conditions.
● Risk appetite and horizon: Analyze the risk and horizon of investments to ascertain whether the good US stocks would meet the financial targets and risk policy. Few may favor long-term horizon-seeking growth, while others are intended for short-term and high-risk-averse investors.
Thus, investing in the essential considerations is vital to reach the best US stocks.
Conclusion
Ultimately, investing in the top US stocks presents a compelling opportunity for investors looking to gain exposure to the world’s leading companies, benefit from superior long-term growth prospects, and diversify across the world’s largest and most liquid equity market. Considering that every bull market is different, and the current bull cycle may end, the appropriate return to history remains important. Nevertheless, conducting comprehensive research, examining essential fundamental factors, and matching one’s investment with the desired risk profile and objectives is vital. Investors can create a well-defined portfolio leveraging American public market strength and dynamism by carefully selecting the best US stocks to invest in based on growth prospects, financial stability, and valuation attractiveness.
