Category: Top Stocks for Buy and Hold

What are the stocks for buy and hold? You’ll don’t know that until read our articles. Here you can find the list and suggestions of many stocks that can have great potential in the future. Let’s say, something with great potential for further technological developments can be profitable for investors. For example, the companies involved in developing 5G. Traders-Paradise reveals what 5G stocks will get an increase.
Also, you’ll find a list of the telecom companies in the advanced stages of developing 5G wireless networks.

But not that only.

This section of the Traders-Paradise website aims to present to you the stocks under, for example, 5 dollars per share that have pretty great potential. We believe that no one needs too much capital to start investing. Anyone can do it with a little money. These cheap stocks, for example, because of their nature, these stocks may provide you great returns but large losses too. And Traders-Paradise’s team explained both solutions. We are doing that with all subjects we are writing about.
This is the right place where you can find accurate and comprehensive information about new companies, their fundamentals, how did they start, all possibilities for investing in them. These are truly the best stocks to buy and hold forever. At least, in this section, you’ll find valuable data that you can use as inspiration for future investing.
All pioneers in some industry will find their place here, under the pen of Traders-Paradise’s writers and analysts. Wish you happy investing.

Alibaba Stock Could Deliver Strong Growth in 2020

The economic environment is encouraging, the company is paying attention to its development, there is no reason to think that BABA isn’t able to deliver a strong growth next year.

Alibaba stock could deliver strong growth in 2020 valuing the company’s fundamentals. This company has a big challenge to surpass eventual issues due to the trade war between the US and China. But it looks like a possibility of “phase one” trade agreement is just around the corner.
Reversing tariffs on both sides, which will be included in phase one, should boost consumer demand in China. Boosting demand should increase the sympathy for BABA stock.

The company has recorded a 40% year-over-year revenue growth in the latest quarter. Also, the results for the past several quarters were good. In the cloud segment, it had 64% growth year-over-year.

This put together, make Alibaba stock a strong buy for 2020. And here is why.

The economic environment is encouraging for Alibaba stock

The most difficulties of trade are behind two countries now, since phase one of the trade war deal is completed. The fact is that 2020 is an election year in the US and no one wants to upset the voters.

On the other side, the fact is that China’s economy is slowing. Well, yes, but its GDP is increasing by 6% in the 3rd quarter. Moreover, retail sales jumped 8% in November, which is the sign that Chinese citizens have increased consumers’ demand based on better personal financial status.

Moreover, Nike’s (not only Nike’s but also some other US-based companies) sales in China jumped 23% in the last quarter, so Chinese buyers like to spend money on high-end products. This is a good sign for Alibaba too.

With the rollout of 5G mobile e-commerce could increase even faster which is also important for Alibaba. So, Alibaba stock could deliver strong growth in the year ahead.

Alibaba improves algorithms to sell ads

Alibaba earns by selling ads companies and apps. It has adjusted and improved algorithms that help companies sell to buyers. For example, it improved desktop paid-search ranking algorithms, mobile monetization app, and desktop search personalization.

Alibaba’s New Retail business

Alibaba points to its brick-and-mortar stores as a “new retail” business. It unites those stores with the company’s direct sales. Alibaba’s core commerce revenue grew by 40% per year to $14.2 billion last quarter. Due to the acquisition of NetEase’s Kaola e-commerce, Alibaba’s “other” of the total revenue increased by 125% to $2.5 billion.
Also, Alibaba’s core commerce revenue only grew 29% annually which indicates that the company more dependent on the growth of its brick-and-mortar stores.

Alibaba stock

Since the first news of trade tariffs, more than a year ago, BABA had lower price growth of the stock. But its twelve-month revenue has increased by 70%, while earnings per share have increased by 135%, during the same period.
Completion of a “phase one” trade deal should give an immediate boost to Alibaba stock and grow the investors’ opinion of the company. Alibaba could reach a $10 billion annual revenue by the end of next year. This would improve Alibaba’s stock.
The company continues with a stable stock growth. Analysts foresee its revenue to rise 29% and earnings to rise 23% next year. That is the extraordinary growth rate.

However, investors should be conscious that Alibaba’s main business is depending on lower-margin operations, to push its top-line growth.

Alibaba’s core wholesale commerce business is sustaining the record strong growth. Alibaba’s revenue growth has been superior in comparison with JD.com, its main rival in China. So, Alibaba stock could deliver strong growth in 2020. Keep an eye on this stock.

26th December 2019
Roche Got European Commission’s Approval For Kadcyla

Kadcyla is medicine for the adjuvant treatment of people with HER2-positive early breast cancer with the residual invasive disease after neoadjuvant treatment.
Roche stock price rose for more than 21% over the past 12 months

Roche on December 19 has announced that the European Commission has approved Kadcyla for the after-surgical treatment of patients with HER2-positive early phase breast cancer. Kadcyla is a single agent for treatment HER2-positive patients metastatic breast or lymph nodes cancer.

According to Levi Garraway, Roche’s Chief Medical Officer and Head of Global Product Development, this approval of Kadcyla from the European Commission “will allow many more women with HER2-positive early breast cancer to be given a transformative treatment that may cut the risk of their disease returning or progressing.”

The purpose of neoadjuvant treatment is to make tumors smaller thus enhances surgical results. Adjuvant treatment helps to eliminate any residual cancer cells and reduce the risk of cancer returning. Patients who have the remaining disease after neoadjuvant treatment have a worse prognosis and this drug should help them to improve the chances of longer and normal life.

The good results of treatment with Kadcyla are well-known in the US where women are already been treated with this drug. The US Food and Drug Administration approved this treatment on May 4 this year. Kadcyla is approved in 27 countries for the treatment of early breast cancer phase. It is recommended by the St. Gallen International Breast Cancer Conference, the NCCN and the AGO.

Learn more about breast cancer

Roche stock

Roche stock price (SIX: RO, ROG; OTCQX: RHHBY) has risen more than 21% over the past 12 months. During that time, Roche Holding AG got two approvals of new treatments for breast cancer. Kadcyla and Perjeta, both came from the large oncology drugs portfolio at Roche’s Genentech group.

So, Roche Holding AG’s stock price is higher than it was 12 months ago, with a return of about 6.4% in the same period. Moreover, it looks like it can hold up for the long-term. For investors, it may seem like very good news. But, the long-term returns were 17% over the three years. It wasn’t too much.

And Roche Holding had a Total Shareholder Return (TSR) of 25% for the last year. That beat its share price return. This is mainly a result of its dividend payments!

Roche Holding has paid shareholders with a TSR of 25% in the past twelve months. The dividend is included. As we can see the TSR for one year is better than for 3 years, which means that the Roche stock is running better in the more recent period.

The share price momentum continues strong, and it might be worth paying attention to this stock. At the time of writing (December 20), the price of Roche (RHHB) stock is $39.38 and data shows that the asset price is in an uptrend for the past 12 months with a further rising trend. That may drive the price up to $46 or $47 in the next 12 months.

The current consensus among analysts is to buy stock in Roche Holding AG.

About the company

Roche is a pharmaceutical and diagnostics company, the largest biotech company in the world. This combination under the roof of one company made it the leader in personalized healthcare.
Its products are aimed at oncology, infectious diseases, immunology, ophthalmology and diseases of the CNS. Roche is famous for in-vitro diagnostics and tissue-based cancer diagnostics. Also, it is a leader in diabetes treatments.

The company is founded in 1896. Since then, more than thirty drugs developed by Roche are in the World Health Organization Model Lists of Essential Medicines.
By the Dow Jones Sustainability Indices (DJSI), Roche is for 11 years one of the most sustainable companies in the pharmaceutical industry.

Its headquarters is in Basel, Switzerland. Last year, Roche invested around $11.2 billion in R&D and posted sales of almost $58 billion. In the US, Genentech is a wholly-owned member of the Roche Group. Also, Roche is the majority shareholder in Chugai Pharmaceutical, Japan.

20th December 2019
Shopify The Fast-Growing Large-Cap Stock

Shopify Inc shares have more than tripled in the past year. On Wednesday, Shopify shares were up by an extra 3.4% above $400.

Shopify (NYSE:SHOP) is the fast-growing tech stock.
If you are looking for growth stocks this particular stock is outstanding. Five years ago Shopify went public and provided to many investors a real wealth. But it is not the end. This stock is likely to give more.

Shopify’s rise has been truly beautiful to investors. This commerce platform went public in May 2015 and today its shares are up unbelievable 1,400%.
Its annual GMV rose from $3.8 billion in 2014 to more than $41 billion in 2018, and grew 50%, to $225.0 million this year, driven by the growth of Gross Merchandise Volume. Its revenue rose from $105 million to above $1 billion.
The great thing with Shopify is that the number of merchants that use Shopify’s tool will continue to grow. The reason is clear, e-commerce is growing and will more and more.

Shopify is a leading global commerce company that offers easy for entrepreneurs to begin a business at just $9 per month.

Why Shopify is better than Amazon?

As a difference to Amazon, Shopify gives retailers to have own brands on the packaging, so their customers can recognize them. This is a great advantage for merchants and provides Shopify with a fast increase share in the industry. You have to admit that it is better than “powerful” Amazon. Shopify may easily become a master of the game. Don’t underestimate this feature – a new fulfillment network.

Shopify prepares and sends its retailers’ products over the U.S. It uses ML technology to optimize its catalog and minimize transportation costs. It is extremely helpful to small businesses but the benefit is on Shopify’s side too. Its management values that small businesses represent a $70 billion opportunity. And Shopify just started to enter that field.

By helping smaller retailers to grow their businesses, Shopify could become a more large company.

Third-quarter financial report

On October 29, Shopify Inc issued Q3 2019 Financial Results.

– Total revenue in the third quarter was $390.6 million, a 45% increase from the equal quarter in 2018.
– Subscription Solutions revenue grew 37% to $165.6 million. This increase was made by growth in Monthly Recurring Revenue1 (“MRR”) and to an increase in the number of merchants joining the platform.
– Merchant Solution’s revenue grew 50%, to $225.0 million
– MRR as of September 30, 2019, was $50.7 million, up 34%. Shopify Plus gave $13.5 million, or 27%, of MRR compared with 24% of September 30, 2018.

– GMV for the third quarter was $14.8 billion, which is an increase of $4.8 billion, or 48%, over the third quarter of 2018. Gross Payments Volume3 rose to $6.2 billion
– Gross profit dollars grew 45%, to $216.7 million
– Operating loss for the third quarter of 2019 was $35.7 million, or 9% of revenue
– Net loss for the third quarter of 2019 was $72.8 million, or $0.64 per share, compared with $23.2 million, or $0.22 per share, for the third quarter of 2018.
– Adjusted net loss for the third quarter of 2019 was $33.6 million, or $0.29 per share.
– Shopify had $2.67 billion in cash, cash equivalents, and marketable securities. The increase reflects $688.0 million of net proceeds from Shopify’s offering of Class A subordinate voting shares in the third quarter of 2019.

Shopify’s stock price

Shopify’s stock isn’t cheap, currently, it is $396.94. But it is the essence of growth stocks, they are expensive. But profit comes from mighty global trends that are driving its growth.

Shopify’s current market capitalization is $45 billion. If you invest today in this company you will have fairly big gains in the future.
Shopify has had a great year. It surpassed the number of 1,000,000 customers, launched a new fulfillment network, and increased its outlook for annual revenue. Yes, the stock is up 165% this year.

The bright future for Shopify

Shopify is forecasted to grow revenue at 44% in 2019 to $1.55 billion. That is 7.5 times its revenue in a period of 4 – 5 years. Its extraordinary growth put the company in a third-place (measuring a share of e-commerce sales over the last year) just after Amazon and eBay. Traders Paradise thinks that it will be the second place very soon, and will be ranked in front of eBay.

The company is spending its profits very smart to improve the platform and on acquisitions which provides new growth. Shopify invested $1 billion to implement a fulfillment network that is more merchants-friendly than Amazon’s. The company is investing in its operations and don’t expect to be profitable soon. This e-commerce platform holds $2.7 billion in cash and securities, so it has enough space to fund its businesses.

We can see that even when some company becomes giant, it has a lot of space to grow more.

If you already bought this stock, hold it since the new increase is very possible. If you still didn’t invest, it’s time.

19th December 2019
Vanguard Health Care Index Fund ETF Shares (VHT)

Healthcare ETF is good for investors with less risk tolerance
Vanguard Health Care Index Fund ETF is one of the largest in the stock market

Vanguard Health Care Index Fund ETF is focused on stocks in the U.S. health care sector. It is managed by Vanguard and is covering health care stocks in the U.S. stock market. It is a big fund that holds shares of 388 companies. The Fund owns shares of Pfizer Inc, Merck & Co, AbbVie Inc., Johnson & Johnson, UnitedHealth Group Inc., and Abbott Labs. Its 10 top holdings account for almost 45% of the portfolio. But the fund has an extremely good diversified portfolio. It has holdings in pharmaceuticals, biotechnology, health care equipment, health care, supplies, facilities, services, technology, distributors, and life sciences tools and services.

Healthcare stocks are hot

Everyone needs health care and everywhere. But the main source comes from boomers. We have nothing against them, but the truth is that as people are aging, they need more health care. Correlated with this is the increased demand for medical products. But this isn’t the whole truth.

Also, there is great progress in new technologies that are likely to create great growth for companies in this industry.

For example, pharmaceuticals. You can see drugmakers that are developing new procedures, new methods, and drugs. Today we have personalized therapy, based on personal genetic data for each patient individually. This is especially important for cancer treatment, for example.

Today, biotechs and pharmaceutical companies are practicing gene editing as the treatment for rare genetic diseases.

The healthcare field is huge and connected. For instance, for early diagnosis of cancer, the liquid biopsy is very popular today and accurate. But someone had to develop it. The same is with AIs and robotics, medical device companies are developing new types of high-tech equipment. So many companies are involved to improve healthcare services. Look at the telehealth, it is adopted broadly. We have robots as surgeons. Monitoring patients with chronic diseases out of hospitals is easier than ever.

These products are not aimed at older populations only. Also, we have great progress in aesthetics, skincare, body care, hygiene, etc.

Can you see now why healthcare is a hot zone of interest for investors?

Vanguard Health Care Index Fund ETF Shares

Vanguard discovered the ETFs.

It tracks the performance of the MSCI U.S. Investable Market Index (IMI)/Health Care 25/50.

This ETF has delivered an average annual return of 9.47% since it started in 2004. It has generated average annual returns of 9.78% over the last three years and 9.2% over the last five years.

The Fund’s dividend yield is of 2,1%, the expense ratio 0.10% which is one of the lowest among ETFs.

Vanguard Health Care gives wide exposure. VHT stock is cheap to hold. Its liquidity is strong. The problem is the same as with other Vanguard funds. It is restricted transparency since the holdings are published monthly with 2 weeks delay.

Still, for the long- term investors a reduction of transparency shouldn’t so much important. VHT fell by -0.13% on Thursday, December 5, but rose for 0,69% on Friday, December 6. The current price is $187.93, $1.29 more than the previous one. Daily fluctuation of stock was 0.79%, a day high was $188.50, a day low was $187.02.

During the last 2 weeks, the stock price was shifting up and down but still, the 2-weeks gain was 2.78%.
Since the volume has increased by 47 673 shares on falling prices, you should take this as an early sign of increasing risk in the next several days. Anyway, the price is dropping so it is time to buy it.

According to analysts, the stock is in the upper line of a rising trend in the short term. This can be a very good selling chance for the short-term traders because the move towards the lower band of the trend can be expected.
If the price breaks up the top trend line at $188.45 it is expected to increase by 11.09% in the next 3 months with a price between $195 and $210 at the end of this period.

Bottom line

Investing in a healthcare ETF decreases the risks for investors thanks to a diversified portfolio across various stocks.
Moreover, ETFs can modify their holdings when it is necessary. Also, healthcare ETFs can resist during economic downturns because we will all need medical care no matter if it a crisis or not. But keep in mind, ETFs can drop during the crisis or recession too. They are not immune. But as the lesson from 2008, when some ETFs dropped by two-digit percentages, they had been rising again and did it fast.
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Featured image credit: *Total Shape*

8th December 2019
Walmart Eagerly Awaits Black Friday and Cyber Monday

Walmart is one of the biggest companies in the world and capable to resist the competition.
The stock price dropped but it easily can go up very soon

Walmart (NYSE:WMT) is transforming and this retailer is ready for Black Friday and Cyber Monday. Everything is in place, so shopping can start. These two holidays are a great test for Christmas. After Black Friday and Cyber Monday, the possibility for Walmart’s stock price to rise is real and even before Christmas. The current price is $118.92 and it dropped by 0.37% from the previous price. But the price rose after hours to &118.95.

What makes us think shopping will increase?

First of all, the unemployment rate is lower than in the last 50 years, job growth is stable, salaries are rising. The St. Louis Fed published that the personal savings rate is at 8.3% which is the highest level since 2012. So, Americans will spend their money on holidays, there is no doubt.

The holidays are great for retailers and Walmart plays a big role since it has been transforming and has been aggressively investing in online. Three years ago Walmart bought Jet.com, a US online retailer and took a large stake in the JD.com, online retailer in China.

Walmart grew its annual profit forecast because quarterly earnings beat estimates. Its shares have risen 26% and trade at 24 times earnings.

Well, when it comes to food, Walmart is ready. The grocery is very important for the company’s online business. Walmart customers can purchase groceries online, with unlimited delivery for $98 a year or $12.95 a month.
E-commerce is a field where Walmart can get this holiday season since online shopping is supposed to grow by 14% to 18% gaining $149 billion.

But Walmart has already made profits. Walmart reported third-quarter e-commerce sales rose 41%, driven by growth in online grocery shopping. But Thanksgiving falls on Nov. 28 and the holiday shopping season is shorter by six days. This gives the company less opportunity for sales.

As always there is Amazon, Walmart’s rival. To beat the competition, Amazon announced some beneficial for its Prime members. Not for all, but still the grocery delivery will be free of charge.
Management at Walmart announced the lower prices from electronics to playthings. Walmart, also, has shown that it can balance the other features of its businesses despite the Trade war.

Walmart started offering holiday sales almost a week before Halloween this year. Well, the company called it Early Drop Deals, not Black Friday sales. The company opened its doors for the customers and made their Black Friday purchasing available earlier. Making this, the company actually spread Black Friday’s shopping over more days.

Walmart stock price and its future

Walmart’s stock price dropped by 0.37% on Monday, November 25. Now it has 3 days of dropping in a row. This could be an early signal the risk will be raised somewhat for the next few days and the stock price may slightly drop further.

Walmart is currently in the lower frame of a small and weak rising trend in the short term. This is usually a signal for a good buying opportunity. This short-term trend shows the stock is likely to rise by around 5% in the next 3 months and stay between $124 and $128.

But Walmart stock is a good long-term investment since, as Traders Paradise can see, this stock is going to be profitable over a long period offering the revenue of almost 65%. Speaking about 5-years investment, for example, if you invest $1.000 right now your investment may grow to $1.600 at the end of that period.

Company’s ABOUT

Walmart is one of the most profitable retailers in history. It is one of the most successful and well-known companies in the world.
The company was founded in 1962 by Sam Walton, in Rogers, Arkansas with one store. To the end of 1968, the Walmart chain was expanded outside Arkansas and later opened the stores in every US state. In 1995, Walmart opened its first stores in Canada.
From 1990, Walmart is the largest retailer in the U.S. and began to expand abroad, opening a store in Mexico and opened stores in the U.K., Germany, China.
By 1999, Walmart wasn’t only the biggest private employer in the U.S. but in the whole world. Today it is the 29th company in the world, as Amazon, Alphabet, Microsoft or Apple with a host of Chinese companies, have passed Walmart by.
By the second decade of this century, the chain had increased to over 11,000 stores in 28 countries.

26th November 2019
Procter & Gamble shares jump over analysts estimates

3 min read

Procter & Gamble shares recovered Tuesday. Its earnings exceeded expectations after removing out the influence of the charge. So, this company is looking for fiscal 2020 with more optimism. Procter & Gamble shares have risen nearly 44% over the past year.

The company reported earnings per share $1.10 and expected revenue at $17.09 billion.

Wall Street expectations were different, analysts predicted P&G earnings per share at $1.05 and expected revenue at $16.86 billion.

P&G reported a fiscal net loss in the fourth quarter of $5.24 billion. It is $2.12 per share. Also, they reported the net income of $1.89 billion, or 72 cents per share, for the previous year.

Procter & Gamble problems

The main cause of the loss for the quarter ended June 30 was the one-time cost to write down the value of Gillette. The company $8 billion write-downs of its Gillette brand.

Keep out details, P&G gained $1.10 per share, defeating the $1.05 per share which was the experts’ expectations.

Net sales grew 4% to $17.09 billion, beating predictions of $16.86 billion.

The sales volume of the Gillette brand dropped during the quarter. The same had happened to Braun and the Art of Shaving brands.

Organic sales increased

But its organic sales had a positive result because of the price rises, it increased by 7% over the quarter. Expanded sales in developed countries helped too, Tide and Ariel are very popular in those days.

G&B health-care and beauty products, line SK-II and Olay, also performed well.

The organic sales of Pepto-Bismol and Crest toothpaste jumped up to 10%. Also, the other health care products like Vicks and ZzzQuil increased in the sale.

And, what is interesting, its laundry and dishwasher brands reported sales increase of 10% in the quarter.

The forecasts

The company stated it awaits fiscal 2020 revenue growth by range 3% to 4%. This adds a small negative influence from foreign currency. Wall Street was predicting fiscal 2020 revenue of $69.76 billion, up 3.5% from this year.

Also, Wall Street prediction is earnings per share to rise by 4% to 9%.

“Our guidance range brackets current market growth with a bias toward continued share growth, while still expecting a strong competitive response,” CFO Jon Moeller told analysts on the call, reported CNBC.

The company stated that its current forecast for commodities, foreign currency, transportation, etc. is supposed to end in a “modest net benefit” to earnings growth in fiscal 2020.

Experts were predicting that the company’s adjusted earnings next fiscal year would rise by 5.1% to $4.75 per share.

The beginning and the future

Procter & Gamble was founded as a family business in 1837. It was kind of the family uniting after they married two sisters Olivia and Elizabeth Norris. Both William Procter and James Gamble were immigrants.

Candlemaker Procter, born in England, and soapmaker Gamble, born in Ireland. Of course, the company with their last names was selling candles and soaps at the beginning.

Fun fact: They were sponsors of radio shows all around the US. That’s how the phrase “soap operas” was born. From Ohio all over the world.

Today it is one of the biggest companies on the globe.

How did they come to this?

They operated very smartly, they bought various brands all over the world. Gillette, Old Spice, Max Factor, Crest, Pampers, Ariel, Tide. That is a smart diversification.

This company is employing more than 120,000 people all over the world and own more than 80 brands.

Should you buy their stock? OMG, for sure!

31st July 2019
Microsoft stocks are worth to buy and hold

by Gorica Gligorijevic

Microsoft stock has increased this year which is the great news for investors. It is the most valuable company in the US, which the sparrows on the trees already know. The question is should you buy its stocks? If you want you should hurry. This year it is up 36%. But, more important, Cowen & Co. analyst Nick Yako initiated coverage of Microsoft with an outperform rating and $150 target price.

He recognizes the potential for Microsoft to gain a gradually increasing $100 billion in revenue by fiscal 2025. His prediction is based on Microsoft’s Office 365 and Azure cloud businesses. Yako is expecting those two to be the main growth generators.

Moreover, traders support Cowen’s opinion on Microsoft. Last week on Thursday, it scored a new all-time intraday high of $139.22.

Microsoft stocks will grow more

Not only Nick Yako is convinced that Microsoft stocks will grow. There are other experts too. For example, Pete Najarian from Institute.com truly believes that the great potential for this company comes from its Windows.

“By the way, we all want to say Windows is dead. Windows is not dead. That continues to grow as well,” he said.

The co-founder of Najarian Family Office, Jon Najarian, also recognizes Microsoft as a great potential for growth. But he thinks that it is all about LinkedIn.

“It’s all about LinkedIn for my mind and for my money from here, rather than just focusing completely on the cloud.”

Microsoft bought the LinkedIn 3 years ago for $27 billion. This social network has about 610 million subscribers and its participation in the company’s revenue is more than 5%.

Pete and Jon Najarian are traders.

Pete Najarian is an options trader and market analyst. He is also the founder of optionMONSTER. This company provides market news and trading strategies.

Jon Najarian is the founder of an online brokerage, tradeMONSTER. This brokerage provides trading information through the web without demanding clients to download trading software. It is a rival with other brokerage companies.

Despite this optimism shown, they have some concerns.

Microsoft’s P/E is high which can be “a signal that the stock is getting ahead of itself.” Pete Najarian still holds it’s stock and call options. But he is keeping an eye on the rising valuation.

Microsoft’s share of the market went up to 13% from 10%. But Amazon continues to be the obvious leader with 33%.

Hence, Najarian alerted in his comment for CNBC, “Microsoft is a deep distant second. But if they can claw some of that market share back, then absolutely, I think this stock can go higher.”

Bottom line

The Microsoft stocks hit the $1 trillion level in market capitalization in June. So, we can say that this company stays along with Apple and Amazon.

This pre-internet pioneer of the PC era, Its operating systems, and software are used by computers all over the world. It owns LinkedIn, Skype and GitHub. There are it’s Windows, which is developing, and the Xbox gaming, and also Office 365 businesses. Microsoft is a leader in cloud-computing services, artificial intelligence, and productivity tools. It is a true rival to Amazon and Alphabet’s Google. So, we can say Microsoft stocks are worth to buy and hold.

Microsoft stock has increased by almost 37% until July 11this year. It went ahead of the Nasdaq and doubled the year-to-date earnings for the S&P 500 and Dow Jones industrials.

Microsoft stocks revealed a reasonable buy spot. Its stock has great long-term growth potential.

Generating growth possibilities in the highly competing tech area needs proactive management. Microsoft has it. Its CEO Satya Nadella has succeeded to shift to a business model that focuses on subscription-based products and services with constantly recurring revenue.

The shareholders received a 1,5% dividend yield.

And shareholders in this elite business, who also enjoy a 1.5% Microsoft has a firm cash flow, which is a definite part to consider for dividend investors.

17th July 2019