If you’re preparing to invest a significant amount of money in the stock market, say $10,000, the following companies should be at the top of your consideration list. These two high-quality businesses are proven wealth creators, and their shares are strong buys today.
So if you have $10,000 that isn’t needed to pay down short-term debt, bolster an emergency fund, or pay monthly bills, you might want to put it toward either (or both) of these top stocks.
Microsoft
When it comes to investing, risk is not always commensurate with reward. Microsoft (NASDAQ: MSFT) — with its cash-rich balance sheet, diversified revenue streams, and staggering profitability — is arguably one of the safest stocks in the market today. Yet its returns to shareholders, even in recent years, have been breathtaking.
Microsoft helped to usher in the era of personal computers (PCs) with its popular and highly lucrative Windows operating system. Now, thanks in part to its multibillion-dollar investment in ChatGPT-maker OpenAI, the tech juggernaut is leading the world forward into the age of artificial intelligence (AI).
Microsoft is infusing cutting-edge AI into its wide array of cloud-based software offerings. Its AI-powered “Copilots” are bringing notable efficiency gains to its millions of customers. Roughly 70% of Copilot users have reported that the AI tools are increasing the quality of their work and making them more productive.
AI is also boosting demand for Microsoft’s Azure cloud computing services. AI models are often trained in the cloud, and the applications built on top of these models are typically delivered via the cloud. Microsoft is thus well-positioned to serve a central role as a key AI enabler. We’re already seeing evidence of this. Azure’s revenue surged 30% year over year in the quarter ending Dec. 31, fueled by demand for AI solutions.
All told, AI-related sales could boost Microsoft’s annual revenue by more than $80 billion and lift its per-share profits by over $5 by 2028, according to investment bank Evercore. That would be a substantial jump even for this tech titan. For context, Microsoft generated revenue and earnings per share of $228 billion and $11.06, respectively, over the trailing 12 months.
Eli Lilly
Being obese or overweight could increase your chances of experiencing serious medical conditions like diabetes and heart disease. Eli Lilly (NYSE: LLY) wants to help people lose excess weight and live healthier lives while delivering fortune-building gains to its investors along the way.
Analysts at Goldman Sachs see a $100 billion market for anti-obesity drugs by the end of the decade. Eli Lilly’s Zepbound is expected to be one of the top sellers in this fast-growing segment of the healthcare industry.
Zepbound is a once-weekly injection that can help adults manage their weight by suppressing their appetite. During a 72-week clinical trial, people who were given the highest dose of Zepbound lost a whopping 48 pounds on average.
Furthermore, study participants who received the treatment and followed a diet and exercise regimen saw favorable changes in blood pressure and cholesterol. The active ingredient in Zepbound, tirzepatide, has also been shown to improve blood sugar levels in adults with type 2 diabetes.
Due to these potential benefits, sales of Zepbound are expected to turbocharge Eli Lilly’s earnings growth. The healthcare giant’s per-share profits are projected to rise by 45% annually over the next five years. Consider buying shares today, and you, too, could profit from the likely blockbuster success of Eli Lilly’s new anti-obesity treatment.
Should you invest $1,000 in Eli Lilly right now?
Before you buy stock in Eli Lilly, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Eli Lilly wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
*Stock Advisor returns as of March 21, 2024
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The Best Stocks to Invest $10,000 in Right Now was originally published by The Motley Fool