Smart Stocks To Buy

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Smart Stocks To Buy

2 Smart Stocks To Buy For The Long Term

The market has a lot of great stocks with upside potential. However, there are two particular stocks that you can buy and hold for the long term.

These stocks are Microsoft (MSFT) and Meta Platforms (META). Both are from the tech sector and are trading at relatively low valuations. What's interesting about them is that they have good growth prospects.

Microsoft

Microsoft is a name that needs no introduction. The company has also managed to become a leader in AI infrastructure. It also has close ties with OpenAI, and its revenue growth is around 18%.

The diluted EPS of Microsoft is growing by 23% based on the recent quarter's data. But despite these good numbers, Microsoft is still trading at a forward P/E of 19.3. That's way lower than the S&P 500's forward P/E of 21.5.

So, if you are looking for a solid stock in the US tech sector, then consider Microsoft. It is trading at a low valuation and has huge upside potential.

Meta Platforms

Meta is growing at a fast pace, and its revenue growth is 33% y/y. Most of the revenue growth is coming from Meta's advertising business. Meta has introduced AI tools for advertisers. This has led to higher revenue from the advertising business.

Amidst all of this, Meta is also spending big on AI. The company is spending big money on building AI data centers. However, it still remains to be seen how Meta will make money from this.

But Meta is trading at a very low valuation. Its forward P/E is only 17.5, which is a lot lower than Microsoft! Also, history tells us that Meta has always survived the low periods and emerged as a winner.

Even with all the risks, Meta is still a good stock based purely on its advertising business. So, yet another smart stock pick from the US tech sector is Meta Platforms.

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