It seems like 2023 has literally flown past, and we are finally moving closer to my favorite time of the year, December! With inflation cooling and the economy improving, there is a lot to look forward to. Whether you are a beginner in the world of investing or have tried your luck in stocks throughout the year, now is the perfect time to invest in a few strong buy stocks that can promise a Merry December. Several companies reported results this month and it has given a much-needed boost to the stock market. We have seen post-earnings momentum as well as optimism surrounding the future of the economy. With that in mind, here are the three must-buy stocks for a Merry December.
Walt Disney (DIS)
In its 100th year of business, Disney (NYSE:DIS) didn’t have a good 2023. But while the stock is down, it isn’t out yet. DIS stock was driven to its nine-year low this month, but the quarterly results gave it a much-needed push, and it subsequently picked up momentum. There are several reasons to bet on this stock, and I believe the upcoming holiday season could make it a merry December for you. While the company has been generating strong revenue growth from increasing attendance in its parks, it has been struggling with the streaming platform.
Reliance Industries is close to finalizing a multi-billion dollar stock and cash deal to buy a controlling stake in Disney’s streaming operations in India. That may help the company generate strong revenue from streaming operations. The company plans to achieve profitability in this segment by the end of next year. It added 7 million core subscribers, and its direct-to-consumer revenues stood at $5 billion.
Besides that, the theme parks, its core business, are doing much better than imagined. That sector is resilient and one that will never stop generating revenue for Disney.
In the recent quarter, it reported a revenue of $21.24 billion and an EPS of 82 cents per share. I believe the upcoming holiday season will work as a catalyst for the business. We could see higher attendance at Disneyland and Disney World, which will help the business in the quarter.
The company aims to ramp up its cruise line and theme park investments in the coming decade and has been cutting costs for the same. Trading at $94 today, the stock is down from the all-time high of $197, and there is ample upside potential from here. It is one of the top stock picks for December.
Must-Buy Stocks: Amazon (AMZN)
Amazon (NASDAQ:AMZN) has made a mark across the world and is steadily expanding in different segments. Despite having had an exceptional 2023, the stock looks cheap to me. With the ongoing Black Friday sales and the holiday season upon us, Amazon is set to soar. Trading at $143 today, the stock is up 67% year-to-date and is moving closer to the 52-week high of $147.
In its third-quarter results, the company reported revenue of $143.1 billion, up 13% year-over-year and an EPS of $0.94. With inflation cooling and consumer spending improving, the company’s sales growth was also the fastest rate in the last four quarters.
I believe Amazon is only getting started, and current reports are a sign the business will pick up in the coming quarter. The holiday season is a big and crucial time for the company, and it will be interesting to see how it impacts Amazon’s financials.
One solid reason to bet on this stock is the diversified business, including Amazon Prime. Its Amazon Web Services (AWS) is also a strong revenue generator, and it saw a 12% increase in revenue in the recent quarter to hit $23.1 billion.
The company has also been using AI for a long time now and aims to leverage it to enhance user experience. In fact, it is also one of the top AI stocks to invest in. I think Amazon is ending 2023 in a wonderful position, and there could be plenty of upside from here. It remains one of the dominant e-commerce companies on the planet, and its future is bright. You will never regret owning AMZN stock.
Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) has been in the news for its investments in OpenAI, and it offers the latest GPT 4 technology to the users on its Azure platform. About 18,000 businesses are already using this service, and Azure remains one of the top segments of the company. Besides being one of the most reliable and stable tech companies out there, it looks like OpenAI could mean good news for Microsoft.
OpenAI’s CEO Sam Altman was fired from the company, leading to several employees threatening to quit. Soon after, Microsoft announced Altman would be joining the tech company and head a new AI research division. That was a smart move and means Microsoft has the brightest mind to help the company, in case anything fails with its AI investments.
Microsoft is set to start making money from its AI products and services starting in 2024, and I believe this will improve the company’s financials, which, by the way, are already very impressive. In the recent quarter, MSFT’s revenue stood at $56.5 billion, up 13% year over year, and net income was $22.3 billion, up 27% year-over-year.
Trading at $373, the stock is up 55% year-to-date, and it isn’t cheap. But, with Microsoft, you get what you pay for. In this case, you will enjoy passive income with capital appreciation. Microsoft enjoys a dividend yield of 0.80% and announced a quarterly dividend of $0.75.
On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
