Finding the best forever stocks to buy can be a very daunting task. But more often than not, investors overcomplicate this search. When you first start investing, you may not know what direction to take or what to look for.
A company’s revenue growth can be a good indicator of future potential, but it will not give you the whole picture. It is important to consider factors like how long has the company been around, do they have a strong moat, and do they have predictable cash flow? Or you can look at the company’s balance sheet and EPS growth. All of these factors matter when choosing to make the decision to hold a company indefinitely.
Now, let’s discuss the 3 best forever stocks to buy for December!
Qualcomm (NASDAQ:QCOM) is an American multinational semiconductor company headquartered in San Diego, California. They are one of the leading suppliers of semiconductor infrastructure for the telecommunications sector.
This year was a transformative year for semiconductor companies like Nvidia (NASDAQ:NVDA) making strides in artificial intelligence. However, you can’t say the same for Qualcomm as they have largely underperformed the booming semiconductor sector. But things are starting to make a turn for the better as Qualcomm ramps up investments in generative AI. Last month, QCOM announced the release of the Snapdragon X Elite. This best in class CPU will run generative AI models with over 4X faster AI processing than its competition. Qualcomm still appears to be cheap with a forward P/E of 14.49. Investors now have a unique opportunity to snap up shares before the new year.
Alphabet (GOOG, GOOGL)
Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) stock is on a tear this year and 2024 is likely to be another transformative year. They’re slowly inching their way up as a top player in the AI revolution. The stock is up more than 50% year-to-date, and their advertising revenue is set for double digit growth.
It is no surprise that Alphabet stock is outperforming the S&P 500 yet again. In Q3 2023, Alphabet’s revenue swelled to $76.7 billion. Operating income skyrocketed 28% year-over-year (YOY) to $21.3 billion, driven by continued momentum in the cloud. The company is making serious strides in Google and YouTube, driving advertising revenue growth. But what is getting investors excited is Alphabet’s new Gemini AI model. On December 7th, the company announced the launch of a new AI model to compete with OpenAI, the creator of ChatGPT. With the new bull market set, Alphabet is one of the best forever stocks to buy in December.
Microsoft (NASDAQ:MSFT) is a leading multinational technology company and one of the largest software companies in the world. They are most commonly known for their Windows and Microsoft 365 product suite.
Over the last decade, Microsoft has honed in on its Azure cloud platform. The market opportunities in cloud computing and artificial intelligence were too big to ignore. In their latest quarter, Microsoft’s cloud revenue increased 24% YOY to $31.8 billion. This increase was driven by the company’s strategic investments in AI driving productivity gains for its customers. Azure and other cloud revenue also grew by 29% in the quarter. It is clear that Microsoft’s ability to rapidly deploy AI across all levels of its tech stack have been working. With the AI revolution at its infancy stages, Microsoft’s well diversified business makes them positioned to weather any storm.
On the date of publication, Terel Miles did not have (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.