We recently published a list of Top 8 Stocks To Buy In 8 Different Sectors for the Next 3 Months. In this article, we are going to take a look at where Amazon.com, Inc. (NASDAQ:AMZN) stands against other top stocks to buy in 8 different sectors for the next 3 months.
On November 25, the stock market saw a significant surge, with the Dow Jones Industrial Average jumping 440 points to a new record close of 44,736.57. The S&P 500 also reached a new high, gaining 0.3% to 5,987.37, while the Russell 2000 index, which focuses on small-cap stocks, hit an all-time high, increasing 1.47% to 2,442.03. The Nasdaq also rose, closing 0.27% higher at 19,054.84. CNBC reported that the market’s strong performance was attributed to President-elect Donald Trump’s nomination of Scott Bessent, the founder of Key Square Group, as Treasury secretary. Investors are optimistic that Bessent, a hedge fund manager, will be supportive of the equity market and help mitigate some of Trump’s protectionist policies, such as his stance on tariffs.
US Stocks Poised for Continued Growth
In an interview with CNBC on November 25, Brian Belski, Chief Investment Officer at BMO Capital Markets, expressed his bullish stance on the US stock market, stating that it remains the best asset in the world. He emphasized that despite the negativity and doubts surrounding the market, his team has consistently maintained a bullish stance since 2009.
Belski pointed out that many investors are too focused on valuation, which he believes is the world’s worst metric for predicting forward performance. Instead, he emphasizes the importance of earnings growth consistency, where the US is expected to outperform other regions.
He also highlighted the potential for catch-up growth in the financial sector, particularly in the areas of scale, asset managers, and discretionary spending. His team’s research suggests that earnings in the US financial sector are massively understated, and he expects a big catch-up trade on the earnings front.
Regarding valuation, Belski dismissed the idea of assigning a specific valuation metric, such as a P/E ratio, as simplistic. Instead, his team uses a macro P/E longer-term trend and a dividend discount model to evaluate the market. He believes the S&P 500 can reach 6,700, driven by US growth and earnings consistency.
Brian Belski has been bullish on small-cap stocks for well over a year and believes small-cap stocks are a good value play. He also implies that small-cap stocks are undervalued, citing various valuation metrics such as price-to-sales, and price-to-book, as well as operating metrics such as return on assets and return on equity. He suggests that these metrics indicate that small-cap stocks are a good value investment opportunity.
The US stock market continues to show resilience and strength, with the Dow Jones Industrial Average and S&P 500 reaching new highs. The nomination of Scott Bessent as Treasury secretary has injected a sense of optimism into the market. With the market’s strong performance and positive outlook, investors are well-positioned to take advantage of the current trend. With that in context, let’s take a look at the top 8 stocks to buy in 8 different sectors for the next 3 months.
Our Methodology
To compile our list of the top 8 stocks to buy in 8 different sectors for the next 3 months, we used Insider Monkey’s database to research stocks in 8 different sectors. We picked stocks from different sectors that were the most popular among elite money managers. The final list is ranked in ascending order of the number of hedge fund holders, as of Q3 2024.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Why Amazon.com, Inc. (AMZN) is the Top Stock to Buy in 8 Different Sectors for the Next 3 Months?
A customer entering an internet retail store, illustrating the convenience of online shopping.
Amazon.com, Inc. (NASDAQ:AMZN) is a global e-commerce and technology company, through Amazon Web Services (AWS). The company has transformed the retail industry and continues to broaden its influence through innovative technology and logistics. The company offers convenience, fast delivery, and an extensive product range.
On October 31, Amazon.com, Inc. (NASDAQ:AMZN) released its financial results for the third quarter ending September 30. The company reported net sales of $158.9 billion, reflecting an 11% year-over-year increase, and a remarkable $15.3 billion in net profit, a 54.54% rise compared to the third quarter of 2023.
Amazon.com, Inc. (NASDAQ:AMZN) has announced a significant investment in its Delivery Service Partner (DSP) program. In North America, the company is investing $2.1 billion, whereas in Japan, Amazon.com, Inc. (NASDAQ:AMZN) is making an investment of $161.95 million to support last-mile delivery innovation, safety, and technology for drivers.
Amazon.com, Inc.’s (NASDAQ:AMZN) pharmacy arm, Amazon Pharmacy, is accelerating its rollout of new pharmacies, aiming to offer fast and free delivery of prescription medications, by the end of 2025, nearly half of US customers are expected to be eligible for Same-Day Delivery of their prescription medications.
Overall, AMZN ranks 1st on our list of top stocks to buy in 8 different sectors for the next 3 months. While we acknowledge the potential of AMZN to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
