When it comes to tracking the performance of the U.S. stock market, the Dow Jones Industrial Average (DJINDICES: ^DJI) is one of the three major indexes alongside the S&P 500 and Nasdaq Composite. While the Dow Jones is a smaller index compared to its peers, consisting of just 30 of America’s largest companies, it still provides valuable insights into the market trends.
Despite lagging behind the S&P 500 and Nasdaq Composite in the past decade, the companies within the Dow Jones index still present great investment opportunities. If you’re looking to add high-quality companies to your portfolio, consider the following two Dow Jones stocks that have the potential to soar in 2024 and beyond.
1. Amazon (NASDAQ: AMZN)
Amazon is more than just an e-commerce giant. With impressive expansion into various industries, Amazon has solidified its position as a big tech giant. The company’s revenue from North American and international segments alone surpassed that of major retailers like Target. Additionally, Amazon’s successful cloud business, Amazon Web Services (AWS), contributes significantly to its revenue.
As the world’s most-used cloud platform, AWS provides a profitable business model for Amazon. With the addition of AI capabilities and machine learning models, Amazon is positioned to maintain its market leadership in the long run. Despite its current price-to-sales ratio, Amazon’s potential for growth justifies its valuation for long-term investors.
2. Apple (NASDAQ: AAPL)
After reclaiming its title as the world’s most valuable public company, Apple has faced challenges in its iPhone sales, which impact its overall financial performance. However, with global smartphone sales projected to rebound and the growth of Apple’s services segment reaching record revenue, there is optimism for Apple’s future.
Apple’s services segment offers higher margins and subscription-based revenue, making it a reliable complement to its hardware products. As Apple expands into industries like finance and health, it strengthens its ecosystem and enhances user integration. With a track record of success and strong leadership from CEO Tim Cook, Apple remains a top contender for long-term investments.
These two Dow Jones stocks, Amazon and Apple, showcase the potential for growth in 2024 and beyond. By understanding their business models, revenue streams, and market positions, investors can make informed decisions to capitalize on opportunities in the stock market.
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