Despite inflationary pressures, several companies beat expectations and reported strong revenue numbers, setting the tone for the third quarter. So now it’s time to rebalance your portfolio. These must-buy stocks could report impressive second-quarter earnings results and rally in the coming months.
This quarter saw Nasdaq and S&P 500 soaring to new highs. And if this momentum continues, investors could see their favorite stocks hitting new 52-week highs. Additionally, the market is expecting a rate cut in the coming quarter. The S&P 500 has already reported 11% gains and expects to move higher. With that in mind, let’s take a look at the three must-buy stocks before the third quarter.
Nvidia (NVDA)
Industry darling Nvidia (NASDAQ:NVDA) steadily reported blowout quarterly results and made several investors wealthy. The stock split is an opportunity to add the stock to your portfolio as it trades at $120 today. And if you always thought that the stock was expensive, now is your chance to pounce.
As long as the demand for AI chips continues to rise, Nvidia is set to benefit. It has a massive backlog of orders, and no other company has been able to come close to its market domination. Governments and private organizations are afraid of falling behind the race and are lining up to get their hands on AI chips. It has incredible prospects and new opportunities.
It has launched the Blackwell chips, which are expected to generate significant revenue for the company this year. In the first quarter, the company reported a 262% jump in revenue to hit $26.0 billion and a 78% rise in the gross margin. It saw a 427% rise in revenue from the cloud computing segment! The management is aiming for revenue of $28 billion in this quarter.
While it may not be possible for the company to see another rally like it did in 2023, there is a big chance of it steadily moving upward. You might not get another opportunity to buy Nvidia stock below $150.
Apple (AAPL)
iPhone maker Apple (NASDAQ:AAPL) hasn’t had a good start to the year. A drop in China sales, which led to a revenue dip, has impacted the stock. It has remained flat over the past six months and is trading for $207 today. A turnaround may be imminent to turn Apple upward again.
Also, Apple announced significant updates at the WWDC24 event held this week. One of the biggest moves is the push toward artificial intelligence (AI), termed Apple Intelligence. Also, it unveiled a big Siri update which will allow users to use text for Siri. The company will integrate OpenAI’s ChatGPT in iPhone, so the partnership with OpenAI could be a game changer. Indeed, it could boost iPhone sales globally.
Moreover, Apple enjoys massive brand loyalty which it allows for its continual growth despite high inflationary pressures. However, as the economy improves, the company could see increased sales numbers. Additionally, its service segment is growing at an impressive rate with a 14% jump in the recent quarter.
The stock has had a tough time but it looks like the worst is over for the company. Buying Apple stock in the dip is a smart move and could set you up for significant gains.
Amazon (AMZN)
Trading at $187, Amazon (NASDAQ:AMZN) stock is a solid bargain. It could soar to $200 and beyond in the third quarter and the sooner you buy it, the bigger your gains. I have been writing about e-commerce giant Amazon for a long time now and love the business’ expansion over the years.
As one of the biggest e-commerce companies, Amazon makes a significant amount of revenue by offering a wide range of products to consumers. It will have a Prime Day Sale in the first week of July, which will boost revenue. Additionally, Amazon holds the largest market share in cloud computing today. With the soaring demand for cloud, this segment is set to expand. Amazon Web Services (AWS) saw a 17% jump in revenue in the recent quarter while the advertising segment was up 24%.
Furthermore, the company is growing its healthcare business and this could mean a significant boost to the revenue. It has a partnership with Eli Lilly & Co. (NYSE:LLY) for the delivery of its weight-loss treatment, Zepbound. It has several other deals with pharma companies to ensure same-day delivery of drugs to more than a dozen cities by the end of this year.
The company impressed investors with solid results in the past two quarters so expect the same from the Q2 result. The stock is up 24% year-to-date (YTD) and very close to the 52-week high of $191. Amazon is one of the hottest and must-buy stocks this month.
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.
Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.