Reprint: The US stock market is frighteningly high! But these two stocks are still on the ground, ready to take off!
Copyright Notice: This article is excerpted from YouTube https://www.youtube.com/watch?v=eaKKIFlQuJU, and the copyright belongs to the Youtuber.
U.S. stocks are frighteningly high! But these two stocks are still on the ground, ready to take off!
Los Angeles Wu Yanzu Online Talks Stocks
Recently, many friends have complained to me that the U.S. stock market is so high now that they are really developing acrophobia. I have a lot of cash in hand, but I don't know which stocks to buy. It's a frustrating feeling to have a pocket full of bullets but not dare to shoot. I completely understand; I would feel the same if I were in your shoes.
A friend said, "Old Li, the stocks you recommended, like Tesla and NVIDIA, PLTR, are indeed good stocks, but their prices have already taken off and are very high, so I don't dare to take action." Can't you tell us about some stocks that are relatively low in price and still have potential for the future?
Today, we will talk about two potential stocks
Today, I want to talk about two stocks that are relatively low in price but are likely to rebound and take off in the future. Before we get into the main topic, let's take a look at my account performance as per international practice.
Account Performance
Today's overall account performance is good; our main forward, Tesla, has started to surge again, scoring goals and completing a hat trick. Today, Tesla rose by 3.8%, and my total account assets reached $227,500.
First Stock: Google (GOOG)
Speaking of Google, some friends might ask: Google also has a stock called GOOGL; what’s the difference between the two?
In simple terms, GOOGL is Google's Class A stock, while GOOG is Google's Class C stock. The difference is that Class A shares have voting rights, while Class C shares do not. However, for us retail investors, this distinction is not significant, so we will use GOOG as an example in our discussion today.
Stock Price Trends and Current Situation
In terms of stock price trends, Google's stock price has risen the least among the "Magnificent Seven" (the seven tech giants). Moreover, over the past few years, Google's overall performance has lagged behind the three major U.S. stock indices.
Google's stock price has remained relatively stable, mainly due to being embroiled in antitrust lawsuits. It's strange to say, but which of the seven tech giants is not in a monopolistic position? Although all have faced antitrust investigations, Google has faced the most severe pressure.
Latest Antitrust News
Just yesterday, the U.S. government proposed to break up Google, demanding that it sell the Chrome browser. As soon as this news broke, Google's stock price fell by a cumulative 6% over two days. But how significant is this event's actual impact on Google? Analysis
Google's Chrome browser is valued at approximately $15 billion to $20 billion. If we calculate based on Google's total revenue of $33.985 billion in 2024, Chrome's value accounts for about 5.88%. However, based on Google's current market capitalization of $2.04 trillion, Chrome's share is only 1%.
Therefore, from the data perspective, the market reaction seems somewhat "excessive." However, the strategic significance of Chrome cannot be overlooked, as it plays an important role in market dominance, user base, advertising ecosystem, and artificial intelligence distribution.
Current Valuation and Investment Opportunities
• Google's current Trailing PE is 22.45, Forward PE is 19.08, and PEG Ratio is 1.06.
• Analysts have set a target price for Google over the next year at $204.93, which leaves significant upside potential compared to the current stock price of $166.6.
Second Stock: Coca-Cola (KO)
Every time I mention Coca-Cola's stock code KO, I think of boxing matches, where "KO" means knocking out the opponent. In the past two months, Coca-Cola's stock price has experienced a noticeable pullback.
Dividends and Long-term Investment
• Coca-Cola is a true dividend "cash cow," having achieved dividend growth for 61 consecutive years.
• The current dividend yield is 3%+, making it a very solid stock for long-term investors.
Buffett and Coca-Cola
Buffett began buying Coca-Cola stock in 1988 and built his position over 6 years. To this day, he still holds this stock and has never sold it.
Investment Strategy
Coca-Cola's current stock price is around $63, and it may be worth considering building a position in batches at this level. If the stock price pulls back to around $61, further accumulation can be considered.
Conclusion
Today, we discussed Google (GOOG) and Coca-Cola (KO), both of which are high-quality stocks. Their current prices are relatively low, making them very suitable for long-term investment. These two stocks are stable and reliable, ideal for those who have cash but are experiencing fear of heights
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
