Q1 Winners: S&P 500 Stocks Ready to Rocket on Stellar Earnings

Q1 Winners: S&P 500 Stocks Ready to Rocket on Stellar Earnings

There wasn’t a better time to be a stock investor. The market looks hopeful, with the Nasdaq and S&P 500 hitting new all-time highs. As the economy shows signs of improvement and inflation continues to cool, we could see a strong movement in the stock market. There are a few S&P 500 stocks to buy which have reported impressive quarterly results and are ready to skyrocket. 

These are well-established companies with a solid growth runway and have already proved their strength in the past. If you are looking for long-term buy-and-hold stocks, this is your chance to consider the top three S&P 500 stocks to buy before they hit new 52-week highs amid the ongoing rally. 

Microsoft (MSFT)

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The one tech giant that never disappoints, Microsoft (NASDAQ:MSFT), is a buy-and-hold forever. Trading at $430, MSFT stock is up 15% year-to-date and 29% in the past 12 months. The stock is moving towards $500 and is soon to soar beyond it. It has grown 247% in the past five years. 

Microsoft reported a 17% year-over-year revenue jump to hit $61.9 billion in the recent quarter and a 20% YOY growth in the net income. The company has invested heavily in artificial intelligence (AI) and integrated it into various products and services.

Microsoft Cloud remains the biggest revenue generator for the company, with a 21% jump to hit $26.7 billion. It has the second-largest market share in the industry after Amazon (NASDAQ:AMZN). As businesses transition towards cloud computing, this segment is set to expand.

The tech company also saw an improvement in personal computing revenue, up 17% YOY. Microsoft is positioned to benefit from the increasing penetration of AI across industries. 

It recently announced a new category of computers known as the Copilot Plus and a new Surface Laptop amidst other exciting announcements. I think Microsoft has set a strong momentum for the year’s second half and could be soaring beyond $500 very soon. 

Amazon (AMZN)

Closeup of the Amazon logo at Amazon campus in Palo Alto, California. The Palo Alto location hosts A9 Search, Amazon Web Services, and Amazon Game Studios teams. AMZN stock

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Up 22% in the past six months and 20% YTD, Amazon stock is exchanging hands for $180. It has gone from $150 at the beginning of the year to $180 today. It is more than an e-commerce business and has diversified across multiple industries.

Its two biggest segments, Amazon Web Services (AWS) and advertising, have shown an impressive rate of return in the first quarter, with the cloud computing segment showing a 17% YOY rise while the advertising segment is growing 24% YOY.

The company reported a more than 200% jump in the operating income to hit $15.3 billion and saw the net income triple to $10.4 billion. Amazon reported a strong fourth quarter driven by holiday sales and followed it with an even better first-quarter.

The company has the largest market share in the cloud computing segment and enjoys a leading position in the e-commerce sector. The integration of AI will benefit multiple sectors and allow Amazon to see improved e-commerce sales, higher advertising revenue and a surge in cloud revenue. 

AMZN stock has been outperforming the market and will continue to do so. It is a solid buy before it hits $200. 

Nvidia (NVDA)

Nvidia (NVDA) company logo displayed on mobile phone screen

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Industry darling Nvidia (NASDAQ:NVDA) needs no introduction, and no, it isn’t cheap, but it is worth your money. Having reported a blowout quarter, Nvidia impressed the market with stellar growth, driven by the growing demand for AI chips. 

A millionaire maker stock, there is no stopping Nvidia’s rally. It is up 121% YTD and 21% in the past month. Trading at $1,064, the stock surpassed the $1,000 mark after announcing the first-quarter results

It reported a revenue of $26 billion, up 262% YOY, and announced a ten-for-one stock split. This stock split is a great opportunity for investors to add the stock to their portfolio. While the stock split does not impact the company’s valuation, it becomes easier for investors to own a stock. 

The company reported a record quarterly data center revenue, which was up 427% YOY to reach $22.6 billion, and the demand for AI chips doesn’t seem to slow down at all, which means investors should be ready for such quarters.

Its Blackwell platform is ready for the next five years of tremendous AI growth as an industry leader. Buy Nvidia stock to make the most of the AI hype. 

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.

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