Equity markets took a significant plunge on Monday, Aug. 5. Of course, that’s no reason for long-term investors to panic. We are still technically in a bull market, and whether or not equities continue to dip, the drop might create opportunities to pick up shares of great stocks from the discount bin. Which corporations should investors consider investing in while they are down?
Here are two worthy candidates: Apple (NASDAQ: AAPL) and Visa (NYSE: V). Find out why these two companies will likely be long-term winners regardless of what the market does in the short run.
1. Apple
Apple’s shares were down by about 5% on Monday. Though that doesn’t sound like a lot, considering we are talking about a stock worth more than $3 trillion, that’s tens of billions of dollars. Apple’s performance has been somewhat volatile for much of the year. It did not perform well through the first five months due to several headwinds, including slow iPhone sales in China, disappointing financial results, an antitrust lawsuit, and its perceived failure to keep up with its tech peers in the artificial intelligence (AI) race.
However, the company’s shares have rebounded in the past couple of months, partly thanks to its AI-related announcements during its developers conference in early June. How will things evolve for the tech giant through the end of the year? No one knows for sure, and that’s not a question of particular interest to long-term investors. The company’s prospects, though, remain strong. That’s what matters most. First, Apple’s financial results have improved.
In its latest reporting period, the third quarter of its fiscal year 2024, ended on June 29, Apple’s revenue grew by 5% year over year to $85.8 billion. Its earnings per share (EPS) of $1.40 were up 11% compared to the year-ago period. Revenue from its high-margin services segment was up 14.1% year over year to $24.2 billion. Second, Apple showed that it isn’t out of the AI race. The company’s nifty new AI features — which it dubbed Apple Intelligence — will be available to iPhone users (starting with the 15 Pro) and…
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