2024 S&P 500 Bull Market: Unveiling 2 Unstoppable Growth Stocks
The S&P 500 index reaching fresh all-time highs as 2024 commences signals a bright horizon for investors in a newly energized bull market. With Johnson & Johnson and Amazon standing out as robust contenders in their respective sectors, these stocks are pegged as prime investment candidates for those seeking to buy and hold for the medium to long term.
Johnson & Johnson: A Pharmaceutical Powerhouse
Johnson & Johnson (NYSE: JNJ), with a longstanding reputation in the pharmaceutical industry, showcased a sturdy performance with net sales amassing $85 billion in 2023, marking a 7% increase from the preceding year. This growth momentum is underpinned by strategic structural alterations, notably the spinoff of its consumer health business into Kenvue, sharpening its focus on more lucrative segments like pharmaceuticals and medical devices.
In 2023, Johnson & Johnson's pharmaceutical sector contributed approximately $55 billion in net sales, supplemented by a 5% operational rise, while its medical device division observed a 12% operational uptick, reaching net sales of $30 billion. The acquisition of Abiomed, a heart pump specialist, further fortified this growth trajectory.
Moreover, Johnson & Johnson solidifies its market presence with the approval of Opsynvi, a groundbreaking treatment for pulmonary arterial hypertension (PAH), capturing a significant share in a $7 billion market. Coupled with an unwavering commitment to dividends, with over six decades of consecutive annual increases, Johnson & Johnson emerges as a formidable choice for those seeking stable long-term investments in the healthcare realm.
Amazon: A Titan of Tech and E-commerce
Amazon (NASDAQ: AMZN) showcases its inherent resilience and adaptability, traversing through the volatile economic landscape to emerge stronger, particularly bolstered by its ventures in e-commerce and cloud computing. A significant leap forward was its $2.7 billion investment in AI start-up Anthropic, aiming to harness advancements in generative AI. This strategic move not only enhances Amazon's AI capabilities but also positions Amazon Web Services (AWS) as a pivotal player in cloud computing services tailored for AI innovations.
Amazon's financial report for 2023 reflects a monumental turnaround with profits surging to $30 billion on net sales of $575 billion, a stark contrast to the net loss reported in the previous year. The colossal 200% increase in operating income, chiefly propelled by AWS, underscores Amazon's robust profitability and dominant market stance.
Amazon's stock, witnessing an 84% uptick over the past year, represents a compelling investment opportunity. With ongoing expansion across various business segments and strategic investments fostering growth, Amazon remains an attractive prospect for those looking to secure a position in a growth-oriented stock for the foreseeable future.
Investors evaluating the 2024 S&P 500 bull market landscape would do well to consider the enduring appeal and growth potential of Johnson & Johnson and Amazon. Both entities not only illustrate resilience and adaptability but also offer promising avenues for sustainable growth and return on investment.
Analyst comment
This news can be evaluated as positive for the market. Johnson & Johnson and Amazon are identified as strong contenders in their respective sectors, making them prime investment candidates for medium to long-term investors. Johnson & Johnson’s performance in the pharmaceutical and medical device industries, along with its strategic alterations and market presence, is a positive indication for investors. Similarly, Amazon’s resilience, adaptability, and significant growth in the e-commerce and cloud computing sectors make it an attractive prospect. Both companies offer promising avenues for sustainable growth and return on investment in the 2024 S&P 500 bull market.
