Recently, Goldman Sachs has become increasingly confident that the United States economy will stick to the soft landing projection among analysts’ and economists’ forecasts. In a research report, Goldman Sachs revised its estimated probability of a U.S. recession occurring in the next 12 months. They moved it down to only 15%. This percentage decrease also represents a lowered projection rate from the bank’s previous forecast of 20%. Not to mention, this includes a significant drop from its 35% projection in March when the banking crisis initially emerged. This optimistic outlook is positive news and indicators for both the economy and the stock market. It is also making more consider the best Nasdaq stocks to buy.
A reduced likelihood of a recession implies a more stable economic environment to increases in consumer and investor confidence. This, in turn, results in higher and sustained stock market growth. These three best Nasdaq stocks are primed for long-term growth following these expansion and growth opportunities.
Alphabet Incorporated (GOOG), (GOOGL)
Alphabet Incorporated (NASDAQ:GOOGL) (NASDAQ:GOOG) is an American multinational technology conglomerate holding company. It was created through a restructuring of Google, and encompasses more than 160 subsidiary businesses under its umbrella so far.
GOOGL stock is up 27.11% YTD. Furthermore, Yahoo! Finance reports 10 analysts having a mean 12-month price target of GOOGL stock to reach $142.30, with the range spanning from $120.00 to as high as $160.00.
Revenue in the Communication Service market in 2022 was $1.39 trillion and is expected to grow at a CAGR of 2.02% to $1.58 trillion by 2028. :ong-term growth in innovation fueled this market.
Alphabet recently released its quarterly financials, and it is shaping out to be impressively strong. Revenue of $74.6 billion grew 7.06% YoY which beat analyst expectations by 2.54%, and Diluted EPS of 1.44 grew 19.01% which also beat analyst expectations by 7.29%. Alphabet’s net income of $18.37 billion grew 19.01% YoY, demonstrating how financially stable Alphabet is.
The future of AI and technology may become concentrated among a few powerful firms, and Alphabet is shaping out to be one of them. Investors should not miss out on the buying opportunity of GOOG stock, as it is uniquely growing from the economy. This stock easily earns its spot on our list of the best Nasdaq stocks to buy.
ASML Holding (ASML)
ASML Holding (NASDAQ:ASML) is a leading semiconductor manufacturer specifically focused on building lithography machines. The stock, furthermore, has a dominant market share in this industry.
ASML stock is up 20.55% YTD, and is currently priced at $663.56. Yahoo! Finance reports 19 analysts having a mean 12-month price target of $695.72, with the range spanning from a low of $474.06 to a high of $862.01.
The lithographic semiconductor is projected to grow from its current $24.66 billion to reach $35.21 billion by 2028 at an 8.56% CAGR. Additionally, the broader semiconductor market was $573.44 billion in 2022 and was projected to grow to $1.38 trillion by 2029 at a 12.2% CAGR.
Q2 earnings were slightly below estimates but still demonstrated high recovery in the years. Revenue increased 27.1% YoY to $6.9 billion. Similarly, net income has grown by 11.7% YoY to $1.92 billion. Finally, operating income increased by 18.54% YoY to $2.33 billion, and it is maintaining this rapid growth with a PE ratio below 33.
Revenue is rapidly increasing due to the immense consumer backorder on DUV machines and new factories alongside its strong financials. ASML emerges as a ‘buy’ for both growth and value investors.
Indie Semiconductor Incorporated (INDI)
Indie Semiconductor Incorporated (NASDAQ:INDI) is a pure-play semiconductor company. INDI focused on developing automotive technology that enhances driver safety and electrification. At a cheap stock price of $7.00, INDI stock has grown 21.24% YTD. Seeing this as undervalued, analysts on Yahoo! Finance have given INDI a one-year average target price of $13.92, with the range spanning from a low to a high of $12.00 and $17.00.
For Q2 2023, Indie reported revenue of $52.11 million, which beat estimates by $137.79 thousand and grew 102.32% YoY. Given that the company’s net income is currently negative, a YoY revenue growth of this size is significant. This signals that profitability is likely in the near future. Diluted EPS of -$0.10 missed projections by -$0.01, but the outlook for upcoming quarters is hopeful; the consensus EPS for Q3 2023 is -$0.08 (a 19.30% YoY growth), and is expected to be positive by Q1 2024.
Such stimulation will only be enhanced by the growing semiconductor market, which is expected to increase from $573.44 billion in 2022 to $1,380.79 billion by 2029 at a 12.2% CAGR in the forecasted period. This future tailwind, alongside its optimistic future, makes INDI an ideal long-term stock pick to add to your portfolio. This and the other stocks we mentioned are all some of the best Nasdaq stocks to buy.
On the date of publication, Michael Que did not have (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.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
