If you're planning to invest a considerable sum in the stock market, take a look at the following businesses first. These elite enterprises are proven wealth builders, and their stocks are all smart buys today.
Microsoft
If you're searching for a low-risk way to profit from the growth of artificial intelligence (AI), look no further than Microsoft (MSFT 1.82%). Thanks in part to its collaboration with ChatGPT-maker OpenAI, the technology titan is well positioned to deliver AI-fueled gains to its shareholders.
Since making a multibillion-dollar investment in OpenAI in early 2023, Microsoft has worked fervently to integrate the AI upstart's state-of-the-art tech into its popular products and services. By infusing AI into software like Outlook, Word, Excel, and Teams, Microsoft is helping the hundreds of millions of people who use these tools become more productive and efficient.
The cost savings and innovation benefits are potentially enormous for the businesses and individuals who adopt AI. In turn, demand for the cloud services that power AI is projected to surge. The global cloud computing market will grow by roughly 18% annually to $2.5 trillion by 2032, according to Acumen Research and Consulting. Here, too, Microsoft stands to benefit. With its Azure cloud platform an established leader in this booming industry, Microsoft is set to profit handsomely from the rapid growth of the cloud market in the decade ahead.
Eli Lilly
For the nearly 70% of American adults who are obese or overweight, Eli Lilly's (LLY 1.19%) new anti-obesity drug could be life-changing. These weight-related conditions tend to increase a person's chances of suffering from dangerous illnesses like diabetes and heart disease. Eli Lilly wants to help people live longer and healthier lives by making it faster and easier to lose excess weight.
The healthcare giant's once-weekly injection for chronic weight management in adults, Zepbound, works by activating hormone receptors that lessen appetite. The results can be staggering. Participants who received the highest dose of the treatment lost an average of 48 pounds during a 72-week clinical study.
Better still, people who took Zepbound and followed a reduced-calorie diet and exercise plan saw their cholesterol and blood pressure profiles improve. Additionally, tirzepatide, the active ingredient in Zepbound, has been shown to improve glycemic control in adults with type 2 diabetes. These results suggest that Eli Lilly's weight loss drug could have positive effects on several important health markers.
The healthcare leader's earnings, in turn, are expected to soar by over 50% annually over the next half-decade, according to Yahoo! Finance. Invest today, and you can claim your share of Eli Lilly's future profits.
Costco Wholesale
If you'd like to add a defensive stock to fortify your diversified portfolio, consider Costco Wholesale (COST 1.01%). Bargain-hunting shoppers appreciate the discount retailer's low-priced wares, while investors prize its steadily growing sales and profits.
Costco offers one of the most compelling shopping experiences in all of retail. Curated, quality merchandise and ultra-low prices appeal to increasingly cost-conscious consumers. A constantly shifting assortment of goods for sale adds a treasure hunt-like dynamic to further allure customers.
Costco's popular membership program provides another reason for people to shop at its stores. Paying a membership fee incentivizes people to maximize their return on investment by shopping at Costco -- and boosting their savings by taking advantage of its low prices -- as much as possible.
Moreover, the company's membership fees comprise the lion's share of its profits. These profits, combined with the retail giant's tremendous scale, are what enable Costco to offer such affordable prices.
With an ever-rising number of shoppers set to frequent its stores in the coming years, Costco's stock is a terrific buy today.
