Microsoft MSFT operates a technology company which makes software and hardware, operates social media sites like LinkedIn, and also has one of the largest cloud computing businesses. It has great cash flow and rewards shareholders with both a dividend, currently yielding 1.8%, and share buybacks. Microsoft shares have come down off their 2018 highs, so the company is cheaper for investors. It’s trading with a forward P/E of 22.
Apple AAPL also operates in technology but it’s known best for its smartphone products. However, the Services side of its business which includes iTunes, Apple Music, Apple Pay, among other categories, continues to grow. This next earnings report, Apple will begin revealing the gross margins on this business for the first time. Like Microsoft, shares have fallen off their highs and now trade with a forward P/E of just 12. It’s also shareholder friendly with a large share buyback program and a dividend currently yielding 1.9%.
Should these two companies be on your investing short list? Find out in this week’s video.
The Hottest Tech Mega-Trend of All. Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research