Stocks are in a strong bull market right now. As a result, there are many different ways for investors to make money. Whether that’s looking for capital gains or dividend income from shares, there are a lot of great options. Here are four different areas of the market that could be worth considering today.
Tech stocks
It’s no secret that tech stocks are flying right now. Today, we’re in the midst of a powerful artificial intelligence (AI)-driven tech revolution, and the companies at the heart of it are delivering strong gains for investors.
One stock I really like here is Snowflake (NYSE: SNOW). It’s a US-listed company that provides powerful data solutions. Using its platform, companies of all shapes and sizes can structure their data effectively, eliminating siloes. They can then apply AI models to it securely and use it to gain insights.
Right now, Snowflake has a lot of momentum. Last quarter, for example, product revenue growth was 32% (up from 26% in the previous quarter). That’s a strong level of top-line growth. And if the company can keep growing like this, it could be a great long-term investment (despite the fact it has a high valuation today).
Of course, it may not continue growing like this. We could see companies suddenly spend less on AI.
However, I think it’s well positioned for future growth. To my mind, the stock – up 57% this year – deserves a look.
Value shares
If tech stocks are too racy, value shares (those that appear undervalued) could be worth considering. Plenty of shares in this area of the market are doing well right now.
An example here is insurer Prudential. It’s up 59% this year but still looks cheap on a forward-looking price-to-earnings (P/E) ratio of 11.4 (below the UK market average).
It’s not without risk – its focused on the Asian and African markets and these can be unpredictable. I believe the stock warrants attention though.
Dividend shares
Dividend shares are another potential option for those who are a little more cautious when it comes to investing. These pay investors regular income (out of company profits).
On the London Stock Exchange, there are many shares yielding 6% or more today. Names include MNG, Aviva, and Primary Health Properties. While dividends are never guaranteed, I think all of these stocks are worth a look.
Gold stocks
Gold stocks are also worth highlighting. These are shares in companies that explore for and/or produce gold. The price of gold’s around $4,000 per ounce today. Yet plenty of well-established gold producers have costs under $2,000 per ounce.
What this means is that many companies are making a ton of money right now. And this is translating to great returns for investors.
I’ll point out that gold stocks are higher up on the risk spectrum, because a lot of things can go wrong in the mining industry.
They could be worth including in a portfolio though. Some names worth checking out include Newmont, Barrick Mining, and Pan African Resources.
