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A resilient stock market recovery is underway. Amid temporary removal of US tariffs, S&P 500 and FTSE 100 It has shown strength over the past few weeks.
Many factors could still derail the stock market comeback. Inflation is sticky, leaving behind geopolitical tensions, and tariff ditches appear to be fragile. However, as stock prices continue to rise, investors sitting on the sidelines may be missing out on a major long-term purchase opportunity.
With that in mind, these two stocks are worth considering today after a big stock price fell.
Amazon
Starting with the “magnificent seven” stocks, Amazon (NASDAQ:AMZN) looks attractive now. Amazon’s stock has already recovered somewhat from its “liberation day” low, but has fallen 16% from its February peak.
This may be the fourth largest company in the world with a market capitalization of over 1.6trn, but Amazon appears to be ready for further expansion. That cloud computing unit is a great example.
Amazon Web Services (AWS) is the company’s fastest growing division, already claiming almost a third of the cloud services market. The increasing adoption of artificial intelligence (AI) technology is driving demand.
The company has become the market leader in AI. In-house chips are powering new data centers, reducing Amazon’s dependency nvidia. This is good for AWS margins. the Trainium2 The chip costs about 40% less than NVIDIA GPUs. moreover, Training 3as it is scheduled to begin later this year, we promise four times better performance and more energy efficiency.
Tariffs remain a challenge for core e-commerce businesses. On the bright side, there has been an agreement between the US and China for 90 days of tariff deferral. But both Beijing and Washington have already accused others of violating new deals. There are many policy risks placed on the company.
Amazon’s Forward Toris Trail (P/E) ratio is above 31.1. There is little room for error. That said, we cannot see such metrics alone. I think we can justify expensive ratings based on the potential for group growth. If stock market rally continues, you won’t be surprised to see Amazon stocks leading the price.
Melrose Industry
Turning to the opportunities of homemade stock markets, FTSE 100 list Melrose Industry (LSE:MRO) is an aerospace and defense company and deserves a meticulous appearance. We are the main supplier of aircraft structures. Airbus and Boeing.
Melrose stock has fallen 26% over the past year. The company’s unchanged guidance in FY24 has undermined market confidence. Additionally, the company is tackling supply chain issues for aircraft components that could last for more than two years.
Nevertheless, there are many reasons for optimism. Last year, Melrose’s profits skyrocketed 42% to £540 million, while revenues rose 11% to £3.5 billion. Whatever concerns investors may have about their short-term forecasts, we don’t deny that these are good numbers.
Defense accounts for about a third of Melrose’s business, with the F-35 fighter components being the main source of revenue. The Prime Minister’s right pastor said, “Preparation for battle“As the military budgets across the NATO Alliance are rising, there is a support environment for the defense sector to bring about further growth.
The long-term target of £5 billion in revenue by 2029 also looks promising. I think trading for a forward P/E under 14 years old, Melrose Industries is a bright stock market opportunity to consider today.