The stock market has been all about tech and AI in the last two years, with the Nasdaq 100 (NDX) up over 20% this year, a compelling indication of the market sentiment. But you shouldn’t sleep on the financial side of the market! Let’s take a quick look at three notable picks, as seen in the original piece by Joey Frenette, like BRK.B, MA, and NU, and see which of them is the safest bet.
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Berkshire Hathaway (NYSE:BRK.B)
Berkshire Hathaway is a famous conglomerate run by Warren Buffett. Its stock ranged between $405 and $410 this year, although the next big move is still in question. The stock is reasonably priced at 1.54 times price-to-book (P/B) and makes for a value investment.
The company’s most recent actions saw it sell 13% of its Apple (NASDAQ:AAPL) stakes, and liberated itself of 1.3 million shares of Chinese EV maker BYD (OTCMKTS:BYDDY), as of June.
In the buy column, the company has bolstered its stakes in Occidental Petroleum (NYSE:OXY) By $15 billion, exercising Berkshire’s strategy as a whole: buy and hold value until the market recognizes its worth.
BRK.B stock is considered a Strong Buy. Its average price target of $470.67 suggests a 14.90% upside potential
Mastercard (NYSE:MA)
Arguably one of the most inventive financial firms operating in the market, Mastercard’s shares have chilled and decreased by 8% after peaking in late March, which makes them a great opportunity to get involved at a relatively lower price.
Its world-class AI fraud protection deserves nothing less than a premium price tag, although its P/E data tells a different story and a cheaper one with 35.8 times, meaning investors expect robust growth in the near future.
MA stock is considered a Strong Buy. Its average price target of $525.25 implies a 15.48% upside potential.
Nu Holdings (NYSE:NU)
Nu Holdings is a Brazil-based digital bank with more than 100 million clients in Latin America. In the last two years, its stock has increased by a remarkable 202%.
The company is still gaining momentum, and its 100 million customers seem to be only the beginning. With its vast financial services (banking, investing, and borrowing), it’s difficult to see other than growth on the horizon.
NU stock is considered a Strong Buy. Its average price target of $13.66 implies 11.51% upside potential.
Conclusion
All three companies mentioned represent a valid option for investment. Each one of them has its own impressive feature. However, according to analysts, Mastercard is the pick of the bunch, with most upside potential for the year with 16.1%.
