5 Top Stocks to Buy in April

Motley Fool contributors were asked to connection immoderate details connected wherefore each 5 of these industry-leading companies are built to past and are worthy buying and holding adjacent if the banal marketplace goes done a prolonged downturn. Here's what they had to say.

Demitri Kalogeropoulos (Amazon): The latest net update from Amazon contained plentifulness of bully quality astir the concern that should person investors feeling bullish connected the stock. There was the further $18 cardinal of gross the institution booked successful Q4, for example, translating into a 10% summation twelvemonth implicit year. That maturation is progressively coming from the Amazon Web Services (AWS) division, which expanded astatine a 19% complaint for the 4th and the afloat 2024 year. AWS accounted for $108 cardinal of Amazon's $638 cardinal gross past year, oregon 17% of the total.

But the adjacent amended quality is astir profitability, which has been soaring successful caller years, acknowledgment partially to that maturation successful the web services division. Amazon's operating nett borderline conscionable crossed into the treble digits connected the operation of maturation and outgo cuts. The institution isn't underinvesting successful its halfway e-commerce sales, either. Amazon delivered 65% much products to Prime members successful ultra-fast same-day oregon overnight transportation successful Q4, and its prices were recognized arsenic among the lowest disposable online. Those factors should person competitors concerned, fixed that Amazon tin intelligibly boost nett margins portion offering debased prices and reducing transportation times.

The banal isn't cheap, adjacent aft the caller marketplace pullback. Amazon is valued astatine 3.4 times income today, up from the debased of astir 1.5 times income successful aboriginal 2023. Yet it's a overmuch stronger institution since then, with a bully accidental astatine pushing nett borderline person to 15% of income implicit the adjacent decennary arsenic the AWS and e-commerce businesses expand. If you're disquieted astir a imaginable recession, you mightiness privation to simply ticker the banal for now. But long-term-focused investors are apt to bash good by holding Amazon shares done galore economical cycles to come.

Anders Bylund (Netflix): I'm not saying that the banal marketplace is falling isolated close now, but adjacent Warren Buffett is selling much than he's buying. The legendary Oracle of Omaha seems to beryllium putting immoderate currency connected the sidelines, preparing to marque caller investments astatine little prices someday soon.