10 Best Kid-Friendly Stocks To Buy Right Now

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1. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 158

Apple Inc. (NASDAQ:AAPL), one of the most popular companies in the world, beat its fiscal fourth-quarter earnings expectations by reporting $94.9 billion in revenue which was up by 6% year-over-year. Of this, its product revenue accounted for nearly $70 billion and its services segment generated $24.9 billion. Its business performance brought in almost $27 billion in operating cash flow, making it possible for Apple Inc. (NASDAQ:AAPL) to return more than $29 billion to its shareholders.

The company is a favorite, especially among kids, for its constantly updating product lineup and brand image. Keeping the momentum in check, Apple Inc. (NASDAQ:AAPL) delivered updates to Apple Music, Apple Intelligence, its hardware offerings, and other Apple features. Recently on December 11, the company announced an update to voice memos with layered recording in the iPhone 16 Pro lineup. On the same day, the company announced new features in Apple Intelligence allowing users to enhance the user experience immensely with more opportunities for personal expression and customization, emoji creation, and improved writing.

Mar Vista Investment Partners, LLC stated the following regarding Apple Inc. (NASDAQ:AAPL) in its Q3 2024 investor letter:

“Apple Inc. (NASDAQ:AAPL) stock was strong in the quarter as investors viewed the company’s generative AI roadmap and iPhone 16 product cycle positively. The market was reminded of the strength of the Apple ecosystem as management demonstrated how generative AI solutions would be integrated into its iOS 18 operating system, which was broadly released in the iPhone 16 late in calendar Q3. We believe Apple’s generative AI-enabled products should spur a meaningful iPhone upgrade cycle and create new avenues of monetization through its app store and advertising offerings. We believe this will support intrinsic value growth that will range between high single digits and low double-digits over our investment horizon.”

While we acknowledge the potential of AAPL to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AAPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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