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Stocks With The Best Profit Margin
If you are an investor, you should be well-versed with the updates and the latest trends in stock exchange. One of these concepts that you should be familiar with is to know which of the stocks have the best profit rate. You cannot simply determine this concern without looking at the Dow Index Industrial Index (DIA). Knowing the best stocks to invest in is particularly very helpful in making financial decision. Various stocks with high profit margin can help you create a positive image on the consumers’ mind, manage operating expenses to increase return of investment, and drive more profit and cash flowing to your bank account. However, you should also remember that having a very high stock margin may mean that your growth may slow down because there is not much you can improve on with your stock.
The first company with highest profit margin is Microsoft and one of the best stocks to invest in. This is understandable since software companies would normally have high profit margin because of the market where they belong. Furthermore, Microsoft even grew stronger because of the recent $2 billion investment of ValueAct in Microsoft. However, there is one wrong move that Microsoft has made and this is caused by going to the lower profit-making product hardware. This can easily pull their profit margin in the lower scale.
Pfizer and Merck is next in line. Software and pharmaceutical companies rule the profit margin because of the great investment that they should make before earning. Imagine that pharmaceutical companies such as Pfizer and Merck needs to spend countless money to research for new drugs and get the government approve their drugs.
JP Morgan is one of the biggest and most successful banks across the globe. Though the company was in the brink of bankruptcy during the deadly recession, it managed to pull itself together and still make a great influence in the stock market. There are different streams of income that JP Morgan has such as the mortgage market, corporate loans, wealth management, trading, and credit card. It is worth noting as well that the banking sector may possess the highest risk in investment. There is great difficulty in creating accurate data and statistics pertaining to this market’s performance because of complex internal and external factors. As this might be the case, it is has a great margin of profit compared to other industries.
Intel has a high profit margin mainly because of its monopoly on the microprocessor production. Even though there are other companies that might challenge the supremacy of Intel, the company still remains as a dominant player within the market. Aside from microprocessor, Intel also creates MPUs, switches, and routers. The main challenge for Intel now is to gradually change its focus from personal computers to mobile devices.
Financial experts and analysts predict tough roads for these top profit margin companies. However, with special planning and careful formulation of strategies, these companies will be able to stay afloat, remain powerful brands in the future, and become best stocks to invest in.