Three stocks - Assignment Example

Dear Mr. ….. Investing in the stock market can be a challenging endeavor because of the risks involved. But with research and substantial information regarding the stocks, it can offer promising returns. It is a source of investment that dearly pays and ascertains financial security for the future. Taking the initiative to invest in the stock is a great step towards gaining an extra income as you literally ‘watch your money grow’. There are a lot of public companies that one can invest in, but I recommend these three companies namely Microsoft, General Motors and Apple Inc.

These companies outstanding performance throughout the past five years in the stock market make them the most preferable investment option. Microsoft Corporation deals with the development, licensing, marketing, and supports software, services, and devices globally. It is based in Redmond, Washington and was founded in 1975. Apple Inc. deals with the designing, manufacturing, and marketing of mobile communication and personal computers, media devices, and portable digital music players across the globe.

Its headquarters are in Cupertino, California and was founded in 1977. General motors deals with the designing, building, and selling of cars, trucks, crossovers, and automobile parts across the globe. Its headquarters of operation are in Detroit, Michigan and was founded in 1897. Microsoft has since the past 3 years been experiencing a huge gross profit year after year. Similarly General Motors and Apple have also had huge gross profits throughout the last 3 years. This strong financial record of the three companies is an assured well thought investment.

This financial statements are summarized in the table below. Microsoft Corp June 30, 2014June 30, 2013June 30, 2012Gross Profit59,899,00057,600,60056,193,000Operating income or loss27,759,00026,764,00021,763,000Net Income from continuing Ops22,074,00021,863,00016,978,000General MotorsDec 31, 2014Dec 31, 2013Dec 31, 2012Gross Profit13,808,00018,054,00010,813,000Operating income or loss1,530,0005,131,00030,363,000Net Income from continuing Ops6,245,0006,944,0007,500,000Apple Inc.Sep 27, 2014Sep 28, 2013Sep 29, 2012Gross Profit70,537,00064,304,00068,662,000Operating income or loss52,503,00048,999,00055,241,000Net Income from continuing Ops39,510,00037,037,00041,733,000Also, from the S&P 500 index the three companies show good trends from the past 5 years.

The S&P is an important tool when it comes to investment since it depicts the free-float value of the major 500 corporations in the US equity market. The S&P 500 is constantly updated daily and can be used to track a company’s high and low stock prices for a period of 5 years. Hence, an important tool when evaluating the risk or returns of a particular investment. Data from the S&P index project a significant earnings growth in the three companies by over +30%. The S&P data index forecasts summary is shown in the table below.

CompanyLast 12 monthsNext 12 monthshighmedianlowMicrosoft Corp$41.42$55.00$48.00$38.00Apple Inc.$125.80$180.00$145.00$65.00General Motors$36.00$51.00$44.00$28.00The three companies’ financial records with good profit margins and generated revenue have sustained the continual existence and profitability of the companies for decades. They have remained at the top despite the presence of many competitors in the same industry. Thus, when deciding for an investment it is also vital to consider a company’s reputability the global market.

This is because the leadership and quality of goods and services determine the continual existence and success of the company. The three companies Microsoft, Apple, and General Motors have kept up with recent technological advancements and enjoyed good leadership, hence would remain relevant for future generations to come. Thus, be assured that your investment is secure when you invest in any of the three companies. Works CitedCNN. Cable Network News: CNN Money. 8 April 2015. 8 April 2015. .Yahoo. Yahoo! Finance.

8 April 2015. 8 April 2015. .