Despite some likely market weakness in September and October, stocks are likely to close the year at new all-time highs. Even better, the trend has been shifting away from a handful of mega-cap large stocks, and the rally has been broadening out.
Investors who buy smaller companies can likely see the best return on their investment in the months ahead. And investors have plenty of options that include companies that still play to today’s tech trends.
For instance, Arm Holdings (ARM) is a semiconductor manufacturer that’s far smaller than the headline players. But they’re a key supplier for Apple (AAPL), which leads the smartphone market. With the rollout of the iPhone 16, shares can likely see further growth in the months ahead.
Arm is already having a strong year, with earnings jumping by 112%, and revenues up nearly 40%. With a further tech rollout underway, however, returns could improve even further from here.
Action to take: Interested investors may want to buy a stake now, and use any market weakness over the coming weeks to add to that position. Currently, Arm does not pay a dividend.
For traders, the January 2025 $140 calls, last trading for about $15.25, could see mid-double-digit returns or better, depending on the extent of a year-end rally.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.