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Forget Nvidia: This Artificial Intelligence (AI) Stock Offers Stronger Growth Prospects

The Motley Fool

This has translated into explosive earnings growth for the company over the past three years -- and significant gains in return on invested capital. It sells the servers, storage systems, rack-scale solutions, and other equipment needed to deploy the core hardware that powers AI platforms. SMCI Net Income (Annual) data by YCharts.

Prospects 130
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7 Reasons Buying $1,000 of This 7.8%-Yielding Dividend Stock Could Be a Brilliant Move

The Motley Fool

For example, Enterprise delivered a double-digit return on invested capital (ROIC) in every year since 2005. Better industry growth prospects than you might think Last, but not least, there are better growth prospects for the midstream energy industry than you might think.

Taxes 244
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Is Now a Good Time to Buy Stocks? Warren Buffett's Sensible Investing Advice Offers a Clue

The Motley Fool

Second, investors must find stocks with favorable prospects for long-term growth. Favorable long-term growth prospects cannot exist without a durable competitive advantage. To quote Buffett, "A truly great business must have an enduring 'moat' that protects excellent returns on invested capital."

Investing 246
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Is This the 1 Secret to Home Depot's Success?

The Motley Fool

The market for professionals is more fragmented with better growth prospects, so it makes sense why the company acquired SRS Distribution to further tap the opportunity. Consequently, Home Depot has averaged a much better operating margin and return on invested capital in the past five years.

Prospects 228
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Alibaba Plans to Unlock Value for Shareholders. Here's How.

The Motley Fool

Then, it was the de facto e-commerce company in China, a leader in its technology industry rivaled only by Tencent , and its prospects for growth seemed unlimited. But unlike 2014, when investors were optimistic about Alibaba's prospects, investors today are incredibly pessimistic.

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Want Safe Dividend Income in 2024 and Beyond? Here Are 2 Stocks to Buy Now.

The Motley Fool

Dividend stocks may not offer the exciting return prospects of growth stocks, but when stock market volatility returns, it is always nice to have extra cash automatically deposited in your account. Double-digit earnings growth prospects in the near term should make it 63 and counting.

Prospects 189
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2 Top "Magnificent Seven" Artificial Intelligence (AI) Stocks to Buy With $500 and Hold for the Long Term

The Motley Fool

Amazon has a track record of growth in return on invested capital (ROIC) over time, showing the company has made wise investment decisions. These efforts also should lift earnings over the long haul. So, there's reason to believe this trend could continue.

Prospects 231