The stock market had a rough start in November and hasn't recovered much since. With inflation a major concern, the Federal Reserve raised interest rates significantly earlier this month and hinted at further significant increases in the future. A silver lining exists for patient investors even though macroeconomic pressures dampen bullish sentiment.
Even though a wide variety of risks is shaping the market, this year's big sell-offs have pushed the prices of some great companies down to levels that still allow for significant long-term growth. These are two of the best stocks that did well in the last concluded month.
1. Apple (NASDAQ: AAPL)
Apple tops the list as the best-performing stock in November. The company's stock rose by 25% for the month, and its newest product, the iWatch—which sold over half a million units in its first month on the market—was one of several factors that led to this impressive performance.
The iWatch's release also coincided with reports that Apple (NASDAQ: AAPL)had offered to acquire Tesla (NASDAQ: TSLA) Motors for $3 billion (a large sum but not all that surprising given Elon Musk's many recent successes). Although there has been no confirmation from either party about whether or not these negotiations are still going on as we write this article, both companies would likely continue to work together if they can find common ground in their visions for electric cars and self-driving technology.
2. Take-Two Interactive (NASDAQ: TTWO)
Movies in the Star Wars and Marvel Cinematic Universes would likely top the list of most profitable entertainment products if people were asked to name the most profitable product of all time. It has been determined that Grand Theft Auto V, published by Take-Two Interactive and released in 2013, has been the most financially successful entertainment release of all time.
Despite the success of movies and television shows, nothing competes with video games regarding consumer engagement, activity, and spending. With 170 million copies sold, Grand Theft Auto V earned billions of dollars. However, that's only part of what contributed to the game's success.
The game has an online component, with its virtual currency that players have invested billions of dollars. This online multiplayer component has been consistently popular, which has boosted Take-bottom Two's line. The success of GTA V, combined with the company's other franchise games like NBA 2K and Red Dead Redemption, has propelled Take-Two into sustainable business strategies. Take-Two is currently developing yet another mainline Grand Theft Auto game, which has the potential to usher in a new period of expansion for the company.
Take-Two's business model appears to be less cyclical than it did a decade ago, thanks to the expansion of its flagship franchises and the company's recent purchase of mobile games publisher Zynga. Still, the GTA series is crucial to the company's success, and the release of GTA VI in the next few years should result in significant revenue and profit increases.
At its current price of around 23 times the expected earnings for the year, Take-Two stock is a good buy ahead of a significant positive performance catalyst.