2 Top Stocks Long-Term Investors Should Buy in May

1 hour ago 3

Geoffrey Seiler, The Motley Fool

Sun, May 10, 2026 astatine 3:20 PM CDT 5 min read

There is an aged adage that says to "sell successful May and spell away." This is simply a strategy of selling stocks this period and past returning to the marketplace successful November aft the summer, due to the fact that determination is simply a content that stocks underperform during this period.

While determination is immoderate merit to stocks underperforming during the summertime months, this strategy has worked lone 22 times successful the past 53 years, and investors would person missed retired connected immoderate large gains past year. The amended determination is to enactment invested, and determination are inactive immoderate large buying opportunities retired there. Let's look astatine 2 maturation stocks to bargain present for the agelong term.

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Amazon: Mounting momentum

One of my favourite stocks to bargain close present is Amazon (NASDAQ: AMZN). The institution has been moving connected each cylinders with some its unreality computing and e-commerce businesses, and it has beardown maturation opportunities ahead. Meanwhile, connected a guardant price-to-earnings (P/E) basis, the banal is inexpensive (31.5 times multiple) from some a humanities position and compared to brick-and-mortar peers Walmart and Costco, which commercialized astatine implicit 40 times multiples.

Within its e-commerce business, Amazon continues to spot beardown operating leverage driven by the ratio gains it is seeing from its enactment successful robotics and artificial quality (AI). This was connected afloat show successful the archetypal 4th (Q1) of 2026 erstwhile its North American operating income surged 43% contempt a 12% summation successful sales. The institution is besides seeing beardown momentum successful its advertisement business, with gross climbing 24%. Looking ahead, the institution has a large accidental arsenic it opens up its logistics web to channels extracurricular its e-commerce website, including high-margin, business-to-business transport.

Meanwhile, Amazon Web Services (AWS), its astir profitable segment, has been seeing its gross maturation accelerate, hitting 28% maturation successful Q1. That was its highest level of maturation successful astir 4 years, and the institution is investing aggressively successful information halfway infrastructure to adhd capableness to seizure the immense accidental successful beforehand of it. With deals with Anthropic and OpenAI successful spot and its dense concern spending, maturation should proceed to accelerate passim the year.

Meanwhile, the company's in-house spot concern is simply a gross operator and helps springiness it a outgo advantage. Amazon precocious revealed that this is simply a $20 cardinal run-rate business, oregon astir $50 cardinal erstwhile including interior use. The company's Trainium AI accelerators assistance powerfulness a ample information halfway dedicated to Anthropic, while Meta Platforms precocious entered into a woody for Amazon's Graviton cardinal processing units (CPUs) to enactment the societal media giant's agentic AI efforts.

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