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Top 7 Stocks to Invest in 2024: The stock market is a good platform for building wealth if your approach is more along the lines of long-term investments. If an investor invests in long-term investments, then they will be able to easily navigate through short-term market fluctuations and reap the benefits from return compounding. What is a better way to gain motivation for a positive endeavor than making it your New Year’s resolution? So let us begin the preparation now so that we will be ready at the beginning of this new year.
The year 2024 is just a few weeks away. And it is always better to start planning early. There are many benefits if you invest in the right stokes. It will generate passive income as well as grow your capital. The income you get from your day job is not enough to build your wealth. So, if trading is a territory that you haven’t embarked on yet, let the coming year mark a new era for your financial life. The top 7 Stocks to Invest In 2024 are listed on this page to start your investing journey of 2024 on a high note.
Latest Trends in the Market in 2024
Stocks attained good growth in 2023 after 2022 closed. S&P 500 and Nasdaq 100 have attained a growth of 20% and 50% respectively. The resilient nature of the present economy, inflation moderating and possible peak of rates of interest puts the fears of investors to rest and encourages them to step back into the game. But the biggest doubt of every investor is whether will this trend continue in the year 2024. Another question they have in their mind is whether there is an imminent economic slowdown or possible stock market crash waiting for them in the coming year. From economic recessions to the possible continuation of bull markets, we discuss all the possible stock market trends that can happen in the year 2024.
Predictions by BCA Research
BCA research states that the S&P 500 is going to face the biggest stock market crash since 2008 in the coming year when the recession begins. They say that the recession in the US and euro area was delayed but cannot be avoided this year. DM i.e. developed markets are going to continue in the path of recession unless there are considerable changes in fiscal policies. Provided that they predict that the risk-to-reward balance for stocks is not going to be in favour of stock investors. The stock market could avoid such a sudden and steep crash if the Federal Reserve reduces the rates of interest quite quickly. But BCA Research suggests to not do anything expecting it to happen.
Even though they remain in the disinflationary camp, they do not expect the Fed and the ECB to reduce the interest rates at the correct time so as to prevent this crash and hence the upcoming rise of large amounts of unemployment. They do not expect the Fed to reduce the rates before the coming summer unless the recession occurs very soon or the inflation collapses completely. They also say that the upcoming recession will put the S&P 500 in the range of between 3,300 and 3,700 before a subsequent revival may happen.
Predictions by JP Morgan on Top 7 Stocks to Invest in 2024
JP Morgan suggests that according to the following reasons, there is little hope that the stock will move higher in the year 2023.
- high equity valuations
- high interest rates
- weakening consumer
- rising geopolitical risks
- potential recession
They expect a more challenging ambience for stock trends in 2024 and softening consumer trends. Here investor positioning and sentiments are mostly reversed. They also expect dull worldwide growth in earnings with a disadvantage for equities from present levels.
Predictions by Morgan Stanely
Morgan Stanley expects an almost flat stock market in 2024. They expect some people to perform better than others. According to their analysis, the very narrow leadership of the stocks of mega-cap tech are most probably to continue until early next year. But eventually, they are going to undergo a breakdown. The same environment is going to continue for some time next year after which the recovery of earnings will happen. They suggested stock investors avoid the overpriced tech stocks and focus on defensive growth stocks, usually placed in the health care, utilities and consumer staples sectors instead. You can also focus on late-cycle cyclical stocks commonly found in the industrial and energy sectors.
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Top 7 Stocks to Invest In 2024
1: What is a stock?
The investing world and its knight are in a constant quest for the golden goose which is none other than the stocks that give them more profits. The present financial landscape is heavily fluctuating at its best and the one thing on which the traders are putting their hopes are the growth stokes. The growth stocks used to be going high on bullish sentiments and top-line growth. But now, they too are under some tension due to factors such as falling sales growth rates and totally unexpected layoffs in the tech sector. Yet, they should not be just dismissed.
Their performance in the first half of this year was exceptional. Experienced analysts are also optimistic about the gains that they might bring in the coming year of 2024. It is the power of Artificial intelligence that fuels the power of this optimism on their part. It is believed that AI technology will take these stocks up and hence bring maximum returns to the investors who rely on it. Some such stocks are mentioned in the paragraphs below.
Tesla (NASDAQ: TSLA)
There was a dip in the stock of Tesla after the reporting of second-quarter earnings. This certainly was the cause of concern for many of its investors. But before jumping to conclusions make sure that you have a good understanding of the whole picture. The company had earnings and sales that exceeded expectations this year. In earnings per share too it outperformed the expected value by 81 cents. But a cloud that darkened it was that its operating margin fell and was much lower than the expectations posed by investors.
But still, the fear around the TESLA’s margins is somewhat exaugurated. The most current price reductions were voluntarily done by the firm in order to follow the latest strategy which is to strengthen the market presence by stocking demands. This strategy seems to be attaining its goals because there was a very notable increase in sales in the first as well as second quarters. The long-term aspirations of the firm can be said to be on a winning streak. It is of course one of the Top 7 Stocks to Invest in 2024.
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META (NASDAQ: META)
Meta Platforms are one of the firms that kept the analysts on constant alert. It has gained a considerable amount of growth in recent quarter. But the fall in the net income of the past half of the year cannot be ignored. Still, the firm’s revenue per share has increased in the last quarter of the year. This might be a hint that the social media giant is getting ready for a revival. The year 2023 was considered the year of efficiency for the META platform. The earnings report from the second quarter of the last year gives this name a validation. The quarterly revenue and earnings per share reported were much higher than the predictions of Wall Street. Its revenue estimates for the third quarter were also much beyond the consensus estimates.
The major growth catalyst for the META in the coming years is said to be the Instagram threads feature. This is a microblogging feature and has gained a huge number of fans within the short period after its introduction. The growth it exhibited was astounding, even faster than ChatGPT’s growth. The prediction is that threads gain in popularity and Twitter will lose popularity in upcoming years.
Lithium Americas (NYSE: LAC)
With Thacker Pass Project in its repertoire, Lithium Americas is undoubtedly one of the best stocks out there for purchase in 2024. A favourable Record of Decision was received by the firm after a long and difficult but victorious court battle. This verdict is a green light and the firm is going to access and profit from an astounding 13.7 million tons of lithium carbonate deposit. There is a potential to extract even 80000 tons of lithium annually. The economic side of this project is indeed very promising. It is predicted that the after-tax net present value of the project is as huge as around five billion dollars.
The operations at Thacker Pass are scheduled for 2026. However, the firm is fixed in Argentina and is to begin mining and related activities at the end of this year. Besides this, the acquisition of Arena and very important stakes in the Sal de la Puna project have made sure that LAC’s position in the market is going to grow in the long term. Even though all these assets are in the pre-revenue stage, their resourcefulness points to the success and growth of the firm in 2024.
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Solid Power (NASDAQ: SLDP)
Solid Power is a symbol of long-term innovation in the ever-changing scenario of electric vehicle production and business. It believes that solid-state EV batteries have the potential to outperform the much more commonly used lithium-ion batteries. They promise much like strong charging, an increase in the range of batteries and features offering better safety. But what might attract you the most might be the business model of this firm. They don’t push the vehicle manufacturers into any abrupt transition. The integration of the technologies offered by the firms is added by gradual and seamless integration. They do not focus solely on battery production. They deal with solid electrolytes as well as license their ground breaking technology.
Another factor that suggests investing in their stocks will be a good decision in the long term is their latest partnership with Bayerische Motoren Werke ADR i.e., BMW. This well-regarded German automobile manufacturing company has collaborated with Solid Works to manufacture a batter development prototype line. Solid Works plans on rolling their offering by 2025 and their collaboration with BMW adds to their value.
Taiwan Semiconductor (NYSE: TSM)
Just like the sector’s lively revival this year, the firm Taiwan Semiconductor also had a robust comeback. The firm’s share rose by double digits in the year 2023. But there is a cloud looming over them as the stocks are now 205 less in value than the highest value, they reached in 2022. There are numerous challenges, ranging from cooling end markets to hitches in foundry establishment, as well as increased capital expenditures that aren’t quite meeting the mark. Nonetheless, the stock offers an appealing long-term value proposition. But when we look into the future, the prospects of Taiwan Semiconductors are very promising. There is an upcoming high demand for AI chips on cards which can act as a catalyst for revenue growth in future quarters.
Taiwan Semiconductor is already a giant in its niche sector, and this upcoming high-demand era for AI chips can raise its greatness further. And this makes the stocks of this firm a very promising prospect for any investor who is thinking about investing in them.
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Fiverr International (NYSE: FVRR)
Fiverr International emerged as a leading forebearer in this time when the gig economy defines important things. It is a digital freelance marketplace which gained immense popularity in the past years. This firm’s five-year sales growth of 48.9% is proof of its popularity. Besides this, the predictions by experts state that this freelance marketplace giant is going to grow to $18.3 billion by the year 2031. Considering this scenario, the present revenue of the company is just a small inveigle.
But just like any other business, Fiverr was affected by the pandemic and associated economic changes. These troubles mostly arise from cost-cutting arrangements for professional services. But the gig economy reinvigorated with the aid of shifts in the pandemic time. And this does indeed put the long-term prospects of Fiverr in a positive light. Fiverr is strengthened by its solid marketing drive and awe-inspiring retention rate. All these indicate that Fiverr strengthening its hold over the gig market.
The financial performance of Fiverr in the second quarter is remarkable. It shows the success of their recent initiatives to drive profits and also to create a platform which has stable and steady financial growth in future. There is a very noticeable improvement in the margin. This is a sign of how profitable the company is.
Alibaba (NYSE: BABA)
Working in the Chinese trading market is almost like navigating a place strange to you without a map. Tremendous opportunities as well as risks hide in places, we have no clue of. Alibaba is an e-commerce giant that has much experience in thriving in the turbulent AI industry of China. It is undauntingly committed to innovation and the release of the latest advanced large language model Tongyi Qianwen proves this.
Alibaba has also managed to achieve a 2% year-over-year sales growth as reported in the duration of mid-May. Hence, we can say the appeal of stocks of this firm in the long term will be left absolutely untouched by the present uncertainties. There is more news to be said here. The firm has decided and declared the plan to the public that it is going to split into fresh six business groups. Each one of these business groups will be a candidate for IPOs. This might be the most elaborate transition in Alibaba’s Complex business history. But the firm is adapting and is not afraid of changes.
Another whirlwind transition in Alibaba is that the chair of the CEO is going to be changing from Daniel Zhang to Eddie Wu. The long history of the firm is proof of its endurance and this is the promise that the interested investors can believe in.
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Top 7 Stocks to Invest In 2024 FAQs
1. Which firm other than those discussed above expects a stoke price boom in 2024?
Visa (NYSE: V). Visa is a credit card company that plays a major role in financial transactions all over the world. They have good business and the 50% net income margin that averages over more than five years is proof. The pandemic played a huge role in its sudden low because of the change in preference of the general public to touch-free transactions and increased usage of e-commerce websites. But this low was resolved by the revival of the travel and tourism sector that came after the pandemic. Very good profit margins were attained by the firm due to cross-border payments and this promoted overall growth of the firm. The growth rates shown now are almost expected to normalise but the forward estimates are indeed promising, even higher than the average of last five years.
2. Is there a company from the graphic sector whose stocks are promising for 2024?
Yes. Adobe (NASDAQ: ADBE) is a giant in the graphics sector and has industry-leading software tools such as Photoshop and Premier Pro. Their set of software is essential and almost irreplaceable in sectors like marketing, graphics, designs, video and photo editing etc. The company has increased the size of its base in recent years by acquiring other products to expand its content cloud for creative professionals. With a growth rate of one million subscriptions every quarter, creative cloud subscribers increased by about 30 million last year. It should also be noted that Adobe is also catching up with the AI technology trend and released the beta version of their art generator named Firefly. The addition of AI tools is definitely a promising endeavour and investors should consider Adobe as one of the top companies they can invest in for 2024.
3. Is Datadog (NASDAQ: DDOG) one of the Top 7 Stocks to Invest in 2024?
Datadog offers security services as well as cloud monitoring in a software-as-a-service model. Unlike other solutions, the clients of Datadog can efficiently monitor and protect their digital infrastructure from a single place. And doing this from a single location considerably decreases the vulnerabilities and blind spots. This firm is promising to investors because it is one of the successful ones in its niche and has managed to increase its revenue from 101 million dollars in 2017 to 1.7 in 2022. Experts estimate that the company is expected to continue to attain growth of 30% in the predictable future. Even though it keeps making significant investments in its company every year, the rate of growth suggests that in not too far off times it will break even.
4. Should we invest in Sociedad Quimica y Minera de Chile in 2024?
Sociedad Quimica y Minera de Chile (NYSE: SQM) is a company prominent in the chemical industry establishing its place as one of the largest lithium producers in the world. Their lithium sales have reached triple-digit growth recently. In all aspects, the stocks of SQM offer strong value. One of them is the firm’s A-graded profitability profile. The earnings per share of the company have attained an incredible growth of 585% and a 730% increase in free cash flow. When you look into average prices and higher sales volumes, we can expect the stocks of SQM to perform very well in the coming years. Presently SQM trades are at 2.3 forward in sales estimates and have almost 50% discount when considered to average of the last 5 years. So, it is easy to say that investing in these is going to be profitable.
5. Is Nvidia one of the Top 7 Stocks to Invest in 2024?
Nvidia (NASDAQ: NVDA) is indeed one of the best growth stocks to buy in the year 2024. This is a California-based GPU firm and has tried a major hand in all of the recent tech trends which were popular in the last few years. This ranges from autonomous driving to crypto mining. This company’s GPUs are in fact optimizing almost 700 applications across the world. Presently they focus on AI technology and are trying to bring it to the masses. The hardware and software stack are well-suited for the AI sector. This includes strong GPUs like the H100 which is the fastest GPU in the world. They also provide a set of software tools that can be efficiently used to develop and optimize AI applications. Even if we do not consider the AI technologies they develop, they attain double-digit growth rates in each quarter of every year.
