If you want the money you invest in the stock market to work for you, it starts with choosing reliable companies for long-term investments. Trading the stocks of companies that consistently demonstrate earnings and price-to-earnings ratios is a competitive advantage. There are no guarantees when it comes to investment management, but it can help you make informed decisions.
10 best companies to invest in in 2024
Despite persistent inflation, relatively high interest rates, and the possibility of a recession, 2024 is a great start for investors in their search for top stocks. Check out the stocks to watch in 2024 to help you manage your portfolio. Here are 10 stocks that investors think have the potential to outperform.
- Citigroup (C)
- Tyler Technologies (TYL)
- Disney (DIS)
- Royal Caribbean Cruises Limited (RCL)
- PayPal (PYPL)
- DocuSign (DOCU)
- JPMorgan Chase (JPM)
- Salesforce (CRM)
- Adobe (ADBE)
- Pfizer (PFE)
1. Citigroup (C)
Citigroup is a giant in the banking industry, so it's no stranger to finance. The financial services company is on track to improve in his 2024, increasing the likelihood that earnings per share will increase. Citi®'s earnings trajectory is projected to undergo significant valuation.
This means that Citi is now able to operate its business with a better balance of risk and reward. 2024 is a good time to invest in Citi, especially considering this prediction.
2. Tyler Technologies (TYL)
Tyler Technologies is a provider of software and services for government, government agencies, and schools. Although it likely escapes the attention of most investors because it serves the public sector, it has recently received attention from market watchers such as Morningstar and Zacks Investment Research.
Morningstar ranks Tyler as a top growth stock to buy and hold this year due to its leadership position in a niche market with significant growth potential as local governments upgrade and modernize their systems. I mentioned it.
Zacks noted that federal agencies are already adopting Tyler's solution more broadly. The company has a moat in terms of employee case management, which is critical for federal agencies to comply with President Joe Biden's executive order on maintaining diversity, equity, inclusion, and accessibility of the federal workforce. is important.
3. Disney (DIS)
Disney has long been a darling of Wall Street, but the period from 2021 through late 2023 has been nothing short of a disappointment for investors. But despite falling more than 4% over the past year, Disney stock is poised to rise in 2024. Reliable long-term returns appear to be closing the unusually wide gap in performance.
Bob Iger is back at the helm, putting pressure on the company to rein in costs and offset slowing Disney+ subscriber growth and declining advertising revenue. This could be a classic buying opportunity, as Disney's long-term viability is not in question.
4. Royal Caribbean Cruises Ltd. (RCL)
If you're a casual gambler, Royal Caribbean may be an interesting investment for 2024. Cruise stocks took a big hit in 2020, and in the midst of the pandemic, it looked like they were all going to go out of business. But before the pandemic, cruise business was booming. When travel resumed, pent-up travelers again flooded the ships.
After more than doubling in value over the past year, the stock is still lower than it was before the pandemic, but only slightly. In fact, Royal Caribbean is much closer to its pre-pandemic stock price than Carnival or Norwegian.
5. PayPal (PYPL)
PayPal almost single-handedly changed the world of payment processing, but 2022 has been an absolute disaster. After a tough start to 2023, shares rose in the first half. The stock fell again last fall, but has been on an upward trend since November, up 22% quarter-over-quarter and 6% year-to-date, meaning the stock may still be undervalued.
As PayPal continues to grow and acquire more users, financial transactions are likely to increase as well. This will continue to benefit PayPal.
6. DocuSign (DOCU)
In the early days of the pandemic, DocuSign rose to stratospheric levels as it seemed like all business would be conducted remotely forever. As the world began to open up and business began to return to some sense of normalcy, trust in our company began to wane.
However, several factors point to a turnaround, and the company's low forward P/E ratio suggests DocuSign may be trading at a discount.
7. JPMorgan Chase (JPM)
JPMorgan Chase may be in a good position in 2024. Chase, like other banks, has benefited from rate hikes that allow it to lend money at higher rates while paying lower short-term interest rates on savings accounts. Additionally, JPMorgan Chase remains relatively cheap and currently pays a healthy dividend.
The stock has gained 25.08% since the beginning of the year, and although the stock has become more bearish in recent weeks, analysts believe it will continue to rise further. The consensus price target is $189.51, and the stock closed at $175.01 on February 6th.
8. Salesforce (CRM)
Salesforce outperformed the S&P 500 last year. This is partly due to the price hike following the company's announcement that it would increase the prices of some cloud tools and marketing tools. According to Reuters, this is the first interest rate hike in seven years. This coincided with increased investment in the development of the company's generative artificial intelligence products and services. This investment could pay off in a big way as AI gains momentum.
9. Adobe (ADBE)
Adobe is another high flyer that is bouncing back from a big hit in 2022. Adobe has been firing on all cylinders for years, and with its cloud and subscription businesses, that trend is likely to continue.
Despite some setbacks over the past six months, Adobe is up 81% from last year's lows and remains a worthwhile stock to invest in in 2024.
10. Pfizer (PFE)
Pfizer has always been a defensive stock during times when the market was overvalued. If you think a bubble is forming, Pfizer may be a good option. Pfizer is more than just a safe-haven asset. Pfizer's coronavirus vaccine has seen a significant increase in revenue due to the pandemic, with full-year revenue in 2022 reaching $100.33 billion.
Beyond vaccine production, Pfizer still has a healthy drug pipeline, significant free cash flow, and dividend yield. Trading for just $27.39 as of February 6th, it looks like a bargain at the moment.
final take to go
Before jumping into these companies, you should consult your financial advisor to see which stocks match your investment objectives and risk tolerance. Be careful never to invest more than you can afford to lose.
Caitlyn Moorhead contributed reporting to this article.
Information is current as of February 6, 2024.