With another year in the global markets coming to a close, now is a great time to consider stocks to buy for 2024. Part of the reason is to establish a framework for navigating the myriad uncertainties that could lie ahead.
For example, there’s a lot of talk about the Federal Reserve’s monetary policy these days. With the central bank broadcasting the acknowledgment of a possible policy pivot, the development sparked considerable enthusiasm of what could lie ahead. That helps fuel motivation for forecasting the top stocks for 2024.
Nevertheless, factors such as a surprisingly robust jobs report indicates that the economy continues to hum. If so, interest rate cuts would presumably worsen inflation, not ameliorate it. That could also affect potential stock picks for 2024.
Because of so many moving parts, investors need a diverse range of ideas to feel comfortable. Below are several ideas for stocks to buy for 2024 that cover major industries.
Casella Waste (CWST)
What it is: A waste management company, Casella Waste (NASDAQ:CWST) is a vertically integrated solid waste services specialist covering specific regions. It offers solutions across the clientele spectrum, from residences to businesses to municipal and industrial customers. Since the start of the year, CWST gained almost 10% of equity value. It features a market capitalization of $5 billion.
Relevance: While it’s a boring and dirty job, someone’s got to do it. At the broadest level, the global waste management market reached a valuation of over $1.29 billion last year. Further, experts project that the sector could print annual revenue of about $1.97 billion. Now, that’s slow and steady growth but that may apply to Casella’s business. Basically, as populations rise, so too does their waste production.
Pros: Casella enjoys a three-year revenue growth rate of 10.6%, above the sector median of 7.6%. Also, analysts rate CWST a unanimous strong buy with a $95.50 price target, implying over 10% upside.
Cons: As a regional player, Casella may be more exposed to regional problems (such as “brain drain”).
Procter & Gamble (PG)
What it is: A consumer goods giant, Procter & Gamble (NYSE:PG) really needs no introduction. Of course, I’ll provide one because it’s one of the stocks to buy for 2024 and probably for 2025 onward. P&G commands multiple brands, from fabric care products like Downy to the everyday products like Charmin toilet paper. It’s a beast with a market cap of $339.3 billion.
Relevance: Fundamentally, P&G benefits from decades of brand association. Basically, from cradle to the grave, generations of consumers have grown up with P&G brands. So, as adults, when it comes time to pick up detergent or dishwashing cleaners, they’re likely to pick the brands they know and trust. Besides, the underlying consumer goods sector enjoys permanent relevance.
Pros: That permanent relevance narrative carries over into the financials. No, P&G isn’t particularly sexy. However, it commands strong margins and consistent profitability. Analysts also view shares as a moderate buy with a $164.24 target, implying 14% upside.
Cons: While PG may arguably be one of the top stocks for 2024, it’s boring so actual upside may be limited.
Kenvue (KVUE)
What it is: Spun off from healthcare giant Johnson & Johnson (NYSE:JNJ), Kenvue (NYSE:KVUE) takes over the consumer health business unit. Ahead of uncertainties in the broader economy, that might be the more attractive enterprise. We’re talking about everyday brands under the Kenvue umbrella, including Tylenol and Neutrogena, among many, many others. KVUE features a market cap of $40.2 billion.
Relevance: As stated earlier, Kenvue makes sense as one of the stock picks for 2024 because of its everyday demand profile. According to Precedence Research, the consumer healthcare market size reached a valuation of $284.16 billion last year. Further, experts anticipate that the sector could hit $608.39 billion by 2032. If so, that comes out to a compound annual growth rate (CAGR) of 7.91% from 2023.
Pros: While Kenvue may need some time to get its feet moving, it benefits from strong margins, particularly operating margins. Also, analysts rate shares a moderate buy with a $24 target, projecting over 14% growth.
Cons: Though KVUE could end up being one of the stocks to buy for 2024, the performance post-introduction has been disappointing.
Chevron (CVX)
What it is: Another enterprise that needs no introduction, Chevron (NYSE:CVX) is a hydrocarbon energy giant. As an integrated oil and natural gas stalwart, Chevron covers the core three areas of the energy value chain: upstream (exploration and production), midstream (storage and transportation) and downstream (refining and marketing). Right now, it sports a market cap of $281 billion.
Relevance: On surface level, Chevron might not seem a natural candidate for stocks to buy for 2024. First, you have the political and ideological pivot toward renewable energy. Second, the oil market fell under pressure as oil-producing nations’ production cuts disappointed the market. Still, fossil fuels command high energy density. You’re just not going to get that from wind and solar solutions.
Pros: While the future may belong to electric vehicles, the world continues to run on oil. This narrative may continue for longer than expected, making CVX one of the top stocks for 2024. Analysts also anticipate stock price growth of over 20%.
Cons: Since the start of the year, CVX slipped more than 14%. Therefore, investors will be absorbing risk.
Ollie’s Bargain Outlet (OLLI)
What it is: A discount retailer, Ollie’s Bargain Outlet (NASDAQ:OLLI) offers a wide selection of household goods, apparel, pet supplies, kitchen pantry staples and seasonal products. It’s like any other discretionary retailer, with the main exception focused on discounts. Further, customers enjoy shopping at Ollie’s because of the bargain-hunting motivation. You never know what you might find. Ollie’s features a market cap of $4.24 billion.
Relevance: With American households going through rough times, discounts always command relevance. To put some data behind the thesis, Verified Market Research points out that the global discount store sector valuation reached $510.09 billion last year. Subsequently, experts project that the segment will expand at a CAGR of 5.35% from 2023 to 2030. At the culmination point, discount retailers could be worth $834.74 billion.
Pros: As I pointed out in my TipRanks article, OLLI may be one of the stocks to buy for 2024 based on expanding gross margins. Also, analysts rate shares a moderate buy with an $88.23 price target, implying over 28% growth.
Cons: OLLI lost more than 11% of equity value in the trailing month so caution is necessary.
Silicom (SILC)
What it is: Based in Israel, Silicom (NASDAQ:SILC) specializes in the design, manufacture and marketing of connectivity solutions for a range of servers and server-based systems. With so much attention focused on front-line innovations such as artificial intelligence, other sectors – perceived to be mundane – have fallen by the wayside. For speculators, the shift in attention could be an undervalued opportunity. However, SILC is high risk with a market cap of only $113.24 million.
Relevance: By undergirding the connectivity industry, Silicom can move in multiple directions. Plus, the broader ecosystem is simply massive. Per MarketsandMarkets, the global connectivity sector for the Internet of Things (IoT) reached a valuation of $3.8 billion in 2019. Further, by 2024, the sector could be worth $8.9 billion. That comes out to a CAGR of 18.7%. If Silicom gets a piece of the pie, its shares could potentially skyrocket.
Pros: With consistent profitability yet a lowly trailing-year earnings multiple of 8.05X, there’s an argument that SILC is one of the stocks to buy for 2024 based on its undervalued profile. Also, Needham’s Alex Henderson anticipates a $22 price target, implying over 31% upside.
Cons: SILC suffered a heavy loss of nearly 61%, making it appropriate only for market gamblers.
B2Gold (BTG)
What it is: A Canadian mining enterprise, B2Gold (NYSEAMERICAN:BTG) owns and operates gold mines in Mali, Namibia and the Philippines. Given that its core business is inherently exposed to precious metals, BTG represents one of the riskiest ideas for top stocks for 2024. However, astute investors gambling on possible interest rate cuts may find BTG highly intriguing. BTG carries a market cap of roughly $4.08 billion.
Relevance: Fundamentally, the rise of the spot gold market may facilitate BTG as one of the stocks to buy for 2024. Also, according to Zion Market Research, the global gold mining sector reached a valuation of approximately $198 billion in 2022. Further, experts project slow and steady growth (3.5% CAGR) to 2030, culminating in a valuation of $260 billion.
Pros: Importantly, B2Gold features strong margins across the board and is reasonably consistently profitable. Analysts rate shares a strong buy with a $5.22 price target, projecting almost 66% upside.
Cons: Historically, gold mining firms tend to be volatile and BTG is no different, losing over 14% year-to-date.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
