2024 will be a lot like 2023: Investors will continue to seek stocks that have the potential to double their money or better. The economy continues to improve, although rate-cut decisions appear to have been pushed back some.
Nevertheless, growth abounds and investors remain eager to pursue those opportunities. Indeed, those opportunities are likely to continue to emerge from select sectors. Artificial intelligence will continue to be a focal area for investors and should surprise no one, given its phenomenal growth over the last year. Yet, there’s also rebound potential within the EV sector in particular.
It is there that capital invested in weakened stocks has tremendous rebound potential. Investors seeking to double their capital or better in 2024 should consider those factors. Let’s look at a few stocks that satisfy those conditions.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) stock traded for approximately $700 after the company beat Wall Street estimates again. Options pricing data shows that some prominent Traders believe that Nvidia’s shares could rise to $1,300. Those strike options expired on Feb. 23 and prices did not reach that level. However, it strongly indicates that the markets believe in Nvidia’s continued potential to grow quickly.
Part of the reason investors are so bullish is that Nvidia continues to beat Wall Street’s expectations. Yet, investors need to dig deeper to understand the magnitude of Nvidia’s potential. It’s well known that Nvidia continues to grow quickly because it satisfies demand for accelerator chips in the data center vertical. The company will likely continue to grow very rapidly in that regard. Nvidia stated that it expects data center revenues to more than triple yearly when earnings are released in April.
High target prices for NVDA shares don’t quite equate to a doubling of money, but Nvidia has consistently surprised investors over the past year. Thus, a doubling is entirely within the realm of possibility.
Li Auto (LI)
Li Auto (NASDAQ:LI) is one of the strongest undervalued EV stocks available to investors.
While the external environment is weak, Li Auto continues to hum along internally. That doesn’t mean the markets haven’t punished the company; it has. The fact that it continues to be discounted is the reason to invest now.
The company continues to provide delivery growth to investors, which is impressive. In January, deliveries increased by 105% year-over-year, reaching 31,165 vehicles. GuruFocus believes that shares are worth $107, significantly higher than the current price of $33 per share.
The company’s massive delivery growth is one reason to believe it is extremely undervalued.
The company is also highly financially flexible, reporting more than $12 billion in liquidity at the end of the fiscal year. That leaves the company in a strong position to react to the external environment and pursue a strategy to address it precisely because of its fundamentals.
Lithium Americas (LAC)
Lithium Americas (NYSE:LAC) has been a disappointment in its short life since it began trading publicly in October. Share prices of the stock have fallen from $10 to their current price of approximately $4.
The reason for the steep decline isn’t difficult to understand. The lithium prices that the company will mine in the future have collapsed. So, even though Lithium Americas owns the right to the largest lithium resource in the Western Hemisphere, prices have tanked.
Yet, Lithium Americas is strategically positioned such that continued investment into the firm is all but assured. There is almost no chance the company will fail to grow into one of the most prolific lithium producers in the coming years. That is one of the primary reasons that consensus price targets suggest a near quadrupling from current levels. Lithium prices will rebound as EVs transition past the early adoption phase. Lithium Americas is one of the best bets to benefit from that rebound.
On the date of publication, Alex Sirois 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.
