Top 10 Investment Opportunities for 2024

The upcoming year is poised to unveil its share of surprises for investors, both good and bad. Amidst the uncertainties, there are compelling reasons for optimism surrounding the following stocks over the next 12 months. Here are the 10 top stocks to consider for investment in 2024:

1. Alphabet Inc. (GOOGL)
   • As a Big Tech powerhouse, Alphabet boasts a $1 trillion valuation, driven by its dominant search engine, smart devices, and various services, including Google Cloud and YouTube. JPMorgan identifies Alphabet as a “top stock” for 2024, emphasizing improving ad growth, higher margins, and advancements in artificial intelligence.
2. Discover Financial Services (DFS)
   • Positioned for potential gains in a soft landing economy, Discover, a credit card issuer, differentiates itself by also extending loans to consumers. CEO Brian Moynihan’s optimistic outlook on the American consumer aligns with Discover’s focus. With a modest forward P/E of nine and a sustainable 2.4% dividend, Discover appears attractively priced.
3. Walt Disney Co. (DIS)
   • A global entertainment giant, Disney, led by CEO Bob Iger, navigates a diversified portfolio, including parks, cruises, broadcast, and streaming platforms. Cost-cutting initiatives and strategic acquisitions position Disney for future growth. Despite activist investor Nelson Peltz’s concerns, Morningstar estimates a fair value of $115 per share for DIS.
4. PDD Holdings Inc. (PDD)
   • As a Chinese e-commerce growth stock, PDD has swiftly emerged as a competitor to major players. Boasting a remarkable revenue surge of 94% YoY in Q3, PDD’s focus on affordability, free shipping, and returns makes it a compelling choice. Trading at approximately 20 times forward earnings, PDD presents an enticing investment opportunity.
5. Occidental Petroleum Corp. (OXY)
   • Following Warren Buffett’s investment strategy, OXY stands out as an oil and natural gas stock with a value stock profile. Trading at less than 13 times forward earnings and offering a 1.2% dividend, OXY aligns with Buffett’s preference for well-run companies in the value stock category. Berkshire Hathaway’s increasing stake further underscores confidence in OXY.
6. Match Group Inc. (MTCH)
   • Match Group, a leader in online dating, faces a more favorable valuation after a multiyear decline. With premier brands like Tinder and a forward P/E of 16, MTCH appears undervalued. Anticipated to grow earnings at a 26% compound annual growth rate, Match Group stands as a compelling choice in the evolving landscape of online dating.
7. Grupo Aeroportuario del Sureste SAB de CV (ASR)
   • A repeat entrant on U.S. News’ best stocks list, ASR, a Mexican airport operator, showcases impressive performance. Trading at around 14 times expected 2024 earnings, ASR combines profitability with double-digit revenue growth projections. The “nearshoring” trend further positions ASR favorably, and a 4.4% dividend yield adds to its appeal.
8. Target Corp. (TGT)
   • Despite facing challenges in 2023, Target, with its reasonable valuation at 15.4 times forward earnings, stands out among discount retailers. Historically resilient during recessions, TGT offers a defensive pick on this list. With a 3.2% forward dividend and positive momentum from a strong Q3 report, Target enters 2024 with potential.
9. Pimco 25+ Year Zero Coupon U.S. Treasury Index ETF (ZROZ)
   • In anticipation of declining interest rates, ZROZ, an ETF focused on long-duration zero-coupon Treasury Strips, presents an intriguing opportunity. With an effective duration of 26.6 years, ZROZ is positioned to gain value as interest rates fall. A compelling play in a changing interest rate environment.
10. Citigroup Inc. (C)
    • Concluding the list is Citigroup, a repeat pick from 2023, characterized as a value stock with a forward P/E of approximately eight and a robust 4.1% dividend. Despite ongoing restructuring, analysts see potential, with a four-star rating and a fair value estimate implying a 30.4% upside.

In summary, these 10 stocks offer diverse investment opportunities across industries, presenting investors with a range of choices for the dynamic landscape of 2024.