Investing Theory

A Glimpse into the Future: Best Stocks for 2024 Investments

October 12, 2023

As the dawn of a new year approaches, the world of investing is brimming with exciting opportunities and challenges. The canvas of the 2024 market landscape is richly painted with the hues of AI advancements, Advanced Micro Devices, medical innovations, and shifts in globalization.

So, fasten your seatbelts and get ready to embark on a thrilling ride, offering a glimpse into the future best stocks for 2024 investments!

Navigating the 2024 Market Landscape: How to Join Growth Investors Club

As we examine the market landscape of 2024, it becomes apparent – the wave of AI is set to crest even higher. With 70% of executives looking to boost AI resources and cost savings driving AI adoption, the expansion of AI are reshaping the investment landscape. This structural trend is expected to play a critical role, unlocking substantial growth potential for asset management by optimizing portfolio strategies and extracting valuable insights from unstructured data.

Additionally, the health sector is teeming with breakthroughs. With the proportion of Americans aged 65 and older predicted to surpass children under 15 in 2024, age-related conditions like dementia and cancer are set to become more prevalent. The recent approval of Lecanemab, a medication to slow Alzheimer’s, and promising results from Donanemab’s Phase 3 trials signal a new era in medical innovations. This presents investors with a golden opportunity to tap into the surging market for age-related medical solutions, even amidst the backdrop of rising interest rates.

Amidst substantial shifts in globalization, production relocation, near-shoring, and friend-shoring are reshaping supply chains and creating new investment opportunities in developed markets. Companies in ‘friendly’ countries like Qualcomm, known for its involvement in the broader space economy with satellite platforms, are expected to gain manufacturing advantages due to geopolitical alignments. This shift is set to significantly influence the 2024 market landscape.

Asset Management and Picking Ahead: What Stocks to Choose in 2024

Looking forward to 2024, we have pinpointed five growth stocks that stand out for their growth potential, market position, and alignment with industry trends. These stocks are:

  • Kinsale Capital Group
  • Paylocity
  • Fortinet
  • Ryanair Holdings
  • First Solar

These stocks are poised to thrive in the dynamic 2024 market landscape.

We’ll delve deeper into each of these promising prospects.

Kinsale Capital Group, Inc. (KNSL)

Kinsale Capital Group, a property, and casualty insurance company specializing in the excess and surplus (E&S) market across the U.S, has carved a niche for itself. The company has leveraged its expertise in this unique market to provide insurance coverage to customers, thereby enhancing its market cap.

Kinsale Capital Group has built a formidable track record of long-term earnings, competitive pricing strategies, and maintaining a favorable debt-to-equity ratio. It is worth noting that revenue growth over the past 5 years has been a staggering 412% - and we confidently assume that this amount will be further elevated in the coming years, as experts forecast a doubling of revenue in the next 2 years

And, importantly: the operating margin was over 30%, which is 3x higher than its domestic peers.

Kinsale: operating margin, screen from the tool.

Although there’s been some weakness in net income growth over the past five years, Kinsale Capital Group has demonstrated a robust financial performance history. As such, the company’s financial health and strong growth prospects make it a promising addition to any investment portfolio in 2024.

Paylocity (PCTY)

Following Kinsale is Paylocity, a cloud-based provider of payroll and human capital management (HCM) software solutions. Since its entrance to the public market in March 2014, the company has showcased a favorable stock performance, including an upward trend in the past year.

Paylocity’s operation hinges on offering modern HR and payroll software designed to drive improved business results. The company has successfully expanded its client base, cultivated a skilled workforce, and achieved robust revenue growth. Furthermore, Paylocity’s commitment to its mission and the development of innovative solutions based on customer input have been key contributors to its growth trajectory.

Paylocity: debt to assets, screen from the tool.

With its strong growth prospects and focus on innovation, Paylocity is well-positioned to continue its upward trajectory in 2024, making it an attractive option for growth investors.

As for specific figures, to make an impression it is enough to remember that Cash from Operations increased 219% in the last 3 years and the company has almost no debt (Debt to Assets is under 2%).

Fortinet Inc (FTNT)

Cybersecurity is an emerging field, with Fortinet Inc as a prime choice for 2024. The company offers a range of products and services including:

  • Security appliances
  • Network security solutions
  • Cloud security
  • Endpoint security
  • Security management

Fortinet’s ability to generate free cash flow is a crucial factor for investors evaluating its financial health.

Fortinet: EPS and CFO growth; screen form the tool

Fortinet has lately made substantial progress in cybersecurity, including:

  • Releasing new and enhanced products for OT environments
  • Expanding their Universal Secure Access Service Edge (SASE) footprint
  • Participating in global initiatives to mitigate cybersecurity risks

Some of these advancements, may involve the use of graphics processing units (GPUs) for enhanced performance and security.

The past performance of Fortinet’s stock over the past five years has been noteworthy. The stock has demonstrated consistent growth, with shareholders realizing favorable returns on their investment.

Fortinet is a promising investment choice in the booming cybersecurity market. Company is continuously improving profitability — in the last 4 years EPS TTM increased every single quarter, and the Return on Assets of 18% is way higher than peers’ average.

Ryanair Holdings (RYAAY)

With the travel industry bouncing back in the post-pandemic era, Ryanair Holdings, a low-cost airline, is an attractive investment opportunity. Ryanair has implemented a cost leadership strategy, focusing on reducing costs and improving efficiency to provide some of the most competitive fares in the industry. This strategy has enabled the company to maintain a strong position in the broader market of low-cost airlines.

It's worth highlighting, that the Revenue and EPS are at all time high. What's more, analysts predict the profits (EPS) to double in the next 2 years, thanks to high Return on Invested Capital (20%)

Ryanair: Return on Invested Capital (20%); screen from the tool.

Ryanair projects a post-tax profit (PAT) ranging from 1.85 billion to 2.05 billion euros for the fiscal year 2024. This financial projection, coupled with the company’s growth opportunities and cost-efficiency strategies, may contribute to an attractive valuation for potential investors.

First Solar Inc (FSLR)

Completing our top five stocks for 2024 is First Solar, a leading solar panel manufacturer. As the world continues to shift towards renewable energy, First Solar is poised to benefit significantly.

First Solar’s strong focus on innovation and a growing market share position it well to reap the benefits of the global shift towards renewable energy. The company has consistently demonstrated a strong commitment to sustainable practices and has made significant advancements in solar technology.

FSLR: EPS and Revenue estimates; screen from the master chart feature in tool

Company's revenue is estimated to double in the next 2 years. Thats is also why analysts predict huge profitability gain — EPS to reach $20 in the next 2 years. The company's fundamentals also looks good, including low debt (Debt to Assets 6%) and almost $2B of cash and equivalents on hand.

With its robust product portfolio and growing market share, First Solar presents a promising investment opportunity for 2024, as the world continues to embrace renewable energy solutions.

The Long Game: Selecting Stocks with a Decade-Long Perspective

Shifting our focus to a longer-term perspective, it’s worth noting that selecting stocks for a decade-long investment requires a different set of considerations. Factors such as:

  • Revenue growth
  • Profit growth
  • Cash flow growth
  • Market trends
  • Competitive advantage
  • Management team
  • Company’s overall valuation

all come into play when selecting growth stocks and evaluating their growth potential for a decade-long investment.

A company’s market position also has a crucial influence in determining its long-term investment viability. Some benefits of a strong market position include:

  • Sustainable competitive advantages
  • Long-term profitability
  • Growth
  • A stable customer base and financial foundation.

The ‘Magnificent Seven’ companies considered as growth stocks, namely:

  • Microsoft Corp.
  • Inc.
  • Meta Platforms Inc.
  • Apple Inc.
  • Alphabet Inc.
  • Nvidia Corp.
  • Tesla Inc.

have collectively delivered an average total return of 81%, demonstrating the potential for significant returns from successful long-term growth investments.

Psst... all of the above you will find in tool - be sure to check out our free trial and see for yourself how helpful such features are!

Staying Informed: Week-to-Week Stock Market Movements

Continuing our journey, it’s vital to consider the significance of staying informed about week-to-week market movements. These movements offer valuable insights into overall market trends and investor sentiment, potentially indicating bullish or bearish trends that prompt investors to adjust their holdings.

Factors that can influence week-to-week stock market fluctuations include:

  • Quarterly earnings reports
  • Analyst upgrades or downgrades
  • Changes in valuation
  • Trade policy uncertainty
  • Random short-term price changes

Investors can use this information to make informed portfolio adjustments, with the guidance of a portfolio manager. This includes:

  • Staying informed on current market trends
  • Periodically rebalancing their portfolio to maintain the desired allocation
  • Strategically adding defensive positions during periods of market volatility.

Remember, however, that you don't have to rely on others and additionally compensate them for it - you can also have much more control over your own investments by using modern investment tools, such as it provides comprehensive and real-time data analytics, enabling investors to make informed decisions based on up-to-date market information. Secondly, offers sophisticated portfolio analysis tools, allowing users to assess and optimize their investment strategies efficiently. Its diverse range of metrics and calculations provides deeper insights into investment performance, empowering investors to identify trends and potential opportunities.

Screen from the tool: fundamental scoring feature.

Ultimately, leveraging such tools streamlines the investment process, offering a holistic toolkit for investors to navigate the stock market with greater confidence and precision.

Summing Up: New Year, New Growth Stocks Investment Chances

As we approach the end of our journey, let’s sum up what we’ve learned about the 2024 investment landscape. The upcoming year poses a multitude of exciting investment opportunities, with AI, medical innovations, and globalization shifts shaping the broader market.

Each of these stocks has their unique growth potential and market position. They are poised to thrive in the dynamic 2024 market landscape, providing investors with an array of opportunities to build a strong and diversified portfolio.

Looking even further ahead, we’ve also touched on the considerations and strategies for selecting stocks with a decade-long investment horizon. With a careful eye on market trends and an informed understanding of potential growth drivers, investors can position themselves for long-term wealth creation.

As we cross the finish line of our journey, it’s clear that the 2024 investment landscape is rich with opportunities. From the expansion of AI and breakthroughs in medical innovations to shifts in globalization, the market is teeming with potential. Investors who focus on these long-term trends and high-growth stocks can build a strong and diversified portfolio.

Of course, you can also bet on proven players from other sectors: for instance, companies such as Netflix (NFLX), Domino's Pizza (DPZ), Tesla (TSLA) and Moderna, Inc. (MRNA) will probably also do quite well, but they are nothing revealing.

In conclusion, whether you’re a seasoned investor or just starting your investment journey, 2024 promises to be an exciting year. So, gear up, stay informed, and seize the opportunities that lie ahead. After all, the future of investing is now!

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