Choosing the best companies to invest in for 2024 necessitates an awareness of one’s investment objectives, which can differ greatly between individuals. For example, younger investors frequently choose growth stocks to potentially enhance their wealth quickly, whereas senior investors may prefer dividend equities to augment retirement income without eroding their portfolio’s equity.
Checking financial data on platforms like Yahoo Finance, such as dividend yield, revenue growth, and free cash flow, can also help determine whether a stock fits within your investment strategy.
Key Criteria for Stock Selection
When deciding which stocks to buy and trade, it is critical to favor companies with:
- Strong brand recognition
- Robust financials
- A reasonable price compared to the stock’s all-time high
Among a wide range of stock picks, expert recommendations are particularly valuable. For 2024, James K. Glassman’s top picks include Alibaba Group (BABA) and Tesla (TSLA), showcasing sectors poised for growth. The S&P 500’s spectacular rebound in 2023, with a total return of 26.29%, suggests a favorable investing environment.
Top Technology Bet: Microsoft
Microsoft is emerging as a leading technology investment for 2024 due to its dominance in generative AI and cloud computing.
Why Microsoft Stands Out
- Azure Revenue: 20% YoY growth to $25.9B in Q2 FY24
- AI Innovation: Copilot software and Bing revival through AI integration
- Financial Strength: Over $3 trillion market cap and strong cash reserves
- Strategic Growth: High CAPEX, data infrastructure, and robust user base
- Analyst Outlook: Strong long-term growth expectations
Ares Management: A Powerhouse in Asset Management
Ares Management is gaining momentum in the asset management space with over $111 billion in dry powder ready for deployment.
Highlights
- Assets Under Management (AUM): Rose 19% to $418.8B in Q4 2023
- Real Estate Strategy: Targeting distressed office buildings with a strategic underweight approach
- Dividend Growth: 21% increase to $0.93 per share
- Market Confidence: Near all-time high stock price
- Future Opportunities: Focused on alternative credit and infrastructure loans
Eli Lilly: Revolutionizing Weight Loss
Eli Lilly is redefining obesity treatment with tirzepatide, a groundbreaking medication.
Tirzepatide Overview
- Dual GIP and GLP-1 receptor agonist
- Average weight loss of 22.5%
- Fast track status granted by FDA
Market and Financial Impact
- Expected annual sales: $3B
- Obesity drug market forecast: $295.3B by 2026
- Total potential sales (with next-gen drugs): $81B by 2030
- Broader Pipeline: Includes developments in neurology, oncology, and immunology
Uber Technologies: Redefining Mobility and Delivery
Uber continues to innovate across mobility and delivery services, with a strong growth forecast and rising market valuation.
Stock Projections
- Current (Apr 6, 2024): $77.16
- End of 2024: $110
- Mid-2025: $150
- End of 2027: $200
- 2033: $300
Financial Highlights
- 2024 Earnings Growth: 36.9%
- 2024 Revenue Growth: 15.8%
- Positive operating income and strong user growth
- 142M monthly active users reported in Q3 2023
East West Bancorp: Financial Strength in Banking
East West Bancorp (EWBC) is a stable and expanding bank with unique cross-border expertise between the U.S. and Asia.
Key Financials
- Total Assets (Dec 2023): $69.6 billion
- Established: 1973, with a niche in the Chinese-American market
- Branches: Over 120 in the U.S. and Asia
Strategic Advantages
- Full banking license in China
- Strong presence in key U.S. markets
- Focus on innovation and tech-driven banking solutions
Key Considerations for 2024 Investors
Economic & Market Indicators
- The Fed’s 2% inflation target aligns with current core inflation (excluding rent)
- Strong interest coverage ratios (2x+) in the private credit market
Sector Insights
- Technology: AI-led innovation continues to dominate
- Healthcare: 17.8% projected earnings growth, with companies like Eli Lilly leading
- Real Estate: Modern apartments outperform older office spaces
- Financials & Energy: Stable sectors, especially in election years
Strategic Investment Approaches
- Favor growth stocks in tech during economic soft landings
- Seek defensive sectors (healthcare, consumer staples) amid inflation
- Diversify to reduce risk and capture cross-sector opportunities
Conclusion
Selecting the right stocks in 2024 requires a mix of strategic insight, sector awareness, and financial analysis. Companies like Microsoft, Ares Management, Eli Lilly, Uber, and East West Bancorp illustrate the diverse opportunities available. With a balanced approach combining growth potential and risk mitigation, investors can better navigate the evolving financial landscape.
