At the back of renewed stock market optimism, recent weeks have seen the S&P 500 surge beyond 4,600, a milestone not witnessed since January 2022.
Propelled by this upward momentum, the broader market index is poised for its most impressive annual performance since 2021, and its third-best in the past decade.
As 2023 draws to a close, investor anticipation for 2024 intensifies, marked by a divergence in analyst predictions, with some predicting an economic recession while others see the S&P 500 surging to new peaks.
Picks for you
Amidst this uncertainty, Finbold delved into two stocks garnering attention for their potential to shine in the upcoming year, backed by optimistic views from reputable analysts.
Alphabet (NASDAQ: GOOGL)
It’s been a stellar year for Alphabet (NASDAQ: GOOGL), one of the world’s largest companies by market cap.
With a year-to-date surge of over 48%, GOOGL has been one of the Magnificent Seven stocks responsible for the S&P 500’s 2023 rise, highlighted by the frenzy around artificial intelligence (AI) technology.
Interestingly, Morningstar Research Services’ chief U.S. market strategist Dave Sekera believes that Alphabet is strongly positioned to extend its current upward momentum into 2024.
Notably, the analyst believes GOOGL “is the last of the “Magnificent Seven” that we still rate as being undervalued.”
“That’s a 4-star-rated stock, trades at an 18% discount to our fair value.”
– he said.
Sekera thinks GOOGL will continue benefiting from a mix of long-term secular growth within its cloud business, as well as the rebounding digital advertising market.
More specifically, the expert thinks there is further room for growth in Alphabet’s margins “just as they see some monetization in YouTube.”
First Solar (NASDAQ: FSLR)
Some Wall Street analysts believe energy stocks are the best-positioned sector ahead of 2024, and that sentiment is reflected in a number of their top picks.
One strategist who shares those views is FactSet’s John Butters, who believes the energy sector is poised to witness the strongest price increase at 26.1%, citing “the largest upside difference between the bottom-up target price and the closing price.”
In this light, energy company First Solar (NASDAQ: FSLR) is among analysts’ favorite picks which they believe could lead the sector’s 2024 charge. Notably, FSLR is predicted to surge over 58% over the following 12 months, a move that would mark a significant win for its investors, given the stock’s unenthusiastic 2023 performance of -4.3%.
Wall Street expects the solar panel provider to generate $7.92 per share in profit this year, compared to a loss a year ago. In 2024, profit per share is anticipated to surge over 65%.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
