Hanna Horvath
·3 min read
Economists agree — 2024 may be a strong year for U.S. stocks. The S&P 500 rose 24% in 2023, according toMarketWatch, and recently crossed the 5,000 mark, according toBarron’s. This year, we may see a “stock-pickers paradise,” according toSavita Subramanian, head of equity and quant strategy for Bank of America.
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While the Federal Reserve has paused interest rate hikes (so far), manyexperts believecuts could be on the forecast for this year — which could also bring good news for the markets.
Buying index funds can sometimes fail to maximize your gains in an upmarket. That’s why it may be smart to pick targeted stocks riding the highs of sector trends. Choosing individual investments can help you potentially take advantage of market upswings.
Based on growth forecasts, these stocks could be smart picks to ride 2024’s upward trajectory.
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Green Energy: Clearway Energy (CWEN)
Clean power produces electricity without fossil fuel emissions. As governments and corporations work toward carbon reduction goals, renewable energy is becoming more and more mainstream — and more appealing to investors.
Clearway Energy develops and operates wind and solar facilities across the U.S. Its stock offers a 6.74% dividend yield — and has been marked by analysts as a “strong buy,” according toStock Analysis.
The average target predicts a 24% increase from its current stock price as of Feb. 20.
Healthcare Tech: Doximity (DOCS)
This digital platform for physicians boasts 1.8 million members —over 80% of U.S. doctors.
Doximity’s mobile app enables healthcare professionals to collaborate on patient cases, transfer records, and conduct telehealth visits. The company also recently rolled out a beta version of ChatGPT for doctors to help improve administrative paperwork.
Telemedicine has surged in the past few years (due to the pandemic), and expanded adoption of Doximity’s services signals a strong pick.
E-Commerce: Amazon (AMZN)
Though a well-known company, Amazon has plenty of room to grow in 2024.
The pandemic boom that benefited e-commerce slowed in 2022, negatively impacting Amazon’s stock. Shares in the online retail/cloud computing giant sank 50% from its peak.
However, according to Stock Analysis, valuations have returned to 2018 ranges, a sign that the market likely overcorrected. The company is expected to continue to grow into 2024 and use generative artificial intelligence and advertising to boost its business in the coming months.
Amazon’s sheer scale also makes it easier to launch new initiatives — pharmacy services, one-day grocery delivery, and cashierless Whole Foods shopping.
Bottom Line
Instead of sticking to index funds this year, you may want to consider buying an individual stock or two. These picks can position you for above-average performance.
But it’s still important to consider your risk tolerance and time horizon when investing. Diversification is still the name of the game, so make sure you’re spreading your money across different sectors and investment types.
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This article originally appeared on GOBankingRates.com: Analysts Predict 2024 Will Be a ‘Stock Picker’s Paradise’: 4 Stocks To Buy Now To Ride Next Year’s Market Upswing
