3 stocks to have in your portfolio in 2024

If you could only buy 3 stocks in 2024, these should not be missing from your investment portfolio due to their growth potential.

These are the 3 stocks to have in your portfolio in 2024, according to experts. In 2023, these shares triumphed in the financial markets, demonstrating that these 3 companies have a unique vision and effective strategies to generate growth and innovate in their respective sectors. With even broader growth prospects in 2024, these stocks will continue to be the focus of investors seeking opportunities in the evolving economic landscape.

In this article, we’ll look at the reasons behind the success of each company and analyze the prospects for 2024.

1) Amazon

E-commerce giant, Amazon, had a stellar 2023, highlighting its ability to diversify revenue sources. While e-commerce remains its flagship, with net sales reaching $405 billion in the first nine months of 2023, the company has demonstrated that it is not solely dependent on this sector.


Amazon vs S&P 500: Source: Fool.com

Subscriptions and advertising have generated tens of billions in revenue, contributing to higher margins. In particular, the Amazon Web Services (AWS) segment, created to support e-commerce, has transformed into the main player in the world of cloud computing. Despite growing competition, AWS remains a leader and contributes significantly to Amazon’s overall operating income.

The rally in Amazon shares, +85% in 2023, could continue in 2024, supported by the recovery of both e-commerce and cloud computing.


Amazon target price: Source: TipRanks

2) MercadoLibre

MercadoLibre operates exclusively in Latin America where it has played a key role in transforming the e-commerce industry in the region.


Meli vs S&P500: Source: Fool.com

Crucial was the creation of Mercado Pago, a fintech solution designed to allow cash customers to make online purchases in a predominantly cash-based society. This initiative has helped grow MercadoLibre, leading to an ecosystem that also integrates Mercado Envios for fulfillment and shipping management.

3) Shopify

Shopify stands out in the competitive e-commerce platform industry thanks to its ease of use and vast ecosystem. Aimed at entrepreneurs of all sizes, the platform offers flexibility and advanced features. With Shopify Plus, the company has extended its reach, providing advanced solutions for large and growing businesses, offering faster onboarding and extra features like wholesale channel solutions and dropshipping.


Shopilfy vs S&P 500: Source: Fool.com

Foregoing investment in logistics activities allowed Shopify to reduce financial burdens and record revenues up 27% in the first three quarters of 2023, to $4.9 billion.

Despite a loss of $525 million, mostly due to the sale of the logistics business, Shopify reported a profit of $718 million in the third quarter.

With shares expected to raise 140% in 2023, the company appears to be enjoying a period of sustained growth. Despite recent losses, Shopify’s valuation continues to be attractive, with a low price-to-sales (P/S) ratio by historical standards. This suggests that, in 2024, Shopify stock could continue to rise as the company works to leverage its vast ecosystem and provide advanced solutions for online entrepreneurs.


SHOP target price: Source: TipRanks

DISCLAIMER
The information and considerations in this article should not be used as the sole or primary basis for making investment decisions. The reader retains full freedom in his own investment choices and full responsibility in making them, since he alone knows his risk propensity and his time horizon. The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation to the public for savings.

Original article published on Money.it Italy 2024-01-03 16:14:00. Original title: 3 titoli da avere in portafoglio nel 2024

Argomenti

# Amazon

# E-commerce

# Investments

# Stock-picking

# MercadoLibre