Is doubling an investment possible? These 3 stocks have huge growth potential in 2024 as the Fed cuts interest rates.
The stock market is rock solid at the beginning of 2024, with the S&P 500 breaking historic highs and confirming itself above 5,000.
The current economic context offers important indications:
- constantly decreasing inflation,
- US price data indicating a downward trend,
- American economy continues to exceed expectations, with fourth quarter GDP growing by 3.3% year-on-year;
- season of US quarterly results confirming a recovery in company profits, with positive prospects for the future.
In light of these developments, there is a possible easing of monetary policy and a normalization of the dynamics of Fed interest rates without repercussions on the economy and markets.
- EPS forecasts for MSCI world sectors
- Source: Refinitiv Pictet
Although a corrective phase will be inevitable, necessary to temper the overbought on oscillators of relative strength, many experts consider technology stocks linked to progress in artificial intelligence (AI) investments with high growth potential.
So here are 3 stocks that stand out for their potential upside of 100% given the probable cut in interest rates by the Fed. These stocks not only offer the possibility of significant growth in the short term, but they also represent valid choices for long-term investments, thus aligning with investment strategies aimed at maximizing returns in the stock market.
1) Shopify
Shopify (NYSE: SHOP) is shaping up to be one of the hottest stocks for 2024, with solid prospects to double its value soon, following an exceptional performance in 2023.
In the third quarter, the company beat analysts’ expectations for the fifth consecutive quarter. The numbers speak for themselves: in the third quarter of 2023, Shopify recorded a growth rate of 25%, reaching an impressive revenue volume of $1.71 billion, with a net profit of $718 million. But what impressed markets was cash flow, which rose to $276 million in the quarter, a notable improvement from last year’s negative result.
The publication of the fourth quarter results is scheduled for February 13 and the forecasts are positive: this would be enough to send the price of Shopify shares skyrocketing upwards. For 2024, the company aims for revenue growth of 20%, demonstrating excellent development prospects.
- Shopify target price
- Source: Tipranks
Currently trading at $91, the stock is up 19% year to date. If Shopify can maintain its current momentum, investors could expect sizable profits.
- Shopify graph
- Source: Tradingview
2) SoFi Technologies
Digital personal finance company SoFi Technologies (SOFI, Nasdaq) recently reported impressive quarterly results, reporting a first-time GAAP profit of $48 million and a 35% year-over-year increase in revenue net. With membership growth exceeding 7.5 million and a forecast to add at least 2.3 million new members this year, SoFi’s growth potential is clear. Its financial and lending products have seen a significant annual increase of 24% and 45% respectively. Although the stock has lost around 13% of its stock market value since the beginning of the year, SoFi presents itself as a buying opportunity thanks to its solid foundations and strong demand for personal loans.
The company is well positioned to take advantage of the recovery in student loan payments, forecasting revenue of $550 million to $560 million in the current quarter. In the fourth quarter, total deposits grew 19% to $18.60 billion.
With a gross margin of 30% and Adjusted EBITDA growing 159% year over year, SoFi promises a bright future for investors seeking growth opportunities in the fintech sector.
- SoFi target price
- Source: Tipranks
3) Palantir Technologies
Palantir Technologies has been attracting attention throughout 2023 and looks like a stock that can double its value this year. With a current price of $16, Palantir reported a banner quarter, posting a 20% year-over-year increase in revenue to $608 million and net income of $93 million.
- Palantir target price
- Source: Tipranks
The company, active in the artificial intelligence sector, has highlighted a significant increase in demand for its products, demonstrating a consolidated presence in the market. Recent partnerships with high-profile companies such as Coles Group and Option Care Health indicate the growing adoption of its AI platform across multiple industries. With AI taking center stage for 2024, Palantir could reach new highs, offering investors an attractive opportunity to grow their earnings.
|DISCLAIMER
The information and considerations in this article should not be used as the sole or primary basis for making investment decisions. The reader maintains 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 2024-02-18 14:07:00. Original title: 3 titoli con un potenziale rialzo del 100%
