In this article, we discuss the 10 stocks that will make you rich in 2024. To skip the detailed analysis of the recent events in the financial markets and expert outlook, go directly to the 5 Stocks That Will Make You Rich In 2024.
So far, the Fed’s efforts have managed to contain the inflation and is expected to push the US economy toward a soft landing rather than a recession like the European countries such as the U.K. and Germany experienced.
Last year was another strange year for the market as it was believed that the US economy would go into a recession. However, the complete opposite happened, and the S&P 500 was able to manage gains of over 25%. While it is believed that growth stocks usually perform well during interest rate cuts and have bearish outcomes during economic downturns, the economy was saved by the technology sector, which is dominated by growth stocks. Companies like Nvidia and Meta saw triple-digit growth and are still up 63.63% and 39.78% year-to-date (YTD) at the time of market closing on February 23.
It is important to note that while it is a popular belief that AI and semiconductor stocks were the top performers of the year, it is not entirely true. Blockchain and crypto news were wildly overshadowed by the AI revolution. Some of the best-performing ETFs included Global X Blockchain ETF (BKCH) and Valkyrie Bitcoin Miners ETF (WGMI). However, cryptocurrencies have shown a significant amount of volatility in the first two months of the year.
While the Fed has not been clear on its rate-cutting position in 2024, experts believe that it might start in the first half of the year, which means that growth stocks might make you rich in 2024. Although experts still have mixed opinions about the current year, you can still take a look at 14 Best Beaten Down Stocks To Buy Right Now, which also contains a list of stocks with the potential to make you rich in 2024.
2024 Outlook According to Analysts
Even though 2023 was a great year for the market, many analysts believe that the current year might not be as great and should be an average year. It shouldn’t come as a surprise as the news of a soft landing has been spreading around. The “average year” analysis is provided by Morgan Stanley, which believes in it due to normalizing financial conditions, excessive valuations, and a few other factors. The firm suggests maintaining a preference for value stocks as compared to growth stocks at least till the first rate cut by the Federal Reserve.
On the other hand, B.Riley and JP Morgan have quite bullish views about the future of the market. One of their main concerns is the over-valuation of stocks due to the 2023 rally. JP Morgan warns about a potential 20% to 30% dip in the market, while B. Riley Strategist Paul Dietrich predicts a mild recession, which could steer the market toward a 40% decline.
While most analysts believe in a mediocre market performance this year, there are still some investments that can make you rich. For this purpose, we created a list of stocks that could make you rich in 2024, and some of them include Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOGL), and Advanced Micro Devices, Inc. (NASDAQ:AMD).
A financial analyst looking through a microscope at stocks to determine their market value.
Our Methodology
For this article, we chose the 10 stocks that will make you rich according to the consensus opinion of financial media websites such as The Motley Fool, Kiplinger, and Moneycontrol in addition to financial services firms like Morningstar and some experts. We chose the stocks that were mentioned by at least three different sources and then listed them according to their hedge fund sentiment as of the fourth quarter of 2023.
The hedge fund data was taken from Insider Monkey’s database that tracks 933 elite hedge funds. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.
Stocks That Will Make You Rich In 2024
10. Symbotic Inc. (NASDAQ:SYM)
Number of Hedge Fund Holders: 24
Symbotic Inc. (NASDAQ:SYM) is a Massachusetts-based company that constructs and operates automated warehouse systems using AI-powered software.
11 Wall Street analysts covered Symbotic Inc. (NASDAQ:SYM) over the past three months, and 9 maintained a Buy rating on the stock. As of the February 23 market close, the average price target of $53.44 represented an upside of 32.28%.
On February 7, DA Davidson analyst Matt Summerville upgraded the rating of Symbotic Inc. (NASDAQ:SYM)’s stock to Buy from Neutral with an unchanged price target of $50.
Symbotic Inc. (NASDAQ:SYM) is one of the stocks that will make you rich in 2024, along with Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOGL), and Advanced Micro Devices, Inc. (NASDAQ:AMD).
9. SoFi Technologies, Inc. (NASDAQ:SOFI)
Number of Hedge Fund Holders: 29
SoFi Technologies, Inc. (NASDAQ:SOFI) provides financial services and products, including credit cards, investing, and more.
According to Insider Monkey’s database that tracks 933 hedge funds, hedge fund sentiment was positive toward SoFi Technologies, Inc. (NASDAQ:SOFI) as 29 funds had a total stake value of $697.437 million in Q4, up from 24 hedge funds with a combined stake value of $499.934 million in Q3. Jim Davidson, Dave Roux And Glenn Hutchins’ Silver Lake Partners was the top investor in the company, with 31.154 million shares worth $309.984 million.
On January 29, SoFi Technologies, Inc. (NASDAQ:SOFI) reported its Q4 earnings result with a non-GAAP EPS of $0.02. The revenue jumped 34.0% year-over-year (YoY), surpassing the estimates by $22.74 million.
8. Li Auto Inc. (NASDAQ:LI)
Number of Hedge Fund Holders: 31
Li Auto Inc. (NASDAQ:LI) is a Chinese company that produces new energy passenger vehicles (NEV).
On February 1, Li Auto Inc. (NASDAQ:LI) reported that its January deliveries increased by 105.8% YoY to 31,165 vehicles. Xiang Li, chairman and chief executive officer of the company, mentioned that the company is aiming to reach 800,000 annual deliveries this year.
Over the last three months, 4 Wall Street analysts covered Li Auto Inc. (NASDAQ:LI), and all kept a Buy rating on the stock. The average price target of $52.30 had an upside of 50.29% as of the February 23 market close.
Li Auto Inc. (NASDAQ:LI) takes the eighth spot on our list of stocks that will make you rich in 2024.
7. e.l.f. Beauty, Inc. (NYSE:ELF)
Number of Hedge Fund Holders: 34
e.l.f. Beauty, Inc. (NYSE:ELF) is a California-based company that produces and sells cosmetic and beauty products. The company takes the seventh spot on our list of stocks that will make you rich in 2024.
On February 6, e.l.f. Beauty, Inc. (NYSE:ELF) reported its Q3 non-GAAP EPS of $0.74, which beat the estimates by $0.18. The revenue of $270.9 million increased by 84.9% YoY, surpassing the estimates by $31.99 million.
On February 24, DA Davidson reiterated a Buy rating on e.l.f. Beauty, Inc. (NYSE:ELF)’s stock with a $220 price target. The firm mentioned that “a case can be made for a doubling of sales from here,” after the company mentioned US and international growth opportunities and that its share at Target Corporation (NYSE:TGT) went above 20%, while Maybelline’s share is around 15% or 16%.
In the fourth quarter, the number of hedge fund investors of e.l.f. Beauty, Inc. (NYSE:ELF)’s stock remained the same as the previous quarter’s, but the combined stake value increased to $763.554 million from Q3’s $362.488 million. With 616,912 company shares worth $89.045 million, Ben Jacobs’ Anomaly Capital Management was the most significant stakeholder in the company.
6. Palantir Technologies Inc. (NYSE:PLTR)
Number of Hedge Fund Holders: 44
Palantir Technologies Inc. (NYSE:PLTR) is a Colorado-based company that produces data analytics and data integration software solutions.
On February 6, Wedbush raised the price target on Palantir Technologies Inc. (NYSE:PLTR)’s stock to $30 from $25 and maintained an Outperform rating on the shares.
Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOGL), and Advanced Micro Devices, Inc. (NASDAQ:AMD) are some of the stocks that will make you rich in 2024, besides Palantir Technologies Inc. (NYSE:PLTR).
Palantir Technologies Inc. (NYSE:PLTR) was mentioned in Carillon Tower Advisers’ third-quarter 2023 investor letter. Here is what it said:
“Palantir Technologies Inc. (NYSE:PLTR)’s stock moved higher on hopes that it could win business from the U.K.’s National Health Services and as customer counts grew rapidly in the latest quarterly report for the company’s new Artificial Intelligence Platform (AIP). Palantir also won a significant new contract with the U.S. Army in September, which should last through 2026. The debate on the street is how fast Palantir can monetize its new commercial customers. After the quarter closed, the company announced an enhanced marketing deal with a major auditing and consulting firm.”
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Disclosure. None. 10 Stocks That Will Make You Rich In 2024 is originally published on Insider Monkey.
