In this article, we discuss the 7 best performing long-term stocks in 2024 along with the latest updates around the broader market.
After the latest 50 basis point rate cut by the Federal Reserve, the market has been performing well. All of the major market indices have been in the green since then and experts are taking it as a good sign.
We discussed the Fed’s rate cut in our article about the best day trading stocks. Here is an excerpt from the article:
“…the Federal Open Market Committee (FOMC) chose to lower its policy interest rate by 50 basis points, a move intended to ease monetary policy. Powell explained that this action reflects growing confidence that labor market strength can be maintained, while inflation continues to decrease toward the Fed’s target. Powell emphasized the Fed’s flexibility in its approach and noted that future rate changes will depend on incoming data and the evolving economic landscape.
When questioned about the likelihood of future rate cuts, Powell said that each decision would be data-driven and made on a meeting-by-meeting basis. The Summary of Economic Projections (SEP) suggests a federal funds rate of 4.4% by the end of the year, with further reductions expected in the years ahead, which points to expectations of lower inflation and slightly higher unemployment.”
Understanding the Current Stock Market Optimism
Lead writer for Markets Live at The Wall Street Journal, Gunjan Banerji also shares the market’s optimistic sentiment as she explained in an interview with CNBC on September 25. Banerji discussed the growing optimism in the stock market despite ongoing bullish sentiment for the past few years. She highlighted how the recent rate cut by the Federal Reserve boosted market confidence, with the VIX (volatility index) dropping to its lowest levels and other indicators like high-yield bonds and options showing continued belief in the rally.
Dominic Chu of CNBC expressed concerns about potential market overconfidence, given the calmness amid geopolitical risks, the upcoming U.S. presidential election, and consumer spending challenges. Banerji acknowledged these risks but emphasized that much of the market’s optimism is tied to the Fed’s actions, with people reassured by the larger-than-expected rate cut.
Finally, Banerji pointed out a broadening of the market rally beyond the tech sector and mentioned the strong performances in sectors like energy and materials, and record highs from companies like Caterpillar and McDonald’s, which indicates a healthier, more diverse market rally.
With that, we look at the 7 Best Performing Long Term Stocks in 2024.
7 Best Performing Long Term Stocks in 2024
Our Methodology
For this article, we used stock screeners to identify nearly 60 mid to mega-cap stocks with year-to-date share price returns of over 100%. Next, we narrowed our list to 7 stocks with the highest average analyst price target upside, as of September 24. We also added the hedge fund sentiment around each stock which was taken from Insider Monkey’s database of over 900 elite hedge funds. The stocks are sorted in ascending order of their upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
7 Best Performing Long Term Stocks in 2024
7. Insmed Incorporated (NASDAQ:INSM)
Average Analyst Price Target Upside: 19.10%
Stock Price Performance YTD: 142.59%
Number of Hedge Fund Holders: 74
One of the best performing long term stocks, Insmed Incorporated (NASDAQ:INSM) is a biopharmaceutical company dedicated to developing treatments for serious and rare diseases. One of its flagship products, ARIKAYCE, is designed to treat Mycobacterium avium complex lung disease, offering vital support as part of a combination antibacterial regimen for adult patients.
In addition to ARIKAYCE, it is making strides with its pipeline, particularly focusing on brensocatib, an oral medication aimed at treating bronchiectasis and other conditions linked to neutrophil activity. The company is also advancing Treprostinil Palmitil Inhalation Powder, an inhaled treatment for pulmonary hypertension related to interstitial lung disease and pulmonary arterial hypertension.
Recent developments highlight Insmed’s (NASDAQ:INSM) momentum, especially following the encouraging results from the ASPEN study, which evaluated brensocatib in bronchiectasis patients.
The trial met its primary objective and demonstrated that both doses of brensocatib significantly reduced severe lung flare-ups compared to a placebo. Specifically, patients on the lower dose experienced a 21% reduction in flare-ups, while those on the higher dose saw a 19% decrease. Moreover, the study achieved several secondary endpoints, indicating that brensocatib not only lessened acute episodes but also contributed to improvements in overall lung health.
The promising outcomes position the company to file for regulatory approval with the U.S. Food and Drug Administration (FDA) by the end of 2024, with expectations to launch brensocatib in the U.S. by mid-2025, followed by introductions in Europe and Japan.
The potential approval of brensocatib is particularly significant given that there are currently no approved treatments for bronchiectasis.
It opens a substantial market opportunity for Insmed (NASDAQ:INSM), providing a significant therapeutic option for many patients suffering from this condition. Analysts have expressed a favorable outlook for the company. The stock has been given a Buy rating by 17 analysts. The average price target of $86.50 implies an upside of 19.10% to the stock’s current price, as of September 24.
Columbia Acorn Fund stated the following regarding Insmed Incorporated (NASDAQ:INSM) in its Q2 2024 investor letter:
“Insmed Incorporated (NASDAQ:INSM) is a commercial-stage biopharmaceutical company focused primarily on treatments for pulmonary disease. The stock meaningfully outperformed during the quarter following positive Phase III data for its Brensocatib (Brenso) drug in treating non -cystic fibrosis bronchiectasis (NCFB). While the stock has roughly doubled since the beginning of the year, we are maintaining the overweight position as Brenso could be a potential game changer for the company, given a multi-billion-dollar total addressable market and no other approved NCFB therapies on the market.”
6. NVIDIA Corporation (NASDAQ:NVDA)
Average Analyst Price Target Upside: 24.10%
Stock Price Performance YTD: 150.92%
Number of Hedge Fund Holders: 179
NVIDIA Corporation (NASDAQ:NVDA) is a powerhouse in the technology sector, known for its work in graphics processing units and AI. It was originally focused on advancing the gaming experience but has now transformed the landscape of computer graphics with the launch of its GPU in 1999, which significantly improved video game performance and 3D applications.
Over the years, the company has broadened its product range to include central processing units, data processing units, and various software solutions tailored for high-performance computing and deep learning. Today, it serves a wide range of industries, including gaming, professional visualization, data centers, automotive, and healthcare.
It takes its place on our list of the best performing long term stocks in 2024. The stock has a consensus Strong Buy rating from 64 analysts. As of September 24, the average price target of $150.00 represents an upside of 24.10% from the present levels.
One of the most eagerly awaited developments is the Blackwell product line. NVIDIA (NASDAQ:NVDA) forecasts substantial revenue from this new series, which promises to be a game-changer in the field. The order book for both the current Hopper chip lineup and its successor, Blackwell, is strong.
The products feature advanced technology that allows clusters of NVIDIA chips to function as cohesive units that process massive amounts of data and execute computations at unprecedented speeds. This is especially valuable for training the neural networks that power modern AI applications.
Demand for the company’s existing products remains strong, and as supply chains improve, orders for the Blackwell range are steadily increasing. CEO Jensen Huang has emphasized that the company is ramping up production of the Blackwell GPU and is on track to begin shipments in the fourth quarter.
While some engineering challenges have arisen that may delay certain product releases, the overall momentum is positive, and NVIDIA (NASDAQ:NVDA) is ready to scale production as it moves into the next year.
NVIDIA (NASDAQ:NVDA) was held by 179 hedge funds in the second quarter and the stakes amounted to $53.67 billion. Fisher Asset Management is the top shareholder of the company and has a position worth $11.54 billion as of Q2.
Ithaka Group stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is the market leader in visual computing through the production of high-performance graphics processing units (GPUs). The company targets four large and growing markets: Gaming, Professional Visualization, Data Center, and Automotive. NVIDIA’s products have the potential to lead and disrupt some of the most exciting areas of computing, including: data center acceleration, artifi cial intelligence (AI), machine learning, and autonomous driving. The reason for the stock’s appreciation in the quarter was twofold: First, the stock benefi ted from tremendous excitement surrounding the further development of generative AI and the likelihood this would necessitate the purchase of a large number of Nvidia’s products far into the future; Second, Nvidia posted another strong beat[1]and-raise quarter, where the company upped its F2Q25 revenue guidance above Street estimates, showcasing its dominant position in the buildout of today’s accelerated computing infrastructure.”
5. MicroStrategy Incorporated (NASDAQ:MSTR)
Average Analyst Price Target Upside: 27.70%
Stock Price Performance YTD: 124.58%
Number of Hedge Fund Holders: 26
MicroStrategy Incorporated (NASDAQ:MSTR) is a well-known player in the field of artificial intelligence-driven enterprise analytics. It provides software and services across multiple regions, including the United States and Europe.
The company’s flagship product, MicroStrategy ONE, provides non-technical users the ease to access valuable insights that aid in decision-making. Additionally, the MicroStrategy Cloud for Government offers important threat-monitoring services, designed to meet the complex technical and regulatory requirements of government bodies and financial institutions.
In addition to its software capabilities, MicroStrategy (NASDAQ:MSTR) has made a significant mark in the cryptocurrency landscape. Since 2020, the company has been accumulating Bitcoin and has emerged as the largest corporate holder of this digital asset.
As of September 20, it reported an impressive total of 252,220 Bitcoin, having invested approximately $9.9 billion in this venture. Recently, the company added 7,420 Bitcoin to its holdings at a total cost of about $458.2 million.
The acquisition came on the heels of another substantial purchase just a week earlier when it acquired 18,300 Bitcoin for around $1.11 billion, averaging $60,408 per Bitcoin. Overall, the company has added 25,720 Bitcoin to its balance sheet during the third quarter alone.
10 analysts have given MicroStrategy (NASDAQ:MSTR) a Buy rating and its average price target of $196.50 has an upside of 27.70% to the stock’s price on September 24. Year-to-date, the stock has gained 124.58%.
4. Oscar Health, Inc. (NYSE:OSCR)
Average Analyst Price Target Upside: 28.97%
Stock Price Performance YTD: 138.57%
Number of Hedge Fund Holders: 40
Oscar Health, Inc. (NYSE:OSCR) is a New York-based health insurance company that focuses on individual and small-group markets. The company offers traditional health plans as well as +Oscar, a technology-driven platform designed to facilitate the transition to value-based care for both providers and payers. The approach positions it as a forward-thinking player in the industry, capable of addressing the evolving needs of healthcare.
The stock was covered by 6 analysts and has a consensus Buy rating. The average price target of $28.00 implies a 28.97% upside from the present levels, as of September 24. It is among our best performing long term stocks in 2024. The stock is up 138.57% year-to-date.
During Q2, the company served around 1.6 million members across the country. The second quarter marked a record period for the company, with total revenue reaching $2.2 billion, a substantial 46% increase compared to the same quarter last year.
The company mentioned that impressive growth was because of rising membership numbers and strategic rate increases. It has revised its full-year 2024 outlook and projects revenues between $9.0 billion and $9.1 billion, which is an increase of $700 million from previous estimates. Additionally, the company forecasts adjusted EBITDA to fall within the range of $160 million to $210 million.
In June, Oscar Health (NYSE:OSCR) laid out a clear vision for future growth. It is targeting a compound annual growth rate (CAGR) of at least 20% in revenue and a 5% operating margin by 2027. The company plans to significantly expand its insurance footprint to capitalize on existing and new market opportunities to advance its addressable Affordable Care Act (ACA) market. The ambition is supported by its focus on introducing innovative products tailored to the diverse needs of its member base.
The company’s membership growth has been remarkable, with a 63% increase year-over-year. Oscar Health (NYSE:OSCR) has effectively deepened its market presence, achieving growth in about 80% of the states it operates in.
3. Avidity Biosciences, Inc. (NASDAQ:RNA)
Average Analyst Price Target Upside: 39.77%
Stock Price Performance YTD: 380.35%
Number of Hedge Fund Holders: 31
Avidity Biosciences, Inc. (NASDAQ:RNA) is a biopharmaceutical company focusing on the innovative delivery of RNA therapeutics. The company employs its proprietary Antibody Oligonucleotide Conjugates (AOC) platform, which combines the targeting capabilities of monoclonal antibodies with the precision of oligonucleotide therapies.
Due to the platform, the company is able to deliver treatments directly to challenging tissues, addressing the underlying causes of various diseases. Currently, the company is concentrating on rare muscle disorders, with ongoing clinical programs for conditions such as myotonic dystrophy type 1 (DM1), facioscapulohumeral muscular dystrophy (FSHD), and Duchenne muscular dystrophy (DMD).
In Q2, 31 hedge funds had investments in Avidity Biosciences (NASDAQ:RNA), with positions worth $991.516 million. VenBio Select Advisor is the top investor in the company as of Q2 and has a stake worth $265.729 million.
It showed encouraging results as it posted a GAAP EPS of -$0.65 in Q2, which exceeded analyst expectations by $0.14. The company also generated revenue of $2.05 million.
A notable development came in June when the company launched the global Phase 3 HARBOR trial for del-desiran, targeting DM1. This trial is a significant step forward, especially following the FDA’s Breakthrough Therapy designation granted in May 2024, which recognizes the potential of del-desiran to provide substantial benefits over existing treatments.
The company is also advancing its efforts with del-brax (AOC 1020), targeting FSHD. It plans to advance the initiation of registrational cohorts after reporting remarkable reductions in DUX4 regulated genes, alongside trends showing functional improvements and a favorable safety profile in participants. Such results highlight the platform’s capability to address genetic disorders effectively.
Additionally, Avidity Biosciences’ (NASDAQ:RNA) del-zota is undergoing a Phase 1/2 trial known as EXPLORE44, which has demonstrated significant improvements in dystrophin production and exon 44 skipping in DMD patients.
The company is expanding its focus to neuromuscular diseases. The company plans to broaden its horizons by introducing its first target from a precision cardiology pipeline in the fourth quarter of 2024. The expansion shows its focus on addressing multiple serious health conditions and diversifying its therapeutic offerings.
11 analysts have given Avidity Biosciences (NASDAQ:RNA) a Buy rating. As of September 24, the average price target of $61.50 has an upside of 39.77% to the stock’s current price. It ranks 3rd on our list of the best performing long term stocks in 2024.
2. Grupo Financiero Galicia S.A. (NASDAQ:GGAL)
Average Analyst Price Target Upside: 61.79%
Stock Price Performance YTD: 161.56%
Number of Hedge Fund Holders: 15
Grupo Financiero Galicia S.A. (NASDAQ:GGAL) is a prominent financial services holding company in Argentina with over a century of experience in the industry. It has a diversified portfolio of subsidiaries, including Banco Galicia, Naranja X, Galicia Seguros, and Galicia Asset Management.
The company offers a wide range of financial products and services. The services range from savings accounts and credit facilities to investment options and insurance products. It is among our best performing long term stocks in 2024.
The stock has a consensus Buy rating among 5 analysts, and its average price target of $71.77 represents an upside of 61.79% from current levels, as of September 24. Additionally, the stock is up by 161.56% year-to-date.
The company has been actively pursuing growth through strategic acquisitions. Recently, Grupo Financiero Galicia announced a significant acquisition that has gained attention. The Argentine Central Bank approved the company’s plan to acquire HSBC Argentina Holdings S.A. and its affiliates.
The acquisition is set to reshape the banking landscape in Argentina and is expected to improve the company’s market position. The acquisition will be finalized once all regulatory approvals and purchase agreement terms are met.
In 2023, Grupo Financiero’s (NASDAQ:GGAL) insurance subsidiary, Galicia Seguros, acquired Grupo Sura’s insurance business in Argentina for approximately $19 million. The acquisition added around 800,000 customers and expanded the company’s operational capacity with 13 branches and 500 employees.
Such moves align with Galicia Seguros’ goal of becoming a leading insurance provider in the region. Previous strategic acquisitions, such as the purchase of 34 Grados Sur Securities SA for around $441,230, further show the company’s proactive approach to growth.
On September 3, Citi analyst Brian Flores upgraded the stock to Buy from Neutral with a $54 price target. The change is driven by positive economic indicators and an expectation for sustained credit demand as the economy stabilizes. Flores highlighted the company’s potential for higher return on equity in 2024 and 2025, which suggests a promising financial trajectory.
Similarly, JPMorgan has taken a more bullish stance on the stock. On August 30, JPMorgan double upgraded Grupo Financiero (NASDAQ:GGAL) to Overweight from Underweight with a $54 price target. After years of cautious assessments of Argentine banks, the firm now recognizes macro and micro improvements that could positively impact the company.
While some uncertainties remain, JPMorgan believes that the bank is well-positioned to capitalize on a resurgence in loan demand, marking it as a preferred choice for investors looking to engage with the Argentine financial sector.
1. Viking Therapeutics, Inc. (NASDAQ:VKTX)
Average Analyst Price Target Upside: 84.08%
Stock Price Performance YTD: 238.79%
Number of Hedge Fund Holders: 50
Viking Therapeutics, Inc. (NASDAQ:VKTX) is a clinical-stage biopharmaceutical company and the top stock on our list of the best performing long term stocks in 2024. Currently, it is advancing two promising drug candidates, VK2809 and VK2735, which could address major health challenges.
VK2809 is being investigated as a treatment for non-alcoholic steatohepatitis (NASH), a liver condition marked by fat accumulation that can result in inflammation and scarring. The disease affects a substantial number of people and can lead to severe liver damage if not addressed. The clinical trials for VK2809 aim to determine its effectiveness in managing NASH, which can possibly position the drug as a potential game-changer in a market that desperately needs effective therapies. On the other hand, VK2735 targets specific receptors in the body to tackle obesity and related metabolic issues.
Viking Therapeutics (NASDAQ:VKTX) has Buy ratings from 14 analysts. As of September 24, the average price target of $114.00 represents an upside of 84.08% from the current levels. Recent analysis from Morgan Stanley on September 12 suggest that VK2735 may have a tolerability edge over Roche’s CT-996 oral weight loss drug, particularly following presentations at the European Association for the Study of Diabetes annual meeting.
The firm is looking forward to updated Phase 1 data for VK2735, which is expected to be released at Obesity Week in early November. The data is expected to highlight enhanced weight loss and a favorable safety profile, which reaffirms the notion that VK2735 could emerge as a leader in the obesity treatment space.
The firm reiterated an Overweight rating and $105 price target on Viking Therapeutics (NASDAQ:VKTX). The positive sentiment is driven by the belief that VK2735 possesses “best-in-class potential.” As the company progresses through its clinical trials and approaches key data releases, it may attract increased attention from investors and stakeholders alike.
In Q2, 50 hedge funds held stakes in Viking Therapeutics (NASDAQ:VKTX), with positions worth $479.083 million. As of the second quarter, Viking Global is the most significant shareholder in the company. The firm has increased its stake in the company by 24% to 1.35 million shares worth $71.8 million.
Fred Alger Management stated the following regarding Viking Therapeutics, Inc. (NASDAQ:VKTX) in its Q2 2024 investor letter:
“Viking Therapeutics, Inc. (NASDAQ:VKTX) is a clinical-stage biopharmaceutical company focused on developing novel therapies for patients suffering from metabolic and endocrine disorders. Their lead drug VK2809, a beta-selective thyroid hormone receptor agonist, is in development for nonalcoholic steatohepatitis and nonalcoholic fatty liver disease. Their VK2735 drug is a GLP-1 dual agonist being developed for patients with obesity. During the quarter, the company’s shares were negatively impacted by several factors: 1) a challenging environment for biotechnology stocks, exacerbated by Fed policy decisions to maintain elevated interest rates, 2) increased competition in the obesity treatment landscape, 3) manufacturability and scalability concerns regarding Viking’s obesity drug and 4) the absence of strategic partnerships from large pharmaceutical companies. Despite the challenging quarter, we continue to believe that the company’s GLP-1 drug has the potential to be a best-in-class obesity drug given its favorable efficacy and safety profile. Further, with approximately one-third of U.S. adults suffering from obesity, we believe the company’s GLP[1]1 drug has the potential to address a large market once approved.”
While we acknowledge the potential of Viking Therapeutics, Inc. (NASDAQ:VKTX) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is promising and trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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