With 2023 now underway, investors are starting to look ahead to the potential opportunities in 2024. While anything can happen in the markets over a 1-2 year timeframe, some stocks appear well-positioned for continued growth based on their business fundamentals, financials, and industry trends.
In this article, we will explore that could be smart buys for a 2024 portfolio:
Alphabet Inc. (GOOGL)
Alphabet is the parent company of global tech giant Google. The company has dominant market share in areas like online search, digital advertising, and mobile operating systems (Android).
Some key factors that could drive growth for Alphabet in 2024 and beyond:
– Continued strength of Google’s ad business as marketing budgets shift increasingly online
– The company’s investments in emerging technologies like artificial intelligence, self-driving cars, and cloud computing
– Google’s billion active users provide a vast ecosystem to launch new products and services
– Strong free cash flow and balance sheet with over $100 billion in cash
As digital transformation continues across industries, Alphabet is poised to benefit through its leadership in online ads and expansion into future-oriented tech verticals.
Discover Financial Services (DFS)
Discover is one of the largest credit card issuers in the US and operates the Discover card network. The company has over 50 million cardholders.
Here are some factors that could drive Discover’s growth in 2024:
– The company’s recovery from pandemic lows is still ongoing, indicating more room for growth
– Investments in technology and mobile payment solutions to court younger customers
– Ongoing rise in credit/debit card spending as cash use declines
– Potential to gain market share from competitors going forward
With the economy expanding, Discover is well-positioned to see lending and consumer spending headwinds turn into tailwinds.
Walt Disney Co. (DIS)
Disney is a diversified entertainment giant with theme parks, movie studios, media networks, and streaming services. The company boasts world-renowned intellectual property like Star Wars, Marvel, and Pixar.
Disney’s growth drivers for 2024 include:
– Bouncing back from COVID closures and restrictions to drive theme park growth
– Rapid subscriber growth for Disney+ reaching over 130 million by 2024
– Box office recovery feeding studio revenue as Disney releases massive titles
– New revenue streams from sports betting and NFTs based on branded IP
With parks reopening and streaming hitting its stride, Disney stock appears poised for solid growth after a few tough years.
PDD Holdings Inc. (PDD)
PDD Holdings operates Pinduoduo, the third largest ecommerce site in China by active users. The platform pioneered the team purchase model.
Here are some potential catalysts for Pinduoduo heading into :
– China’s ecommerce market still has significant room for growth and disruption
– Management expects continued user and revenue growth as penetration increases
– International expansion plans underway as Pinduoduo moves beyond China
– Profitability improving as the company scales and streamlines costs
PDD stock remains down significantly from its highs. Consistent execution by management could drive rebound towards its all-time highs.
Occidental Petroleum Corp. (OXY)
Occidental is an integrated oil & gas company with operations in the U.S., Middle East, and Latin America. The company produces oil, natural gas, natural gas liquids, and petrochemicals.
Factors that could propel Occidental in 2024 include:
– Oil prices likely to remain elevated with tight energy supply and geopolitical turmoil
– The company is benefiting greatly from high oil prices while aggressively paying down debt
– Permian basin assets provide Occidental with a low-cost production base
– Investments in carbon capture position it well for the energy transition
If oil markets stay tight, Occidental could continue to strengthen its balance sheet and reward shareholders.
Table summarizing the top stocks covered:
| Company | Symbol | Business | Growth Outlook |
| Alphabet | GOOGL | Digital ads, search, cloud computing | Strong based on digital ad dominance |
| Discover Financial | DFS | Credit cards and payments | Expanding credit card usage provides tailwinds |
| Walt Disney | DIS | Entertainment, media, theme parks | Parks reopening and streaming growth |
| Pinduoduo | PDD | Chinese ecommerce | Still early innings of ecommerce disruption in China |
| Occidental Petroleum | OXY | Oil & gas production | Tight energy supply and high oil prices |
This covers 5 stocks across key sectors that appear primed for solid growth based on company-specific catalysts and industry trends. While the stocks face risks from market volatility, regulations, and competition, their business fundamentals make them promising picks for a forward-looking portfolio in 2024.