Written by: Taranjit Singh
Date: 27-11-2023
That’s why it’s important to do your research and analysis, before investing in any stock, and to choose the best stocks to buy in 2024, based on your objectives, preferences, risk tolerance, and time horizon.
In this article, we will explore some of the best stocks to invest in in 2024, based on their market performance, growth potential, competitive advantage, and customer satisfaction. We will also provide some tips and tools to help you find and evaluate the best stocks for your portfolio.
What are the best stocks to invest in 2024?
There is no definitive answer to this question, as different investors may have different criteria and expectations for choosing the best stocks to invest in 2024. However, some general factors that can help you identify the best stocks to invest in 2024 are:
- Market performance: How well has the stock performed in the past year, quarter, month, or week, compared to its peers, the industry, and the market?
- Growth potential: How fast is the company growing its revenue, earnings, market share, and customer base, and what are its growth prospects for the future?
- Competitive advantage: What are the company’s unique strengths, such as its brand, product, technology, innovation, or customer service, that give it an edge over its rivals?
- Customer satisfaction: How happy are the company’s customers with its products and services, and how loyal and engaged are they?
- Financial health: How profitable, efficient, and stable is the company’s financial position, and how well does it manage its cash flow, debt, and capital?
- Valuation: How expensive or cheap is the stock, based on its multiples, such as price-to-earnings, price-to-sales, and price-to-book, and its intrinsic value, based on its discounted cash flow, earnings, or dividend models?
- Dividend: Does the company pay a dividend, and if so, how much, how often, and how sustainable is it?
By applying these factors, you can narrow down your list of potential stocks to invest in 2024, and then do further research and analysis on each stock, before making your final decision.
How to find the best stocks to invest in 2024?
One of the easiest and most effective ways to find the best stocks to invest in 2024 is to use a stock screener tool, such as Yahoo Finance 1, Finviz 2, or Stock Rover 3.
A stock screener tool allows you to filter and sort stocks based on various criteria, such as market cap, sector, industry, price, performance, growth, valuation, dividend, and more.
For example, if you want to find the best growth stocks to invest in 2024, you can use a stock screener tool to filter stocks that have a high revenue and earnings growth rate, a low price-to-earnings ratio, and a high return on equity.
Alternatively, if you want to find the best dividend stocks to invest in 2024, you can use a stock screener tool to filter stocks that have a high dividend yield, a low payout ratio, and a consistent dividend growth history.
Using a stock screener tool can help you save time and effort, and discover new and promising stocks that match your investment criteria.
What are the best sectors to invest in 2024?
Another way to find the best stocks to invest in 2024 is to look at the best sectors to invest in 2024. A sector is a group of companies that operate in the same or related industries, such as technology, health care, energy, or consumer discretionary.
Investing in the best sectors can help you diversify your portfolio, reduce your risk, and increase your returns, as different sectors tend to perform differently in different market conditions and economic cycles.
Some of the best sectors to invest in 2024 are:
- Technology: The technology sector is one of the most innovative and dynamic sectors in the market, as it encompasses a wide range of industries, such as software, hardware, internet, cloud, artificial intelligence, biotechnology, and more. The technology sector is expected to continue growing and leading the market in 2024, as more people and businesses adopt and rely on technology for their daily needs and operations. Some of the best technology stocks to invest in 2024 are Apple, Microsoft, Amazon, and Google.
- Health Care: The health care sector is one of the most resilient and defensive sectors in the market, as it provides essential products and services that people need regardless of the economic situation. The healthcare sector is also expected to benefit from the aging population, the increasing demand for healthcare services, the rising healthcare spending, and the ongoing innovation and research in the medical field. Some of the best healthcare stocks to invest in 2024 are Johnson & Johnson, Pfizer, UnitedHealth Group, and Abbott Laboratories.
- Energy: The energy sector is one of the most cyclical and volatile sectors in the market, as it depends on the supply and demand of oil, gas, and other energy sources. The energy sector is expected to recover and grow in 2024, as the global economy rebounds from the pandemic, travel and transportation activities resume, and the demand for energy increases. The energy sector is also expected to benefit from the transition to renewable and clean energy sources, such as solar, wind, and hydro. Some of the best energy stocks to invest in 2024 are Exxon Mobil, Chevron, NextEra Energy, and Enphase Energy.
- Consumer Discretionary: The consumer discretionary sector is one of the most diverse and flexible sectors in the market, as it includes a variety of industries, such as retail, entertainment, leisure, gaming, and more. The consumer discretionary sector is expected to thrive in 2024, as consumer confidence, spending, and income improve, the unemployment rate declines, and the stimulus measures support the economic recovery. The consumer discretionary sector is also expected to benefit from the changing consumer preferences, behaviors, and trends, such as online shopping, streaming, and gaming. Some of the best consumer discretionary stocks to invest in 2024 are Walmart, Netflix, Starbucks, and Nike.
These are some of the best sectors to invest in 2024, based on their market performance, growth potential, competitive advantage, and customer satisfaction. You can find more sectors and industries to invest in 2024 by using a sector screener tool, such as Fidelity, Morningstar, or Zacks.
What are the best stocks to invest in 2024?
Based on the factors and criteria mentioned above, here are some of the best stocks to invest in 2024, along with a brief overview of each stock.
1. Apple (AAPL)
Apple is one of the most valuable and influential companies in the world, as it designs, manufactures, and sells a range of iconic products, such as the iPhone, iPad, Mac, Apple Watch, AirPods, and more. Apple also offers a range of services, such as the App Store, Apple Music, Apple TV+, iCloud, and more.
Apple has been a consistent performer and innovator in the market, as it delivers high-quality products and services that meet and exceed customer expectations. Apple also has a loyal and growing customer base, a strong brand reputation, a diversified and recurring revenue stream, and a robust and profitable financial position.
Apple is expected to continue growing and leading the market in 2024, as it launches new and improved products and services, such as the iPhone 13, the Apple Car, the Apple Glasses, and more. Apple is also expected to benefit from the 5G network rollout, the growth of the wearable and smart home markets, and the expansion of its services segment.
Apple is also a dividend-paying stock, as it pays a quarterly dividend of $0.22 per share, which translates to a dividend yield of 0.57%. Apple also has a history of increasing its dividend every year since 2013 and has a payout ratio of 18.37%, which indicates that it has plenty of room to grow its dividend in the future.
Apple is one of the best stocks to invest in 2024, as it has a strong market performance, growth potential, competitive advantage, customer satisfaction, financial health, valuation, and dividend.
2. Microsoft (MSFT)
Microsoft is one of the largest and most successful software companies in the world, as it develops, licenses, and sells a range of software products and services, such as Windows, Office, Azure, LinkedIn, Xbox, and more.
Microsoft has been a dominant and resilient player in the market, as it provides essential software and services that people and businesses use for their daily needs and operations. Microsoft also has a diversified and recurring revenue stream, a large and engaged customer base, a solid brand reputation, and a stable and profitable financial position.
Microsoft is expected to keep growing and leading the market in 2024, as it invests and innovates in its core and emerging segments, such as cloud computing, artificial intelligence, gaming, and social media. Microsoft is also expected to benefit from the digital transformation, remote work and learning trends, and the growth of the software and online services markets.
Microsoft is also a dividend-paying stock, as it pays a quarterly dividend of $0.56 per share, which translates to a dividend yield of 0.77%. Microsoft also has a history of increasing its dividend every year since 2004 and has a payout ratio of 30.47%, which indicates that it has enough room to grow its dividend in the future.
Microsoft is one of the best stocks to invest in 2024, as it has a strong market performance, growth potential, competitive advantage, customer satisfaction, financial health, valuation, and dividend.
3. Amazon (AMZN)
Amazon is one of the largest and most diversified e-commerce and technology companies in the world, as it operates in various segments, such as online retail, cloud computing, digital streaming, artificial intelligence, and more.
Amazon has been a pioneer and disruptor in the market, as it offers a wide range of products and services that cater to various customer needs and preferences. Amazon also has a massive and loyal customer base, a dominant market position, a culture of innovation and experimentation, and a powerful and efficient financial position.
Amazon is expected to maintain its growth and leadership in the market in 2024, as it expands and improves its product and service offerings, such as Amazon Prime, Amazon Web Services, Amazon Music, Amazon Video, and more. Amazon is also expected to benefit from the growth of the e-commerce, cloud computing, digital streaming, and artificial intelligence markets, and the opportunities in new and emerging markets, such as health care, education, and space.
Amazon is not a dividend-paying stock, as it reinvests its earnings back into its business to fuel its growth and innovation. However, Amazon is a capital appreciation stock, as it has delivered impressive returns to its shareholders over the years, and is expected to continue doing so in the future.
Amazon is one of the best stocks to invest in 2024, as it has a strong market performance, growth potential, competitive advantage, customer satisfaction, financial health, and valuation.
4. Google (GOOG)
Google is one of the most influential and innovative internet and technology companies in the world, as it operates in various segments, such as online search, online advertising, cloud computing, hardware, software, and more.
Google has been a leader and innovator in the market, as it provides essential and popular products and services that people and businesses use for their daily needs and operations. Google also has a huge and engaged customer base, a dominant market position, a culture of innovation and creativity, and a robust and profitable financial position.
Google is expected to sustain its growth and leadership in the market in 2024, as it invests and innovates in its core and emerging segments, such as Google Search, Google Ads, Google Cloud, YouTube, Google Pixel, and more. Google is also expected to benefit from the growth of online search, online advertising, cloud computing, and online video markets, and the opportunities in new and emerging markets, such as artificial intelligence, health care, and self-driving cars.
Google is not a dividend-paying stock, as it reinvests its earnings back into its business to fuel its growth and innovation. However, Google is a capital appreciation stock, as it has delivered impressive returns to its shareholders over the years, and is expected to continue doing so in the future.
Google is one of the best stocks to invest in 2024, as it has a strong market performance, growth potential, competitive advantage, customer satisfaction, financial health, and valuation.
5. Johnson & Johnson (JNJ)
Johnson & Johnson is one of the largest and most diversified healthcare companies in the world, as it operates in three segments: consumer health, pharmaceuticals, and medical devices.
Johnson & Johnson has been a reliable and consistent performer in the market, as it provides essential and high-quality products and services that improve the health and well-being of people and communities. Johnson & Johnson also has a diversified and resilient revenue stream, a large and loyal customer base, a strong brand reputation, and a stable and profitable financial position.
Johnson & Johnson is expected to maintain its growth and leadership in the market in 2024, as it invests and innovates in its core and emerging segments, such as oncology, immunology, neuroscience, infectious diseases, and more. Johnson & Johnson is also expected to benefit from the aging population, the increasing demand for healthcare services, the rising healthcare spending, and the ongoing innovation and research in the medical field.
Johnson & Johnson is also a dividend-paying stock, as it pays a quarterly dividend of $1.06 per share, which translates to a dividend yield of 2.47%. Johnson & Johnson also has a history of increasing its dividend every year since 1963 and has a payout ratio of 44.86%, which indicates that it has enough room to grow its dividend in the future.
Johnson & Johnson is one of the best stocks to invest in 2024, as it has a strong market performance, growth potential, competitive advantage, customer satisfaction, financial health, valuation, and dividend.
6. Pfizer (PFE)
Pfizer is one of the largest and most successful pharmaceutical companies in the world, as it develops, manufactures, and sells a range of prescription drugs, vaccines, and consumer health products.
Pfizer has been a leader and innovator in the market, as it provides effective and safe products and services that treat and prevent various diseases and conditions. Pfizer also has a diversified and recurring revenue stream, a large and growing customer base, a solid brand reputation, and a robust and profitable financial position.
Pfizer is expected to continue growing and leading the market in 2024, as it invests and innovates in its core and emerging segments, such as oncology, rare diseases, inflammation, and immunology. Pfizer is also expected to benefit from the success of its COVID-19 vaccine, which has been approved and distributed in many countries, and has generated billions of dollars in revenue for the company.
Pfizer is also a dividend-paying stock, as it pays a quarterly dividend of $0.39 per share, which translates to a dividend yield of 3.32%. Pfizer also has a history of increasing its dividend every year since 2010 and has a payout ratio of 51.32%, which indicates that it has enough room to grow its dividend in the future.
Pfizer is one of the best stocks to invest in 2024, as it has a strong market performance, growth potential, competitive advantage, customer satisfaction, financial health, valuation, and dividend.
7. UnitedHealth Group (UNH)
UnitedHealth Group is one of the largest and most diversified healthcare companies in the world, as it operates in two segments: UnitedHealthcare, which provides health insurance and benefits services, and Optum, which provides healthcare delivery and technology services.
UnitedHealth Group has been a dominant and resilient player in the market, as it provides comprehensive and integrated healthcare solutions that improve the quality and affordability of healthcare. UnitedHealth Group also has a diversified and recurring revenue stream, a large and loyal customer base, a strong brand reputation, and a stable and profitable financial position.
UnitedHealth Group is expected to keep growing and leading the market in 2024, as it invests and innovates in its core and emerging segments, such as Medicare, Medicaid, employer-sponsored, and individual health plans, as well as pharmacy care, data analytics, digital health, and telehealth. UnitedHealth Group is also expected to benefit from the growth of the health insurance and healthcare services markets, and the opportunities in new and emerging markets, such as international, behavioral, and social health.
UnitedHealth Group is also a dividend-paying stock, as it pays a quarterly dividend of $1.45 per share, which translates to a dividend yield of 1.34%. UnitedHealth Group also has a history of increasing its dividend every year since 1990 and has a payout ratio of 29.87%, which indicates that it has plenty of room to grow its dividend in the future.
UnitedHealth Group is one of the best stocks to invest in 2024, as it has a strong market performance, growth potential, competitive advantage, customer satisfaction, financial health, valuation, and dividend.
8. Abbott Laboratories (ABT)
Abbott Laboratories is one of the largest and most diversified medical device and diagnostics companies in the world, as it operates in four segments: established pharmaceuticals, nutrition, diagnostics, and medical devices.
Abbott Laboratories has been a consistent and innovative performer in the market, as it provides essential and high-quality products and services that diagnose, treat, and prevent various diseases and conditions. Abbott Laboratories also has a diversified and resilient revenue stream, a large and growing customer base, a solid brand reputation, and a robust and profitable financial position.
Abbott Laboratories is expected to continue growing and leading the market in 2024, as it invests and innovates in its core and emerging segments, such as cardiovascular, diabetes, neuromodulation, and infectious diseases. Abbott Laboratories is also expected to benefit from the success of its COVID-19 testing products, which have been widely used and distributed in many countries and have generated billions of dollars in revenue for the company.
Abbott Laboratories is also a dividend-paying stock, as it pays a quarterly dividend of $0.45 per share, which translates to a dividend yield of 1.48%. Abbott Laboratories also has a history of increasing its dividend every year since 1973 and has a payout ratio of 43.59%, which indicates that it has enough room to grow its dividend in the future.
Abbott Laboratories is one of the best stocks to invest in 2024, as it has a strong market performance, growth potential, competitive advantage, customer satisfaction, financial health, valuation, and dividend.
9. Exxon Mobil (XOM)
Exxon Mobil is one of the largest and most established oil and gas companies in the world, as it operates in three segments: upstream, downstream, and chemical.
Exxon Mobil has been a cyclical and volatile performer in the market, as it depends on the supply and demand of oil, gas, and other energy sources. Exxon Mobil has suffered from the decline in oil and gas prices and demand during the pandemic, which has affected its revenue and earnings. However, Exxon Mobil has also taken measures to reduce its costs, preserve its cash flow, and maintain its dividend.
Exxon Mobil is expected to recover and grow in the market in 2024, as the global economy rebounds from the pandemic, travel and transportation activities resume, and the demand for energy increases. Exxon Mobil is also expected to benefit from its diversified and integrated business model, its large and proven reserves, its strong operational efficiency, and its ongoing investments and innovations in new and emerging energy sources, such as natural gas, biofuels, and hydrogen.
Exxon Mobil is also a dividend-paying stock, as it pays a quarterly dividend of $0.87 per share, which translates to a dividend yield of 5.94%. Exxon Mobil also has a history of increasing its dividend every year since 1983 and has a payout ratio of 102.30%, which indicates that it is committed to rewarding its shareholders, even at the expense of its earnings.
Exxon Mobil is one of the best stocks to invest in 2024, as it has a strong market performance, growth potential, competitive advantage, customer satisfaction, financial health, valuation, and dividend.
10. Chevron (CVX)
Chevron is one of the largest and most respected oil and gas companies in the world, as it operates in two segments: upstream, which explores and produces oil and gas, and downstream, which refines and markets oil and gas products.
Chevron has been a cyclical and volatile performer in the market, as it depends on the supply and demand of oil, gas, and other energy sources. Chevron has also suffered from the decline in oil and gas prices and demand during the pandemic, which has affected its revenue and earnings. However, Chevron has also taken measures to reduce its costs, preserve its cash flow, and maintain its dividend.
Chevron is expected to recover and grow in the market in 2024, as the global economy rebounds from the pandemic, travel and transportation activities resume, and the demand for energy increases. Chevron is also expected to benefit from its diversified and integrated business model, its large and proven reserves, its strong operational efficiency, and its ongoing investments and innovations in new and emerging energy sources, such as natural gas, biofuels, and hydrogen.
Chevron is also a dividend-paying stock, as it pays a quarterly dividend of $1.34 per share, which translates to a dividend yield of 4.88%. Chevron also has a history of increasing its dividend every year since 1988 and has a payout ratio of 74.07%, which indicates that it has enough room to grow its dividend in the future.
Chevron is one of the best stocks to invest in 2024, as it has a strong market performance, growth potential, competitive advantage, customer satisfaction, financial health, valuation, and dividend.
11. NextEra Energy (NEE)
NextEra Energy is one of the largest and most progressive electric utility companies in the world, as it operates in two segments: Florida Power & Light, which provides electricity and related services to customers in Florida, and NextEra Energy Resources, which generates electricity from renewable and clean energy sources, such as wind, solar, and nuclear.
NextEra Energy has been a steady and stable performer in the market, as it provides essential and reliable products and services that people and businesses need regardless of the economic situation. NextEra Energy also has a diversified and resilient revenue stream, a large and loyal customer base, a solid brand reputation, and a robust and profitable financial position.
NextEra Energy is expected to keep growing and leading the market in 2024, as it invests and innovates in its core and emerging segments, such as renewable and clean energy, energy storage, electric vehicles, and grid modernization. NextEra Energy is also expected to benefit from the growth of the electric utility and renewable energy markets, and the opportunities in new and emerging markets, such as hydrogen, carbon capture, and green hydrogen.
NextEra Energy is also a dividend-paying stock, as it pays a quarterly dividend of $0.385 per share, which translates to a dividend yield of 1.86%. NextEra Energy also has a history of increasing its dividend every year since 1995 and has a payout ratio of 58.76%, which indicates that it has enough room to grow its dividend in the future.
NextEra Energy is one of the best stocks to invest in 2024, as it has a strong market performance, growth potential, competitive advantage, customer satisfaction, financial health, valuation, and dividend.
12. Enphase Energy (ENPH)
Enphase Energy is one of the largest and most innovative solar technology companies in the world, as it provides microinverters, energy management systems, and software solutions for residential and commercial solar installations.
Enphase Energy has been a fast-growing and disruptive player in the market, as it provides superior and smart products and services that enhance the performance, reliability, and safety of solar systems. Enphase Energy also has a diversified and recurring revenue stream, a large and growing customer base, a strong brand reputation, and a powerful and efficient financial position.
Enphase Energy is expected to continue growing and leading the market in 2024, as it invests and innovates in its core and emerging segments, such as microinverters, energy management systems, software solutions, and battery storage. Enphase Energy is also expected to benefit from the growth of the solar and renewable energy markets, and the opportunities in new and emerging markets, such as electric vehicles, smart homes, and grid services.
Enphase Energy is not a dividend-paying stock, as it reinvests its earnings back into its business to fuel its growth and innovation. However, Enphase Energy is a capital appreciation stock, as it has delivered impressive returns to its shareholders over the years, and is expected to continue doing so in the future.
Enphase Energy is one of the best stocks to invest in 2024, as it has a strong market performance, growth potential, competitive advantage, customer satisfaction, financial health, and valuation.
What are the benefits of investing in the best stocks to invest in 2024?
Investing in the best stocks to invest in 2024 can provide several benefits, such as:
- Exposure to the best companies and sectors in the market, that have strong market performance, growth potential, competitive advantage, customer satisfaction, financial health, valuation, and dividend.
- Diversification of your portfolio, as the best stocks to invest in 2024 can offer different risk and return profiles, depending on the company’s size, growth potential, competitive advantage, and financial performance.
- Capital appreciation and income generation, as some of the best stocks to invest in 2024 can offer both capital gains and dividends, depending on the company’s profitability, cash flow, and dividend policy.
What are the risks of investing in the best stocks to invest in 2024?
Investing in the best stocks to invest in 2024 can also involve some risks, such as:
- Market volatility and uncertainty, as the best stocks to invest in 2024 can be affected by various factors, such as consumer preferences, economic conditions, technological innovations, regulatory changes, and competitive pressures.
- High valuation and expectations, as some of the best stocks to invest in 2024 can trade at high multiples, such as price-to-earnings, price-to-sales, and price-to-book, reflecting their high growth potential, but also increasing the risk of disappointment and correction if they fail to meet or exceed the market expectations.
- Product quality and safety issues, as some of the best stocks to invest in in 2024 can be prone to defects, malfunctions, or injuries, which can lead to customer complaints, lawsuits, recalls, or reputational damage.
- Dividend cuts or suspensions, as some of the best stocks to invest in 2024 may reduce or stop paying dividends, depending on their financial situation, cash flow, and capital allocation priorities.
How to choose the best stocks to invest in 2024?
There is no definitive answer to this question, as different investors may have different goals, preferences, risk appetites, and time horizons. However, some general criteria that can help you evaluate and compare the best stocks to invest in 2024 are:
- Market performance: How well has the stock performed in the past year, quarter, month, or week, compared to its peers, the industry, and the market?
- Growth potential: How fast is the company growing its revenue, earnings, market share, and customer base, and what are its growth prospects for the future?
- Competitive advantage: What are the company’s unique strengths, such as its brand, product, technology, innovation, or customer service, that give it an edge over its rivals?
- Customer satisfaction: How happy are the company’s customers with its products and services, and how loyal and engaged are they?
- Financial health: How profitable, efficient, and stable is the company’s financial position, and how well does it manage its cash flow, debt, and capital?
- Valuation: How expensive or cheap is the stock, based on its multiples, such as price-to-earnings, price-to-sales, and price-to-book, and its intrinsic value, based on its discounted cash flow, earnings, or dividend models?
- Dividend: Does the company pay a dividend, and if so, how much, how often, and how sustainable is it?
By applying these criteria, you can narrow down your list of potential stocks to invest in 2024, and then do further research and analysis on each stock, before making your final decision.
Key Takeaways
- Investing in the stock market can offer several benefits, such as exposure to the best companies and sectors in the market, diversification of your portfolio, and capital appreciation and income generation.
- Investing in the stock market also involves some risks, such as market volatility and uncertainty, high valuation and expectations, product quality and safety issues, and dividend cuts or suspensions.
- Some of the best stocks to invest in 2024 are Apple, Microsoft, Amazon, Google, Johnson & Johnson, Pfizer, UnitedHealth Group, Abbott Laboratories, Exxon Mobil, Chevron, NextEra Energy, and Enphase Energy, as they have strong market performance, growth potential, competitive advantage, customer satisfaction, financial health, valuation, and dividend.
- Some of the best sectors to invest in 2024 are technology, health care, energy, and consumer discretionary, as they have strong market performance, growth potential, competitive advantage, and customer satisfaction.
- One of the easiest and most effective ways to find the best stocks to invest in 2024 is to use a stock screener tool, such as Yahoo Finance, Finviz, or Stock Rover.
Bottom Line
Investing in the stock market can be a rewarding and profitable way to grow your wealth and achieve your financial goals. However, it can also be challenging and risky, especially in times of uncertainty and volatility.That’s why it’s important to do your research and analysis, before investing in any stock, and to choose the best stocks to buy in 2024, based on your objectives, preferences, risk tolerance, and time horizon.
In this article, we have explored some of the best stocks to invest in 2024, based on their market performance, growth potential, competitive advantage, and customer satisfaction. We have also provided some tips and tools to help you find and evaluate the best stocks for your portfolio.
Some of the best stocks to invest in 2024 are Apple, Microsoft, Amazon, Google, Johnson & Johnson, Pfizer, UnitedHealth Group, Abbott Laboratories, Exxon Mobil, Chevron, NextEra Energy, and Enphase Energy, as they have strong market performance, growth potential, competitive advantage, customer satisfaction, financial health, valuation, and dividend.