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5 Top Growth Stocks for the Presidential Election Year 2024
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Despite many bottlenecks, 2023 has been impressive for the stock market. While the broader S&P 500 has soared 20.8% this year, the tech-laden Nasdaq has shot up 37%. Surprisingly, solid consumer outlays amid elevated inflation and interest rate hikes helped the economy expand, while the AI boom propelled tech stocks northward. The labor market remained resilient and squashed any expectations of an imminent recession.
Heading into 2024, stretched valuations, geopolitical surprises, and most importantly, the outcome of the presidential election may likely create gyrations in the stock market. After all, senior citizens, in particular, may be concerned about the outcome of the election and its impact on the stock market vis-a-vis their retirement savings.
However, traditionally, presidential election years have always been good for the stock market. From 1937 to 2022, the S&P 500 in non-election years may have given an average annual return of 12.5%. Still, in election years, the return has also been encouraging 9.9%, according to research by Janus Henderson Investors. Thus, the stock market has successfully weathered political changeovers and provided handsome returns.
Record highs for major bourses are also in the cards for 2024, banking on the prospects of multiple interest rate cuts. The Federal Reserve has kept interest rates unchanged in its latest policy meeting and hinted at three rate cuts next year. The Fed acknowledged that inflationary pressures have started to show signs of cooling down amid sturdy economic growth.
The Fed officials are now projecting 0.75% points worth of rate cuts in 2024, which is a quarter point more than they predicted in September. Moreover, Fed officials expect another full percentage point rate cut in 2025. Now, lower borrowing costs will certainly help businesses to expand, increase consumer spending, boost economic growth, and help the stock market scale upward.
With things looking up for Wall Street in 2024 amid the Fed’s dovish stance and positive seasonal trends, placing bets on sound growth stocks like Brinker International (EAT - Free Report) , Granite Construction (GVA - Free Report) , Royal Caribbean Cruises (RCL - Free Report) , Eaton (ETN - Free Report) and AZZ (AZZ - Free Report) seems judicious.
Brinker International primarily owns, operates, develops and franchises various restaurants. Brinker International currently has a Zacks Rank #1 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 7.9% over the past 60 days. EAT’s expected earnings growth rate for the current and next year are 26.2% and 9.5%, respectively.
Granite Construction is one of the nation’s largest infrastructure contractors and construction materials producers. Granite Construction currently has a Zacks Rank #1 and a Growth Score of B.
The Zacks Consensus Estimate for its current-year earnings has moved up 9.9% over the past 60 days. GVA’s expected earnings growth rate for the current and next year are 35.1% and 37.5%, respectively.
Royal Caribbean Cruises is a cruise company. Royal Caribbean Cruises currently has a Zacks Rank #1 and a Growth Score of B.
The Zacks Consensus Estimate for its current-year earnings has moved up 7.9% over the past 60 days. RCL’s expected earnings growth rate for the current and next year are 187.9% and 38.1%, respectively.
Eaton is a diversified power management company. Eaton currently has a Zacks Rank #2 and a Growth Score of B.
The Zacks Consensus Estimate for its current-year earnings has moved up 2.4% over the past 60 days. ETN’s expected earnings growth rate for the current and next year are 19.2% and 10.5%, respectively.
AZZ is a leading provider of metal finishing solutions for corrosion protection. AZZ currently has a Zacks Rank #2 and a Growth Score of B.
The Zacks Consensus Estimate for its current-year earnings has moved up 0.5% over the past 60 days. AZZ’s expected earnings growth rate for the current and next year are 17.8% and 8.1%, respectively.
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5 Top Growth Stocks for the Presidential Election Year 2024
Despite many bottlenecks, 2023 has been impressive for the stock market. While the broader S&P 500 has soared 20.8% this year, the tech-laden Nasdaq has shot up 37%. Surprisingly, solid consumer outlays amid elevated inflation and interest rate hikes helped the economy expand, while the AI boom propelled tech stocks northward. The labor market remained resilient and squashed any expectations of an imminent recession.
Heading into 2024, stretched valuations, geopolitical surprises, and most importantly, the outcome of the presidential election may likely create gyrations in the stock market. After all, senior citizens, in particular, may be concerned about the outcome of the election and its impact on the stock market vis-a-vis their retirement savings.
However, traditionally, presidential election years have always been good for the stock market. From 1937 to 2022, the S&P 500 in non-election years may have given an average annual return of 12.5%. Still, in election years, the return has also been encouraging 9.9%, according to research by Janus Henderson Investors. Thus, the stock market has successfully weathered political changeovers and provided handsome returns.
Record highs for major bourses are also in the cards for 2024, banking on the prospects of multiple interest rate cuts. The Federal Reserve has kept interest rates unchanged in its latest policy meeting and hinted at three rate cuts next year. The Fed acknowledged that inflationary pressures have started to show signs of cooling down amid sturdy economic growth.
The Fed officials are now projecting 0.75% points worth of rate cuts in 2024, which is a quarter point more than they predicted in September. Moreover, Fed officials expect another full percentage point rate cut in 2025. Now, lower borrowing costs will certainly help businesses to expand, increase consumer spending, boost economic growth, and help the stock market scale upward.
With things looking up for Wall Street in 2024 amid the Fed’s dovish stance and positive seasonal trends, placing bets on sound growth stocks like Brinker International (EAT - Free Report) , Granite Construction (GVA - Free Report) , Royal Caribbean Cruises (RCL - Free Report) , Eaton (ETN - Free Report) and AZZ (AZZ - Free Report) seems judicious.
These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a Growth Score of A or B, a combination that offers the best opportunities in the growth investing space. You can see the complete list of today’s Zacks Rank #1 stocks here.
Brinker International primarily owns, operates, develops and franchises various restaurants. Brinker International currently has a Zacks Rank #1 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has moved up 7.9% over the past 60 days. EAT’s expected earnings growth rate for the current and next year are 26.2% and 9.5%, respectively.
Granite Construction is one of the nation’s largest infrastructure contractors and construction materials producers. Granite Construction currently has a Zacks Rank #1 and a Growth Score of B.
The Zacks Consensus Estimate for its current-year earnings has moved up 9.9% over the past 60 days. GVA’s expected earnings growth rate for the current and next year are 35.1% and 37.5%, respectively.
Royal Caribbean Cruises is a cruise company. Royal Caribbean Cruises currently has a Zacks Rank #1 and a Growth Score of B.
The Zacks Consensus Estimate for its current-year earnings has moved up 7.9% over the past 60 days. RCL’s expected earnings growth rate for the current and next year are 187.9% and 38.1%, respectively.
Eaton is a diversified power management company. Eaton currently has a Zacks Rank #2 and a Growth Score of B.
The Zacks Consensus Estimate for its current-year earnings has moved up 2.4% over the past 60 days. ETN’s expected earnings growth rate for the current and next year are 19.2% and 10.5%, respectively.
AZZ is a leading provider of metal finishing solutions for corrosion protection. AZZ currently has a Zacks Rank #2 and a Growth Score of B.
The Zacks Consensus Estimate for its current-year earnings has moved up 0.5% over the past 60 days. AZZ’s expected earnings growth rate for the current and next year are 17.8% and 8.1%, respectively.