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5 S&P 500 Winners of 2023 That Are Must Buys for 2024
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The broad-market index, the S&P 500, has been witnessing an impressive bull run in 2023. The benchmark plunged 19.4% in 2022 due to 40-year high inflation, an extremely tight monetary policy and rigorous hikes in the interest rate by the Fed.
However, the situation has completely reversed this year. A steady decline in the inflation rate, the cooling down of several key economic metrics, and investors’ expectations of the end of the rate hike cycle resulted in the northbound journey of the index. Year to date, the S&P 500 Index has advanced 23.6%.
The U.S. economy is likely to flourish in 2024 as the Fed is set to initiate a rate cut at least in the first half of the year. Several stocks within the S&P 500 portfolio have appreciated this year and many have outperformed the index itself. However, a handful of those outperformers currently sport a top Zacks Rank. Investment in these should be prudent for a strong portfolio in 2024.
Our Top Picks
We have narrowed our search to five S&P 500 stocks that have provided more than 30% returns in 2023. These stocks have strong upside available for 2024 and have seen positive earnings estimate revisions in the last 30 days. Each of our picks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
Royal Caribbean Cruises Ltd. (RCL - Free Report) has been benefiting from solid demand for cruising and acceleration in booking volumes. RCL’s emphasis on strong pricing (on closer-in-demand) bodes well.
In the third quarter, RCL reported accelerating demand for 2024 sailings. RCL intends to focus on new innovative ships and onboard experiences to boost its offering and deliver superior yields and margins.
Royal Caribbean Cruises has an expected revenue and earnings growth rate of 13.7% and 38.1%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 0.9% over the last 30 days. The stock price of RCL has soared 157.2% year to date.
Amazon.com Inc. (AMZN - Free Report) has been benefiting from a strengthening AWS services portfolio and its growing adoption rate has contributed well. Ultrafast delivery services and an expanding content portfolio are positives for AMZN. The strengthening relationship with third-party sellers is also encouraging. Its advertising business is also making a robust contribution. Improving Alexa skills along with robust smart home product offerings are tailwinds for AMZN.
Amazon has an expected revenue and earnings growth rate of 11.6% and 32.7%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 0.6% over the last seven days. The stock price of AMZN has jumped 83% year to date.
DaVita Inc. (DVA - Free Report) has been expanding its global presence via its Integrated Kidney Care business. DVA has been generating solid revenues by providing dialysis services. DVA has been opening and acquiring several dialysis centers both within the United States and overseas. A strong solvency position is an added plus.
DaVita has an expected revenue and earnings growth rate of 2.7% and 4.9%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 0.4% over the last seven days. The stock price of DVA has climbed 40.3% year to date.
Assurant Inc. (AIZ - Free Report) is focused on inorganic and organic growth strategies, which bode well for growth. For 2023, AIZ expects adjusted EBITDA, excluding reportable catastrophes, to increase by mid-to high-teens. Growth in Global Housing is being driven by improved performance in Homeowners reflecting higher lender-placed net earned premiums.
Global Lifestyle stands to gain from growth across Connected Living and Global Automotive. AIZ plans to deploy capital, mainly to fund business growth and return capital to shareholders via share buybacks and dividends.
Assurant has an expected revenue and earnings growth rate of 4% and 4.2%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 0.9% over the last seven days. The stock price of AIZ has surged 32.1% year to date.
Live Nation Entertainment Inc. (LYV - Free Report) is benefiting from pent-up demand for live events, robust ticket sales and the sponsorship and advertising business. LYV remains optimistic about its growth prospects in 2023.
For concerts, LYV stated that it has already sold more than 117 million tickets (as of June 2023), up 20% from the 2022 levels. In terms of tickets, LYV is likely to benefit from the market pricing trend. Also, the emphasis on new client and venue additions bodes well.
Live Nation Entertainment has an expected revenue and earnings growth rate of 8.2% and 61.1%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 3.9% over the last 30 days. The stock price of LYV has rallied 31% year to date.
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5 S&P 500 Winners of 2023 That Are Must Buys for 2024
The broad-market index, the S&P 500, has been witnessing an impressive bull run in 2023. The benchmark plunged 19.4% in 2022 due to 40-year high inflation, an extremely tight monetary policy and rigorous hikes in the interest rate by the Fed.
However, the situation has completely reversed this year. A steady decline in the inflation rate, the cooling down of several key economic metrics, and investors’ expectations of the end of the rate hike cycle resulted in the northbound journey of the index. Year to date, the S&P 500 Index has advanced 23.6%.
The U.S. economy is likely to flourish in 2024 as the Fed is set to initiate a rate cut at least in the first half of the year. Several stocks within the S&P 500 portfolio have appreciated this year and many have outperformed the index itself. However, a handful of those outperformers currently sport a top Zacks Rank. Investment in these should be prudent for a strong portfolio in 2024.
Our Top Picks
We have narrowed our search to five S&P 500 stocks that have provided more than 30% returns in 2023. These stocks have strong upside available for 2024 and have seen positive earnings estimate revisions in the last 30 days. Each of our picks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
Royal Caribbean Cruises Ltd. (RCL - Free Report) has been benefiting from solid demand for cruising and acceleration in booking volumes. RCL’s emphasis on strong pricing (on closer-in-demand) bodes well.
In the third quarter, RCL reported accelerating demand for 2024 sailings. RCL intends to focus on new innovative ships and onboard experiences to boost its offering and deliver superior yields and margins.
Royal Caribbean Cruises has an expected revenue and earnings growth rate of 13.7% and 38.1%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 0.9% over the last 30 days. The stock price of RCL has soared 157.2% year to date.
Amazon.com Inc. (AMZN - Free Report) has been benefiting from a strengthening AWS services portfolio and its growing adoption rate has contributed well. Ultrafast delivery services and an expanding content portfolio are positives for AMZN. The strengthening relationship with third-party sellers is also encouraging. Its advertising business is also making a robust contribution. Improving Alexa skills along with robust smart home product offerings are tailwinds for AMZN.
Amazon has an expected revenue and earnings growth rate of 11.6% and 32.7%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 0.6% over the last seven days. The stock price of AMZN has jumped 83% year to date.
DaVita Inc. (DVA - Free Report) has been expanding its global presence via its Integrated Kidney Care business. DVA has been generating solid revenues by providing dialysis services. DVA has been opening and acquiring several dialysis centers both within the United States and overseas. A strong solvency position is an added plus.
DaVita has an expected revenue and earnings growth rate of 2.7% and 4.9%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 0.4% over the last seven days. The stock price of DVA has climbed 40.3% year to date.
Assurant Inc. (AIZ - Free Report) is focused on inorganic and organic growth strategies, which bode well for growth. For 2023, AIZ expects adjusted EBITDA, excluding reportable catastrophes, to increase by mid-to high-teens. Growth in Global Housing is being driven by improved performance in Homeowners reflecting higher lender-placed net earned premiums.
Global Lifestyle stands to gain from growth across Connected Living and Global Automotive. AIZ plans to deploy capital, mainly to fund business growth and return capital to shareholders via share buybacks and dividends.
Assurant has an expected revenue and earnings growth rate of 4% and 4.2%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 0.9% over the last seven days. The stock price of AIZ has surged 32.1% year to date.
Live Nation Entertainment Inc. (LYV - Free Report) is benefiting from pent-up demand for live events, robust ticket sales and the sponsorship and advertising business. LYV remains optimistic about its growth prospects in 2023.
For concerts, LYV stated that it has already sold more than 117 million tickets (as of June 2023), up 20% from the 2022 levels. In terms of tickets, LYV is likely to benefit from the market pricing trend. Also, the emphasis on new client and venue additions bodes well.
Live Nation Entertainment has an expected revenue and earnings growth rate of 8.2% and 61.1%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 3.9% over the last 30 days. The stock price of LYV has rallied 31% year to date.