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Pick These Top-Ranked Stocks to Deck Up Your Christmas Tree
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The essence of Christmas, marked by the Christmas tree adorned with twinkling lights and silver bells, brings joy and warmth to every heart. This emblem of goodwill and love is pivotal in celebrating the season's cheer. Mirroring its significance, we have crafted a tree with the most flourishing stocks of 2023 and the ones that are poised to soar in 2024.
Crafting & Decorating the Tree
Let’s build the base first, which is the most valuable part and, of course, the place where all gifts are to be found. There’s nothing more fitting than the broad market index — S&P 500 — to give a solid foundation to our tree. The index has been hitting a series of new 2023 highs lately and is heading toward the longest weekly winning streak since 2017. The S&P 500 is up 23.6% this year. Speculation that the Fed is done with interest rate hikes and a surge in technology stocks have been the major catalysts. Several analysts and market strategists expect the S&P 500 to touch new highs in 2024.
Broad market sentiments have turned extremely bullish following the Fed’s dovish tone. The central bank, in its latest meeting, kept interest rates steady for the third time and penciled in three rate cuts of 75 bps for 2024. Lower interest rates generally lead to reduced borrowing costs, which can stimulate economic growth. This can benefit sectors like real estate, consumer discretionary and financial services, which are typically sensitive to interest rate changes.
So, it makes sense to add the top-ranked stocks from these sectors to our Christmas tree. MFA Mortgage Investments, Inc. (MFA - Free Report) , having a Zacks Rank #2 (Buy) and a VGM Score of B, operates as a real estate investment trust primarily engaged in the business of investing in mortgage-backed securities.
Royal Caribbean (RCL - Free Report) is a cruise company that owns and operates three global brands — Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises. Shift4 Payments Inc. (FOUR - Free Report) is a provider of integrated payment processing and technology solutions. RCL and FOUR have a Zacks Rank #1 (Strong Buy) and a VGM Score of B each. The stocks could form the fronds of the tree. You can see the complete list of today’s Zacks #1 Rank stocks here.
For the top layer, we have chosen NRx Pharmaceuticals (NRXP - Free Report) . Small caps are expected to outperform heading into the New Year as the economy seems on track for strong growth. Additionally, a low interest rate environment bodes well for small-cap stocks as it perks up economic activities and results in higher spending, thus boosting domestically focused companies. NRXP has a Zacks Rank #2 and a VGM Score of B.
At the very top is the star stock of 2023 — Carrols Restaurant Group (TAST - Free Report) — which has gained more than 400% this year. TAST is the largest BURGER KING franchisee in the United States, with more than 800 restaurants. The company has an estimated earnings growth rate of 8.3% for the next year.
With the structure ready, we now have to decorate the tree with bells, candies and lights. While most of the ETFs could be part of this beautification, we have chosen those that have a top Zacks Rank. CrowdStrike (CRWD - Free Report) will add to the glitter and shine. CrowdStrike is a leader in next-generation endpoint protection, threat intelligence and cyberattack response services. The stock has risen more than 141% this year and is poised for more upside in 2024, given the solid earnings estimate revision of 18 cents for the next fiscal year (ending January 2025) over the past 30 days. CRWD has a Zacks Rank #2 and a VGM Score of B. Further, the stock belongs to a top-ranked Zacks industry (top 12%).
The best stock for the candy decor is Invitae , which has plunged about 65% this year but has the potential to outperform in 2024, given its Growth Score of A and a Zacks Rank #2. This is because growth investing is a momentum play and tends to outperform in a trending market (a market characterized by a prolonged uptrend). Growth stocks refer to high-quality stocks that are likely to witness revenue and earnings increase at a faster rate than the industry average. These stocks harness their momentum in earnings to create a positive bias in the market, resulting in rocketing share prices.
Now, to lighten the tree, let’s add gold stocks like Eldorado Gold (EGO - Free Report) that will continue to brighten investors’ portfolios in 2024. Gold recently touched an all-time high, topping $2,100 per ounce, and is expected to rise further. A potential shift in monetary policy presents an intriguing scenario for investors. The Fed has indicated a possible end to its rate-hiking cycle, with expectations of lower borrowing costs in 2024. With a market cap of $2.6 billion, EGO has a Zacks Rank #2 and a VGM Score of B.
The Christmas tree of stocks to brighten 2024 is now ready for investors. May it spread cheer!
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Pick These Top-Ranked Stocks to Deck Up Your Christmas Tree
The essence of Christmas, marked by the Christmas tree adorned with twinkling lights and silver bells, brings joy and warmth to every heart. This emblem of goodwill and love is pivotal in celebrating the season's cheer. Mirroring its significance, we have crafted a tree with the most flourishing stocks of 2023 and the ones that are poised to soar in 2024.
Crafting & Decorating the Tree
Let’s build the base first, which is the most valuable part and, of course, the place where all gifts are to be found. There’s nothing more fitting than the broad market index — S&P 500 — to give a solid foundation to our tree. The index has been hitting a series of new 2023 highs lately and is heading toward the longest weekly winning streak since 2017. The S&P 500 is up 23.6% this year. Speculation that the Fed is done with interest rate hikes and a surge in technology stocks have been the major catalysts. Several analysts and market strategists expect the S&P 500 to touch new highs in 2024.
Broad market sentiments have turned extremely bullish following the Fed’s dovish tone. The central bank, in its latest meeting, kept interest rates steady for the third time and penciled in three rate cuts of 75 bps for 2024. Lower interest rates generally lead to reduced borrowing costs, which can stimulate economic growth. This can benefit sectors like real estate, consumer discretionary and financial services, which are typically sensitive to interest rate changes.
So, it makes sense to add the top-ranked stocks from these sectors to our Christmas tree. MFA Mortgage Investments, Inc. (MFA - Free Report) , having a Zacks Rank #2 (Buy) and a VGM Score of B, operates as a real estate investment trust primarily engaged in the business of investing in mortgage-backed securities.
Royal Caribbean (RCL - Free Report) is a cruise company that owns and operates three global brands — Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises. Shift4 Payments Inc. (FOUR - Free Report) is a provider of integrated payment processing and technology solutions. RCL and FOUR have a Zacks Rank #1 (Strong Buy) and a VGM Score of B each. The stocks could form the fronds of the tree. You can see the complete list of today’s Zacks #1 Rank stocks here.
For the top layer, we have chosen NRx Pharmaceuticals (NRXP - Free Report) . Small caps are expected to outperform heading into the New Year as the economy seems on track for strong growth. Additionally, a low interest rate environment bodes well for small-cap stocks as it perks up economic activities and results in higher spending, thus boosting domestically focused companies. NRXP has a Zacks Rank #2 and a VGM Score of B.
At the very top is the star stock of 2023 — Carrols Restaurant Group (TAST - Free Report) — which has gained more than 400% this year. TAST is the largest BURGER KING franchisee in the United States, with more than 800 restaurants. The company has an estimated earnings growth rate of 8.3% for the next year.
With the structure ready, we now have to decorate the tree with bells, candies and lights. While most of the ETFs could be part of this beautification, we have chosen those that have a top Zacks Rank. CrowdStrike (CRWD - Free Report) will add to the glitter and shine. CrowdStrike is a leader in next-generation endpoint protection, threat intelligence and cyberattack response services. The stock has risen more than 141% this year and is poised for more upside in 2024, given the solid earnings estimate revision of 18 cents for the next fiscal year (ending January 2025) over the past 30 days. CRWD has a Zacks Rank #2 and a VGM Score of B. Further, the stock belongs to a top-ranked Zacks industry (top 12%).
The best stock for the candy decor is Invitae , which has plunged about 65% this year but has the potential to outperform in 2024, given its Growth Score of A and a Zacks Rank #2. This is because growth investing is a momentum play and tends to outperform in a trending market (a market characterized by a prolonged uptrend). Growth stocks refer to high-quality stocks that are likely to witness revenue and earnings increase at a faster rate than the industry average. These stocks harness their momentum in earnings to create a positive bias in the market, resulting in rocketing share prices.
Now, to lighten the tree, let’s add gold stocks like Eldorado Gold (EGO - Free Report) that will continue to brighten investors’ portfolios in 2024. Gold recently touched an all-time high, topping $2,100 per ounce, and is expected to rise further. A potential shift in monetary policy presents an intriguing scenario for investors. The Fed has indicated a possible end to its rate-hiking cycle, with expectations of lower borrowing costs in 2024. With a market cap of $2.6 billion, EGO has a Zacks Rank #2 and a VGM Score of B.
The Christmas tree of stocks to brighten 2024 is now ready for investors. May it spread cheer!