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5 U.S. Bigwigs With Solid Potential for Short-Term Upside
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Wall Street’s dream run continues in 2024 after an astonishing performance in 2023. Year to date, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — have advanced 3.3%, 6.9% and 8%, respectively.
The primary reasons for the northward journey so far this year are expectations of an interest rate cut by the Fed, better-than-expected fourth-quarter 2023 earnings and massive growth of generative artificial intelligence (AI) worldwide.
Consequently, several stocks have rallied year to date even after skyrocketing in 2023. A few of these stocks are large-cap (market capital >$15 billion) U.S. stocks with a favorable Zacks Rank. Moreover, a handful of stocks under this category currently enjoy strong potential for short-term price appreciation.
Our Top Picks
Based on the abovementioned criteria, we have narrowed our search to five stocks with strong earnings growth potential for 2024. These stocks have seen positive earnings estimate revisions in the past 30 days. Finally, 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 in the past three months.
Image Source: Zacks Investment Research
Amazon.com Inc. (AMZN - Free Report) has benefited from Prime and AWS’s momentum. The strengthening AWS services portfolio and its growing adoption rate contributed to the performance of AMZN. Ultrafast delivery services and an expanding content portfolio have been beneficial. Strengthening relationships with third-party sellers also favored the company. AMZN’s robust advertising business contributed as well.
Notably, improving Alexa skills along with robust smart home product offerings continue to act as a tailwind. AMZN’s strong global presence and solid momentum among small and medium businesses remain positives. Growing capabilities in grocery, pharmacy, healthcare and autonomous driving are the other catalysts. Also, its deepening focus on generative AI is a major plus.
Amazon has an expected revenue and earnings growth rate of 11.5% and 40%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the past seven days.
The Zacks Consensus Estimate currently shows the average short-term price target for Amazon at $202.26. The forecast ranges from a low of $123 to a high of $230. The average price target represents an increase of 16.8% from the last closing price of $173.16.
Royal Caribbean Cruises Ltd. (RCL - Free Report) has been benefiting from strong cruising demand from new and loyal guests and robust booking trends. Also, the strength in consumer spending onboard and pre-cruise purchases bode well.
RCL emphasized investing in a modern digital travel platform to streamline the vacation booking process for customers and expand wallet share. Also, RCL emphasized new innovative ships and onboard experiences to boost its offerings and deliver superior yields and margins.
Royal Caribbean Cruises has an expected revenue and earnings growth rate of 14.4% and 45.9%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.3% over the past seven days.
The Zacks Consensus Estimate currently shows the average short-term price target for RCL at $136.71. The forecast ranges from a low of $100 to a high of $174. The average price target represents an increase of 12% from the last closing price of $122.09.
General Motors Co.’s (GM - Free Report) compelling electric vehicle (EV) and internal combustion engine portfolio, displaying strong demand for its quality pickups and SUVs, bodes well. GM retained the U.S. auto sales crown in 2023. Its massive EV push is commendable.
GM plans to roll out 30 fresh EV models by 2025-end. General Motors’ Ultium Drive system and battery plants in Ohio, Tennessee and Lansing are likely to scale up its e-mobility prowess. GM is on track to deliver on its $2 billion net cost reduction program by 2024 end. Its superior liquidity profile and investor-friendly moves bode well.
General Motors has an expected revenue and earnings growth rate of 1.8% and 17.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 14.8% over the past 30 days.
The Zacks Consensus Estimate currently shows the average short-term price target for General Motors at $49.67. The forecast ranges from a low of $28 to a high of $95. The average price target represents an increase of 22.2% from the last closing price of $40.63.
Molson Coors Beverage Co.’s (TAP - Free Report) has been benefiting from brand strength and strong performances across its portfolio and both geographical segments. Also, Tap’s revitalization plan and the premiumization of the global portfolio bode well.
For 2024, net sales of TAP are projected to grow in the low single digits year over year on a constant-currency basis, while underlying earnings per share are likely to rise in the mid-single digits. The underlying EBT of TAP is likely to grow in mid-single digits year over year.
Molson Coors Beverage has an expected revenue and earnings growth rate of 1.3% and 4.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.9% over the past 30 days.
The Zacks Consensus Estimate currently shows the average short-term price target for Molson Coors Beverage at $68.63. The forecast ranges from a low of $63 to a high of $77. The average price target represents an increase of 9.1% from the last closing price of $62.89.
Energy Transfer LP (ET - Free Report) owns and operates diversified portfolios of energy assets primarily in the United States. ET is a publicly traded limited partnership whose core operations include complementary natural gas midstream, intrastate and interstate transportation and storage assets, crude oil, natural gas liquids and refined product transportation and terminalling assets, NGL fractionation, and various acquisition and marketing assets.
Energy Transfer has an expected revenue and earnings growth rate of 19.9% and 18.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 10.3% over the past 30 days.
The Zacks Consensus Estimate currently shows the average short-term price target for ET at $17.71. The forecast ranges from a low of $14 to a high of $22. The average price target represents an increase of 21.9% from the last closing price of $14.53.
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5 U.S. Bigwigs With Solid Potential for Short-Term Upside
Wall Street’s dream run continues in 2024 after an astonishing performance in 2023. Year to date, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — have advanced 3.3%, 6.9% and 8%, respectively.
The primary reasons for the northward journey so far this year are expectations of an interest rate cut by the Fed, better-than-expected fourth-quarter 2023 earnings and massive growth of generative artificial intelligence (AI) worldwide.
Consequently, several stocks have rallied year to date even after skyrocketing in 2023. A few of these stocks are large-cap (market capital >$15 billion) U.S. stocks with a favorable Zacks Rank. Moreover, a handful of stocks under this category currently enjoy strong potential for short-term price appreciation.
Our Top Picks
Based on the abovementioned criteria, we have narrowed our search to five stocks with strong earnings growth potential for 2024. These stocks have seen positive earnings estimate revisions in the past 30 days. Finally, 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 in the past three months.
Image Source: Zacks Investment Research
Amazon.com Inc. (AMZN - Free Report) has benefited from Prime and AWS’s momentum. The strengthening AWS services portfolio and its growing adoption rate contributed to the performance of AMZN. Ultrafast delivery services and an expanding content portfolio have been beneficial. Strengthening relationships with third-party sellers also favored the company. AMZN’s robust advertising business contributed as well.
Notably, improving Alexa skills along with robust smart home product offerings continue to act as a tailwind. AMZN’s strong global presence and solid momentum among small and medium businesses remain positives. Growing capabilities in grocery, pharmacy, healthcare and autonomous driving are the other catalysts. Also, its deepening focus on generative AI is a major plus.
Amazon has an expected revenue and earnings growth rate of 11.5% and 40%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the past seven days.
The Zacks Consensus Estimate currently shows the average short-term price target for Amazon at $202.26. The forecast ranges from a low of $123 to a high of $230. The average price target represents an increase of 16.8% from the last closing price of $173.16.
Royal Caribbean Cruises Ltd. (RCL - Free Report) has been benefiting from strong cruising demand from new and loyal guests and robust booking trends. Also, the strength in consumer spending onboard and pre-cruise purchases bode well.
RCL emphasized investing in a modern digital travel platform to streamline the vacation booking process for customers and expand wallet share. Also, RCL emphasized new innovative ships and onboard experiences to boost its offerings and deliver superior yields and margins.
Royal Caribbean Cruises has an expected revenue and earnings growth rate of 14.4% and 45.9%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.3% over the past seven days.
The Zacks Consensus Estimate currently shows the average short-term price target for RCL at $136.71. The forecast ranges from a low of $100 to a high of $174. The average price target represents an increase of 12% from the last closing price of $122.09.
General Motors Co.’s (GM - Free Report) compelling electric vehicle (EV) and internal combustion engine portfolio, displaying strong demand for its quality pickups and SUVs, bodes well. GM retained the U.S. auto sales crown in 2023. Its massive EV push is commendable.
GM plans to roll out 30 fresh EV models by 2025-end. General Motors’ Ultium Drive system and battery plants in Ohio, Tennessee and Lansing are likely to scale up its e-mobility prowess. GM is on track to deliver on its $2 billion net cost reduction program by 2024 end. Its superior liquidity profile and investor-friendly moves bode well.
General Motors has an expected revenue and earnings growth rate of 1.8% and 17.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 14.8% over the past 30 days.
The Zacks Consensus Estimate currently shows the average short-term price target for General Motors at $49.67. The forecast ranges from a low of $28 to a high of $95. The average price target represents an increase of 22.2% from the last closing price of $40.63.
Molson Coors Beverage Co.’s (TAP - Free Report) has been benefiting from brand strength and strong performances across its portfolio and both geographical segments. Also, Tap’s revitalization plan and the premiumization of the global portfolio bode well.
For 2024, net sales of TAP are projected to grow in the low single digits year over year on a constant-currency basis, while underlying earnings per share are likely to rise in the mid-single digits. The underlying EBT of TAP is likely to grow in mid-single digits year over year.
Molson Coors Beverage has an expected revenue and earnings growth rate of 1.3% and 4.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.9% over the past 30 days.
The Zacks Consensus Estimate currently shows the average short-term price target for Molson Coors Beverage at $68.63. The forecast ranges from a low of $63 to a high of $77. The average price target represents an increase of 9.1% from the last closing price of $62.89.
Energy Transfer LP (ET - Free Report) owns and operates diversified portfolios of energy assets primarily in the United States. ET is a publicly traded limited partnership whose core operations include complementary natural gas midstream, intrastate and interstate transportation and storage assets, crude oil, natural gas liquids and refined product transportation and terminalling assets, NGL fractionation, and various acquisition and marketing assets.
Energy Transfer has an expected revenue and earnings growth rate of 19.9% and 18.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 10.3% over the past 30 days.
The Zacks Consensus Estimate currently shows the average short-term price target for ET at $17.71. The forecast ranges from a low of $14 to a high of $22. The average price target represents an increase of 21.9% from the last closing price of $14.53.