The S&P 500 index closed 2023 with a yearly gain of about 26%, surpassing the previous year, which ended with a negative return of roughly 18%. The top performers included familiar giants within the technology, industrials, and consumer discretionary sectors.
But which ones were they, and what are the predictions for their 2024 performance?
1. Nvidia (NVDA)
- 2023 return: 239%
- Sector: Technology
- Market cap: $2.13 trillion
- Price: $852
Technology company Nvidia spearheads the emerging artificial intelligence movement with its AI-powered software and cloud gaming services. The company played a significant role in generative AI, with applications like ChatGPT using the company’s data center GPUs.
Despite mounting competition from AMD and Intel, Nvidia saw increasing revenue in the core business of specialized chips for gaming, mobile, and data science sectors.
Further integration of AI in virtually all industries may see the NVDA stock surge further in 2024, with most forecasts indicating a minimum yearly peak of $1,500.
2. Vertiv Holdings Co. (VRT)
- 2023 return: 234%
- Sector: Technology
- Market cap: $27.84 billion
- Price: $72
Vertiv Holdings Co., or Vertix, is another technological gem focused on critical infrastructure (like hardware, software, and analytics) and services for data centers. The company’s prominence as one of the stocks to watch is impressive, considering it was established in 2016.
Interestingly, Vertix also benefited from the rise of AI in 2023. This year saw a massive need for Vertix’s cooling systems for data centers to cool off their GPU computing systems, which is necessary for operating large language models. Moreover, Vertiv recently acquired CoolTera Ltd. in December 2023 to further its dominance within coolant infrastructure.
With this in mind, most 2024 estimates suggest the VRT stock can reach at least $130 before the end of the year.
3. Palantir Technologies Inc. (PLTR)
- 2023 return: 218%
- Sector: Technology
- Market cap: $55.16 billion
- Price: $23
Palantir is an American corporation specializing in software for big data analytics. It, too, has been regarded favorably in the emergence of artificial intelligence in recent years. Despite launching in 2003, 2023 was the company’s first-ever profitable year.
Palantir’s increasing user base within the US government and the launch of the Artificial Intelligence Platform (AIP) for large language models in privately operated networks were key contributors. The company expects to be profitable in 2024, with revenue averaging around $2.6 billion.
Consequently, predictions indicate that Palantir can hit a minimum yearly peak of $35.
4. Builders FirstSource (BLDR)
- 2023 return: 157%
- Sector: Industrials
- Market cap: $24.5 billion
- Price: $200
Builders FirstSource may not be as hip and well-known a name as Nvidia and Palantir. However, the US-based building material manufacturer and supplier performed surprisingly well regarding stock price last year.
America’s long-running housing shortage was amplified in 2023, which placed Builders FirstSource in a prime position to fulfill the need. Another catalyst to the company’s success is acquiring related building companies to increase its national reach and product portfolio.
Builders FirstSource suggested at a recent investor day event that they aimed for a 9% growth in annual revenue until 2026.
Therefore, investors should expect a fruitful year for the BLDR in 2024, with estimates implying a minimum yearly peak of $250.
5. Uber Technologies Inc. (UBER)
- 2023 return: 149%
- Sector: Technology
- Market cap: $169 billion
- Price: $81
Uber has been a slow burner since the company’s initial public offering in 2019. The ride-hailing service struggled in the following years before picking up in 2023. The transport giant has grown due to more excellent mobility services, overseas expansion, and the launch of related products like Uber for Business and Uber Health.
According to Business of Apps, 2023 saw growth in numerous areas for Uber’s revenue and usage statistics. The company’s revenue grew 16% from the previous year, reaching $37.2 billion. Another example is the number of people who use Uber and Uber Eats monthly, which is 137 million (an 11% year-on-year climb).
Forecasts-wise, estimates see 2024 as the year UBER finally surpasses the magic $100 target for the first time.
6. Carnival Corporation & plc (CCL)
- 2023 return: 133%
- Sector: Consumer discretionary
- Market cap: $20 billion
- Price: $16
Carnival Corporation & plc is a British-American leisure cruise travel operator with more than 90 vessels across nine cruise line brands. Forbes named the company one of the world’s best employers in 2023.
However, among Carnival’s most significant challenges in the past year was the geopolitical turmoil in the Red Sea. This forced many cruise lines to reroute cruises, resulting in a dip in adjusted earnings per share.
Yet, the business reported substantial bookings when it ended 2023, introducing over 3.5 million people to its service. It has confirmed that it’s already nearly fully booked for the first half 2024.
Forecasters have considered this fact, expecting no less than $25 for the price of CCL before 2025.
7. PulteGroup (PHM)
- 2023 return: 127%
- Sector: Consumer discretionary
- Market cap: $23.55 billion
- Price: $152
PulteGroup is a home construction company that is the third largest of its kind in America. The recent filings of the holding company Berkshire Hathaway (led by investing legend Warren Buffett) showed positions in three stocks related to homebuilders — DHI, NVR, and LEN. This is another example of investors seeking housing stocks amid the demand for building homes in the States.
According to Yahoo Finance, home sales revenues grew 8%, a partial contributor to the spike in PHM stock. The enterprise continues to acquire more land yearly, fostering improved revenues and profitability. In another example of PulteGroup’s prominence in 2023, their dividends for the last quarter in that year hiked by 25%
Should these developments continue in 2024, the PHM stock price can surpass $200 by 2025, which would be an all-time high.
Outlook for Stocks in 2024
The consensus is that stocks will realistically witness mild returns compared to the three-digit rises reviewed here. On the other hand, past performance doesn’t always indicate future outcomes. Factors like the upcoming US elections and macroeconomics can play out differently for the beloved stock market.
Regardless, investors need platforms like the TradingView app to navigate this dynamic world of shares. The software strongly emphasizes stocks traded on the New York Stock Exchange and NASDAQ.
The stock screener and heatmap are two of the many impressive features where users can filter stocks based on countless categories visibly and clearly. Such tools are necessary for investors who are considering equities in 2024.
Final Word: Preparing for Stocks in 2024
The main takeaway is that certain sectors like technology, industrials, and consumer discretionary will remain closely followed by stock pickers. Our top selection excluded other gems like Tesla, Meta Platforms, and Advanced Micro Devices. Thus, the choice is abundant for investors.
While the sentiment for 2024 is bullish, one should always prepare for the worst-case scenarios. Thankfully, the TradingView app can help a great deal when it comes to analysis and risk management.
