America’s Federal Reserve has finally announced plans for rate cuts in 2024. The Central Bank will implement three rate cuts as inflation lowers and the economy stabilises. Investors are responding positively to this announcement, fostering hope for the coming year and potentially driving stocks upward. However, macro trends suggest that the stock market outlook might not be so straightforward. Therefore, to make informed investment decisions, analysts have identified several stocks with formidable growth potential for the upcoming year.
Key Stocks to Watch in 2024
Firstly, there’s Uber Technologies, UBER. In 2023, this stock experienced considerable growth as investors recognised the company’s profitability. Its inclusion in the S&P 500 has further boosted its performance.
Analysts from JPMorgan consider this stock one of the most promising for 2024. Following the previous price target of $62, JPMorgan now aims for a $76 target. The optimism stems from the growth of its main focus industries – food delivery and ridesharing – which should be burgeoning sectors in the stock market.
Next is CyberArk, with its CYBR stock. This company specialises in identity security. CyberArk’s performance exceeded expectations in the 3rd quarter, with its Annual Recurring Revenue (ARR) increasing by 38% to $705 million. The company should benefit from emerging technologies like generative AI, digital transformation, and cloud computing.
The final stock worth considering is Costco’s COST. Its first quarter in 2023 also exceeded expectations, placing it in a strong position. Costco continues to offer value deals on its products, which customers eagerly embrace, contributing to the company’s profits. Additionally, Costco’s growth in non-food sectors is further enhancing its growth prospects.
In conclusion, the stock market presents a mix of challenges and opportunities with the Federal Reserve’s rate cuts on the horizon. Stocks like Uber Technologies, CyberArk, and Costco are poised for growth, making them worthy of consideration by investors looking to capitalise on the evolving market landscape.
