As the stock market enters a new year, some investors are still nervous. For many sectors, 2023 brought significant turbulence as companies battled shifting macroeconomic tides and rising uncertainty that hasn’t completely subsided yet. Some experts are still cautious and predict that a “risk-off” period may be looming ahead. However, even if such a scenario unfolds, it doesn’t mean that some of the sectors that struggled in 2023 can’t rebound in the coming months.
Wall Street analysts still see better days ahead for many “strong buy” stocks — and not just those in the Magnificent 7. Data suggests that an important rally is coming. As InvestorPlace’s Luke Lango notes:
“The headline inflation rate has dropped to 3%. Excluding housing costs, inflation is running at 1.4%. That’s below both ‘normal’ levels and the Fed’s target, about 2%. So, right now, the only thing keeping inflation slightly elevated is housing costs. And we’re already starting to see rents falling and home prices getting cut. The last ‘sticky’ party of inflation is on its way out. As it leaves in 2024, inflation will firmly fall back to 2%.”
If that’s true and a new bull market is approaching, what are the best strong buy stocks investors should be watching? Let’s take a look at some of the names for which Wall Street sees significant upside in 2024.
10 Strong Buy Stocks With 20% Upside Potential
- Alibaba (NYSE:BABA): China’s e-commerce giant is a strong favorite among analysts, with an upside potential forecast of about 69%.
- Baidu (NASDAQ:BIDU): This multi-faceted Chinese conglomerate has forecasted upside potential of around 44%, per TipRanks.
- Disney (NYSE:DIS): A family entertainment leader, Disney is listed among strong buy stocks on TipRanks with an upside potential forecast of 20%.
- DraftKings (NASDAQ:DKNG): Despite a difficult month, this sports betting stock is still liked by analysts, who see it as having upside potential of more than 26%.
- Energy Transfer (NYSE:ET): This company isn’t as well-known as other energy stocks, but it still boasts an upside potential forecast of 32%.
- Li Auto (NASDAQ:LI): This electric vehicle (EV) producer didn’t finish 2023 on a high note, but Wall Street isn’t worried. Analysts peg its upside potential at 62%.
- Mobileye Global (NASDAQ:MBLY): An innovator in autonomous driving tech, Mobileye has a forecasted upside potential of nearly 34%.
- NetEase (NASDAQ:NTES): This Chinese internet technology firm is well-liked by analysts, as is demonstrated by its 48% upside potential forecast.
- Synopsys (NASDAQ:SNPS): This automation firm rode the artificial intelligence (AI) wave to new heights in 2023. Analysts see it continuing to grow in 2024, forecasting upside potential of 25%.
- The Trade Desk (NASDAQ:TTD): The Trade Desk has struggled recently, but TTD stock still boasts an upside potential forecast of 22% on TipRanks.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
