In late November 2022, I highlighted three large-cap growth stocks heading into 2023. Those included Advanced Micro Devices (NASDAQ:AMD), which ran from $73 to $146 a share; Apple (NASDAQ:AAPL), which ran from $146 to $193.70; and Nvidia (NASDAQ:NVDA), which ran from $152 to $497. Today, I was asked for my top large-cap growth stocks for 2024.
To start, I still like AMD, AAPL, and NVDA with the artificial intelligence boom. In fact, in 2024, I’d like to see AMD closer to $200, AAPL near $550; and NVDA closer to $600 a share. Aside from those three, I like the following three large-cap growth stocks for 2024.
Nike Inc. (NKE)
Crisis is creating opportunity for large-cap growth stocks, like Nike (NYSE:NKE).
After rocketing from about $92 to about $122.50, Nike gapped to about $107.13 after saying it expected softer sales for the second half of its fiscal year. However, it appears most of the negativity has been priced into the stock. Plus, according to Goldman Sachs, which rates Nike a buy, margins did come in better than expected.
Despite the weak forecast, the company beat profit and revenue expectations. Profits jumped 21% year over year (YOY) to $1.03, with revenues up 1% YOY to $13.4 billion. Analysts expected 84 cents on $13.4 billion in revenues. So, numbers weren’t too shabby. Plus, NKE is looking to cut about $2 billion over the next three years.
And while NKE may not be firing on all cylinders again just yet thanks to macro headwinds, analysts are more bullish these days. For example, Citi upgraded NKE to a buy recently, noting that NKE is an “attractive margin recovery story,” as noted by Barron’s.
Coca-Cola (KO)
Coca-Cola (NYSE:KO) delivers growth, reliability, and dividends. With a yield of 3.13%, the company just announced a quarterly dividend of 46 cents per common share, payable Dec. 15 to share owners of record as of the close of business Dec. 1. It’s been paying out dividends for 61 years.
Earnings have been strong, too. Its third-quarter EPS of 74 cents beat estimates by five cents. Revenues of $12 billion were up 8% YOY and beat estimates by $580 million. Also, the company raised its outlook again, with profits likely to rise 7% to 8%. Additionally, Citi analysts just raised their price target on KO to $67, with a buy rating.
“Citi sees a return to historical growth levels in 2024, with a few exceptions, the analyst tells investors in a research note. 2024, the firm believes the key theme will be mean reversion, with names able to retain above-average and above-peer trends likely to outperform,” noted by TheFly.com.
Vanguard Growth ETF (VUG)
Or, if you want to diversify among large-cap growth stocks, there’s always an exchange-traded fund, such as the Vanguard Growth ETF (NYSEARCA:VUG). With an expense ratio of just 0.04%, the ETF tracks the performance of the CRSP U.S. Large Cap Growth Index.
While the VUG ETF did run from about $210 to $312 since the start of the year, it could see higher highs. This is thanks to some of its top holdings in Apple, Microsoft (NASDAQ:MSFT), Amazon.com (NASDAQ:AMZN), Nvidia Corp., Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Eli Lilly (NYSE:LLY), and Visa (NYSE:V).
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
