The Best Stocks to Buy for 2024

Among ordinary citizens, investing in stocks has become a successful alternative to bank deposits, real estate, and other assets. According to the analitics , by the end of 2022, about 23 million people had used brokerage services – approximately 30% of people economically active world population. In search of profitable investments in the market, retail investors are wondering which stocks to buy in 2023-2024, considering their potential to generate profits.

Selection Criteria

Several ratios are typically used to determine the advisability of buying a company’s stocks.

● The first is the Payout Ratio (PR), which shows the proportion of profit a company pays out as dividends. It’s important to consider both the current level of payments and their dynamics.

● The Debt/EBITDA ratio is used to assess a company’s financial burden and understand how many years it would take to pay off debts at the current level of income.

● The Price/Earnings (P/E) ratio is a multiplier that helps evaluate the return on investment: after what period investments in stocks will start generating real income. It also allows assessing the overall profitability of the company.

● The Debt/Equity (D/E) ratio reflects the ratio of a company’s debt load to its equity. The higher this indicator, the more debt the company has. However, a significant excess or negative value may indicate the business’s unattractiveness to investors.

Important! Additionally, when choosing a company whose stocks you plan to buy, consider shareholder reviews, the level of trust from securities buyers, development prospects, and expert forecasts.

Economically Beneficial Industries for Investment Today

Each industry has its leaders, whose securities are most profitable for acquisition. For example, in the oil and gas sector, these are “Exxon” and “Chevron”; in the metallurgical sphere – “Mechel,” “Severstal,” and “TimkenSteel Corporation”; in the telecommunications industry – “MTS” and “Rostelecom”; and in the financial sector – “Sberbank.” However, in addition to companies, there are also attractive industries for private investors.

Healthcare

From 2023 to 2024, stocks of pharmaceutical companies prove to be a promising tool for capital investment. Among the most successful companies in this industry are:

Merck & CO

Pfizer

Regeneron

Vertex Pharmaceuticals

It’s worth noting that the value of securities often depends on the results of specific drug research, which is hard to predict. Therefore, the pharmaceutical sector remains volatile, and stocks in this industry carry high risks but can also be profitable.

Online Retail.Delivery

Due to pandemic-related restrictions, online shopping has become more attractive to the economic sector. Many people began ordering home deliveries and continue to use this service. During the coronavirus period, the stock prices of companies specializing in internet retail significantly increased. For example, shares of the American trading platform Amazon grew by 74% in a year, and by 20% in one month of the pandemic. Similar results are observed with eBay – a 57% increase. This is related not only to the increase in population income but also to a shift in priorities – most people prefer to shop online.

Biotech

During the pandemic, the biotechnological industry, like medicine, actively developed. After the pandemic, people are paying more attention to their health, and biotechnological companies continue to show stability. Experts recommend investing in stocks of such companies as:

Abbott

Lab

Amgen

Biogen

Vertex

Gilead

Investments in such stocks are high-risk but can bring significant profits. Drug development and new technologies are lengthy processes (thus more suitable for long-term investors) and may not always be approved by regulatory authorities. However, if the development proves to be in demand, the profit for investors can be substantial. Currently, only TBIO (Tinkoff’s ETF fund) is available on the Moscow Exchange. In the American market, the choice is much broader – iShares Nasdaq Biotechnology ETF (IBB), Health Care Select Sector SPDR Fund (XLV), and many others. In total, 12 ETF funds in the field of biotechnology are traded in the USA.

IT Sphere

The pandemic’s impact on the IT sphere led to more companies moving to online work. The following companies are projected to have the highest profit growth:

“Positive Group” (up to +18%)

Baidu (up to +22%)

Meituan (up to +34.8%)

Palo Alto Networks (up to +13%)

In 2023-2024, there is a significant increase in the popularity of IT companies in the American market. It’s evident that stocks of giants like Tesla or Apple are growing the fastest in price.

Gold Mining

The traditional gold mining industry remains stable. For example, in 2021, the price of gold increased by more than 48%. For several months, the price of an ounce of gold held at the level of 1800-1900 dollars. The rise in the value of precious metals was facilitated by the uncertainty caused by the pandemic, reduced supply, and negative interest rates. 

Shares of the following companies look attractive: “Polyus” – Russia’s largest gold miner and second in the world in terms of known reserves; “Polymetal” – although dividend yield is low (on average 3.5% per annum), the level of production increases by an average of 70% per year; “Seligdar” – VTB Group buys all the products, and according to forecasts, the volume of production by 2024 will increase by an average of 30%. Important! The Moscow Exchange also lists shares of two other companies – “Buryatzoloto” and “Lenzoloto”.