Three stocks that have high growth potential in 2024
Some stocks have already made significant gains in 2024, but their growth potential is far from exhausted. While it is impossible to predict with certainty how individual titles will perform in the months ahead, there are reasons to believe that some companies may continue to grow.
Analysts and investors are often well aware of trends and fundamentals that can affect stock markets. In this article, therefore, we look at three stocks that have very promising prospects in 2024.
D.R. Horton $DHI
Company D.R. Hortona leader in the U.S. construction industry, is already one of the winners of 2024. And its stock should continue to rise for several key reasons.
The most important of these is the acute shortage of housing units in the United States. Zillow estimates that there is a shortage of approximately 4.5 million homes in the U.S. market. As the largest U.S. developer over the past two decades, D.R. Horton is well positioned to benefit from this shortage and increased demand for housing.
In the short term, the company's stock could also benefit from an expected interest rate cut by the Federal Reserve. With lower rates, mortgage interest rates will also fall, which should boost home sales growth.
A third reason for optimism is the attractive valuation of D.R. Horton stock. The stock is currently trading at a price-to-earnings ratio for the next 12 months of under 12, which, combined with the company's growth potential, is very interesting.
Nvidia $NVDA
If the company's stock Nvidia from a glass-half-full perspective, we can say that their value has skyrocketed this year. However, if we look at them from the glass half empty side, it is true that the stock has pulled back slightly after its peak. Still, Nvidia promises further growth in 2024.
A key factor is the imminent launch of a new generation of graphics chips based on the Blackwell architecture. This technology is expected to deliver up to 25 times lower cost and power consumption compared to the current generation of Hopper chips. The company's CEO, Jensen Huang, even believes that Blackwell could be the most successful product not only in Nvidia's history, but in the entire computer industry.
Although there have been delays in the shipments of these chips, Blackwell is expected to generate billions of dollars in sales as early as 2024. And with Nvidia now planning annual new product launches, Blackwell will only be the beginning of a new era.
Vertex Pharmaceuticals $VRTX
Third company, Vertex Pharmaceuticalsalthough it hasn't seen as strong gains as the previous two titles, also has a promising future ahead of it. Vertex specializes in biotechnology and has already grown by double-digit percentages this year, yet it is expected to achieve even stronger growth in the coming months.
The main driver should be the commercial launch of a new therapy Casgevythe first CRISPR gene therapy approved by regulators. Estimates suggest Casgevy could reach peak annual sales in excess of $3 billion.
Another important event for Vertex will be the expected approval of two new drugs by early 2025 - Suzetrigine for the treatment of acute pain, and a three-drug combination for cystic fibrosis (vanzacaftor triple). Both products have great market potential, according to experts.
In addition, Vertex is developing other promising drugs that are in the late stages of clinical testing. One of them, Inaxaplin, targets a kidney disease associated with a mutation in the APOL1 gene, a condition that affects more people than cystic fibrosis. The other drug, Povetaciceptis being tested for the treatment of IgA nephropathy, an inflammatory kidney disease. If both drugs are approved, they could become the next blockbuster products in Vertex's portfolio.
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