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Best Companies To Invest in For 2024

February 6, 2024

6 min Read

Written by John Csiszar

Edited by Caitlyn Moorhead

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You want the money you invest in the stock market to work for you, and this starts by picking companies that you trust for long-term investments you can count on. Stock trades for companies that have consistently proven their returns, as well as the price-to-earnings ratio, is a competitive advantage. When it comes to investment management, there are no guarantees but it helps to make informed decisions.

10 Best Companies To Invest In for 2024

Despite lingering inflation, comparatively high interest rates and the possibility of a recession, 2024 is off to a great start for investors to seek out top stocks. See which stock picks are the ones to watch in 2024 to help with your portfolio management. Here are 10 stocks that investors think may outperform:

Citigroup (C)
Tyler Technologies (TYL)
Disney (DIS)
Royal Caribbean Cruises Ltd. (RCL)
PayPal (PYPL)
DocuSign (DOCU)
JPMorgan Chase (JPM)
Salesforce (CRM)
Adobe (ADBE)
Pfizer (PFE)

1. Citigroup (C)

Citigroup is no stranger to finances as it is a giant in the banking industry. This financial service company has taken strides for improvement in 2024 which increases its chances to grow earnings per share. Citi®’s earning trajectory is predicted to see significant valuation.

This means that Citi is now operating with a better risk and reward balance. 2024 is a good time to invest in Citi, especially given this forecast.

2. Tyler Technologies (TYL)

Tyler Technologies is a software and services provider for government, governing agencies and schools. It likely escapes the attention of most investors because it serves the public sector, but it has gotten attention lately from market watchers like Morningstar and Zacks Investment Research.

Morningstar named Tyler a top growth stock to buy and hold this year because of its leadership position in a niche market with substantial growth potential as local governments upgrade and modernize their systems.

Zacks noted that federal agencies are already adopting Tyler’s solutions more widely. The company has a moat in terms of workforce case management, which is crucial to federal agencies’ compliance with President Joe Biden’s executive order on maintaining diversity, equity, inclusion and accessibility in the federal workforce.

3. Disney (DIS)

Disney is a long-time Wall Street darling that was nothing but disappointing to investors from 2021 through late 2023. Although down over 4% for the past year, however, Disney stock is up in 2024. The company, which has generally provided solid and reliable long-term returns, seems to be closing an uncharacteristically wide gulf in performance.

Bob Iger is back at the helm, and the pressure is on him to rein in costs and compensate for slowing Disney+ subscriber growth and falling ad revenue. Disney’s long-term viability isn’t in question, so this might be a classic opportunity to buy the dip.

4. Royal Caribbean Cruises Ltd. (RCL)

If you’re a bit of a gambler, Royal Caribbean might grab your interest for a 2024 investment. Cruise stocks got hammered in 2020 — it seemed they would all go out of business during the height of the pandemic. However, before the pandemic, the cruise business was booming. With the return to travel, pent-up travelers flooded back onto ships.

After more than doubling in the past year, shares are still down from before the pandemic, but only slightly. In fact, Royal Caribbean is significantly closer to its pre-pandemic stock price than Carnival and Norwegian are to theirs.

5. PayPal (PYPL)

PayPal almost single-handedly changed the payment processing world, but it had an absolutely dismal 2022. After a rough start to 2023, shares rose in the first half of the year. While they dropped again last fall, they’ve trended upward since November, rising 22% over the last quarter and 6% since the beginning of the year — and the stock could still be undervalued.

As PayPal continues to grow and reach more users, financial transactions are likely to increase. This will continue to benefit PayPal going forward.

6. DocuSign (DOCU)

DocuSign rose to stratospheric levels in the early days of the pandemic as it seemed as if all business would be done remotely in perpetuity. As the world began opening up and business began returning to some sense of normalcy, faith in the company began to wane.

However, several factors point to a turnaround, and the company’s low forward P/E ratio suggests that DocuSign is trading at a discount.

7. JPMorgan Chase (JPM)

JPMorgan Chase may be favorably positioned for 2024. Chase, like other banks, has benefited from rate increases that enabled them to lend money at higher rates while still paying lower short-term rates on deposit accounts. What’s more, JPMorgan Chase remains cheap on a relative basis, and currently still pays a healthy dividend.

Shares are up 25.08% for the year, and while they’ve become more bearish over the last few weeks, analysts think it has further to go. The consensus price target is $189.51, and the stock closed at $175.01 on Feb. 6.

8. Salesforce (CRM)

Salesforce outperformed the S&P 500 last year. This is in part due to a spike following the announcement that it would increase prices on some of its cloud and marketing tools. It was the first hike in seven years, according to Reuters. It coincided with the company’s increased investment in developing generative artificial intelligence products and services — an investment that could pay off in a big way as AI gains traction.

9. Adobe (ADBE)

Adobe is another high flyer that’s bouncing back from a major hit in 2022. Adobe has been consistently firing on all cylinders for years on end, and those trends — on the back of the company’s cloud and subscription businesses — seem likely to continue.

Despite some setbacks over the last six months, Adobe has gone up 81% since its lowest point last year and remains a valuable stock to invest in 2024.

10. Pfizer (PFE)

Pfizer has always been a defensive stock in times of overvalued markets. If you believe that there’s a bubble forming, Pfizer might be a good option for you. Pfizer is much more than a safe-haven stock. Pfizer’s COVID-19 vaccine saw major revenue increases due to the pandemic and pushed full-year revenue to $100.33 billion in 2022.

Beyond its vaccine production, Pfizer still has a healthy drug pipeline, sizable free cash flow and dividend yield. Trading at just $27.39 as of Feb. 6, it appears to be a bargain right now.

Final Take To GO

Before jumping into some of these companies, you should check with your financial advisor to see which stocks match your investment objectives and risk tolerance. Keep in mind that you should never invest more than you can afford to lose.

Caitlyn Moorhead contributed to the reporting for this article.

Information is accurate as of Feb. 6, 2024.

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