Exploring the Top 13 Major Stocks to Buy in 2024
In this article, we delve into the top 13 major stocks worthy of consideration for investment opportunities right now. If you're seeking to bypass the latest stock market news and recent trends, feel free to jump straight to our list of the 5 Best Major Stocks to Buy Right Now.
As we venture into 2024, the stock market landscape remains consistent. Investors kick-started the year by closely monitoring the Federal Reserve, a typical practice aimed at setting expectations for the remainder of the year. With the Fed aggressively raising interest rates to counter inflation, the focus now shifts to when rates might start decreasing. Ironically, the economy presents the biggest challenge in compelling the Fed to act promptly.
Higher interest rates translate to increased business costs and restricted consumer access to capital. Consequently, firms face hurdles in achieving revenue and earnings growth, ultimately stalling economic expansion. Nonetheless, buoyed by the robust performance of the American economy compared to its counterparts, the Fed retains flexibility in maintaining higher rates, thereby tempering the Wall Street's enthusiasm accustomed to easy money post the 2008 Great Recession and the recent COVID-19 pandemic.
Despite the prevailing high interest rates, the stock market continues to dazzle. Major indexes like the NASDAQ Composite and the S&P 500 defy expectations, soaring to new heights despite the downward pressure exerted by high interest rates on stock valuations. The S&P 500 notably achieved a historic milestone in February 2024, breaching the 5,000-point mark for the first time in history. This remarkable feat marks a stark contrast to the widespread recession fears that dominated discussions towards the end of 2022.
In a reminiscent fashion to 2023, where the NASDAQ 100 witnessed record highs fueled by major players like NVIDIA Corporation (NASDAQ:NVDA), 2024's record-setting index levels are propelled by similar industry giants. The onset of the year ushered in the pivotal earnings season, with heavyweights like Meta Platforms, Inc. (NASDAQ:META), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG) spearheading advancements in artificial intelligence (A.I.). A.I. emerged as the predominant theme in the stock market last year, with mega stock earnings calls providing insights into management strategies, future plans, and data analytics scrutinized by investors seeking clarity on the A.I. hype.
The impressive stock performance in 2024 reflects investors' confidence, with Alphabet, Meta, Microsoft, and NVIDIA's shares registering year-to-date gains of 7.64%, 35%, 13%, and 49.7%, respectively. This underscores the potential of major stocks to deliver substantial returns, aligning with market and economic contexts favorably.
Before delving into the top major stocks worth considering, a significant development worth noting in 2024 is Meta's announcement of a 50 cent dividend, marking its transition into stable, dividend-paying territory. Traditionally recognized as a high-growth technology firm, Meta's shift from negative profits to dividend payouts signals stability and investor confidence in its growth trajectory.
So, which major stocks are hedge funds eyeing? Notable picks include Meta Platforms, Inc. (NASDAQ:META), Amazon.com, Inc. (NASDAQ:AMZN), and Microsoft Corporation (NASDAQ:MSFT).
Methodology
To compile our list of the best major stocks, we identified common top constituents of the S&P 500 index and the NASDAQ 100 index, ranking them based on the number of hedge funds holding their shares as of Q4 2023. The top-ranking stocks were then selected as the best major stocks to consider.
We leveraged hedge fund sentiment to guide our selection process, given the outperformance of hedge funds' top 10 consensus stock picks compared to the S&P 500 Index over the last decade. This indicator warrants careful attention, given its track record of success.
Top 13 Major Stocks to Buy Right Now
Intuit Inc. (NASDAQ:INTU)
- Number of Q4 2023 Hedge Fund Shareholders: 75
- Intuit Inc. is a technology company empowering small businesses to manage their daily financial operations efficiently. Despite a sluggish financial environment, Intuit has consistently exceeded analyst EPS estimates in its latest quarters, earning a Strong Buy rating on average. As of December 2023, 86 out of 933 hedge funds surveyed held stakes in the firm, with Ken Fisher's Fisher Asset Management leading the pack with a $1.9 billion stake.
Tesla, Inc. (NASDAQ:TSLA)
- Number of Q4 2023 Hedge Fund Shareholders: 82
- Tesla, Inc. is a renowned electric vehicle manufacturer headquartered in Texas. Despite facing controversies in 2024, including CEO Elon Musk's call for reincorporation outside Delaware, Tesla remains a prominent investment choice. By the end of Q4 2023, 81 hedge funds owned Tesla shares, with Phillippe Laffont's Coatue Management holding the largest stake worth $1 billion.
Booking Holdings Inc. (NASDAQ:BKNG)
- Number
- Booking Holdings Inc. operates as a technology company facilitating collaborations between guests and hospitality establishments. With the global travel industry recovering from the pandemic, Booking Holdings has rewarded investors with over 200% growth. As of Q4 2023, 81 hedge funds were invested in the firm, with Arrowstreet Capital holding the largest stake valued at $1.7 billion.
Netflix, Inc. (NASDAQ:NFLX)
- Number of Q4 2023 Hedge Fund Shareholders: 89
- Netflix, Inc. is a renowned global brand in the media and entertainment sector. Despite challenges, analysts rate its shares as Buy, with an average price target of $575.64. In Q4 2023, 102 hedge funds held Netflix shares, with Fisher Asset Management leading with a stake worth $2 billion.
Broadcom Inc. (NASDAQ:AVGO)
- Number of Q4 2023 Hedge Fund Shareholders: 91
- Broadcom Inc. is a leading semiconductor company renowned for its connectivity products. Despite being underrated, Broadcom presents promising opportunities, particularly in artificial intelligence. In Q3 2023, 87 hedge funds held stakes in Broadcom, with Fisher Asset Management as the largest stakeholder with a $2.3 billion investment.
Micron Technology, Inc. (NASDAQ:MU)
- Number of Q4 2023 Hedge Fund Shareholders: 92
- Micron Technology, Inc. operates in the memory products market, with 2024 witnessing intriguing developments in its product landscape. As rumors swirl around partnerships with TSMC and SK hynix for advanced memory chips, investor interest remains high. By Q4 2023, 90 hedge funds held stakes in Micron Technology, with Citadel Investment Group leading with a $604 million investment.
Adobe Inc. (NASDAQ:ADBE)
- Number of Q4 2023 Hedge Fund Shareholders: 105
- Adobe Inc. ranks among the largest productivity software companies globally. With a continued focus on artificial intelligence, Adobe's generative A.I. app Firefly's integration with Apple Vision Pro has garnered attention. As of Q4 2023, 112 hedge funds held Adobe shares, with Fisher Asset Management being the largest investor, owning shares worth $2.7 billion.
Apple Inc. (NASDAQ:AAPL)
- Number of Q4 2023 Hedge Fund Shareholders: 131
- Apple Inc. stands as one of the most valuable technology companies globally. Despite being edged out by Microsoft in market capitalization in 2024, Apple remains a top choice for investors. In Q4 2023, 134 hedge funds held Apple shares, with Berkshire Hathaway leading with a $174 billion investment.
of Q4 2023 Hedge Fund Shareholders: 83
In addition to Meta Platforms, Inc. (NASDAQ:META), Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), and Microsoft Corporation (NASDAQ:MSFT), several major stocks find favor among hedge funds, offering promising investment opportunities in 2024.
