It’s a rather Dickensian market in 2023, with your specific portfolio makeup determining whether you’re experiencing the “best of times” or the “worst of times.” For instance, the tech-heavy Nasdaq is up about 36% on the year through Nov. 24, while some sectors like real estate and energy are in the red.
That makes it very difficult to decide where to go with your investments in 2024. Do you bank on growth-oriented tech stocks continuing to run in the new year? Or do you buy into the fears that higher interest rates and geopolitical risks are going to drive a rotation into “risk-off” value stocks?
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There’s no way to know for sure how things will shake out in 2024. But regardless of your approach, you’ll likely find an investment that chimes with you among these stocks:
— Growth stock: Amazon.com Inc. (ticker: AMZN)
— Value stock: Eli Lilly and Co. (LLY)
— Growth stock: Nvidia Corp. (NVDA)
— Value stock: JPMorgan Chase & Co. (JPM)
— Growth stock: CrowdStrike Holdings Inc. (CRWD)
— Value stock: AT&T Inc. (T)
— Growth stock: First Solar Inc. (FSLR)
— Value stock: Altria Group Inc. (MO)
Growth Stock: Amazon.com Inc. (AMZN)
Whenever you make a list of growth stocks, it’s hard to skip over e-commerce giant Amazon. Valued at about $1.5 trillion, the company continues to grow even larger, with projections of double-digit revenue expansion in fiscal years 2023 and 2024. When you have the scale that Amazon offers, it’s easy to boost the top and bottom line with even modest efficiency gains. Furthermore, AMZN continues to expand its cloud computing offerings via Amazon Web Services as well as other offerings, including its Alexa assistant and Prime Video services. When it comes to growth, it’s hard to bet against Amazon.
Value Stock: Eli Lilly and Co. (LLY)
The largest U.S. drug manufacturer by market value, Eli Lilly is a dominant health care stock behind some of the best-selling medicines in history, including its Prozac antidepressant and Humalog diabetes treatment. Current blockbusters include next-gen diabetes and weight loss drugs Trulicity and Mounjaro, proving the product pipeline is in great shape. With a 0.75% forward dividend yield, LLY stock provides decent cash payments as well. And with strong financial metrics and massive scale, it remains a value stock with staying power.
Growth Stock: Nvidia Corp. (NVDA)
One of the most recent tech stocks to join the $1 trillion market cap club, chipmaker Nvidia is at the center of a host of high-growth trends, from artificial intelligence to electric vehicles to cryptocurrency mining. As the leader in next-gen semiconductors, the sky has been the limit for this momentum stock, with shares jumping about 1,218% over the last five years and about 193% in the last 12 months. Some investors have been leery of buying NVDA stock at these levels, but it remains a classic case of a high-flying stock that continues to prove naysayers wrong with continued outperformance.
Value Stock: JPMorgan Chase & Co. (JPM)
Entrenched financial powerhouse JPMorgan Chase is a bank that knows how to weather anything the market throws its way, dating back to its formation at the end of the 18th century. It’s not just relying on yesteryear, however, as it is currently the largest U.S. bank by assets — with a huge jump in 2023 thanks to the timely acquisition of First Republic Bank. Revenue is set to surge more than 10% this year thanks to that add-on, proving the dominance of JPM and ensuring it has the scale and efficiency to succeed for many years to come.
[SEE: 8 Best Defense Stocks to Buy Now]
Growth Stock: CrowdStrike Holdings Inc. (CRWD)
At about $50 billion in market value, CrowdStrike is a leading name in the cybersecurity industry that has proven its growth potential yet again, with shares up an impressive 100% through Nov. 24 this year. That’s in part because the company projects revenue growth of more than 35% this year and another 30% next fiscal year. This is part of a sustained long-term trend, however, as CRWD stock debuted in a 2019 initial public offering at $63.50 and now trades for more than three times that amount. Cybersecurity remains in focus worldwide, and CrowdStrike remains the go-to name for enterprises in both the private and public sectors.
Value Stock: AT&T Inc. (T)
Communications icon AT&T has had an interesting run in the last few years, spinning off Warner Bros. Discovery Inc. (WBD) in 2022 to focus on its core telecom business. That reduced both its market value and its dividend payout on paper, but the restructuring was ultimately in the best interest of AT&T — particularly if you look at the ugly performance of the independent WBD since the spinoff. Rising interest rates have created concerns for the capital-intensive nature of operating a telecom like this, but the value metrics are great thanks to recent negativity — including a forward dividend yield of 6.9% and a forward price-to-earnings ratio of about 6.5.
Growth Stock: First Solar Inc. (FSLR)
Headquartered in Arizona, the name isn’t just empty branding for First Solar. This company is among the leaders in the industry, with a market capitalization of about $16.5 billion to top a host of traditional energy players, and annual revenue projected to reach $3.5 billion this year. If it hits that top-line target, FSLR will record more than 30% revenue growth this year. And what’s more, the company projects another 30% in fiscal 2024, too. Big-picture trends rather than specific financials also provide a growth opportunity for the long-term given climate change risks and the need for renewable energy in the decades to come.
Value Stock: Altria Group Inc. (MO)
Even if you’re not a smoker, you probably still recognize the nameplates owned by Altria. From Marlboro cigarettes to Black & Mild pipe and cigar products to smokeless tobacco like Copenhagen and Skoal, this tobacco giant is at the center of the industry. The products may be unhealthy, but they have reliable demand, and Altria has learned how to maximize shareholder value and provide consistent results over the long term. For instance, the company recorded its 54th consecutive year of dividend increases with its September increase in payouts. Beyond the consistency, the generous 9.5% yield is another amazing data point that makes this value stock worth a look.
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4 Growth Stocks, 4 Value Stocks to Buy originally appeared on usnews.com
