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Top Investment Picks for 2024: Stocks Poised for Growth
Last year was a strong one for investors, with the S&P 500, Nasdaq, and Dow Jones Industrial Average all rising by double digits. A boost in investor interest around technology and growth stocks, combined with the economic climate, fueled this upward trend.
While it’s too soon to say whether these indexes will continue their success this year, there are encouraging signs. The artificial intelligence (AI) boom is in its infancy, and the Federal Reserve has begun to cut interest rates. Both factors could help support stock performance in the coming year.
Where should you invest $1,000 today? Our analyst team has identified the 10 best stocks to consider right now. Discover the 10 stocks »
Regardless of the broader market’s trajectory, some stocks are likely to stand out, particularly looking toward 2025. Below are my top 10 investment picks that balance growth and stability for starting off the year on a positive note.
Image source: Getty Images.
1. Eli Lilly
Eli Lilly (NYSE: LLY) has emerged as a frontrunner in the production of popular weight loss medications. The company manufactures tirzepatide, marketed as Zepbound for weight loss and Mounjaro for type 2 diabetes. These products have rapidly gained popularity, generating billions in revenue.
Recent developments include a significant win: tirzepatide is no longer deemed scarce by regulators, preventing compounding pharmacies from producing competing versions. Additionally, Lilly received approval to use Zepbound for sleep apnea, expanding its market reach and ensuring Medicare coverage for this indication.
According to Goldman Sachs, the obesity drug market could reach $130 billion by 2030, positioning Lilly to capitalize on this potential growth.
2. Meta Platforms
Meta Platforms (NASDAQ: META) continues to dominate the social media landscape with platforms like Facebook, Messenger, Instagram, and WhatsApp, driving substantial advertising revenue each year.
Beyond social media, Meta is heavily investing in AI with the goal of creating beneficial tools for all users. This could result in increased user engagement and, consequently, greater advertising investment from companies looking to target these users effectively.
3. Salesforce
Salesforce (NYSE: CRM) stands out in the customer relationship management market, showing consistent revenue growth. The company is now venturing into the promising field of agentic AI, which involves creating AI-driven software to tackle complex issues.
With the launch of Agentforce, Salesforce allows users to build custom AI agents to manage tasks around the clock. The company has already secured 200 contracts, and its future pipeline appears robust, paving the way for significant market expansion.
4. Chewy
Chewy (NYSE: CHWY) has become a staple for pet owners, offering a wide range of products through its e-commerce platform. The company achieves profitability by maximizing customer loyalty; approximately 80% of its revenue is generated from clients who subscribe for automatic deliveries.
Recently, Chewy launched veterinary clinics, an initiative that broadens its audience and enhances its e-commerce platform. The company’s financial health is sound, boasting zero debt and approximately $1.3 billion in liquidity at the close of the last quarter, alongside rising free cash flow.
CHWY Free Cash Flow (Quarterly) data by YCharts
5. CRISPR Therapeutics
CRISPR Therapeutics (NASDAQ: CRSP) has reached a pivotal milestone with its first regulatory approval for a gene-editing product, Casgevy, which treats blood disorders. This approval is a landmark event, as it marks the first time a CRISPR-based therapy has been authorized.
While revenue growth from Casgevy may take time due to its treatment regimen, the company has begun services for about 40 patients, and this initial progress could gradually enhance revenue. Moreover, this approval bolsters confidence in CRISPR’s broader technological pipeline.
6. Intuitive Surgical
Intuitive Surgical (NASDAQ: ISRG) leads the robotic surgery sector, thanks to its competitive advantages. Many surgeons are trained on Intuitive’s da Vinci system, which makes it likely that they will continue to use this technology throughout their careers.
Interestingly, Intuitive generates more revenue from instruments and accessories than from the robots themselves, indicating a recurring revenue stream. This dynamic positions the company well for future growth, making it a compelling long-term investment option.
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Top Players in Tech: CrowdStrike, Amazon, Nvidia, and ETF Insights
7. CrowdStrike
CrowdStrike (NASDAQ: CRWD) has established itself as a major player in cybersecurity. Last year, however, the company faced serious challenges when a faulty software update in July led to a significant global IT outage. CrowdStrike responded swiftly by addressing the issue, providing compensation packages to affected companies, and implementing changes to prevent future occurrences.
Following these events, CrowdStrike’s earning reports indicated that its deal pipeline remained intact and most customers stayed loyal. Although the compensation initiatives might slightly hinder immediate growth, they present an opportunity for future expansion as clients deepen their engagement with the company.
In its latest quarterly earnings report, CrowdStrike announced an impressive annual recurring revenue growth, rising in double digits to over $4 billion, with an addition of around $153 million this quarter. This trend suggests that CrowdStrike continues to attract new customers.
Image source: Getty Images.
8. Amazon
Amazon (NASDAQ: AMZN) stands out for its dominance in two very lucrative sectors: e-commerce and cloud computing. These areas have significantly contributed to Amazon’s ability to generate billions in earnings over time. With plans to overhaul its cost structure, the company aims to set a course for improved profitability moving forward.
Additionally, Amazon is well-positioned to be a significant contender in the artificial intelligence sector. It is already leveraging AI to improve efficiency in its fulfillment network, enhancing warehouse operations. Furthermore, through its Amazon Web Services (AWS), the company provides AI-driven tools to customers, which has helped AWS achieve a remarkable $110 billion annual revenue run rate.
With its strong footing in both e-commerce and cloud services, plus a keen focus on AI technologies, Amazon is set for continued growth.
9. Nvidia
Nvidia (NASDAQ: NVDA) is emerging as a leading force in the AI sector. Known for being the top chip designer, Nvidia has diversified into various related products and services, witnessing substantial revenue growth each quarter. The company enjoys high profitability, boasting a gross margin exceeding 70%.
As the AI market expands, Nvidia is positioned to capitalize on this trend. Its enterprise software platform, which facilitates AI applications, is likely to drive further success for the firm.
Despite a notable 140% stock increase over the past year, analysts believe Nvidia has significant growth potential in the long term, especially as the AI sector evolves.
10. SPDR S&P 500 ETF Trust
The SPDR S&P 500 ETF Trust (NYSEMKT: SPY) offers a unique way to invest in a broad range of stocks. This exchange-traded fund tracks the S&P 500 index, providing exposure to the top companies that drive the economy. Investors can easily trade it daily, just like individual stocks.
A key distinction between ETFs and individual stocks is that ETFs incur fees known as expense ratios. SPDR S&P ETF’s expense ratio is a low 0.09%, making it an economical investment option.
Investing in this ETF can be beneficial for those looking to diversify their portfolios across 11 industries and a multitude of leading stocks. This asset is worth considering for a well-rounded investment strategy in 2025.
Seizing a Second Chance at Promising Opportunities
Have you ever felt like you missed out on investing in top-performing stocks? If so, you’ll want to pay attention to this next opportunity.
Occasionally, our team of analysts issues a “Double Down” stock recommendation for companies poised for rapid growth. If you’re concerned you may have missed your chance, now is an opportune moment to invest before it’s too late. Consider the returns:
- Nvidia: If you invested $1,000 when we doubled down in 2009, you’d have $341,656!*
- Apple: If you invested $1,000 when we doubled down in 2008, you’d have $44,179!*
- Netflix: If you invested $1,000 when we doubled down in 2004, you’d have $446,749!*
Currently, we are issuing “Double Down” alerts for three exceptional companies, and this opportunity may not come around again soon.
See 3 “Double Down” stocks »
*Stock Advisor returns as of January 13, 2025
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is also a member of The Motley Fool’s board of directors. Adria Cimino holds positions in Amazon. The Motley Fool recommends Amazon, CRISPR Therapeutics, Chewy, CrowdStrike, Goldman Sachs Group, Intuitive Surgical, Meta Platforms, Nvidia, and Salesforce. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Nasdaq, Inc.
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