A new year of investing is almost here and now is the perfect time to prepare. It’s impossible to predict which stocks will rise the most in 2024 or whether the market as a whole will soar. But if you choose stocks that offer strong long-term prospects and trade now at reasonable prices, you’ll set your portfolio up for strength no matter what 2024 brings – and for possible long-term victory .
You can also consider dividend stocks, which pay you passive income regardless of what the market is doing. And it’s a great idea to diversify across sectors, a move that limits your risks if the market suddenly punishes a particular sector. Given these points, which stocks should you buy before the new year? The following three do the trick.
1. Coca-Cola
Coca-Cola (NYSE:KO) is a stock that will earn you more and more each year just for owning it. Seems like a pretty good deal, right? The world’s largest soft drinks company is a King of dividends, meaning it has increased its dividend for more than 50 consecutive years. This shows that rewarding shareholders is important to Coca-Cola, so it is likely that the company will continue on this path.
The drinks giant also has the financial position to enable dividend growth, with free movement of capital of more than 10 billion dollars. And Coca-Cola’s steady profit growth over time, supported by a strong brand that keeps customers coming back, is another reason to be confident about the company’s ability to grow its dividends.
And speaking of profits, even though Coca-Cola already sells its drinks in 200 countries around the world, the company continues to increase its revenues and profits and gain market share. In the most recent quarter, it did just that, and the company also raised its revenue growth guidance for the full year. Coca-Cola’s performance is due to the strength of its brand and its constant efforts to innovate across all its product lines.
Today, Coca-Cola shares are trading at 22x forward profit estimatesa great deal for a stock you can count on over time.
2. Alphabet
Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) is a leader in its core business – and I don’t see rivals unseating it anytime soon. The company’s Google Search dominates the market, with a 91% market share worldwide, and that’s not surprising considering how often we all search for something on Google when searching for information.
Alphabet sells ads to advertisers who hope to reach us when we search on the platform, and even in today’s tough economic times, advertisers haven’t abandoned Google: the company’s ad revenue has continued to grow.
And Alphabet’s investments in artificial intelligence (AI) are expected to further strengthen its search capabilities, keeping users and advertisers coming back for more in the future. The company recently released Gemini, its most powerful AI model to date, and is currently testing it as a tool to improve search.
You’ll also like Alphabet for its Google Cloud business. Although he is a smaller actor than Amazon And Microsoftturnover has increased by double digits and more than 60% of the world’s thousand largest companies are customers.
Now consider Alphabet’s valuation. Today, the stock trades at 23x forward earnings estimates, up from more than 30 less than two years ago. This is a good deal considering Alphabet’s market leadership in AI research and investments that are expected to drive growth in its business.
3. Regeneron Pharmaceuticals
At over $800 per share, Regeneron Pharmaceuticals (NASDAQ: REGN) is the biotechnology company with the highest price – but that doesn’t make it the most expensive. More on that in a minute. First, let’s learn a little more about this big biotech and why its shares have risen over time.
Regeneron sells multiple drugs across treatment areas, but its main growth products include Eylea for retinal diseases, immunology drug Dupixent and oncology drug Libtayo. Dupixent, a drug with which it shares Sanofiand Libtayo reported double-digit gains in global net sales in the most recent quarter.
And this year, Regeneron scored a big victory when the U.S. Food and Drug Administration approved Eylea HD, a higher-dose version of the eye drug. The original Eylea faces increasing competition, but if patients switch to Eylea HD, Regeneron is likely to see significant revenue growth over time rather than decline. The company aims to make Eylea HD the new standard of care.
Regeneron also has more than 35 candidates in clinical development. If even a handful of these make it to market, we could expect increased growth from this major biotech company.
Today, Regeneron trades at just 20 times forward earnings, despite the stock’s rise this year and over time. And that’s why it’s a great stock to buy now and hold for the long term.
Should you invest $1,000 in Coca-Cola right now?
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Adria Cimino has positions at Amazon. The Motley Fool holds positions and recommends Alphabet, Amazon and Microsoft. The Motley Fool recommends the following options: Long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
It’s Almost 2024: 3 Top Stocks to Buy Before the New Year was originally published by The Motley Fool
