3 Stocks Poised for a Breakthrough Year in 2024
Breakthrough stocks are companies that possess significant potential for growth. These companies are struggling to attract Nvidia (NASDAQ:NVDA)-like attention because of lost momentum. However, all three names are formulating strategies to offset the negativity around their business and take advantage of the general confidence in the markets.
This year, the S&P 500 has returned 7.97%. In a similar vein, the Dow Jones Industrial Average is up 3.71%. Furthermore, the Federal Reserve has nixed the idea of further rate hikes, bringing additional market momentum after maintaining an aggressive monetary policy in 2023.
The convergence of these factors brings hopefulness, allowing investors to invest confidently in the trio of stocks highlighted in this piece. All three of these multibillion-dollar enterprises are struggling. However, each has developed tech-focused initiatives expected to power them forward. In addition, when it comes to the bottom line, all three companies perform regularly, consistently surpassing analyst estimates over the last 12 quarters.
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With that said, let’s start this exciting investing journey and explore these breakthrough stocks!
Etsy (ETSY)
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Etsy (NASDAQ:ETSY) is an online store that stands out from the crowd by promoting antique goods, homemade items and creative materials. Despite its unique business approach, Etsy stock is down 42.29% in the last year.
The primary fears center around the company’s outlook. In particular, Etsy’s gross merchandise sales outlook remains tepid, at least for the next few quarters.
In addition, Etsy’s financial position is also slightly concerning. The total liabilities for Etsy, as reported in December 2023, amount to $3.23 billion. With the rate hikes last year, Etsy’s debt situation is certainly concerning.
However, Etsy has significantly changed its general structure to improve efficiency and streamline operations. In addition, a new AI-powered feature, Gift Mode, will greatly help users create curated gift suggestions and likely lead to a bump in sales.
Etsy is also looking to operate a leaner structure to boost efficiency. It has combined certain functions to enhance products and services, prioritizing global growth and customer trust.
Finally, Etsy’s financial performance is not that bad either. Over the last 12 quarters, Etsy has reported a positive surprise in 58.3% of the instances, a negative surprise in 33.3% and in-line results in 8.3% of the occasions. All of these signs point to a breakthrough for the stock, as long as it keeps building on its recent initiatives.
Nike (NKE)
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Nike (NYSE:NKE) is a quality company, but the stock is struggling for momentum. The performance is especially worrying when juxtaposed against the S&P 500, which rose double digits in 2023.
The source of its problems is a muted outlook for Q2 2024. Nike lowered its revenue projection for the period, slashing its annual growth estimate from roughly 10% to merely 1%, marking its first consecutive failure to meet market expectations since early 2016.
To reverse the momentum, Nike is concentrating on its digital ecosystem, including SNKRS, Nike Training Club and Nike Run Club. Despite challenges elsewhere, fiscal 2023 saw significant growth throughout in digital sales. So, further emphasis on this area is crucial for long term success.
Moreover, Nike has announced a strategic plan to slash up to $2 billion in expenses over the next three years, freeing up much capital for the company to use elsewhere.
Finally, when it comes to the bottom line, Nike performs regularly, running circles around the competition. Nike has performed admirably over the last 12 quarters, exceeding analyst projections by a whopping 83.3% in those quarters.
All of these reasons make me believe the company is worth considering when discussing breakthrough stocks.
Intel (INTC)
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Intel (NASDAQ:INTC) is a titan of the chip industry. However, for several quarters it has been playing catch up to rivals AMD (NASDAQ:AMD) and Nvidia.
As a result, it might seem surprising that Intel makes it on my list of breakthrough stocks. However, recent initiatives indicate Intel is taking an aggressive stance to regain its market position and create greater shareholder value.
Intel aims to tap into a nearly $300 billion market by 2024, concentrating on software services. The company’s scope covers both PC-centric areas, including CPUs, chipsets and graphics, as well as data-centric fields, such as servers, storage and IoT.
Intel’s virtue of innovation is also seen in its provision of value-added technology areas, such as artificial intelligence, 5G and edge devices. All are significant investment areas for the company.
Finally, let us look at its financial prowess. Over the last 12 quarters, Intel has mostly enjoyed favorable results, with the company surpassing expectations a significant 83.3% of the time.
Although it might take time, Intel’s investments in disruptive technologies will bolster its standing among peers. And a solid track record only adds to its allure among breakthrough stocks.
On the publication date, Faizan Farooque did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.
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