This earnings season has been better than expected. Companies have impressed investors with strong financials, changing the way we look at the economy. Despite interest rates still being high, consumer sentiment is improving and some companies have shown high resilience. Now is the time to identify stocks that can withstand any market condition in 2024. If you are planning for the future, here are the three smart stocks to buy and hold in 2024.
The one stock that has made the loudest noise this year is Nvidia (NASDAQ:NVDA). A tech giant, Nvidia enjoys an early mover advantage in Artificial Intelligence (AI) which led to a whopping 219% rise in the stock year to date. While the stock isn’t cheap, it is still worth your money.
Once a leader in the gaming industry, Nvidia generated steady revenue from the gaming segment and then moved toward the data center, where it also saw impressive results. As a current leader in the AI race, the company has already benefited from the AI surge, continuing to increase its clientele and release new AI technologies. I think it will increase its market share and its chances of staying at the top as a result.
In the second quarter results, the company saw a 100% increase in revenue, coming in at $131.5 billion. Its data center revenue also soared to $10.32 billion, up 171% from the previous year. Nvidia has steadily beaten market expectations, and the stage looks set for the company to do the same again. The recent AI chip ban by the Biden Administration is a short-term hurdle for the company, and I do not think it will have any long-term impact on the revenue.
Trading at $457 right now, the stock is moving closer to the 52-week high of $502 as the earnings date approaches. While it might not be possible for Nvidia to repeat the same success anytime soon, it will continue to march ahead with more strength and market share. This is one stock to buy and hold throughout 2024.
SoFi Technologies (SOFI)
SoFi Technologies (NASDAQ:SOFI) has been making big news after a strong Q3 report. With a reputation as one of the best fintech stocks to invest in, the company has proved its strength once again in the recent quarter. It added 717,000 members, up 47% year-over-year. What started as a student lender has now become a one-stop shop for all things financial.
It also saw a deposit growth of $2.9 billion quarter-over-quarter. As a consumer bank, a strong deposit growth is a good way to remain relevant in the business. This fund will allow it to extend loans and earn interest. As a result, it managed to increase the net interest income by 100% year-over-year and hit $345 million in the quarter.
However, SoFi isn’t profitable yet. While this may worry several investors, it is still in a strong position to keep the operations going.
With the resumption of student loan payments, we will see SoFi in a stronger position in the coming quarter. After their Q3 report, the company raised the revenue outlook and now expects the revenue to come in between $2.04 billion to $2.06 billion for the year, up from the previous projection of $1.97 billion to $2.03 billion.
I believe the stock is cheap at the current level and is trading at $7.49. It is up 66% year to date and is moving towards the 52-week high of $11.
Buying SOFI stock below $10 is a smart investment and one that will pay off in the long term. I think the company will see substantial growth in 2024 to the tune of doubling its value.
Microsoft (NASDAQ:MSFT) stock was a winner yesterday, is a winner today, and will be a winner for years to come. The tech giant has been growing at a steady pace over the past few years thanks to a range of products and services which always remain in demand.
Two of those products make it a strong buy-and-hold option: Office suite and Windows operating system. The company has also invested in OpenAI and will soon start to benefit from the integration of AI into its products.
A leader in the AI industry, the company has started selling its AI tool for Microsoft Office. Known as Microsoft 365 Copilot, it is expected to be a game changer in the industry and one that will generate a strong revenue stream in the coming years. Users need to pay $30 per month for the product.
MSFT stock is trading at $356 right now and is up 48% year to date. The shares have almost tripled in the past five years, proving it remains one of the best stocks to buy and hold in 2024. In the recent quarterly results, Microsoft reported a revenue of $56.52 billion and an EPS of $2.99.
There are several reasons to invest in Microsoft stock and if you are a passive income investor, the company has a dividend yield of 0.84%. Besides the capital gain, you also get to enjoy steady dividends over the years. My recommendation: do not wait for a dip in the stock. Buy MSFT now and hold it through 2024 and beyond.
On the date of publication, Vandita Jadeja did not hold (either 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.