Investing in stocks to buy that already surged over 100% in 2024 presents a complex challenge. On one hand, there’s a natural reluctance to go against strong market momentum—a strategy that has often backfired for those attempting to predict a downturn, as seen with high-flyers like Tesla (NASDAQ:TSLA) in the past and even former (or current?) meme stock giant Gamestop (NYSE:GME). On the other hand, trying to capitalize on declining stocks and hoping for a rebound can be equally risky, as many investors have learned the hard way (just look to WeWork or Lordstown Motors for recent example).
However, these three stocks that have risen over 100% this year defy typical market skepticism. They are driven by robust bullish tailwinds and possess distinct attributes that shield them from broader market downturns. This suggests that despite their significant gains already, there may still be potential to benefit from their continued upward trajectory. Investing now could still offer a worthwhile opportunity to participate in their ongoing success despite their dramatic increases thus far.
AST SpaceMobile (ASTS)
AST SpaceMobile (NASDAQ:ASTS) may be this year’s big winner among surging stocks to buy. The space-based telecom stock, which aims to provide global data coverage to standard cell phones, popped more than 300% in the last month alone for a 104% gain year-to-date.
The stock’s strong performance comes on the heels of two massive contracts with legacy telecom providers, AT&T (NYSE:T) and Verizon (NYSE:VZ), to bring cell service to their respective clients across rural, remote, and otherwise unaddressed global market segments. The Verizon deal is worth $100 million. In comparison, AT&T’s specific terms aren’t disclosed — though it augments the telecom stock’s January strategic investment worth $20 million and a six-year history of working together to test and prototype the tech.
AST SpaceMobile also made major moves toward generating revenue after posting $500,000 in net sales for last March’s quarter from government contracts. While certainly not spectacular, it marks an important pivot point toward profitability, and government contracting with the company is an important step toward wide revenue diversification.
Root (ROOT)
Root (NASDAQ:ROOT) has not only surpassed the 100% gain benchmark but more than tripled in 2024. The digital insurance provider, which targets auto, renters, and homeowners markets, is thriving due to its innovative use of AI in assessing client risk and optimizing premium pricing based on real-time driving data. This approach has significantly enhanced its ability to manage risks and reduce losses.
Root’s bull run started following its end-of-year report, in which Root achieved a 31% increase in gross written premiums, reaching $783 million, though its gross earned premiums saw a slight decline of 1% to $636 million. More impressively, the company managed to cut its net losses by half to $147 million, marking its most successful year to date. This turnaround caught the attention of analysts, leading Jefferies to quadruple its price target and commend Root for charting a course toward profitable growth and scalability.
The market has responded enthusiastically to Root’s advancements, propelling the stock up by 300% since the start of the year and an astonishing 661% over the past twelve months. While Root is still on its journey toward full profitability, its momentum is undeniable, making it a standout performer in the digital insurance sector and a contender for top stocks to buy today.
MediaCo (MDIA)
MediaCo (NASDAQ:MDIA), primarily known for its terrestrial radio and broadcasting operations, has defied expectations among stocks to buy with a staggering 300% surge since the beginning of the year. This dramatic increase largely stemmed from an influential move by hedge fund Standard General, which acquired a commanding 95% stake in MediaCo. This significant acquisition verges on a complete takeover and signals a strong vote of confidence from hedge fund CEO Soohyung Kim, suggesting potential activist strategies to boost the stock’s value.
This active involvement is already showing results. MediaCo recently announced its acquisition of Estrella Media, a strategic move that expands its reach into the Spanish-language demographic, a market with considerable growth potential. The appointment of interim CEO Jacqueline Hernandez, a former executive at Telemundo and current board member of both Estrella and Victoria’s Secret (NYSE:VSCO), further underscores MediaCo’s commitment to this new audience. Hernandez’s expertise in Spanish-language media could be pivotal in steering the company’s strategy and maximizing its newfound momentum. With such robust gains barely halfway through the year, MediaCo’s journey in 2024 could just be getting started, making it among the year’s top stocks to buy already.
On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.