In the Final Month of 2024, If Given the Chance to Purchase Only Three Stocks, These Would Be My Choices
Investors have the privilege of diving into a vast pool of stocks, ready to be purchased or sold as desired at any given moment. Yet, limiting your choices can sometimes yield beneficial results. It forces you to scrutinize one company against another or consider if it's the right time to make a purchase. This process can significantly minimize the quantity of stocks on your radar.
Here's a breakdown of the only three stocks I'd suggest entering before the end of 2024. Interestingly, the current price level of each stock tells a compelling story. The shares of these respected corporations are even more appealing when priced advantageously.
1. The Coca-Cola Company
The past three months have been challenging for proprieters of The Coca-Cola Company (KO -0.68%). The organization sold 1% fewer drink containers in the last quarter compared to the same period the previous year, predominantly due to customer resistance towards recent price hikes. Consequently, the stock plummeted 14% from its September peak. This substantial dip presents an attractive acquisition opportunity for investors who can discern the long-term prospects of the beverage juggernaut.
You're undoubtedly aware of the company's renowned cola, but it offers far more than that. Minute Maid juices, Gold Peak tea, Dasani water, and Powerade sports drink (to name a few) are all part of The Coca-Cola Company's extensive portfolio. It caters to consumers' evolving beverage preferences.
While not every quarter showcases impressive results, keep in mind that The Coca-Cola Company is a dependable revenue generator. Its ability to pay a continuous quarterly dividend for decades along with annual dividend raises in each of the last 62 years is a testament to its enduring market appeal. This unwavering growth is also a reflection of its innovative advertising practices and the endearing nature of its brands.
In numerous ways, The Coca-Cola Company's ongoing success is attributable to its unfaltering dominance in its markets, which has successfully woven many of its brands into the essence of our culture.
It may not be a high-growth company by definition, but it's an unstoppable slow-growth entity. Between the consistent growth of Coca-Cola stock and continued dividend growth, this ticker is turning numerous patient investors into millionaires. The current market volatility is an excellent chance to purchase at a discount.
2. Uber Technologies
A decade ago, the concept of employing a horde of strangers to use their vehicles as transportation for other strangers appeared preposterous. However, ride-hailing has become standard practice. During the latest quarter, Uber Technologies' (UBER 4.72%) drivers carried out 161 million rides, generating a revenue of $11.2 billion. This represents a 13% and 22% increase compared to the previous year, extending its established growth momentum.
Further growth is anticipated as well. Experts predict Uber's top line will boost 17% this year, leading to almost 16% growth the following year.
This expansion is merely the beginning. As Uber (alongside its rival Lyft) becomes increasingly commonplace, ride-hailing becomes increasingly mainstream. Straits Research anticipates the global ride-hailing market will expand by more than 11% per year through 2032, with the significant North American market contributing significantly to this growth. Secondary businesses, such as same-day logistics and food delivery, are now significant growth drivers as well. Uber's delivery sector grew 16% during the quarter ending in September.
Although not the core reason to acquire Uber while shares are currently down 30% from their October peak, its continuous profitability is considerably more alluring. Uber's projected earnings of $0.87 per share in 2022 is anticipated to increase to $1.89 in 2023, and then to $2.31 in 2024. The business model's success is beyond question, and it's poised to continue scaling up for several more years.
The cherry on top: Analysts' collective target price of $90.89 represents a 50% improvement compared to the stock's current value, and a majority of them still rate Uber stock as a strong buy at present. They're not only indifferent to the stock's recent dip but view it as an opportunity.
3. Iovance Biotherapeutics
Lastly, include Iovance Biotherapeutics (IOVA 5.27%) on your list of stocks to acquire in the final month of 2024. It's not yet a widely recognized name, but 2025 could mark a turning point for this enterprise, propelling its stock higher as a result.
As its name suggests, Iovance is a biopharmaceutical company. Its foremost drug is Amtagvi, a skin cancer treatment. Similar to numerous other biopharmaceutical stocks, this one has experienced a series of rises and falls since the therapy first demonstrated promise years ago, prior to earning its first approval from the FDA in February of this very year.
Unfortunately, by the time the long-awaited approval was granted, investors had already lost interest. Shares have dropped more than 50% from the news-driven February peak, and now hover just above a new 52-week low.
Take advantage of this unlikely mismatch between the drug's developmental progress and Iovance stock by acquiring a position when the company's growth potential has never been more promising.
Iovance's projected revenue for the current fiscal year, wrapping up this month, hovers around $160 million to $165 million. However, predictions suggest a significant jump for the following year, reaching between $450 million and $475 million. The majority of this expansion is attributed to Amtagvi, one of the two drugs Iovance manufactures and markets. Despite this, Iovance Biotherapeutics may not formally shift from the red to the black this year. Nonetheless, these figures place the company on a trajectory towards profitability in 2027. Veteran investors often acknowledge that progress towards profitability can be sufficient in its own right before reaching the line.
There's an element of risk, without a doubt. But Amtagvi, with its cancer-fighting capabilities, is a legitimate contender with considerable potential. As of now, it's only authorized for a single application. However, it's undergoing clinical trials in 12 different drug trials. According to GlobalData's investment research, a substantial number of these trials are expected to succeed. By 2030, this could potentially yield annual revenue surpassing $1 billion. Additionally, other investors might begin to recognize and embrace this opportunity as early as the next year, as Iovance continues to report solid growth throughout several quarters.
In the context of diversifying one's investment portfolio, The Coca-Cola Company's (KO) recent stock dip due to customer resistance towards price hikes provides an attractive acquisition opportunity for those who can see its long-term prospects.
Uber Technologies' (UBER) continued growth momentum, as demonstrated by its increasing revenue and rides, along with its anticipated market expansion, makes it an attractive investment option despite its recent dip in share price.
