38 stock ideas for 2024.

Investment picks from 8 market watchers.

I recently spoke with 8 market watchers to get their outlooks for the year ahead. Here are 38 stock picks, including some of their thoughts on those investment ideas.

David Burrows, Chairman, Chief Investment Officer at Barometer Capital

Eaton Corp (ETN), Teck Resources (TECK.B), Rio Tinto (RIO), Kinross Gold (K), JP Morgan (JPM), Fairfax Financial (FFH)

Sectors showing favorable long term set-ups include industrials, materials, and financials. Leaders in these sectors tend to be companies generating very high cashflow yields and providing above average dividend growth as a common characteristic.

JoAnne Feeney, Partner and Portfolio Manager, Advisors Capital Management

For growth: Microsoft (MSFT), AMD (AMD), Alphabet (GOOG), Broadcom (AVGO)

For income: Chevron (CVX), AbbVie (ABBV), Philip Morris (PM)

For protection and opportunity: McDonald’s (MCD), TJX (TJX), JM Smucker (SJM), Lennar (LEN)

Brianne Gardner, Sr Wealth Mgr, Velocity Investment Partners, Raymond James

Wheaton Precious Metals (WPM), Granite REIT (GRT), Capital Power (CPX)

We expect the market’s narrow focus on tech mega-caps in 2023 to broaden out in 2024 and see opportunity within many areas “left behind” this year.

The Pesidential election cycle is also a favorable set up for stocks – returns historically were positive 83% of the time during Presidential election years.

Ensure portfolios hold some alternatives like gold for diversification and uncorrelated returns.

Dan Ives, Technology Analyst, Wedbush Securities 

Tesla (TSLA)

Tesla is today where Apple was in the 2009/2009 period.  It will reach a $1 trillion market cap in 2024, despite growing skepticism.

Adam Johnson, Founder and Author, Bullseye Brief

Nvidia (NVDA), Marvell (MRVL), Symbotic (SYM), Salesforce (CRM), Palo Alto Networks (PANW), MP Materials (MP)

The Wayne Gretzky strategy is still in effect: skate to where the puck is going, because where it’s going is better than where it is. Innovation is all around us, driven by artificial intelligence, computing power, ease of movement and greater flow of capital.

As for stocks tied to the energy transition, MP operates the only rare earths mine in North America.

Liz Miller, President,  Summit Place Financial Advisors

Coca-Cola (KO), Procter & Gamble (PG), State Street (STT), Evercore (EVR).

Consumer staples were able to put through price increases with inflation and are still getting unit growth.  As the defensive stocks of 2022, they have trailed in 2023.  We think they have attractive upside in 2024.

Meanwhile, with the expectation of lower interest rates in 2024, financials have participated in the year-end rally.  They are still down from 2021 levels and we see them benefitting both from lower rates, but also from higher demand for market related products.

David Nelson, Chief Strategist, Belpointe Asset Management

Boeing (BA), Deere (DE), Synnex (SNX)

Boeing, on an earnings basis, it is still expensive. But if the current run rate is correct, next year will be the first profitable year since 2019. Free cash flow should double over the next couple of years. Earnings will rise a lot faster than the stock price, so therefore valuations will start to catch up.

Deere is drowning in used inventory, which has to be cleared away before they can ramp up production.  Ultimately, that will pay off, as will its investments in AI technology.

Synnex is a tech play you can park in at a valuation that won't give you altitude sickness. It isn't a cloud company and no they don't make AI chips, but they will be a direct beneficiary in AI driven analytics.

John Zechner, Chairman and Founder, J. Zechner Associates

Pembina Pipeline (PPL), Telus (T), Baytex (BTE), SPDR S&P Biotech ETF (XBI)

Technology and consumer staples sectors usually do well in periods of falling interest rates, but the valuations of those sectors are at the high end of their traditional range so we don’t see much upside from the big names.  However, we do see more opportunities in some of the mid-sized names. 

Precious metals should finally get a lift in 2024, as valuations are at multi-decade lows, corporate activity should pick up and weaker economic growth in the U.S. should undermine the U.S. dollar and give a further lift to gold prices.  

In terms of the energy sector, we recognize that weaker global growth will impact global demand for energy and may also make it more difficult for the OPEC+ group to maintain their production discipline.  However, valuations in the Canadian producer sector are attractive even with oil in the US$70 range.  Our focus in the sector is on mid-sized oil levered producers, with double-digit free cash flow yields and ‘investor friendly’ activity such as debt reduction, special dividends and share buybacks.