As the bull market broadens into 2024, several long-term stocks can be expected to run higher. Well-known chart analyst Charlie Bilello points out that the “Magnificent Seven” gained 75% in 2023 while the other 493 companies in the S&P 500 index gained 12% over the past year.
This leaves a sizable amount of catch-up room for equities. Investors who look beyond the Magnificent Seven stocks and put capital to work in solid companies that are financially fit can be expected to see profits in the coming year.
Here are three long-term stocks that every savvy investor should own in 2024.
Accenture (ACN)
Management consulting and information technology company Accenture (NYSE:ACN) just issued its most recent quarterly report, increasing its share price. For its first fiscal quarter, Accenture reported earnings per share of $3.27, which beat analyst forecasts of $3.14. Revenue totaled $16.20 billion, which beat consensus expectations of $16.17 billion. ACN stock is up 27% in 2023 and near a 52-week high.
However, ACN stock has trailed other technology companies over the past year and could outperform in 2024 as it plays catch-up to its peers. Accenture’s latest guidance did fall short of expectations, with the company forecasting revenue of $15.40 billion to $16 billion for its fiscal Q2.
Wall Street analysts had expected sales of $16.25 billion for the current quarter. However, the company maintained its guidance for the entire fiscal year, and its share price gained more than 1% following the latest report. This makes it one of those long-term stocks to consider.
Boeing (BA)
Bank of America (NYSE:BAC) just upgraded Boeing’s (NYSE:BA) price target heading into 2024. Bank of America raised its price target on BA stock to $275 a share, up from $250 previously, while maintaining its “Buy” rating.
It was the latest in a series of analyst upgrades for Boeing as the company emerged from an extended downturn that followed several high-profile crashes of its commercial aircraft. BA stock has risen 35% in 2023 due to increasing orders and decreasing inventories.
The aircraft manufacturer has also named company veteran Stephanie Pope as its first-ever chief operating officer. Pope previously ran Boeing’s highly profitable aftermarket business unit and is viewed as a frontrunner to replace CEO David Calhoun when he steps down in 2025. Calhoun steered Boeing through the safety crisis and pandemic and is expected to retire in a year. Also in the running to succeed Calhoun are chief financial officer (CFO) Brian West and head of commercial airplanes Stan Deal.
IBM (IBM)
Legacy tech giant IBM (NYSE:IBM) is all in on artificial intelligence. The company is boosting its AI and cloud computing offerings by acquiring Software AG’s (ETR:SOW) enterprise integration platforms at a cost of $2.33 billion.
Specifically, IBM is buying Software AG’s StreamSets and webMethods platforms. The two units formed Software AG’s so-called “Super Ipaas” business, launched this past October.
The platforms provide application programming interface management and data integration, among other uses. Once completed, the new products will help to improve IBM’s AI and cloud computing offerings, two areas where the company sees growth opportunities in 2024 and beyond. The deal is subject to regulatory approvals and is expected to close in the second quarter of next year. IBM’s stock has gained 14% in 2023 and is a candidate to play catch-up in the year ahead.
On the date of publication, Joel Baglole did not have (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.
