3 Sleepy Stocks Ready to Wake up in 2024


  • Solid projected earnings growth is a shared catalyst with these stocks to buy for 2024. 
  • Chevron (CVX): The stock price is linked to oil prices which won’t be below $70 forever. 
  • Pfizer (PFE): A strong pipeline will help put a floor under PFE stock.  
  • Enphase Energy (ENPH): The outlook for solar stocks remains dim, but ENPH stock is simply undervalued.  
stocks to buy for 2024 - 3 Sleepy Stocks Ready to Wake up in 2024

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As 2023 comes to an end, many investors are breathing a little easier about their portfolios. As you start to do your year-end rebalancing you may be looking for stocks to buy for 2024. But first let’s look at the state of play. 

The strong November rally did more than push the major indexes off their 52-week lows. It also started to spread beyond the tech sector. That doesn’t mean tech stocks didn’t do well. That was particularly true of companies that showed they were monetizing artificial intelligence (AI) – I see you Nvidia (NASDAQ:NVDA). 

That being said, there were some stocks that not only haven’t participated in the market rally but look to be downright oversold. To be fair, there’s a reason why investors may have wanted to steer clear of these stocks. Looking ahead to 2024, each one is projected to show solid earnings growth which is the best predictor of stock price growth. 

Before you go away for the holidays, you should take a closer look at these stocks that may be primed to get off the mat in 2024. 

Chevron (CVX) 

Chevron logo on blue sign in front of skyscraper building
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Markets can be a funny thing. The energy sector was up when many stocks were falling by 10% or more. But once the calendar hit November, the growth in stocks like Chevron (NYSE:CVX) went into reverse.

With only a few weeks left in 2024, Chevron is trading near its 52-week low in solidarity with the price of crude oil which recently fell below $70 a barrel. Some analysts (including yours truly) thought that $80 would be a floor for oil. 

While Chevron is not the only oil stock being impacted by a lower oil price, some investors are concerned about the company’s all-stock purchase of Hess (NYSE:HESS). In addition to questioning how much the acquisition will help Chevron, investors are concerned about the timing of the deal in a falling oil environment. 

The deal is expected to close in the first half of the year. By the time it does, it’s possible that the market will be starting to see interest rates coming down. If that’s the case, then the price of oil will be going up, and that’s why CVX belongs on a list of stocks to buy for 2024. 

In Chevron’s most recent quarterly earnings it missed badly on the bottom line. Nevertheless, analysts are projecting a 26% increase in CVX stock. And with Chevron, you’re getting one of the most solid dividends in the oil sector. That dividend currently has a 4.24% yield and pays out $6.04 per share on an annual basis. Chevron management has pledged this will go up once the deal with Hess goes through. 

Pfizer (PFE) 

blue Pfizer logo on the windows of a corporate building PFR stock
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Pfizer (NYSE:PFE) is next on this list of stocks to buy for 2024. I’m not sure if “sleepy” describes PFE stock. It’s down 44% in 2023 and if it was supposed to rally with other stocks in November, it didn’t get the memo. 

The reason for the stock’s slump is clear. After two years of record revenue and earnings due to its COVID-19 vaccines and therapeutics, demand has normalized and the company doesn’t have new drugs to pick up the slack yet.

Like Chevron, some investors are concerned about Pfizer’s proposed acquisition of Seagen (NASDAQ:SGEN) for $43 billion. However, having access to Seagen’s oncology portfolio will be a net positive for Pfizer and its shareholders.

The optimism for PFE stock in 2024 comes down to a robust pipeline that includes 18 new products that may be approved in the first half of 2024. By 2030, Pfizer expects those treatments to deliver over $20 billion. 

Analysts project Pfizer stock growing by 50% in 2024. And while investors wait they’re collecting an attractive dividend that has a juicy yield above 6%. 

Enphase Energy (ENPH) 

Smartphone with logo of American company company Enphase Energy Inc. (ENPH) on screen in front of business website. Focus on left of phone display. Unmodified photo.
Source: T. Schneider / Shutterstock.com

By way of full disclosure, I had a position in Enphase Energy (NASDAQ:ENPH) earlier this year. In fact, I sold the stock and tried again. Maybe the third time will be the charm. 

The common objection by investors is that the company’s revenue and earnings are falling at a time when the solar sector is in a sector-wide slump. The solar revolution has been difficult to pull off in an environment of high inflation and rising interest rates. 

But when the market picks up, Enphase has a considerable market share in a sector where it won’t be easy for competitors to eat away at that market. At that same time, the government subsidies will still be in place which will further spur demand. 

Earnings for the full year 2023 will be lower than in 2022. But after that, there should be a strong recovery. Analysts are projecting a 71% increase in the ENPH stock price in the next 12 months. 

On the date of publication, Chris Markoch had a LONG position in CVX. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.  

Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.

Article printed from InvestorPlace Media, https://investorplace.com/2023/12/stocks-to-buy-for-2024-3-sleepy-choices-ready-to-wake-up/.

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