The positive outlook for the U.S. economy is underlined by robust growth, with a 3.3% increase last year, outpacing the average pre-pandemic growth. Despite interest rates reaching their highest levels in over two decades, the economy remains resilient, boasting a historically low unemployment rate of 3.7%. The Federal Reserve’s potential rate cuts are seen as a precautionary measure to sustain the strong growth momentum and avoid any risks of over-tightening, indicating a careful and strategic approach to economic management. The economy is booming, and now is the time to take advantage. Buy these top wealth-building stocks for 2024.
Palo Alto Networks (PANW)
Palo Alto Networks (NASDAQ:PANW) is an American cybersecurity company offering firewalls and other cloud-based products aimed at the utmost protection of its users. The stock has a value of $345.89, 118% more than last year.
PANW is in the global cybersecurity, an industry already valuable but one that hasn’t even started reaching its ceiling yet. That is evidenced by its valuation of $203.45 billion in 2022 and its estimation to reach $660.67 billion by 2030, exhibiting a CAGR of 15.9%.
PANW ‘s revenue growth came in at 23.89%, representing 315.65% from the sector median. EBITDA Growth (YoY) was also impressive, reaching 498.17%, a remarkable 15,108.49% more than the sector average. Profitability-wise, the Gross Profit Margin (TTM) was 73.35%, 48.43% more than the sector average. Price/Sales (TTM) was 396.14% more than the sector, further showing this stock is growing on all frontiers while remaining incredibly profitable.
Palo Alto Networks has continued its relentless AI push, upgrading the threat analytics platform with generative artificial intelligence tools. That changes the industry completely, adding a whole new dimension to cybersecurity. As PANW continues experimenting and innovating with AI, it will remain profitable. Betting against this stock could be disastrous, so I give it a Buy rating and fully expect it to continue its breakout throughout 2024.
Stanley Black & Decker (SWK)
Stanley Black & Decker (NYSE:SWK) is an American manufacturer of industrial tools and household hardware and a provider of security products.
SWK reported a TTM operating margin of 5.95%, with revenue reaching $16.03 billion. Over the past 52 weeks, the stock has fluctuated between a high of $104.21 and a low of $73.12. Notably, the stock has shown a positive trend, posting an 11% increase in value over the past year.
SWK’s growth catalyst lies in DEWALT POWERSHIFT™, an electrified line of heavy-duty tools for concrete job sites. Responding to the industry’s shift towards electric-powered equipment, this innovation allows users to transition from gas-powered tools without sacrificing efficiency. With a focus on sustainability and user advantages, particularly in response to legislative changes, the strategic move positions the company for substantial growth potential, likely impacting its stock price positively.
With solid plans and a strong monopoly in this field, SWK should have strong growth this year.
Apple (AAPL)
Apple (NASDAQ:AAPL) is the largest technological developer and producer in the American industry, creating the most-sold cellular phone of 2023 — the iPhone. Valued at $188.04, AAPL faced strong YoY valuation growth in 2023, with the stock increasing 48%.
The technology industry is one already established in modern consumerism, with annual revenue expectations of 1.4 trillion in 2024. Projected to increase to $1.8 trillion in 2028, the industry has been labeled with a 6.75% CAGR for that duration. Apple, granted the largest tech-related market cap, holds a value of $2.99 trillion globally.
In 2023, the company reported a similar year to 2022, though it outcompeted key income metrics. Starting with revenue, Apple brought in a total of $383.3 billion, a slight decline from the year prior’s $394.3 billion. Despite the slight decline in performance, Apple consistently outperformed industry forecasts in revenue. Looking to net income in Q3 ‘23, Apple brought in $22.96 billion, or a 10.79% YoY growth. With additional net profit margins increasing, AAPL reported an overall positive financial performance.
Expect AAPL revenue to take a boost in the upcoming quarter as a result of the all-new Apple Vision Pro, a spacial computing headset using virtual reality as a computer. Reaching a virtually untapped market, Apple has innovated a product with no industry competitors at the moment. Along with Apple integration and computing power, the tech company has developed a device that creates its own market. As AAPL shapes the market for this device, expect revenue to increase through the new source of income, as well as taking partial sales from the expansive virtual reality industry.
On the date of publication, Michael Que did not hold (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.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
