As 2024 kicked off with a sharp correction, certain stocks still shine brightly, earning the coveted label of strong buy stocks. Though divided on the market’s overall trajectory, the stock market punditry agrees on the bullish potential of the stocks discussed in this article. The appeal lies in a trifecta of strengths: strong earnings, formidable competitive edges and promising catalysts likely to boost stock prices.
These stocks are a beacon for investors seeking refuge in this dodgy market. Paying heed to analysts’ ratings and forecasts becomes imperative, particularly when a stock garners inspiring positive consensus. Moreover, as investors navigate 2024’s rocky financial terrain, they must focus on the year’s standout investment opportunities. With that said, these three strong buy stocks offer a blend of safety and revenue growth potential.
Fiserv (FI)
Fiserv (NYSE:FI) is a true titan in financial services technology and is a pillar for businesses efficiently managing finances and operations. Its innovative Clover software has become a cornerstone for enterprises looking to streamline their processes effectively. Catering to businesses, banks and credit unions, Fiserv has established its role as a flexible player in the fintech landscape.
Buoyed by robust third-quarter results, the company confidently raised its 2023 earnings forecast, reflecting powerful growth across its key business segments. This upward revision, from a previous range of $7.40 to $7.50 to a promising $7.47 to $7.52, is outpacing the $7.42 market consensus. Complementing this is an extraordinary 11% organic revenue growth, surpassing its earlier 9% to 11% projection.
According to Tipranks analysts, Fiserv stock attracts a consensus Strong Buy rating, offering roughly an 8% upside from current price levels. Furthermore, in a recent note, Oppenheimer analyst Dominick Gabriele upgraded FI stock to Outperform from Perform, citing its promising growth in payment and financial services.
Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) continues to be a stalwart in multiple investment portfolios, offering investors a slice of several high-growth sectors. With its fingers in several pies, from PCs and cloud computing to video gaming and office software, the enterprise remains a magnet for savvy investors. This tech behemoth’s diverse portfolio continues to command attention and investment.
Kicking off fiscal year 2024, Microsoft reported a vigorous 13% year-over-year (YOY) revenue growth in its first quarter, coupled with a 27% jump in net income. Furthermore, Microsoft’s foray into artificial intelligence (AI) promises to add new layers to its illustrious growth trajectory. AI initiatives like Microsoft’s Copilot are set to revolutionize user engagement across key applications, improving retention and expanding choices within Microsoft’s impressive array of products and services.
In the past 90 days, 55 Wall Street analysts have weighed in on MSFT stock, with 37 rating it as a Strong Buy, 14 recommending it as a Buy, and only four suggesting a Hold. Notably, there are zero Sell or Strong Sell opinions. This surely makes MSFT one of the strong buy stocks to be paying attention to right now. Furthermore, Wells Fargo (NYSE:WFC) recently showered praises on MSFT stock, raising its price target on MSFT stock to $435 per share from $425 while maintaining a Buy rating.
DraftKings (DKNG)
DraftKings (NASDAQ:DKNG) is a juggernaut in the sports betting arena, and it has seen its share prices soar in the past year, reflecting its market dominance. Over the past year, DKNG stock has impressively surged by a whopping 168%, a testament to its robust financial positioning and expanding market share. As the North American sports betting market is projected to hit $12 billion in 2024, DraftKings is well-positioned to capitalize on this growth trajectory efficiently.
The company’s recent announcement of a 57% YOY increase in third-quarter sales highlights its expanding customer base. While still unprofitable, DraftKings reported a narrower loss of 61 cents per share, comfortably surpassing the expected loss of 69 cents. The report of 2.3 million monthly unique players, a 40% increase from the previous year, underlines its expanding influence.
In the past three months, 33 analysts have rated DKNG stock. Eighteen suggest a Strong Buy, seven recommend Buy, seven advise Hold, one indicates Sell and none rate it as Strong Sell, painting a remarkably optimistic picture.
On the date of publication, Muslim Farooque 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.
