Want to Double Your Tax Refund in 2024? 7 Stocks to Buy Now.


  • Goldman Sachs (GS): The investment bank’s earnings are on the rise thanks to deals returning to Wall Street.
  • Amazon (AMZN): The e-commerce giant just added an AI expert to its board of directors.
  • GE Aerospace (GE): The industrial conglomerate has raised its quarterly dividend payment by 250%. 
  • Want to double your tax refund in 2024? Read on for more tax refund stocks to buy now!
Tax Refund Stocks - Want to Double Your Tax Refund in 2024? 7 Stocks to Buy Now.

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Tax refunds are landing in bank accounts and mailboxes across America, giving people some extra money to play with. As of the federal income tax deadline of April 15, the Internal Revenue Service (IRS) has issued $201 billion worth of tax refunds. The average refund size per person this year is $3,011, which is up 4.6% from $2,878 in 2023. Both the individual and total amount refunded are quite a bit and could lead to more capital and liquidity being injected into the stock market.

People who choose to invest their tax refund rather than spend it in on more fleeting things like clothes and travel will no doubt want a strong return on their capital. So, where is the best place to invest a tax return today? With the market volatile right now, people will have to choose carefully. The good news is that there are a number of companies and stocks that are outperforming right now, driven by strong earnings and other catalysts. Want to double your tax refund in 2024? Here are seven tax refund stocks to buy now.

Tax Refund Stocks: Goldman Sachs (GS)

In this photo illustration the Goldman Sachs Group (GS) logo displayed on a smartphone screen and a stock market graph in the background
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After two difficult years and a failed foray into retail banking, Goldman Sachs (NYSE:GS) looks to be back. The Wall Street investment bank just reported first-quarter earnings that beat analysts’ expectations due to a rebound in trading and investment banking activity. Goldman reported Q1 EPS of $11.58 versus $8.56 that was expected among analysts. Revenue totaled $14.21 billion compared to $12.92 billion that had been forecast. Analysts referred to the print as a “blowout quarter.”

The investment bank said Q1 profits increased 28% from a year earlier due to a rebound in capital markets activities. Unlike its more diversified rivals, Goldman Sachs still earns most of its revenue from investment banking activities such as initial public offerings (IPOs) and mergers and acquisitions (M&A). There are now signs of a rebound on Wall Street, particularly when it comes to IPOs. Since last autumn, several high-profile IPOs have occurred, including Arm Holdings (NASDAQ:ARM) and Reddit (NYSE:RDDT).

GS stock has risen 17% in the last 12 months.

Amazon (AMZN)

Closeup of the Amazon logo at Amazon campus in Palo Alto, California. The Palo Alto location hosts A9 Search, Amazon Web Services, and Amazon Game Studios teams. AMZN stock
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E-commerce giant Amazon (NASDAQ:AMZN) continues to expand its reach into artificial intelligence (AI). Most recently, the company added computer scientist and AI expert Andrew Ng to its board of directors. Ng previously led AI projects at Google parent company Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and China’s Baidu (NASDAQ:BIDU). He is also currently a professor at Stanford University and runs an AI venture studio.

The appointment of Andrew Ng to Amazon’s board comes as the tech giant’s cloud-computing unit faces pressure from competing products, and as the race to develop generative AI assistants and other technologies intensifies. The appointment of Ng also comes as Amazon expands its streaming service and pushes further into online prescription drug fulfillments, recently partnering with Eli Lilly (NYSE:LLY) on the distribution of prescription drugs, notably the new weight loss treatment Zepbound.

AMZN stock has gained nearly 80% in the last 12 months.

Tax Refund Stocks: Johnson & Johnson (JNJ)

Negative Press Presents a Buying Opportunity with JNJ Stock
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Johnson & Johnson (NYSE:JNJ) is another stock that looks to be on the rebound. The consumer health company reported a strong first-quarter profit that got a boost from sales of medical devices. The company announced EPS of $2.71 versus $2.64 that was expected among analysts. Revenue in the January through March quarter came in at $21.38 billion compared to $21.40 billion that was forecast on Wall Street. Sales increased 2% from a year earlier during the latest quarter.

Much of the improvement came from Johnson & Johnson’s Medtech unit that makes devices for surgeries, orthopedics and vision. Management said that they are seeing demand for medical devices spike alongside growth in nonurgent surgeries. Johnson & Johnson’s medical device business generated sales of $7.82 billion in Q1, up 4% from a year ago. The company has made growing its medical device unit a priority, recently announcing a $13.10 billion acquisition of heart device firm Shockwave Medical (NASDAQ:SWAV).

JNJ stock has slumped 13% over the last 12 months. Buy the dip.

Alphabet (GOOG, GOOGL)

Alphabet (GOOGL) - Quantum Computing Stocks to Buy

What a difference a month can make. The stock of Google parent company Alphabet has risen nearly 20% since March 6 of this year and is now trading near its all-time high as investors buy into the company’s AI products and strategy. Alphabet is on the cusp of achieving a $2 trillion market capitalization as its share price rebounds strongly following a steep decline in February of this year. The company’s share price had fallen on worries that its was losing the AI race.

Concerns were heightened after Alphabet was forced to pause an AI image generation feature that created inaccurate historical depictions based on race. However, GOOGL stock has turned around as management demonstrates that their AI model is enterprise-ready, and that their AI technology is as advanced as their competitors. Media reports that Apple (NASDAQ:AAPL) wants to add Alphabet’s Gemini AI technology to future iPhones has also helped to lift Alphabet’s stock.

Over the last 12 months, GOOGL stock has risen 47%.

Tax Refund Stocks: Morgan Stanley (MS)

The logo for Morgan Stanley is displayed on the side of a building.
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Another Wall Street investment firm that just reported blowout earnings is Morgan Stanley (NYSE:MS). The company posted first-quarter earnings that beat Wall Street estimates due largely to continued growth in its successful wealth management business. The investment bank reported EPS of $2.02 versus $1.66 that was the consensus forecast of analysts. Revenue in the quarter came in at $15.14 billion compared to forecasts of $14.41 billion. Sales were up 4% from a year earlier.

Revenue from Morgan Stanley’s wealth management unit rose 5% to $6.88 billion, beating estimates by $230 million. Stock trading revenue grew 4% to $2.84 billion, also ahead of expectations. However, the showstopper was investment banking revenue, which increased 16% to $1.45 billion, topping a $1.40 billion forecast. Like Goldman Sachs, Morgan Stanley is benefitting from a revival in M&A and IPO activity. MS stock rose 4% on the strong earnings print. The company’s shares are now up 1% over the last 12 months.

GE Aerospace (GE)

Company breakups: The General Electric GE logo on a building
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GE Aerospace (NYSE:GE) just announced that it is raising its quarterly dividend payment to stockholders by an astounding 250%. The industrial giant that specializes in making aircraft engines now pays a quarterly dividend of 28 cents per share, up from just eight cents previously. The massive dividend increase comes after General Electric successfully broke itself into three separate publicly traded companies, which also include GE HealthCare Technologies (NASDAQ:GEHC) and energy business GE Vernova (NYSE:GEV).

At a recent analyst event, GE Aerospace outlined plans to return 75% of its free cash flow to shareholders in the form of dividends and stock repurchases going forward. The company expects to generate more than $5 billion in free cash flow this year which implies more than $3.7 billion to be distributed among shareholders. The dividend payout of 28 cents is only expected to cost the company $300 million this year. In addition to the dividend hike, GE stock has increased 102% over the last 12 months.

UnitedHealth Group (UNH)

Nurse holding a tablet with icons representing different aspects of healthcare and healthcare data representing CANO stock. Healthcare Tech Stocks
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Last on the list of tax refund stocks to buy is UnitedHealth Group (NYSE:UNH). Its stock rose 5% after the health insurer reported better-than-expected financial results for the first quarter that showed it successfully managing the fallout from a cyberattack at its subsidiary Change Healthcare. The largest medical insurance company in America announced EPS of $6.91 compared to $6.61 that was expected among analysts. Revenue came in at $99.80 billion versus $99.30 billion that had been forecast on Wall Street. The company’s sales grew 9% from a year ago.

UnitedHealth said the growth was driven by an increase in the number of people that it serves in the U.S. The total number of domestic consumers served by the company grew by two million during Q1. UnitedHealth’s response efforts to the cyberattack at Change Healthcare cost it 74 cents per share, and it expects the full-year impact to be between $1.15 and $1.35 a share. The company disclosed in February that a cyberattack breached part of Change Healthcare’s information technology network. The worst looks to now be over.

UNH stock is still down 7% over the past 12 months, presenting a buying opportunity.

On the date of publication, Joel Baglole held long positions in GOOGL, LLY and AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

Article printed from InvestorPlace Media, https://investorplace.com/2024/04/want-to-double-your-tax-refund-in-2024-7-stocks-to-buy-now/.

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