The start of a new year is the time to take a look at your portfolio and make the necessary changes. While it may not be possible for you to sell stocks unless you are making a profit on them, it can certainly be possible for you to keep a watch on the best stocks of 2024 that have the potential to make big gains this year.

If you are considering rebalancing the portfolio, now is the perfect time to grab these seven stocks and take home big gains at the end of the year. While it is hard to predict how the market will move from here, it is definitely possible to identify strong companies and pick stocks that have shown a solid performance in 2023. Here are the best stocks for 2024.

Best stocks for 2024: Li Auto (LI)

Li Auto (NASDAQ:LI) is a Chinese EV maker that made a lot of noise in 2023. It is entering the new year on a high note and could grab a higher market share this year.

While automakers were worried about the slowing EV demand, Li Auto continued to report strong delivery numbers quarter after quarter. In the final quarter, it reported 131,805 deliveries, up 184% year-over-year (YOY) with 50,353 deliveries in December.

Li will start deliveries of Li Mega in March and this could lead to higher revenue in the quarter. The company has met expectations quarter after quarter, and I believe it will do so in the fourth quarter again. As one of the top EV makers right now, Li is leading the race to the top.

The stock looks undervalued to me at $35 and it has the potential to hit $50 in 2024. The company has managed to thrive in uncertain market situations and it will continue to do so.

BYD Company (BYDDF)

The biggest competitor of Tesla (NASDAQ:TSLA) and Warren Buffet’s favorite EV company, BYD (OTCMKTS:BYDDF) has broken Tesla’s records. BYD Co. reported a record sales quarter with 526,409 deliveries while Tesla sold 484,000 cars. BYD Co. has been consistently growing its market share by offering cars priced lower than Tesla. It is also the second-largest battery maker in the world and is gradually expanding its global market share.

It sold three million battery-powered cars in 2023, which is its highest ever and a 62% rise over 2022. This means its profit has also exploded. BYD has resorted to price cuts to ensure steady sales growth and it has managed to manuver through the uncertain market conditions.

As the EV demand picks up, BYD could continue moving upwards. While Tesla lost its market share to other EV makers, BYD continued to expand to different countries. It is investing in production facilities and aims to increase production in 2024. It is building an assembly plant in Hungary and has also opened dealerships in Sweden, Norway, and Germany.

SoFi Technologies (SOFI)

SoFi Technologies (NASDAQ:SOFI) is a hot fintech stock that can double your money. 2024 could be the year of SoFi as it eyes profitability and reports an impressive quarter. The company has seen a rise in deposits and could also see an increase in personal loans as student loan payment resumes.

That said, SoFi offers a one-stop solution to its users and this is how it continues to attract new users each quarter. In the third quarter, it added over 7 million users on the platform and it was the company’s tenth consecutive quarter of record revenue.

The company appears to be in line to report a profit in the coming quarter, and if it continues to grow the user base, it will become one of the top fintech disrupters in the country. Ark Invest’s Cathie Wood has been loading up on SOFI stock and holds more than 1.7 million shares.

SOFI is trading at $8.31, and this is one stock that will double in 2024. Buy it below $10 and take home big gains.

Best stocks for 2024: Affirm (AFRM)

Buy now, pay later has gained immense popularity across the country and the record Black Friday sales showed that people like the flexibility of buying now and paying in regular intervals. This has brought Affirm (NASDAQ:AFRM) to the limelight, and the stock soared over 200% in the past six months.

AFRM stock has gone from $16 in July to $43 today, and this upward momentum is set to continue in the coming months. I believe Affirm will report stellar fourth-quarter results driven by Black Friday sales and holiday shopping, and this will give a boost to the stock.

The company already has partnerships with several e-commerce providers and recently inked a partnership with Walmart (NYSE:WMT). This will help it reach a wider user base and see an increase in revenue. It is the key partnerships that have helped the company achieve new levels of growth.

While the company is reporting losses and faces stiff competition in the market, it is set to benefit from an improvement in consumer spending over the next few months.

Microsoft (MSFT)

One of the best stocks for 2024, Microsoft (NASDAQ:MSFT) is a tech dinosaur that will soar high in the year. The tech giant has invested heavily into artificial intelligence (AI) and this investment is expected to start paying off in the coming year.

The company generated $211.9 billion in revenue for the year, and it is only going to get bigger. It launched Microsoft 365 last year and it comes with a subscription cost of $30 per month. The company expects to generate significant revenue from the same.

Additionally, the company has managed to see explosive earnings in 2023 and is starting the new year on a high note. MSFT stock pays a modest dividend of 0.80% and the stock is trading at $370, close to its 52-week high of $384. The stock might look expensive right now but it will be hitting $400 very soon. This is one stock to own for explosive gains in 2024 and beyond.

Amazon (AMZN)

E-commerce giant Amazon (NASDAQ:AMZN) became a pandemic darling in 2021, dropped in 2022, and then rebounded in 2023. This company offers everything you want to own including cars. It has a long history, a strong balance sheet, and a solid growth plan.

Amazon has impressed investors with the steady upside momentum, and the recent quarter showed the success of Amazon advertising and Amazon Web Services. Its AWS revenue increased 12% in the recent quarter and it still has a lot of space to grow.

I believe the company will be able to report better numbers in the coming quarterly results due to the holiday season and we could see a strong growth in the advertising revenue as the economy improves. Amazon has also invested in AI and integrated it into its services to ensure higher client satisfaction. Trading at $148 today, the stock is going to grow in 2024.

Nvidia (NVDA)

The hot stock of 2023 will continue to dominate the AI segment in 2024. Nvidia (NASDAQ:NVDA) is one stock that could continue moving higher in the years to come. It is still one of the best stocks to invest in for 2024. However, it will not be possible for the company to repeat the rally it enjoyed in 2023. Nvidia is one of the biggest players in the AI space, and it has already delivered over 500,000 of its H100 AI chips in the third quarter and saw a 200% rise in the revenue.

Nvidia has reported impressive revenue numbers in the last three quarters, and I expect the same in the coming year. It has already launched the H200 AI chip which can generate output twice as fast as H100.

I believe the company delivers what it promises and this is why it is one of the best tech companies in the world right now. NVDA stock is up 245% in the year and is exchanging hands for $475 today. It is a hot stock with the potential to hit $550 in 2024.

On the date of publication, Vandita Jadeja 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.