Runaway inflation was a serious problem in 2022. High inflation coupled with rising Treasury yields around the world and a Federal Reserve that tried to rein in inflation by hiking key interest rates led to a very bad year for the U.S. and the stock market.
In 2023, inflation began to cool off and the Fed stopped raising key interest rates in the latter half of the year. However, there were still plenty of issues for Wall Street to contend with, like surging Treasury yields, the U.S. government’s spending spree, rising unemployment, as well as tensions boiling over in the Middle East.
Unfortunately, the problems of 2023 are still a thorn in investors’ sides in 2024, but the good news is there is a way to not only protect your portfolio, but to profit in the current environment.
All you need to do is invest in companies with strong fundamentals that are also backed by institutional buying pressure. Think of this as “following the money.” The more money that floods into a stock, the more momentum a stock has to rise. And there’s no doubt about it, we all like stocks that rise!
These are the stocks I consider fundamentally superior.
Now, historically, fundamentally superior growth stocks and dividend stocks are your best bets in times of economic uncertainty. They will “zig” when the market “zags,” setting up your portfolio for profits. They also bounce back faster during bouts of broader market volatility.
Of course, with thousands of stocks to choose from, it’s hard to figure out which are worthy of investing in.
So, in this report, I’m going to show you five companies that have emerged as the crème de la crème that you should buy in 2024.
With strong sales growth and profits ahead, these stocks are must-haves for your portfolio as we navigate our way through the year…
Top Stock No. 1: Dorian LPG Ltd.
Dorian LPG Ltd. (LPG) operates a fleet of “very large gas carriers,” or VLGCs, that primarily haul liquified petroleum gas around the world. The company’s fleet consists of 22 VLGCs, each with the capacity to carry 1.8 million cubic meters (cbm). Dorian LPG has offices in the U.S., U.K., Greece and Denmark, and it partners with several big-name oil companies, including BP, Petrobras and Shell.
Due to record natural gas production and steadily rising crude oil production, the U.S. is reasserting its energy clout and helping the world break away from Russian energy. In fact, the U.S. recently reported record energy exports.
As the U.S. continues to ship more crude oil, as well as natural gas, overseas, there’s one industry that should reap the rewards: tanker and liquified natural gas (LNG) shipping companies.
I should also add that Bloomberg reported that there is a lack of liquified natural gas to satisfy world demand in a transition to a green economy. This essentially means that Dorian LPG should be able to charge high day rates for its ships. There is no doubt that burning natural gas is cleaner than burning coal, but global coal consumption continues to steadily rise, since emerging markets like China, India, Indonesia, Malaysia and Vietnam rely on coal for cheap electricity.
Given this, Dorian LPG should benefit immensely. For its fiscal 2025, analysts expect earnings of $4.79 per share and revenue of $447.24 million, down from earnings of $7.22 per share and revenue of $560.72 million a year ago.
Top Stock No. 2: Microsoft Corporation
One company has been at the forefront of AI research and the integration of AI technologies into products and services that folks use in everyday life: Microsoft Corporation (MSFT).
You’re likely familiar with Microsoft, as it’s been a leading provider of microprocessors, software and personal computer software for more than 40 years. The company was founded by Bill Gates and Paul Allen, who started operations by developing software for the Altair 8800, which was one of the very first personal computers. In 1980, the company developed an operating system for IBM’s first personal computer, and in 1985, introduced Windows. And by the late 1980s, Microsoft was the biggest personal computer software company in the world.
Today, Microsoft remains one of the leading software companies in the world, with its Windows operating systems, Microsoft 365 line-up of applications and web browsers.
The Microsoft name is also becoming synonymous with AI applications. Microsoft AI, which is powered by the company’s Azure platform, is helping individuals and businesses boost creativity, productivity and connectivity. Microsoft AI is utilized every day in billions of applications and experiences on the company’s top solutions like Windows, Microsoft 365, Teams, Xbox, Build, Copilot, Bing and Edge.
Microsoft management recently stated, “With copilots, we are making the age of AI real for people and businesses everywhere. We are rapidly infusing AI across every layer of the tech stack and for every role and business process to drive productivity gains for our customers.”
And these efforts are paying off based on the company’s outlook…
Analysts are calling for earnings of $13.08 per share and revenue of $279.03 billion for the current fiscal year. That compares to earnings of $11.80 per share and revenue of $245.12 billion in the last fiscal year.
Top Stock No. 3: NVIDIA Corporation
NVIDIA Corporation (NVDA) is a leading computer graphics company – and it’s been in the business for more than two decades. The company first invented the graphic processing unit (GPU) back in 1999. From video games to professional visualization, data center and automotive applications, NVIDIA’s graphics cards enhance processing capability for its users’ computers.
Today, NVIDIA employs more than four million developers who create thousands of applications for advanced computing. It owns a portfolio of more than 8,000 active patents, which is the largest portfolio of its kind. So, it’s no surprise that NVIDIA’s technologies have been utilized by more than 40,000 companies, including 15,000 startups, since its founding 24 years ago.
But NVIDIA refuses to rest on its laurels. The company continues to innovate, and since 2014, the company has shifted its focus to five major markets – gaming, professional visualization, data centers, auto and artificial intelligence (AI).
Today, NVIDIA is at the forefront of the AI movement. In fact, NVIDIA dominates the AI chips that are used in everything from data analytics to autonomous vehicles, from data centers to supercomputers and from medical devices to cybersecurity. The opportunities are virtually endless!
So, in my opinion, AI is hotter than hot – and given its strong earnings and sales, NVIDIA is the clear leader.
For fiscal 2025, analysts expect earnings of $2.72 per share on revenue of $120.82 billion, up from earnings of $1.19 per share and revenue of $55.71 billion a year ago.
Top Stock No. 4: Novo Nordisk A/S
Novo Nordisk A/S (NVO) develops treatments to combat diabetes, obesity and other chronic illnesses, as well as rare blood and rare endocrine diseases.
With headquarters in Copenhagen, Denmark, Novo Nordisk operates 80 offices around the world, and its products are available in 170 countries. Breaking it down further, the biotech company has 16 production sites in nine countries, as well as 10 research and development facilities in five countries.
Novo Nordisk has dominated the diabetes treatment market, as its main goal is to develop a cure for type 1 diabetes and help prevent type 2 diabetes and obesity. To do this, Novo Nordisk provides care to more than 30,000 children with type 1 diabetes through its Changing Diabetes in Children program, and it aims to help more than 100,000 children by 2030. It also slashed the cost of insulin in low- and mid-income countries.
In regard to treatment options, Novo Nordisk offers a variety of insulin pens for folks to administer their diabetes medication, as well as provides injection needles and growth hormone pens. The company has also developed several medications for the treatment of obesity, diabetes, hemophilia and growth disorders, as well as hormone replacement therapies.
You’ve likely seen commercials for one of Novo Nordisk’s diabetes treatments, Ozempic. The company has experienced increased demand for the treatment, which should boost its top and bottom lines growth this year.
For full-year 2024, analysts expect earnings of $3.43 per share on revenue of $33.13 billion, up from earnings of $2.66 per share and revenue of $33.13 billion in 2023.
Top Stock No. 5: Super Micro Computer
Founded back in 1993, Super Micro Computer, Inc. (SMCI) has been at the forefront of technological change, developing a lot of firsts in the industry: the very first x86 server boards based on Orion semiconductors, the first server boards to support Intel Pentium processors, the first redundant cooling power supply, the first dual Intel Xeon server – just to name a few!
Today, Super Micro Computer is well-known as a global leader in high-performance server technology solutions. The company continues to provide a wide range of servers, storage, motherboards, workstations and networking solutions, as well as server management software. Super Micro Computer’s solutions are utilized in several markets, including artificial intelligence, 5G, Internet of Things (IoT), data centers, cloud computing, big data, enterprise, embedded and edge computing.
While the company’s main headquarters are based in the U.S., Super Micro Computer has operations in more than 100 countries around the world. Primarily, these operations are in the U.S., Asia and Europe. And the company has a three-million-square-foot global manufacturing footprint.
SMCI is also a well-known, global leader in high-performance server technology solutions. The company primarily provides a wide range of servers, storage, motherboards, workstations and networking solutions, as well as server management software. And like NVIDIA, Super Micro Computer is well-positioned to profit from the rising demand for AI technologies.
For fiscal 2025, analysts expect earnings of $34.99 per share on revenue of $28.38 billion, up from earnings of $22.09 per share and revenue of $14.94 billion in fiscal 2024.
There’s Always a Bull Market Somewhere
There’s always a bull market somewhere – and right now the bulls are piling into fundamentally superior stocks that will profit from runaway inflation.
The five top stocks we discussed today fit this description to a “T” and are great bets for your money in 2024.
I hope you found this special report useful. Before we go, let me remind you that you’re now also a member of my free Market 360 newsletter.
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Sincerely,
Louis Navellier
