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Unlocking Opportunities: 4 Stocks Poised for Resurgence in 2024

In the dynamic landscape of the stock market, investors often seek innovative strategies to identify promising opportunities. 

With the S&P 500 reaching new heights, finding undervalued stocks requires a creative approach. Evercore strategists have turned their attention to the Russell 1000 index, unveiling a list of stocks that, despite recent setbacks, boast robust earnings potential that the market may have overlooked.

citigroup investment bank, trading and investing

Identifying Potential Winners

To make it onto this select list, stocks needed to meet specific criteria:

Performance Metrics
  • Must have been down at least 10% from the beginning of 2022, aligning with the market's peak.
  • Analysts forecast a 2024 EPS growth of 7% or greater, reflecting the long-term historical average on the Russell 1000.
Consistent Earnings
  • Companies must have beaten bottom-line estimates in at least seven of the past eight quarters.
Valuation and Market Size
  • Shares should not have forward price/earnings multiples exceeding 50 times.
  • Market values must be $5 billion or greater.

The Chosen Four: A Closer Look

Out of the identified stocks, four have caught the eye:

1. Citigroup (C)
  • Performance: Down around 14% from its 2022 starting price.
  • Earnings Track Record: Impressive, beating EPS estimates in each of the past 20 quarters.
  • Outlook: Analysts anticipate low single-digit annual sales growth over the next three years. The company's focus on share repurchases, supported by strong free cash flow, positions it for almost 12% annual EPS growth to $5.40 in 2026.
2. Comcast (CMCSA)
  • Performance: Approximately 14% dip from the start of 2022.
  • Earnings Track Record: Consistent, beating EPS estimates in the past 20 quarters.
  • Growth Prospects: Analysts foresee low single-digit annual sales growth, reaching $126 billion by 2026. A robust EPS growth trajectory, nearing 12% annually, is expected, fueled by strategic share repurchases.
3. Trex (TREX)
  • Performance: A substantial 42% drop since the beginning of 2022.
  • Earnings Track Record: Solid, beating EPS estimates in seven of the past eight quarters.
  • Market Position: A leading $8.4 billion manufacturer of home decking and railings.
  • Growth Drivers: Analysts project 11% annual sales growth to $1.35 billion by 2025. Expected 17% annual EPS growth to $2.55 by 2025, driven by rising operating margins due to the increased use of recyclable materials.
4. Qorvo (QRVO)
  • Background: Formed by the merger of TriQuint and RF Micro Devices, Qorvo is a designer and manufacturer of RF chips used globally.
  • Recent Performance: Qorvo's Q3 revenues of $1.10 billion beat analyst expectations by 10.1%. The stock surged 18.4% since the results, currently trading at $104.21.
Opportunities in Uncertainty

As investors navigate uncertainties in the market, these identified stocks present themselves as potential candidates for a resurgence in 2024. Their ability to weather recent downturns coupled with strong earnings trends positions them as intriguing options for those seeking opportunities in a changing financial landscape. Keep a watchful eye on these stocks as they could emerge as winners in the quarters to come.

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Trading Risk Disclaimer

All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability to trade. Trading results can never be guaranteed. SharperTrades, LLC is not registered as an investment adviser with any federal or state regulatory agency. This is not an offer to buy or sell stocks, cryptos, forex, futures, options, commodity interests or any other trading securities. Always consult your financial advisor and/or tax pro before making substantial portfolio adjustments. 

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