These are the favorite stocks for 2024 from UBS
With the new year just around the corner, UBS analysts are offering up their highest conviction calls to buy in 2024. Stocks are on a hot streak in late 2023, buoyed by optimism that the Federal Reserve anticipates three interest rate cuts in 2024. Bond yields have also cooled significantly, with the 10-year Treasury yielding 3.92% — down sharply from the multiyear highs the rate reached in October. That should continue to bode well for stocks. Last week, the Dow Jones Industrial Average closed at a record high above the 37,000 mark . Looking ahead to 2024, UBS analysts called out their most compelling stock ideas for investors to consider buying. “We’ve focused on stocks where we believe our analysts have a differentiated view vs. consensus, and where we have interesting or proprietary data sources,” the firm wrote. Here are 10 of the names included in the firm’s list: Aerospace and defense firm Boeing made the grade. The stock has rallied 38% this year, and UBS anticipates additional upside of 21% from Monday’s close. “The demand backdrop for aircraft is strong, and the 20% two month pullback in the stock prices in a significant amount of near-term supply chain risk,” wrote analyst Gavin Parsons, who rates the stock a buy. He added that he sees upside to Boeing’s $10 billion free cash flow guidance with “multiple years of growth beyond.” Other Wall Street firms are similarly bullish on the name. Earlier this month, Deutsche Bank reiterated Boeing at a buy rating , and William Blair initiated the stock at an outperform rating . Domino’s Pizza was also named a top stock pick, with UBS analyst Dennis Geiger forecasting that the stock could rally nearly 12% from here. Domino’s has already added 17% this year. “We continue to believe DPZ represents one of the more attractive opportunities in restaurants, with further upside from: accelerating sales growth even as the industry slows; a still compelling catalyst path; and achievability of long-term growth targets,” he wrote. The analyst, who rates the stock a buy, predicts that Domino’s could increase its same-store sales by 3% from 2025 to 2027. Earlier this month, Oppenheimer also named Domino’s a top pick , citing a “supreme 2024 setup.” Meta , which is also on UBS’s list, could rally another 23% from here, the firm said. Shares are already up more than 190% in 2023. Analyst Lloyd Walmsley called the stock one of his top buys in the mega-cap U.S. internet category and thinks that the tech titan can continue to sustain its double-digit topline growth. “We see Meta’s new genAI chatbot monetization opportunity as significant and underappreciated,” he wrote. Shares of Meta hit a new 52-week high during Tuesday’s trading session. The stock is on pace for its best year on record . Micron Technology has had a similarly exceptional year, with the stock rallying 64% in 2023. Analyst Tim Arcuri believes that the semiconductor company is poised to jump into the memory upcycle, expecting earnings per share to more than double by 2025. “MU is a key beneficiary of the memory upcycle ahead of us and has the combination of capacity, technology roadmap and financial position to execute on it,” he said. KeyBanc also named Micron one of its top stock ideas , liking its exposure to the artificial intelligence theme. Earlier this month, Bank of America upgraded the stock to buy from neutral. Other names on UBS’ list of top picks include Ulta , Chevron , Coca-Cola , Gitlab , Merck & Co. and Visa . -CNBC’s Michael Bloom contributed reporting.
Aniket Pujari
6,160 PostsAniket Pujari is a passionate finance and technology enthusiast with a strong academic background in Financial Markets. Since 2015, he has been deeply immersed in the world of cryptocurrencies, blockchain technology, and global financial systems, building a wealth of knowledge and expertise in these rapidly evolving fields.
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