The stock market offers both seasoned investors and newcomers opportunities for substantial gains. As we delve into the second half of 2024, identifying promising stocks to buy becomes an exciting yet calculated gamble.
This year presents a unique economic landscape, with a mix of economic recovery, technological advancements and areas like AI creating fertile ground for growth. While the term ‘’gambling’’ carries a negative connotation, it represents the high-risk, high-reward approach that some investors are willing to take. Furthermore, companies operating in distinctive sectors like infrastructure, technology and education are top contenders for investors to outperform the market.
While the market’s volatility can be daunting, informed investment decisions based on comprehensive research and analysis can lead to fruitful investment outcomes.
Now, let’s discover the top three most promising stocks to buy in 2024!
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Emcor Group (NYSE:EME), a leader in mechanical and electrical construction services, is well positioned for growth in 2024. The company’s diversified portfolio, which includes facilities services, industrial services and energy solutions, provides a robust foundation for stability and expansion.
One of the key drivers of Emcor’s growth is the increasing demand for infrastructure development and maintenance. With the U.S. government and other countries investing heavily in infrastructure projects, Emcor’s expertise in construction and facilities services positions it to benefit immensely. Additionally, the company’s focus on energy efficiency and sustainability aligns perfectly with the growing trend towards green building practices.
Financially, Emcor has consistently delivered strong revenue, earnings and free cash flow growth. After coming off a record year in 2023, Emcor’s management team anticipated growth to accelerate. In its latest quarterly financial results, revenue increased 19% year-over-year to $3.43 billion. Earnings per share skyrocketed 80% from the year-ago period to $4.17 per share, with remaining performance obligations hitting a record high. With EPS forecasted to rise more than 20% in FY24, EME stock is one of the top stocks to buy in 2024.
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Sterling Infrastructure (NASDAQ:STRL) is another stock that stands out for its promising growth prospects in 2024. Specializing in heavy civil construction and infrastructure solutions, Sterling is well positioned from the ongoing tailwinds in infrastructure development.
Sterling’s key strengths lie in its ability to secure and execute on large-scale infrastructure projects. The company consistently delivers projects on time and within budget, which has earned it a strong reputation in the industry. Moreover, as governments around the world prioritize infrastructure investments to stimulate economic growth, Sterling is primed to capture a significant share of the market.
Its financial performance in recent years has also been noteworthy, leading the company to significantly outperform the S&P 500 over the last five years. In the 2023 fiscal year, Sterling saw record revenue and earnings. Additionally, its annual free cash flow more than doubled to $428 million. Growth continues to accelerate in 2024, and management remains confident in its ability to increase its earnings and contracted backlog.
With its solid track record and strong growth prospects, Sterling is a top contender among promising stocks to buy in 2024.
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Stride (NYSE:LRN), formerly known as K12, operates in the growing online education market. With a market capitalization of approximately $3 billion, this relatively small company presents exciting growth opportunities in 2024.
The 2020 Covid pandemic has accelerated the adoption of online learning and this shift will have lasting impacts on the education sector. Stride’s comprehensive suite of services caters to a wide range of learners, from K-12 students to adult learners. This diverse range of service offerings broadens the company’s market reach, providing multiple revenue streams for its business. Furthermore, its growing revenue and earnings is a positive sign for the future.
In Q3 FY24, revenue increased 11% year-over-year to $521 million. Net earnings rose 26% to $69.7 million, with adjusted operating income hitting a record $96.4 million. Additionally, its price-to-earnings ratio of 16 looks extremely attractive. For investors looking to tap into the growing online education market, Stride represents a compelling investment opportunity in the second half of the year.
On the date of publication, Terel Miles did not have (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.
