Investors are gearing up for a promising 2024, with bullish sentiments gaining traction, predicting substantial gains for the stock market. Five out of eight major investment banks foresee the S&P 500 reaching 5,000 or higher. Tom Lee, head of research at Fundstrat, is the most optimistic, anticipating the index to reach 5,200, signaling a 13.4% gain from current levels. Amid this positive outlook, the challenge lies in identifying the right stocks poised for growth.
TipRanks offers a solution with its Smart Score tool, utilizing AI and natural language technology to analyze vast amounts of stock market data. The ‘Perfect 10s,’ stocks with the highest Smart Score, stand out as potential opportunities for investors. Two such top-scoring stocks for 2024 are NCR Voyix (VYX) and Primo Water Corporation (PRMW).
- NCR Voyix (VYX):
- NCR Voyix, a leader in enterprise technology, emerged from a spin-off transaction by parent company NCR, focusing on digital commerce. It provides solutions for various sectors, including banking, retail, small businesses, restaurants, and telecom operators.
- The company, with $2 billion in quarterly revenue, aims to deliver almost $4 billion in annual revenue for fiscal year 2023, with half generated from recurring revenues.
- Analyst Mayank Tandon from Needham views VYX as a leading provider with a robust core business and high growth potential. Tandon expects improved growth post-separation and confidence in achieving long-term (2027) growth and profitability targets.
- Tandon rates the stock as a Buy, setting a $22 price target, suggesting a 43% upside.
- Primo Water Corporation (PRMW):
- Primo Water specializes in supplying multi-gallon bottles of drinking water to residential and commercial customers globally. With 2.2 million direct customers across 21 countries, Primo sells around 1 billion gallons of fresh drinking water annually.
- The company reported $622 million in 3Q23 revenue, representing a 6% year-over-year increase. It boasts a solid foundation for growth, with various water solutions and plans for its customers.
- CIBC analyst John Zamparo highlights PRMW’s transformation into a near-pure-play water business, positioning itself well for lower leverage, capital returns, and accelerated M&A.
- Zamparo rates the stock as Outperform (Buy), with a $20 price target, indicating a 36% upside.
Both stocks have garnered unanimous Strong Buy consensus ratings from analysts, reinforcing their potential for growth. The market outlook for 2024 appears promising, and investors may find these top-scoring stocks worthy of consideration for their portfolios.
