Best Stocks of April 2024 (2024)

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12 Best Stocks of 2024

Best Technology Stock

Nvidia Corp.

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Symbol

NVDA

Sector

Technology

2023 performance

Up 237%

Market cap

$2.26 trillion

Why We Chose It

Why we chose it: 2023 was a great year for Nvidia, and the stock soared 237%, making it the top stock on this list. The company may face challenges in the coming year, but the chipmaker is still a good long-term pick.

Pros

Key player in AI computing solutions
Stock’s growth in 2023 outpaced Meta, Alphabet and Microsoft
Strong and consistent financial performance

Cons

High valuation compared to a year earlier
Competition from companies like AMD and Intel
Revenue is heavily dependent on gaming industry

Meta Platforms

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Symbol

Why We Chose It

Why we chose it: Meta is best known for Facebook, but the company also owns WhatsApp, Instagram and Messenger. The company is expanding its services into virtual reality and AI, which could open up new growth opportunities.

Pros

Global leader in the social media industry
Opportunities to grow in virtual reality and AI
Solid financial performance with consistent revenue growth

Cons

Majority of Facebook’s revenue is ad revenue
Backlash and increased competition
Facebook could eventually reach a saturation point

Best Digital Ad Stock

Alphabet

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Symbol

GOOGL

Sector

Technology

2023 performance

Up 58%

Why We Chose It

Why we chose it: Alphabet commands 39% of the global digital advertising market, which should continue to add to the company’s long-term growth. The company should also benefit from continued growth in the cloud computing sector.

Pros

Gemini AI model could improve search, ads and cloud capabilities
Dominates the global digital advertising market
Remains the most widely used search engine worldwide

Cons

Involved in a Department of Justice anti-trust case
Shift in ad spending could hurt revenue
Continues to deal with privacy concerns

Best Fast Food Restaurant Stock

Chipotle

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Symbol

CMG

Sector

Consumer Discretionary

2023 performance

Up 65%

Market cap

$79.74 billion

Why We Chose It

Chipotle plans to open more restaurants this year than last year. Double-digit revenue growth and expanding profit margins can help the stock rise.

Pros

Reputable fast-food restaurant chain with more than 3,000 locations
Most new openings have been coming with Chipotlanes
The 50-for-1 stock split is bringing more attention to the stock

Cons

Competitors can make it more difficult for Chipotle to gain market share
High valuation
Stock gains have outpaced net income growth over the past year

Best Cloud Computing Stock

Microsoft

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Symbol

MSFT

Sector

Technology

2023 performance

Up 57%

Market cap

$3.2 trillion

Why We Chose It

Microsoft is a leading cloud computing firm that is still exhibiting high revenue growth for its profitable segment. The company is also gaining market share thanks to its big lead in the artificial intelligence race.

Pros

Cloud computing is still growing at a good pace and accounts for more than half of Microsoft’s revenue
Exposure to numerous industries and enough capital to explore new opportunities as they arrive
High annual dividend growth rate

Cons

Low dividend yield
The stock’s gains over the past year exceeded year-over-year revenue and net income growth
Competition in the artificial intelligence industry is heating up

Best Fintech Stock

Visa

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Symbol

Sector

Consumer Discretionary

2023 performance

Up 25%

Market cap

$560.4 billion

Why We Chose It

Visa offers high profit margins and a reliable business model that depends on consumer spending. The stock can rally during the good times and experience limited losses during the bad times.

Pros

High profit margins
Reliable business model that revolves around consumer spending
Excellent dividend growth rate

Cons

Competition
The stock has slightly underperformed the S&P 500 over the past five years
Low dividend yield

Best Consumer Staples Stock

Celsius Holdings

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Symbol

CELH

Sector

Consumer Staples

2023 performance

Up 57%

Market cap

$21.5 billion

Why We Chose It

Celsius Holdings has outperformed many stocks with a 6,400% gain over the past five years. The company’s top-tier sports beverage company is a big hit in the United States and is starting to penetrate international markets.

Pros

High revenue and earnings growth rates
The company’s drinks are healthier than most competitors
Early stages of international growth

Cons

High valuation
Shares are already up by 57% year-to-date
The company needs to successfully expand internationally to justify the stock price in the long run

Best E-Commerce Stock

Amazon

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Symbol

AMZN

Sector

Consumer Discretionary

2023 performance

Up 81%

Market cap

$1.9 trillion

Why We Chose It

Amazon’s online marketplace continues to grow in domestic and international markets. Amazon Web Services has been another catalyst. The company also has exciting initiatives that can pay off in the long run, such as streaming and advertising.

Pros

Potential for Amazon to use streaming, advertising, and other segments to generate more growth
Amazon’s online marketplace is arguably the most recognizable one on the web
Double-digit revenue growth rates in domestic and international markets

Cons

Low profit margins
The stock’s run over the past year heavily contributed to its 5-year gains
Competitors in e-commerce, cloud computing, and streaming can get market share

Uber Technologies

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Symbol

UBER

Sector

Technology

2023 performance

Up 155%

Market cap

$160.63 billion

Why We Chose It

Why we chose it: Uber’s stock soared this year, and the company recorded its first operating profit. Uber’s two core businesses—ridesharing and food delivery—continue to deliver strong results for the company.

Pros

Continues to improve ridesharing business
Diversified income in additional revenue streams
Investing heavily in autonomous vehicles

Cons

Continues to face regulatory challenges
Reliance on gig workers could lead to more labor disputes
Faces heavy competition from companies like Lyft

Best Semiconductor Stock

Advanced Micro Devices

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Symbol

AMD

Sector

Technology

2023 performance

Up 127%

Market cap

$291.96 billion

Why We Chose It

Why we chose it: After taking a hit in 2022, Advanced Micro Devices saw its stock more than double in 2023. The chipmaker is a leader in gaming and data center GPUs, and the company is well-positioned to capture market share from Nvidia.

Pros

Plans to launch new graphics processing unit (GPU)
Leader in gaming and data center GPUs
Making positive gains in artificial intelligence

Cons

Free cash flow dropped in 2023
High valuation means stocks like Alphabet may be a better buy
Revenue is still dependent on gaming and data center markets

Best IT Stock

Vertiv Holdings

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Symbol

VRT

Sector

Industrials

2023 performance

Up 269%

Market cap

$31.18 billion

Why We Chose It

Why we chose it: Vertiv Holdings provides IT infrastructure support and has been in business since 1965. The company provides support to data centers and industrial facilities, so it’s well-positioned for growth in the coming year.

Pros

Can benefit from the growth of data centers
Pays dividends annually

Cons

Operating in a competitive market
Vulnerable to regulatory changes
Global economic conditions could impact performance

Best Cybersecurity Stock

CrowdStrike

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Vault Verified

Symbol

CRWD

Sector

Technology

2023 performance

Up 101%

Market cap

$77.65 billion

Why We Chose It

Why we chose it: The cybersecurity platform Crowdstrike experienced incredible growth that seems likely to continue into 2024. The company has strong top-line growth and its free cash flow is improving.

Pros

Experienced rapid growth over the past year
Use of AI differentiates it from competitors
Cybersecurity is a growing market

Cons

Stock may be overvalued, leading to a price correction
Faces strong competition from other cybersecurity companies
Shares are more expensive than they were a year earlier

What Is a Stock?

A stock represents partial ownership in a company and gives you a claim on that company’s earnings and assets. As the value of the business rises and falls, so will shares of the company’s stock.

If you invest in a company’s stock, it’s probably because you believe that company will increase in value. Buying stocks is an excellent way to build long-term wealth.

Stocks are bought and sold through stock exchanges, like the New York Stock Exchange (NYSE) and the National Association of Securities Dealers (NASDAQ). Some companies will sell stocks directly to investors, but most will require you to purchase shares through an online broker.

And when you buy stocks, you may also gain access to certain privileges, depending on whether you buy common stock or preferred stock. Common stock has the potential for higher returns and often includes voting rights. In comparison, preferred stock comes with higher dividend returns and less share price volatility.

How To Choose the Best Stocks For You

With more than 3,000 stocks listed on the NASDAQ alone, picking stocks can be difficult for the most experienced investor. And unfortunately, there’s no foolproof investing formula that will ensure you pick the right stocks.

Keep the following in mind when investing in stocks.

Decide On Your Investing Goals

Everyone invests because they want to earn money, but what do you want your money to do for you? Your investment goals will depend on factors like your age, income and level of risk tolerance.

Start by thinking about how long you plan to invest your money. Short-term investment strategies are five years or less, while long-term plans are usually over 10 years. The longer you have to invest your money, the more opportunities you’ll have to reach your goals.

You should also consider how much risk you’re willing to take on. Younger investors can afford to take more investing risks, whereas if you’re nearing retirement, you’ll want to avoid risking any big losses.

Research Potential Companies

You need to research any stocks you’re considering adding to your portfolio. You’ll start by reviewing the company’s financial information, which can be found in its SEC filings. In particular, you’ll want to review the balance sheet, income statement and cash flow.

“Research is important, but don’t get caught up in trying to time the market or find the perfect stocks to invest in. Investing is a long-term game and getting started now gives you the best chance to maximize your returns.”
— Jamie Johnson

As you’re reviewing the company’s financials, pay attention to the following metrics:

Price-to-earnings (P/E) ratio: The P/E ratio compares the company’s current share price to its earnings per share (EPS). This ratio can help you compare the value of that company’s shares to others within the same industry.
Price-to-earnings-growth (PEG) ratio: The PEG ratio expands on the P/E ratio by factoring future growth into the equation, giving you a more comprehensive picture of that company.
Debt-to-EBITDA ratio: The debt-to-earnings before taxes, depreciation and amortization (EBITDA) ratio measures the income generated and that company’s ability to pay down debt before deducting interest, taxes, depreciation and amortization. This ratio helps you determine whether the company has a heavy debt load.

Look For Companies With a “Moat”

Legendary investor Warren Buffett says that when you’re evaluating potential investments, you should always look for companies with a moat around the business. According to Buffett, a moat is a competitive advantage that will protect the company and allow it to maintain its pricing power.

Once you’ve found a company that you believe has a moat, you need to determine how strong it is. Will that company still be in business in another 20 years? From there, you need to assess the quality of the company’s management team.

Make Sure You Understand the Business Model

Imagine a local business owner coming to you and asking you to invest money in their company. If you didn’t understand the business or how it worked, would you be willing to give that person any money? Probably not.

You should take this same mindset when it comes to investing in stocks. Take the time to learn as much as you can about each company you’re considering investing in. This level of due diligence will help you choose better investments and will give you the confidence to stay the course if that company’s share price drops.

Adjust Your Strategy As Needed

Your work isn’t over after you’ve done the necessary research and picked your investments. Now, you’ll continue to monitor your investments and adjust your strategy as needed. Ideally, you’ll buy stocks as long-term investments, but you do have the option to sell if you’re happy with your profits.

Most importantly, continue to optimize your portfolio and focus on the factors you have control over. At some point, you may want to branch out beyond stocks and consider other investment options, like mutual funds or an IRA.

Stocks vs. Index Funds

Many people like investing in stocks because of the high growth potential, but this investment strategy does come with potential risks. Since you’re investing in a single company, your portfolio is less diversified and you’re exposed to higher market volatility.

In comparison, an index fund tracks and attempts to duplicate the performance of a market index, like the S&P 500. Rather than investing in a single company, you’re tracking an index made up of hundreds of companies which provides more diversification.

Individual stocks are active investments, so it’s better suited to more experienced investors who have the knowledge and time to monitor the stock’s performance. Index funds are a passive investment strategy, making them a good option for beginners looking to invest.

The following table outlines some of the biggest differences between stocks and index funds:

	Stocks	Index Funds
Ownership	Represents ownership in a single company	Attempts to duplicate the performance of a market index
Management style	Active	Passive
Skill level	Buying individual stocks is better for experienced investors with a higher level of market knowledge.	Investing in index funds is a good option for beginners since it’s a more straightforward approach.
Diversification	Low—investing in one stock exposes you to more risk	Provides more diversification since you’re investing in a wide variety of companies
Risk	Comes with higher volatility and risk	A lower risk investment than individual stocks

Frequently Asked Questions

What Is The Best Investment with the Highest Return?

The U.S. stock market is considered the best investment with the highest returns. Investors can choose from many growth stocks or put their money into index funds to mirror market returns. However, investing in the stock market comes with more risks than other assets like bonds and high-yield savings accounts. Investors often have to take a greater amount of risk to end up with a higher potential return.

What are the Magnificent 7 Stocks?

The Magnificent Seven stocks are mega-caps that have historically outperformed the market and contribute to a large percentage of the S&P 500’s returns. The Magnificent Seven stocks are:

Microsoft
Apple
Nvidia
Amazon
Alphabet
Meta Platforms
Tesla

Is It a Good Idea to Invest in Stocks?

Buying stocks may be a good idea if you’re willing to implement a buy-and-hold strategy. That means you buy stocks and hang onto them for years, regardless of what happens in the market. This strategy helps you take advantage of compound interest, and you may earn company dividends.

Should a Beginner Invest in Stocks?

If you’re a beginner looking to invest, you can start investing in stocks, but you’ll need to do your research first. Stay informed about what’s happening with the global economy and upcoming industry trends.

Research any companies you’re considering investing in, and diversify your stocks across different asset classes. You can also use trading simulators to help you get comfortable picking stocks and testing different investing strategies.

How Much Money Do I Need to Start Investing in Stocks?

You can begin investing in stocks even if you don’t have a lot of money to start with, and there’s no minimum investment required. The growth of commission-free brokerage accounts and fractional shares have made buying stocks more affordable. Once you come up with a reasonable budget, you can start looking for investing opportunities.

Newsweek writer Marc Guberti contributed to this post.