Savvy investors will wake up to 2024 with a list of the top three stocks for the year. Be wary of writers picking Amazon (AMZN), Alphabet (GOOG), and Microsoft (MSFT) as the stocks to buy this year. They already rose in 2023. AMZN is + 81%, GOOG stock is +58%, and MSFT is +56.8%.
Thought another way, investors need to pay a premium between the above percentages. They risk the fear of missing out by buying those three stocks today.
Traders may pick three of the worst-performing stocks on the S&P 500. Tax-loss selling is coming to an end, increasing the chances of an early rebound.
Pfizer (PFE) lost around 40% in 2023. As the first top pick, its acquisition of Seagen for $43 billion will boost Pfizer’s pipeline. Nona Biosciences announced in mid-December 2023 that Pfizer invested $53 million plus near-term payments. Pfizer will get rights to its mesothelin-targeted ADC.
Moderna (MRNA) is the second rebound play. Shares closed at $99.45 after bottoming at $62.55. Investors discounted the drug company’s weak Covid vaccine sales. It now anticipates strong revenue potential for its skin cancer mRNA-based treatment.
The third pick is Dollar General (DG). Down almost 45% in 2023, the discount retailer will grow customers by adjusting its products offered. It needs to sell inexpensive necessities at low prices to increase profit margins.
