The first week of declines for stocks in 2024 creates better buying prices for investors. The winners that may emerge have distinct characteristics that set them apart from the rest.
Pepsi (PEP) has strong pricing power. However, France’s largest supermarket chain, Carrefour, is endorsing a ban on Pepsi products. It wants other retailers across Europe to take the product off the shelf. Its chairman wants to convince big suppliers to correct their mistake of overly increasing their prices.
Both Coca-Cola (KO) and Pepsi are strong brands that are likely the stock winners for 2024.
In the drugstore market, CVS Health is a winner. It appointed Tom Cowhey as the new Chief Financial Officer. CVS expects to earn $8.50 to $8.70 for the 2023 year. The medical care advantage for 2024 should lead to membership growth of at least 800,000.
As for stocks to avoid, stay away from those that dropped sharply. Medical Properties (MPW), Mobileye (MBLY), and AMC Entertainment (AMC) fell unexpectedly recently. Value investors are unlikely to buy them even at lower prices. Their respective businesses are struggling as competitors thrive.
Investors will buy companies that are growing and sell those that have high uncertainties ahead.
