Best Stocks to Invest in 2024: Top 10 Picks by Analysts
Few things spark more debate among investors than where to put money to work in any given year. 2024 has been no exception: the S&P 500 returned roughly 25% by December, driven by AI optimism and a resilient economy. This article cuts through the noise by focusing on analyst consensus and risk-adjusted returns, giving you a screener-based approach to the best stocks to invest in 2024.
S&P 500 year-to-date return (2024): ~25% as of December 2024 ·
Number of new investors entering U.S. equity markets in 2024: Over 5 million new brokerage accounts ·
Average annual return of the Magnificent 7 stocks in 2024: Approximately 45% ·
Portion of U.S. adults owning stocks in 2024: 61% (Gallup survey)
Quick snapshot
- Nvidia’s revenue grew >120% in 2024 driven by AI chip demand (CNBC)
- S&P 500 returned ~25% in 2024 (CNBC)
- Magnificent 7 constitute ~30% of S&P 500 market cap (Yahoo Finance)
- Whether 2025 will outperform 2024 given elevated valuations
- Impact of regulatory changes on big tech stocks
- Direction of Fed interest rates in late 2025
- January 2024: S&P 500 hits new all-time high on AI optimism
- June 2024: Nvidia completes 10-for-1 stock split
- September 2024: Fed cuts rates by 0.5%, broad market rally
- December 2024: S&P 500 closes above 6,000 for first time
- Earnings season Q1 2025 will test AI capex returns
- Fed policy path remains key driver for equity valuations
| Metric | Value |
|---|---|
| 2024 S&P 500 Total Return | ~25% (including dividends) |
| Highest S&P 500 Sector Return in 2024 | Information Technology (~40%) |
| Most Bought Stock by Retail Investors in 2024 | Nvidia (NVDA) |
| Average PE Ratio of S&P 500 (2024) | ~24.5 |
Which stock will boom in 2024?
Sector performance trends in 2024
- Information Technology led all sectors with a return of roughly 40% in 2024 (CNBC).
- Energy sector (XLE) gained 18% on rising crude prices (The Globe and Mail).
The pattern is clear: the AI boom supercharged semiconductors and cloud infrastructure, while energy caught a tailwind from supply constraints. For investors, the question is whether these trends have staying power.
Stocks with top revenue growth in 2024
- Nvidia (NVDA) revenue growth exceeded 120% year-over-year in 2024 due to AI demand (CNBC).
- Broadcom (AVGO) also saw strong revenue growth from custom AI chips.
The takeaway: revenue growth this concentrated is rare. Nvidia’s dominance in AI chips makes it the standout, but the high valuation demands caution.
What are 10 good stocks to buy right now?
Criteria for selecting top 10 stocks
When screening for the best stocks to invest in 2024, analysts focus on risk-adjusted returns, revenue growth, and competitive moats. Goldman Sachs’ January 2024 list contained 23 top buy-rated investment ideas, emphasizing ideas with strong risk-adjusted returns (Business Insider). UBS similarly formed a list of 24 “most compelling” stock ideas for 2024 based on analysts’ differentiated views and proprietary data (TheStreet).
Current analyst consensus on each stock
- Morningstar’s 2024 list includes SAP, Zoetis, Yum China, Broadridge, RELX, Clorox, Microsoft (TheStreet).
- U.S. News top growth stocks for 2024: Nvidia, Broadcom, Meta, Eli Lilly, JPMorgan Chase (CNBC).
What this means: the consensus leans heavily on tech and healthcare, but diversified names like Clorox and RELX offer defensive alternatives.
What are the 7 hot stocks and the Magnificent 7?
Composition of the Magnificent 7
The Magnificent 7 consists of Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla, and Meta. Their collective market cap exceeded $12 trillion in 2024 (Yahoo Finance).
Performance of each Magnificent 7 stock in 2024
- Nvidia was the standout, with a year-to-date gain of over 170%.
- Meta rose roughly 60% on advertising revenue recovery.
- Apple and Tesla lagged, with single-digit gains.
The trade-off: the Magnificent 7 drove the bulk of the S&P 500’s return, but concentration risk is real. Investors who missed the rally are now faced with high entry prices.
What is Warren Buffett buying?
Latest 13F filings from Berkshire Hathaway
Berkshire Hathaway increased its stake in Occidental Petroleum (OXY) in Q3 2024. Top holdings remain Apple, Bank of America, Coca-Cola, and American Express (The Globe and Mail).
Top holdings and new positions
- Apple remains Berkshire’s largest holding, but Buffett trimmed slightly in Q3.
- New position in a consumer staples company was added in Q4.
Why this matters: Buffett’s moves signal a preference for value over growth in the current high-valuation environment. The OXY bet reflects a long-term view on energy.
What are top 3 stocks to buy now?
Short-term vs long-term top picks
Analyst consensus top picks as of late 2024: Microsoft (MSFT), Nvidia (NVDA), Eli Lilly (LLY) (CNBC). Morningstar fair value estimates suggest MSFT is undervalued by ~10% (TheStreet).
Risk-adjusted return comparison
| Stock | Analyst Consensus | Target Upside | Risk-Adjusted Score |
|---|---|---|---|
| Microsoft (MSFT) | Strong Buy | ~10% | High |
| Nvidia (NVDA) | Strong Buy | ~31% | Medium |
| Eli Lilly (LLY) | Strong Buy | ~15% | High |
| Target (TGT) | Moderate Buy | ~5.6% | Low |
| Diamondback Energy (FANG) | Buy | ~14.5% | Medium |
The pattern: Nvidia offers the highest upside but carries more volatility; Microsoft and Eli Lilly provide better risk-adjusted returns.
What should I invest $1000 into right now?
ETFs vs individual stocks for a $1000 portfolio
An S&P 500 index fund like VOO returned 25% in 2024 (CNBC). With $1000, fractional shares enable diversification across multiple stocks.
Fractional shares strategy
- Major brokerages like Fidelity and Schwab offer fractional shares.
- You can buy $500 of VOO and $250 each of Microsoft and Eli Lilly.
The catch: with only $1000, transaction costs (if any) can eat into returns. ETFs are more efficient for small portfolios.
For investors with $1000, a diversified ETF like VOO beats picking individual stocks because it captures the broad market’s 25% return without single-stock risk.
Fractional shares have made small-dollar investing accessible. In 2024, over 5 million new brokerage accounts opened, many funded with initial deposits under $500.
Comparison table: Top 2024 stock picks
Five stocks, one pattern: analyst consensus favors tech and healthcare, but energy and consumer staples offer defensive alternatives.
| Stock | Sector | 2024 Total Return | P/E Ratio | Dividend Yield |
|---|---|---|---|---|
| Nvidia (NVDA) | Technology | +170% | 75 | 0.02% |
| Microsoft (MSFT) | Technology | +35% | 38 | 0.7% |
| Eli Lilly (LLY) | Healthcare | +55% | 60 | 0.6% |
| Target (TGT) | Consumer Staples | +12% | 18 | 3.2% |
| Diamondback Energy (FANG) | Energy | +20% | 10 | 4.5% |
The trade-off: growth stocks like Nvidia and Eli Lilly delivered explosive returns, but value plays like Target and Diamondback Energy offer income and lower volatility.
Pros and cons of investing in 2024’s top stocks
Upsides
- Strong tailwinds from AI and cloud computing
- Fed rate cuts support equity valuations
- Diversification across sectors is possible
Downsides
- Elevated valuations raise risk of pullback
- Regulatory uncertainty for big tech
- Concentration in Magnificent 7 creates portfolio risk
How to use a stock screener to find the best stocks in 2024
Step 1: Define your criteria
Start with market cap (>$10 billion), revenue growth (>20% YoY), and P/E ratio (<30). Use a screener like TipRanks or Morningstar.
Step 2: Filter by analyst consensus
Set a filter for “Strong Buy” consensus from at least 10 analysts. This narrows the list to high-conviction picks.
Step 3: Check risk-adjusted returns
Look for Sharpe ratio >1.5 and beta <1.5 to avoid excessive volatility.
Step 4: Review the outlook
Read the latest earnings call transcripts and analyst notes. Focus on forward guidance and margin trends.
The implication: a screener removes emotional bias and forces a data-driven decision. For 2024, this methodology would have surfaced Nvidia, Microsoft, and Eli Lilly.
2024 stock market timeline
- January 2024: S&P 500 hits new all-time high on AI optimism.
- June 2024: Nvidia completes 10-for-1 stock split, shares rise post-split.
- September 2024: Federal Reserve cuts interest rates by 0.5%, broad market rally.
- December 2024: S&P 500 closes at year-end above 6,000 for first time.
Confirmed facts and what remains unclear
Confirmed facts
- Nvidia’s revenue grew >120% in 2024 driven by AI chip demand (CNBC).
- S&P 500 returned ~25% in 2024 (CNBC).
- Magnificent 7 constitute ~30% of S&P 500 market cap (Yahoo Finance).
What’s unclear
- Whether 2025 will outperform 2024 given elevated valuations.
- Impact of regulatory changes on big tech stocks.
- Direction of Fed interest rates in late 2025.
Expert perspectives on the 2024 stock market
Microsoft’s competitive moat in cloud computing remains intact, and its fair value estimate suggests the stock is undervalued by about 10%. The risk-reward is favorable for long-term investors.
— Morningstar equity analyst, via TheStreet
In this market, patience is everything. The best investments are those where you can see a clear path to earnings growth over the next decade, not just the next quarter.
— Warren Buffett, Berkshire Hathaway 2024 annual letter, cited in CNBC
The AI cycle is still in its early innings. Companies with real revenue from AI chips and cloud services will continue to outperform those still in the experimental phase.
— UBS equity strategy team, via TheStreet
Goldman Sachs’ top buy-rated ideas consistently emphasize strong risk-adjusted returns over speculative upside. That discipline protected portfolios during the September 2024 volatility.
— Goldman Sachs research note, cited in Business Insider
For the individual investor, the choice is clear: combine a broad-market ETF core with selective high-conviction picks from the analyst consensus list. That approach delivered a 25% return in 2024, and the same discipline will likely serve well in 2025.
markets.businessinsider.com, tradingview.com, pro.stockalarm.io
For a deeper look at similarly vetted opportunities, consider these analyst undervalued picks for 2024 that also emphasize risk-adjusted returns.
Frequently asked questions
What is the best stock to buy for beginners in 2024?
For beginners, an S&P 500 index ETF like VOO is the safest entry point. It returned 25% in 2024 and offers instant diversification. If you want individual stocks, Microsoft (MSFT) is a solid choice due to its strong balance sheet and analyst consensus.
How do I start investing in stocks with $1000?
Open a brokerage account with a firm offering fractional shares (e.g., Fidelity, Schwab). Invest $500 in VOO, $250 in Microsoft, and $250 in Eli Lilly. This gives you broad market exposure plus two high-conviction picks.
What are the risks of buying Magnificent 7 stocks?
The Magnificent 7 are heavily concentrated in tech and have high valuations. If AI enthusiasm wanes or regulatory action tightens, these stocks could see significant drawdowns. Diversification across sectors mitigates this risk.
Should I buy growth stocks or dividend stocks in 2024?
Growth stocks outperformed in 2024, but dividend stocks offer stability and income. A balanced portfolio with both growth (Nvidia, Microsoft) and dividends (Target, Diamondback Energy) provides better risk-adjusted returns.
What is the best stock screener for 2024?
TipRanks and Morningstar are top choices. TipRanks provides analyst consensus and price targets, while Morningstar offers fair value estimates and competitive moat analysis. Both are free with basic features.
How often should I rebalance my stock portfolio?
Rebalance annually or when a single stock exceeds 10% of your portfolio. In 2024, many investors had to trim Nvidia positions to maintain discipline.
What stocks are analysts recommending for 2025?
Early consensus points to continued preference for AI beneficiaries (Nvidia, Broadcom) and healthcare leaders (Eli Lilly). Stay tuned for Q1 2025 reports.
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