As the year comes to a close, it has become increasingly apparent that 2023 has been a tumultuous time for investors. Factors such as the impending U.S. presidential election, rising interest rates, and the buzz surrounding artificial intelligence have dominated the investing landscape. Looking ahead towards 2024, while macroeconomic conditions are predicted to improve slightly, uncertainties still loom—particularly with potential trade tensions between the U.S. and China and the challenges posed by inflated market valuations. Given this intricate backdrop, discerning which stocks possess the strength to tackle current pressures while exhibiting long-term growth potential is more crucial than ever. Below, we’ll explore three key stock picks recommended by analysts on TipRanks.
The first noteworthy stock is Salesforce (CRM), a leader in customer relationship management solutions. Recently, the firm announced optimistic guidance for the fourth quarter of fiscal 2025, highlighting the significance of their new suite of autonomous AI agents, Agentforce. The latest release, Agentforce 2.0, showcases numerous enhancements that analysts believe can catalyze Salesforce’s transformation.
Mizuho analyst Gregg Moskowitz has underscored the product’s impressive capabilities, which include improved integration with popular applications like Slack, Tableau, and MuleSoft, along with a more robust library of skills for effective customer service. The increase in paid deals from 200 in Q3 to over 1,000 demonstrates substantial traction in the marketplace, indicative of Agentforce’s potential as a game-changer for productivity and revenue generation. With Moskowitz maintaining a buy rating and setting a price target of $425, Salesforce is well-positioned to optimize processes for its extensive clientele, further solidifying its status as a top choice among investors.
Another top recommendation comes from Booking Holdings (BKNG), a key player in the online travel sector. Mizuho analyst James Lee has reiterated his buy rating while raising the price target from $5,400 to $6,000. This optimism stems from a favorable market analysis indicating robust room night growth across various regions, particularly in Europe and Asia, which are essential for BKNG’s recovery in the post-pandemic environment.
Lee’s predictions suggest an 8.2% growth in room nights for fiscal 2025, significantly exceeding the consensus estimate. When considering anticipated mid-teens growth in earnings before interest, taxes, depreciation, and amortization (EBITDA), the company is poised to offer attractive returns, especially with buyback strategies potentially boosting earnings growth by 20%. Analysts highlight Booking Holdings’ competitive edge, with its advanced digital marketing capabilities and expanding range of offerings in alternative accommodations. Given these strengths, along with the anticipated economic rebound in travel, BKNG is positioned as an appealing prospect for discerning investors.
Finally, DraftKings (DKNG), a prominent player in the sports betting and iGaming industry, presents a compelling investment opportunity. With operations established in 25 states and a thriving online presence in Canada, DraftKings has increasingly captured market attention. JPMorgan analyst Joseph Greff has named DKNG as one of the firm’s top picks in the gaming sector, reiterating a buy rating while raising the price target from $47 to $53.
Greff acknowledges DraftKings’ competitive position within a burgeoning market characterized by growing consumer interest and regulatory support. Expecting the company to achieve a remarkable 31% revenue growth in 2025, Greff advocates that this trajectory will be supported by strides in efficiency and margin expansion through controlled operating expenses. He emphasizes DraftKings’ formidable capabilities in product development and customer acquisition, which allow it to stand firm against both established and emerging competitors such as ESPN BET and Fanatics. With a likely favorable growth outlook for the coming years, DraftKings still possesses the tools necessary to deliver impressive returns to investors.
Navigating this fraught investment climate requires careful selection of stocks poised for resilience and growth. Salesforce stands out with its innovative AI capabilities, while Booking Holdings is positioned to capitalize on the recovery of the travel sector. Lastly, DraftKings remains a strong contender in the dynamic gaming and sports betting landscape. Each of these stocks reflects a deliberate strategy aimed at harnessing their respective industries’ opportunities, potentially offering investors a robust path forward as we transition into 2024. As always, thorough research and continued scrutiny of market conditions are essential for successful investing.