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The S&P 500 index has done well in 2023, rising by more than 24% in one of its best years in decades. This rally was mostly because of the less hawkish Federal Reserve and the robust demand for technology stocks.
The biggest gainers in the SPX index were all in the tech industry. They included the likes of Nvidia, Meta Platforms, Uber Technologies, Palo Alto Networks, and Tesla, among others. Cruise companies like Royal Caribbean and Carnival were also among the top movers.
Analysts believe that the S&P 500 index will do well in 2024. In a recent note, analysts at Goldman Sachs boosted their outlook for the index to $5,100, which is a 7% increase from the current level. They cited decelerating inflation, encouraging macro data, and Fed easing as potential catalysts.
There is a likelihood that many S&P 500 top performers will continue their bullish momentum in 2024. Another possibility is that some worst performers will turn around and bounce back. This article looks at some quality companies in the SPDR S&P 500 (SPY), iShares S&P 500 (IVV), and Vanguard S&P 500 (VOO) to buy.
IVV vs SPY vs VOO vs S&P 500 index
NextEra Energy
NextEra Energy (NYSE:NEE) stock price crashed by more than 26% in 2023 as concerns about the clean energy industry continued. The main issue is that high-interest rates were raising the cost of doing business. The situation worsened when NextEra Energy Partners (NEP) slashed dividend and lowered its outlook.
Still, there is a likelihood that NextEra share price will bounce back in 2024 as interest rates start falling. Indeed, the stock has already started crawling back and has risen by more than 31% from its lowest point in 2023.
It has already crossed the 50-day moving average and is about to move above the 200-day MA. Therefore, there is a likelihood that the stock will continue rising as buyers target the key resistance at $78.14, its highest point on April 21st.
Devon Energy
Devon Energy (NYSE:DVN) stock price crashed by over 25% in 2023 as energy prices retreated. Other top companies like Exxon, Chevron, and Occidental also dropped as energy prices fell.
Devon, which is a major oil producer that pumps over 315k barrels of oil per day, 150k barrels of natural gas liquids, and 1 billion cubic feet of natural gas. The firm has a strong market share in areas like Delaware, Eagle Ford, Anardako, and Powder River Basn.
The bullish case for Devon is based on the fact that I suspect that energy prices will recover in 2024. I also believe that it is one of the top acquisition contenders now that the industry is consolidating. Occidental acquired CrownRock while Exxon bought Pioneer Natural Resources.
Dollar General
Dollar General (NYSE:DG) stock price plummeted by over 47% in 2023 as the retail sector went through challenges. Inflation has been a major issue for Dollar General and Dollar Tree.
On the one hand, it has led to more demand from cash-strapped consumers. On the other hand, inflation has narrowed their margins since they tend to sell their products at a fixed price.
There are signs that the sector will improve in 2024 as inflation is set to continue falling during the year. In a note, an analyst at Goldman Sachs wrote that:
“As the supply chain continue to improve both on the macro front and internally at the company, we expect to naturally see better in-stocks and less cost headwinds as DG closes their temporary warehouses.”
The other beaten-down S&P 500 stocks to consider buying in 2024 are Etsy, Estee Lauder, Pfizer, and Bristol-Myers Squibb.
The post I’m buying these beaten-down SPY, IVV, and VOO ETF stocks in 2024 appeared first on Invezz
