2 Stocks That Could Double in 2024
With 2023 in the books, we now set our sights ahead to 2024. What type of market will it be? Will the bull market continue? Election years in the United States have been historically bullish so we could see this performance continue. But headwinds for the market include the up-only rally we saw over the last month and struggling economies around the world.
When choosing stocks that could double in 2024, I wanted to choose stocks that hadn’t already rallied much this year. These are laggards but they are still incredibly strong companies with undervalued stocks. The first one is obvious, but the second one may not be so much. Here are 2 stocks that I believe could double in 2024.
PayPal (NASDAQ: PYPL)
Is there a stock that is more despised right now than PayPal? The company has been the industry leader in online payment services for years and processes nearly $400 billion in payments per quarter. With 428 million active accounts and nearly 60 transactions per active account each quarter, don’t believe anyone that says nobody uses PayPal anymore.
The stock traded at more than $300 in 2021 and now trades at a fraction of that. I like PayPal because it’s often the brand and name associated with making online money transfers. It’s also not regional as it is accepted in most countries around the world, unlike Block’s (NYSE: SQ) Cash App. One sign that the stock is undervalued? The company continues to buy back its stock at this low valuation. While I don’t always go by valuation, PayPal is trading at about 11 times next year’s earnings and with a new CEO who is looking to improve efficiency and improve margins, I like PayPal’s chances of exceeding that valuation. I think this stock has the opportunity to double in 2024 and even more in the future.
SoFi (NASDAQ: SOFI)
Oh, SoFi. This stock has long been one of the favourites among value investors on social media. It also has a significant short interest and has the unfortunate reputation of being a former SPAC. But I still think SoFi is better than its other SPAC siblings, many of which have already been delisted from the markets.
It might not have felt like it, but SoFi gained more than 120% this year and the stock is still trading at less than $10. Deposit growth has been a strong indicator that SoFi is growing its customer base, even as the regional bank industry has struggled. Management also expects the company to be GAAP profitable as early as the first quarter of 2024. That is a massive step forward for a very speculative investment in a competitive banking industry.
Is there a downside risk for SoFi? Absolutely. The company is still competing against some of the largest legacy banks in the world. It also has a near 70% exposure to personal loans which could be an issue if we do enter into a recession at some point in 2024. But if you’re buying SoFi now, it’s for the long-term and I think it can be a winner. But first, I can definitely see the stock doubling from its current price in 2024.