3 actions that can help you get rich in 2024

Are you looking for new stock picks that will start paying off sooner rather than later? Finding good choices can be especially difficult in today’s environment. Not only is short-term stock performance difficult to predict, but we’re starting to see some economic red flags, such as rising unemployment and a recently inverted yield curve.

However, there are a small handful of stocks that could be considerably higher by the end of this year. In most cases, this is because their share prices have recently experienced exaggerated weakness. However, these three look promising at their current prices.

BigBear.ai

Most everyone agrees that we are now well into the commercial age of artificial intelligence (AI). Self-driving cars, interactive online platforms like ChatGPT and infrastructure optimization are just some of the practical AI-driven developments. Companies are increasingly using artificial intelligence tools to make their employees more productive.

But how exactly does an employee glean useful information from an employer’s mountains of data? They need an interface that understands exactly what the user would like to accomplish and a platform that can analyze that tons of information and respond to the request. It’s a tall order, but it’s an effort worth making. Precedence Research predicts that the enterprise AI software market will grow at an annual rate of 44% through 2032.

And the software that fills that order is just that BigBear.ai Holdings (BBAI -4.14%) offers.

BigBear describes its solutions as “a higher form of decisional intelligence.” That’s an apt description. From supply chains to security to digital identity management, BigBear can help businesses do things better. For example, it is now working with London’s Heathrow Airport on a project to help that massive transport hub operate more cost-effectively and safely. In May, BigBear teamed up with supply chain logistics consultancy Spinnaker, equipping it to help its customers in a more meaningful way. Each additional business customer, of course, translates into more revenue for BigBear.

That doesn’t mean its top-line growth is steady, nor is the company profitable. Both conditions are normal for a relatively new and relatively small company. But they can still lead to serious volatility in a share price. This is a big reason why BigBear.ai stock is currently down 90% from its early 2022 high.

However, the net sales stopped some time ago, and analysts covering the stock have an average 12-month price target of $3 per share. That’s nearly double BigBear’s current share price, setting the stage for a rally sooner rather than later.

Chipotle Mexican Grill

Yes, Chipotle Mexican Grill (CMG -0.52%) it just lost a longtime CEO who oversaw some of its best growth. Brian Niccol — who has been at the helm of the fast-casual chain since 2018 — was tapped this month to take on the role of CEO at Starbucks. Still well off its June peak, Chipotle shares were buoyed by the announcement and are still trading near that low.

It is arguable, however, that the market is overreacting to the news. Most investors seem to overlook the fact that what makes Chipotle such a great growth stock isn’t its leadership as much as its menu.

Don’t misunderstand. Niccol deserves a lot of credit for turning Chipotle Mexican Grill back into a quick-service champion. He took the helm at a time when the brand was still damaged by a series of incidents in which customers contracted foodborne illnesses such as norovirus at his restaurants. With or without these reputation-damaging missteps, the Tex-Mex restaurant chain felt a little flat after that.

Niccol reinvigorated the company with initiatives such as a rewards program, menu revisions such as the addition of carne asada, and a radical digitization of the chain’s operation. Sales growth has re-accelerated under his leadership and for good reason.

This is not one of those cases like the previous one Apple CEO Steve Jobs or former General Electric boss Jack Welch, however, where a high-profile CEO is virtually synonymous with — and inextricably linked to — the company. Chipotle will do just fine without Niccol at the helm, as his work will be left behind, providing lasting positive impact.

That doesn’t necessarily mean other investors are ready to suddenly change their minds about this company’s foreseeable future. Many investors are still in shock and may remain so for some time. The stock may reflect this shock for a while.

It won’t reflect it forever though. Better to get in now than hope to see any beer recovery in Chipotle’s stock price before it starts to get serious.

ASML Holding

ASML Holdinghis (ASML -3.81%) The stock’s current price of around $920 is more than 20% below the analyst consensus target of nearly $1,194, and the vast majority of analysts who cover the company still consider the stock a strong buy despite its recent weakness.

It’s not a last name. However, chances are good that someone in your household regularly uses products made by their equipment.

ASML builds equipment used to make computer chips. There are several technologies that can be used in chip manufacturing, but ASML’s core technology is undoubtedly the best of them: it is among the fastest, it is the cheapest, and most importantly, it is the best choice when it comes to manufacturing today’s highest performing chips. . ASML’s state-of-the-art tools use a technique called extreme ultraviolet (EUV) lithography — light-based masking that essentially sputters a semiconductor into existence.

Its systems are not cheap. The run rate for just one of ASML’s state-of-the-art chip manufacturing platforms is in the order of $370 million. Chip companies will surely hold off on buying more of this equipment at times when such large investments don’t make much financial sense relative to demand. ASML is also a frequent target of intellectual property theft and unlicensed use of its proprietary technology.

However, ASML in the Netherlands is quite resilient in the long term. There’s too much IP packed into its systems for rivals to copy easily, and there’s too high a barrier to entry for most potential competitors to drive it out of its leader’s market. ASML is estimated to control the vast majority of the EUV market.

There’s also no getting around the fact that his regular customers like them Intel and Qualcomm can’t pass up buying the latest and greatest lithography equipment when their competitors are paying for the most up-to-date versions of ASML technology.

The company is expected to deliver revenue growth of just over 4% this year. However, current macroeconomic challenges aside, analysts believe the sales growth rate will accelerate to 33% next year as we enter the era of AI-enabled mobile chips and the next phase of hub growth of data with artificial intelligence.