Top 8 Stocks to Consider for a $1,000 Investment in 2024

If you find yourself with an extra $1,000 and are looking to make it work for you, investing in the stock market can be a smart move. For those new to investing, starting with a low-cost option like the SPDR S&P 500 ETF Trust, which tracks the S&P 500, can provide a relatively low-risk entry point.

However, if you’re eager to build a diverse stock portfolio from the ground up, here are eight blue-chip stocks with “buy” ratings from the CFRA Research analyst team, making them attractive options for a $1,000 investment:

Apple Inc. (AAPL)

Overview: Apple, a tech giant, manufactures a range of popular products like the iPhone, iPad, Apple Watch, and Mac computers. The company also offers services through its App Store, Apple Music, iCloud, and licensing businesses.

Analyst Insight: Angelo Zino highlights Apple’s large, loyal customer base, stable free cash flows, and an aggressive capital return program that adds value for investors. He also emphasizes the company’s strong management team and pricing leverage, indicating potential profitability growth in the coming years.

CFRA Recommendation: A “buy” rating and a $210 price target for AAPL stock.

Microsoft Corp. (MSFT)

Overview: Microsoft, the world’s largest software company, is renowned for its Windows, Office, and Azure cloud services.

Analyst Insight: According to Zino, cloud-based versions of Microsoft’s Office, Teams, and Dynamics products are gaining traction, with artificial intelligence technology creating significant long-term growth opportunities. Cloud-based revenue now constitutes about two-thirds of total sales.

CFRA Recommendation: A “strong buy” rating and a $420 price target for MSFT stock.

Alphabet Inc. (GOOG, GOOGL)

Overview: Alphabet, one of the largest online search and advertising companies globally, is the parent company of Google and YouTube.

Analyst Insight: Zino notes Alphabet’s tremendous free cash flow and earnings potential, projecting annual revenue growth between 6% and 11% through at least 2025. The company can leverage AI technology for opportunities in cloud services, search, and YouTube.

CFRA Recommendation: A “buy” rating and a $157 price target for GOOGL stock.

Amazon.com Inc. (AMZN)

Overview: Amazon, a market leader in e-commerce and public cloud services, is recognized for its profitability and potential for unlocking additional efficiencies.

Analyst Insight: Sundaram highlights Amazon’s status as a highly profitable free-cash-flow machine, with opportunities for expansion in emerging markets and integration of automation technology. Wall Street analysts may be underestimating its long-term earnings potential.

CFRA Recommendation: A “buy” rating and a $180 price target for AMZN stock.

Nvidia Corp. (NVDA)

Overview: Nvidia specializes in high-end graphics and video processing chips used for personal computers, workstations, and advanced computing servers.

Analyst Insight: Zino views Nvidia as a significant beneficiary of the AI technology investment boom, with additional growth opportunities in software and services.

CFRA Recommendation: A “buy” rating and a $600 price target for NVDA stock.

Meta Platforms Inc. (META)

Overview: Meta Platforms, the owner of Facebook, Instagram, and other platforms, is a market leader in social media and online advertising.

Analyst Insight: Zino notes improving margins, an attractive valuation, and opportunities to enhance world-class platforms. He projects Meta generating at least $40 billion in free cash flow in 2024.

CFRA Recommendation: A “buy” rating and a $390 price target for META stock.

Tesla Inc. (TSLA)

Overview: Tesla, a leading U.S. electric vehicle manufacturer, is entering a growth phase with the rollout of the Cybertruck and new factories.

Analyst Insight: Nelson anticipates Tesla’s next growth phase, citing the Cybertruck rollout, new factories, and the company’s status as a major beneficiary of 2022’s Inflation Reduction Act EV subsidies.

CFRA Recommendation: A “buy” rating and a $300 price target for TSLA stock.

Eli Lilly and Co. (LLY)

Overview: Eli Lilly produces brand-name prescription drugs for various medical conditions, including diabetes, cancer, and neurological disorders.

Analyst Insight: Hardy highlights key catalysts ahead, such as late-stage therapies for Alzheimer’s disease, leukemia, lymphoma, obesity, and cardiology. Eli Lilly’s diversified key commercial drugs provide stability.

CFRA Recommendation: A “buy” rating and a $665 price target for LLY stock.

These stocks, with their respective analyses and CFRA recommendations, offer a diverse range of investment opportunities for those looking to make the most of a $1,000 investment in the stock market.

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