As 2024 unfolds, the investment world turns its eyes to the next potential trillion-dollar stocks. This prestigious club, currently home to six corporate titans, is a testament to market dominance. Moreover, these businesses are the beacons of economic success. Clearly, they are setting a high bar for entry into this exclusive group.
The backdrop for this ascension is a U.S. economy showcasing robust health. Ending 2023 on a high note, it boasts a healthy annualized growth rate of nearly 2.5%. The third quarter particularly shined, with growth accelerating to 5.2%, the highest since late 2021 and a jump from the previous 4.9% estimate. This impressive economic performance lays a promising foundation for corporate growth and expansion in the coming year.
Furthermore, in a more conducive stock market, a few companies emerge as strong candidates to reach the coveted trillion-dollar valuation. These frontrunners stand out with robust financials, market leadership, and innovative strategies, attracting investor attention.
Meta Platforms (META)
Meta Platforms (NASDAQ:META), known for its addictive social media products like Facebook, Instagram, and WhatsApp, is marching towards the trillion-dollar mark with aplomb. This year, Meta has redefined its focus, focusing its efforts on AI. Consequently, its efforts have borne fruit, resulting in over 170% increase in META stock’s price year to date (YTD). The company is cementing its status as a leading player in the sector.
Moreover, Meta’s third-quarter results are nothing short of extraordinary. The company highlights a staggering 168% increase in diluted earnings per share. Additionally, it has a robust 23% surge in revenue and an astounding 164% increase in net income.
Furthermore, Meta’s advertising sector saw a robust 23% increase to $33.6 billion. TipRanks analysts assigned a strong buy rating with a 13.54% upside and a current market cap of $861 billion. Thus, Meta is confidently advancing towards the trillion-dollar valuation, expected to be achieved by 2024.
UnitedHealth Group (UNH)
UnitedHealth Group (NYSE:UNH) charts a strong course in the healthcare market. Over the past six months, the company has notched a commendable 12.4% increase in its stock value. This underscores UNH’s ability to adapt and thrive in the dynamic healthcare sector.
Financially, the company’s recent quarter was a standout. It boasts a 14% surge in sales to $92.4 billion and a parallel increase in operating earnings to $8.5 billion. Additionally, UNH has integrated nearly 700,000 consumers into its commercial benefits services. So, this reflects the company’s robust operational efficiency.
Furthermore, UNH’s acquisition of Amedisys for $3.3 billion is a key move. It serves to enhance its capacity to cater to the needs of an aging population. This deal strengthens the company’s foothold in the in-home health and hospice care sector. Given the strong buy rating from TipRanks, with a 13% upside potential, UnitedHealth is well-positioned for continued growth. In fact, it might soon approach the trillion-dollar milestone.
Costco Wholesale (COST)
Costco Wholesale (NASDAQ:COST), a global retail juggernaut with a presence in eight countries, has been on an upward trajectory.
In 2022, its valuation stood at an impressive $21.2 trillion, and projections show growth to $41.3 trillion by 2030, driven by a solid 7.69% CAGR. This remarkable expansion is coupled with a 48.7% increase in its stock YTD. It underlines Costco’s position as a leading force in the retail sector.
The company’s financial performance in its latest quarter is impressive. It boasts a revenue of $57.8 billion, marking a 6.18% increase year over year (YOY). And, its net income and diluted earnings per standing come in at $1.59 billion and $3.58, respectively.
Additionally, Costco’s impressive growth trajectory owes much to its holiday season hustle. Enticing deals and price cuts have drawn customers. These propel Costco as an enticing proposition ahead. Also, its recent app revamp enhances user experience and reflects its adaptation to the latest market trends.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.