Must watch stocks (December 2024)

Welcome to Your December 2024 Rankings for Stock Advisor

As always, our team has diligently analyzed the extensive list of stock recommendations within Stock Advisor to highlight the highest-conviction picks that we believe can outperform the market over the next five years.

1. MercadoLibre (NASDAQ: MELI)

   • MercadoLibre is an e-commerce platform operating in Latin America, similar to eBay and Amazon, including Mercado Pago (payment processor) and Mercado Envios (shipping network). It is the market leader in Brazil, the largest market for the company.

   • Recently, the stock price declined after a quarterly report indicated lower margins due to the impact of the financial lending segment.

   • Revenue has grown significantly in recent years, offering a buying opportunity for investors.

2. PayPal (NASDAQ: PYPL)

   • PayPal is on a recovery path under the new leadership of Alex Chriss, focusing on enhancing user experience and expanding its payment functionalities.

   • New features and partnerships with companies like Fiserv and Adyen are strengthening the competitive position of the company in the payments market.

   • The forecast is for continued growth in total payment volume, with the company currently generating around $422.6 billion per quarter.

3. DoorDash (NASDAQ: DASH)

   • DoorDash is expanding beyond food delivery to include a variety of new services such as gift deliveries, package deliveries, and gift cards for merchants.

   • The company has seen robust growth in order volume and revenue and is gaining market share in almost every international market it operates in.

   • The platform is well-positioned to increase cost efficiency as it scales.

4. Vertex Pharmaceuticals (NASDAQ: VRTX)

   • Vertex is known for its therapies for cystic fibrosis and is diversifying its portfolio to include treatments for other conditions such as neuropathic pain and kidney diseases.

   • Recently, the company reported a strong quarter with increased revenue and profit, and is advancing with new drugs in various stages of development.

   • The approval of a new triple-therapeutic drug for cystic fibrosis and new gene-editing therapies are expected in the coming months.

5. Grab Holdings (NASDAQ: GRAB)

   • Grab is a superapp offering a variety of services including transport, food delivery, financial services, and more, leading the market in several Southeast Asian countries.

   • With over 1,000 AI initiatives in operation, the company is enhancing service personalization and operational efficiency.

   • It is expanding its subscription offerings and focusing on user retention, which could sustain continued growth.

6. Tesla (NASDAQ: TSLA)

   • Tesla has seen a significant increase in stock price recently, driven by optimistic expectations for future growth.

   • The company is preparing to expand production, particularly with the launch of the Cybertruck. Although changes in EV tax credits could impact demand, Tesla is well-positioned to manage these changes due to its leadership in the EV market.

   • The Trump administration could have a positive impact on autonomous vehicle regulation, benefiting Tesla.

7. EMCOR Group (NYSE: EME)

   • EMCOR is one of the largest specialized contractors in the U.S., primarily working on data center construction and other industrial projects.

   • It benefits from government incentives and policies like the CHIPS and Science Act, which are promoting semiconductor production and other critical technologies in the U.S.

   • The company is seeing an increase in gross profit margin and operational profit margin as it expands its work base.

8. Doximity (NYSE: DOCS)

   • Doximity is a platform connecting healthcare professionals in the U.S., providing a network for information exchange and collaboration.

   • It has performed well financially recently, with significant growth in revenue and free cash flow.

   • Engagement among users is increasing, and the company is expanding its product offerings, which could sustain future growth.

9. Airbnb (NASDAQ: ABNB)

   • Airbnb continues to lead the alternative accommodation sector, connecting hosts with travelers around the world.

   • The company is expanding its unique experiences offerings and integrating with local destinations, as well as optimizing the platform to improve the user experience.

   • The return to pre-pandemic travel levels and expansion into new international markets have been promising for growth.

10. TransDigm Group (NYSE: TDG)

    • TransDigm is a global supplier of aerospace and defense components, specializing in electrical and electronic systems, mechanical components, and power systems.

    • The company holds a strong market position with long-term contracts and product diversification.

    • The increasing demand for aircraft components, driven by the global recovery in air traffic, should support future growth.

In Conclusion

Each of these stocks represents a unique opportunity for long-term market outperformance. Whether you're looking to diversify internationally with MercadoLibre and Grab or capitalize on sector-specific leaders like Vertex and EMCOR, these high-conviction picks offer robust growth potential for investors.