Stocks Poised for Growth in 2024: Mastercard, Louisiana-Pacific, and Coca-Cola
2024 is shaping up to be a year of potential growth for investors, especially those looking to follow in the footsteps of billionaire investor Warren Buffett. With Berkshire Hathaway’s holdings in mind, three Motley Fool contributors have identified three stocks that are poised for more gains in the coming year and beyond. Let’s take a closer look at why Mastercard, Louisiana-Pacific, and Coca-Cola are worth considering for your investment portfolio.
Mastercard (MA):
Mastercard has been a reliable growth stock, with Berkshire Hathaway holding a stake worth $1.7 billion in the company at the end of 2023. As one of the major credit card brands, Mastercard benefits from high margins on revenue without taking on credit risk. The stock has seen an 85% climb over the last five years, driven by consistent double-digit growth in revenue and earnings. With a focus on processing payments, Mastercard is well-positioned to benefit from the global economy’s growth. Wall Street is bullish on the company’s prospects, with earnings expected to grow about 16% per year. Trading within its historical average price-to-earnings (P/E) valuation range, Mastercard could potentially double in value within the next five years.
Louisiana-Pacific (LPX):
Louisiana-Pacific is the world’s largest producer of oriented strand board (OSB), a key component in home construction. The company has seen steady growth, with OSB sales jumping by 65% and total sales up 24% in a recent earnings report. Despite challenges in the home construction market, Louisiana-Pacific has forged new partnerships and trounced earnings estimates in the last two quarters. As the housing market potentially turns around with lower interest rates, Louisiana-Pacific could see further gains.
Coca-Cola (KO):
Coca-Cola has undergone significant changes in recent years, focusing on core brands like Coca-Cola, Sprite, and Minute Maid. Despite trailing the broader market, the company is generating growth organically and through brand innovation. With a diverse portfolio of beverages and a focus on global expansion, Coca-Cola is on track to surpass its record sales from 10 years ago. Trading close to its lowest P/E ratio in five years and yielding a 3% dividend, Coca-Cola is a solid investment option for those looking for long-term growth and stability.
In conclusion, these three stocks offer unique opportunities for investors looking to capitalize on potential gains in 2024 and beyond. With strong fundamentals, growth prospects, and the backing of Warren Buffett’s Berkshire Hathaway, Mastercard, Louisiana-Pacific, and Coca-Cola are worth considering for your investment portfolio.