I’m always on the lookout for stocks to buy that can help take my portfolio to the next level.
In 2023, we saw many high profile stocks more than doubled in value. Just take Nvidia or Rolls-Royce (LSE:RR) as examples.
And, of course, we want to identify the stocks that could do the same in 2024.
The problem is, that’s often easier said than done. However, here are three stocks I could see doubling in value in 2024.
Rolls-Royce
It’s happened once, and it could happen again. Rolls-Royce still has excellent earnings metrics despite surging more than 220% over the past 12 months.
Moving forward, analysts expect to see earnings per share grow by 67.8% annually over the next three to five years.
Yes, there’s a low start point — the company has only just returned to profit after the pandemic, which caused untold damage to the civil aviation sector — but the forecasts are incredibly strong.
Rolls’s defence and power systems have been performing nicely over the past three years, and that’s likely to continue.
Some may suggest that Rolls is too dependent on the civil aviation sector, and will point to the pandemic as proof. But these are exceptional circumstances.
With a price-to-earnings growth (PEG) ratio of 0.55, Rolls could be undervalued by as much as half.
Lloyds
Lloyds (LSE:LLOY) might seem like an unusual pick.
However, with interest rates due to start falling slowly and the UK set to avoid a recession in 2024, the worst case scenario appears to be off the cards. Nonetheless, I appreciate the UK and Lloyds aren’t out of the woods just yet.
However, this is a big deal for Lloyds as risk had been weighing heavily on the share price.
In turn, we could see the growth forecast improve. In fact, analysts are forecasting a compound annual growth rate of 11.3% over the next three to five years.
One factor aiding this could be the bank’s hedging strategy. By buying bonds now, Lloyds is likely to create an interest rate tailwind throughout the medium term.
In turn, this also leads to a PEG ratio of 0.55, once again inferring that the stock could be undervalued by half.
Li Auto
Li Auto (NASDAQ:LI) is among the cheapest stocks globally when adjusted for growth. The stock has a PEG ratio of just 0.04.
Having turned a profit in 2023, the EV manufacturer is expected to see substantial earnings per share growth across the medium term.
While I recognise there are concerns about the Chinese economy, the company has strong offering.
The L9 — the firm’s latest car — is an impressive vehicle. The SUV comes with two electric engines and one petrol, delivering 1,100 kilometres of range.
It’s also competitively priced considering management think it offers luxury to rival Bentley and Rolls-Royce (the carmaker).
