If the FTSE 100 booms in 2024, I think these stocks could lead the charge

Although these two FTSE 100 stocks have already performed well, operational progress could easily drive them higher in 2024.

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The FTSE 100 looks set to blast through 8,000 in 2024. Markets have turned bullish and plenty of commentators are predicting the index will likely reach new highs soon.

As I write on 2 January, the Footsie’s near 7,753, so it’s close!

Meanwhile, top stock traders have often spoken favourably of markets making new highs. Whether we are talking entire markets, indices or stocks, research has shown that trending markets hitting new highs tend to keep going.

A long-awaited bull market?

So we could see a FTSE 100 and general stock market boom unfold during 2024. And long-suffering investors certainly deserve one.

Throughout 2023, I’ve been tuned-in to the commentary and musings of some of the top stock traders and investors operating today. And the consensus of opinion seems to be that the past four years have been tough for making a profit from stocks and shares.

There have been plenty of general economic and geopolitical challenges leading to see-sawing price action.

In many cases, it’s been the most difficult period those skilled operators have ever seen in their investing lifetimes.

That likely means any private investor who has been active in the period has done well to hold onto their capital. And anyone turning a decent overall profit deserves a double pat on the back!

However, tough times and experiences can make us stronger. So the lessons learned could have set up investors well for the future.

If we are to see a bull market gain traction during 2024, the opportunity for well-prepared investors could be huge. Although it’s worth bearing in mind that positive expectations can easily be thwarted by events.

Operational momentum

Nevertheless, I think leading FTSE 100 stocks that are already trending higher will have a fair chance of continuing their moves through 2024. For example, power and propulsion systems provider Rolls-Royce Holdings is in the middle of a vibrant turnaround and growth phase.

The business is doing well and the good news seems to keep on coming. However, near 304p, the share price is already about 340% up from its low last October. And the valuation looks fair rather than cheap. So although the outlook is encouraging for the business, there are risks to consider. And any operational setback encountered by the firm could send the stock lower.

It’s a similar situation with retailer Marks & Spencer. After years of false dawns, the current turnaround and growth performance of the business looks like it has legs.

City analysts predict double-digit percentage advances in earnings through to 2025. And it’s possible for that improving trend to continue in the years beyond that.

However, at 279p, the share price is just over 150% higher than its lows of last October and the valuation looks like it’s up with events for the time being.

Nevertheless, operational progress and momentum could easily drive these two stocks higher and they could be among the front-runners of any FTSE 100 boom in 2024.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Kevin Godbold has positions in Marks And Spencer Group Plc. The Motley Fool UK has recommended Rolls-Royce Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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