Please note there will be no Five for Friday post on December 29th, 2023.
We preface the final Five for Friday of 2023 with our plans for this series in 2024. We are changing the theme to “Friday Favorites” to start the new year with a fresh concept.
We will spotlight a stock, sector, factor, or theme each Friday. The content may range from a fundamental or technical deep dive on a stock of interest. On occasion, we may run a scan or address a reader’s request.
Thank you for a great year at SimpleVisor—We wish you a Merry Christmas and a Happy New Year!
Technology and Communications led the markets higher in 2023. While betting on those sectors in 2024 may seem astute, we often find that last year’s winners give up the crown to a new sector or group of sectors.
So, which will be the sector du jour for 2024?
The graph below shows that the S&P company expects EPS growth for the healthcare sector to be 34.51%, almost 3x the S&P 500. The SimpleVisor graph below the EPS graph shows that healthcare stocks have underperformed the S&P 500 by over 20% this past year.
Might healthcare, with solid earnings forecasts and recently weak performance, be the industry of choice for 2024? While the argument makes sense, sense does not always dictate market returns. However, running a scan and having a list of healthcare stocks ready can’t hurt if the sector starts outperforming.
Company Summaries (all descriptions courtesy Zacks)
Bristol-Myers Squibb (BMY)
Quest Diagnostics (DGX)
Five for Friday
Five for Friday uses stock screens to produce five stocks that we expect will outperform if a particular investment theme plays out in the future. Investment themes may be relevant to the current or expected market, industry and/or economic trends. Investment themes may not always represent our current forecast.
This report is not a recommendation to buy or sell the named securities. We intend to elicit ideas about stocks meeting specific criteria and investment themes. Please read our disclosures carefully and do your own research before investing.
Michael Lebowitz, CFA is an Investment Analyst and Portfolio Manager for RIA Advisors. specializing in macroeconomic research, valuations, asset allocation, and risk management. RIA Contributing Editor and Research Director. CFA is an Investment Analyst and Portfolio Manager; Co-founder of 720 Global Research.