3 Stocks Poised to Join the Trillion-Dollar Club in 2024
The trillion-dollar club on Wall Street is an exclusive league, currently hosting Apple, Microsoft, Alphabet, Amazon, and Nvidia. However, 2024 might witness three more companies knocking on its door: Meta Platforms (META), Tesla (TSLA), and Berkshire Hathaway (BRK.A/BRK.B). Here’s a breakdown of what it would take for each to achieve this milestone.
1. Meta Platforms (META)
Current Market Cap: $822 billion
| Metrics | Values |
|---|---|
| Market Cap (Current) | $822 billion |
| Required Stock Price Increase | 22% |
| Estimated Stock Price (Target) | $400 (approximate) |
| Analyst Consensus (EPS) | $17.39 |
| Estimated P/E Ratio | 23 (reasonable expectation) |
Reasoning and Prediction: Meta Platforms’ resurgence, cost-cutting measures, and accelerated growth in digital advertising position it well for a potential stock price increase. The launch of Quest 3 mixed-reality headset and continued progress in AI, along with robust holiday season sales, could contribute to achieving the trillion-dollar valuation. The company’s advertising business remains a key factor. Predictions suggest that with an EPS of $17.39, a stock price of $400 is reasonable, yielding a P/E ratio of 23.
2. Tesla (TSLA)
Current Market Cap: $750 billion
| Metrics | Values |
|---|---|
| Market Cap (Current) | $750 billion |
| Required Stock Price Increase | 33% |
| Estimated Stock Price (Target) | $1,000 (approximate) |
Caution: Given the volatility of Tesla stock and challenges in the EV market, investors should brace for fluctuations, especially if EV prices continue to decline.
Reasoning and Prediction: Despite challenges in its underlying business, Tesla’s reputation as an AI leader places it strategically. The ongoing development of full self-driving technology, plans for a “robotaxi,” and the potential success of the Cybertruck contribute to its trillion-dollar aspirations. To reach this milestone, a 33% stock price increase is necessary, estimated to be around $1,000 per share.
3. Berkshire Hathaway (BRK.A/BRK.B)
Current Market Cap: $776 billion
| Metrics | Values |
|---|---|
| Market Cap (Current) | $776 billion |
| Required Stock Price Increase | 29% |
| Estimated Stock Price (Target) | $511 (approximate) |
Long-Term Value: With a history of achieving substantial gains, Berkshire Hathaway could potentially reach this milestone if stocks rally in 2024.
Reasoning and Prediction: As a conglomerate with a diverse portfolio, Berkshire Hathaway’s path to the trillion-dollar club is unique. The company’s performance is closely tied to economic growth, and an expanded earnings multiple in bull markets could propel it to the trillion-dollar mark. Requiring a 29% increase in share price, an estimated target of $511 is anticipated.
Conclusion:
Joining the trillion-dollar club is a testament to a company’s growth and market dominance. Each of these companies has unique strengths, from Meta’s focus on the metaverse and AI to Tesla’s position in the EV and AI sectors, and Berkshire Hathaway’s diversified portfolio. While challenges and market dynamics will influence their journey, these three stocks stand poised to make a significant impact in 2024. Investors should carefully monitor developments and market conditions for informed decision-making.
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