5 Crypto-Centric Stocks to Buy for Stellar Returns in 2024
The cryptocurrency market is likely to remain buoyant in the last two months of this year. The space regained momentum in the first seven months after a disappointing 2022. However, the crypto market remained rangebound from mid-September to mid-October as market participants remain concerned about the Fed’s policy prescriptions.
U.S. stock markets have soared amid a clear indication from the Fed’s December FOMC meeting that the current interest rate hike cycle, which elevated the Fed fund rate to a 22-year high of 5.25-5.50% from 0-0.25% in March 2022, finally ended. Moreover, the December FOMC meeting dot-plot has shown that on average, Fed officials are expecting at least three rate cuts of 25 basis points each in 2024.
On Dec 14, the Atlanta Fed projected the U.S. GDP to grow by 2.6% in fourth-quarter 2023, a notable improvement from the 1.2% estimated on Dec 7. This eliminates the fear of a recession in 2024 thereby boosting investors’ confidence in a possible soft landing for the U.S. economy.
A lower interest rate regime will be very helpful for high-growth sectors like technology and cryptocurrency. Meanwhile, the largest thrust for the crypto space has come from institutional investors.
Speculation that the Securities and Exchange Commission is set to approve a Bitcoin exchange-traded fund has also raised investors’ optimism. A plethora of recent crypto industry legal victories is likely spurring investor confidence.
On Nov 30, the SEC called for public opinion on a proposed rule change that will allow Fidelity Investments, an asset management giant, to list and trade shares of the Fidelity Ethereum Fund.
As a result, prices of major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Dogecoin (DOGE) and BNB (BNB) are expected to remain buoyant in 2024. Last week, Bitcoin surged past the $44,000 mark and thereafter hovering around 42,000, for the first time since April 2022. This represents a year-over-year increase of 147% in the cryptocurrency’s value.
Our Top Picks
We have narrowed our search to five crypto-centric stocks with strong potential for 2024. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our five picks in the past three months.
Image Source: Zacks Investment Research
NVIDIA Corp. NVDA is a semiconductor industry giant and one of the biggest success stories of 2023. As a leading designer of graphic processing units (GPUs), the NVDA stock usually soars on a booming crypto market. This is because GPUs are pivotal to data centers, artificial intelligence, and the creation of crypto assets.
NVIDIA’s expected earnings growth rate for next year is 61.5 (ending January 2025). The Zacks Consensus Estimate for its nextt-year earnings has improved 18.4% over the last seven days.
Coinbase Global Inc. COIN provides financial infrastructure and technology for the crypto economy in the United States and internationally. COIN offers the primary financial account in the crypto space for consumers, a marketplace with a pool of liquidity for transacting in crypto assets for institutions; and technology and services that enable developers to build crypto-based applications and securely accept crypto assets as payment.
Coinbase Global has an expected earnings growth rate of 30.4% for next year. The Zacks Consensus Estimate for next-year earnings has improved 5.7% over the last seven days.
Block Inc. SQ is an online digital and mobile payment platform for consumers and merchants and is the parent company of Square and Cash App. The users of Cash App can buy, sell, send and receive Bitcoin. In addition, SQ’s decentralized tbd platform allows developers to build decentralized finance applications to run on programmable blockchains. SQ is also one of the largest Bitcoin investors.
Block has an expected earnings growth rate of 53.6% for next year. The Zacks Consensus Estimate for next-year earnings has improved 2.1% over the last 30 days.
Hut 8 Mining Corp. HUT has recently merged with US Bitcoin Corp to increase its total hash rate substantially. HUT aims to increase its total hash rate to 9.8 EH/s.
Hut 8 Mining has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the last 30 days.
Accenture plc ACN is a global system integrator that provides consulting, technology and other services, and markets Ethereum-based blockchain solutions to businesses to make it easier to process payments.
Accenture’s expected earnings growth rate for the current year is 4.6% (ending August 2024). The Zacks Consensus Estimate for its current-year earnings has improved by 0.1% over the last 30 days.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Accenture PLC (ACN) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Block, Inc. (SQ) : Free Stock Analysis Report
Coinbase Global, Inc. (COIN) : Free Stock Analysis Report
Hut 8 Corp. (HUT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Original: NVDA Feed: 5 Crypto-Centric Stocks to Buy for Stellar Returns in 2024