The surge in mega-cap stocks, driven by the AI frenzy, has surpassed all expectations. Nvidia, Microsoft, Meta, Amazon, and Google have led this surge, prompting investors to hunt for the next big growth opportunity amidst steep price gains.
Despite this, breakout growth opportunities exist among mega-cap stocks, with several contenders racing towards the coveted $1 trillion market cap club. Here, we explore three major stocks that investors should keep a close watch on for potential investment opportunities in the second half of 2024.
Exploring Broadcom’s Growth Trajectory
Broadcom, a semiconductor giant based in San Jose, is a frontrunner in the global semiconductor market. The company designs, develops, and supplies a wide range of analog and digital integrated circuits. With a current market cap of $738.5 billion, Broadcom has demonstrated impressive growth in recent times.
Despite the challenging market conditions, Broadcom has shown resilience, with a notable YTD stock increase of 43.8% and a steady dividend yield of 1.32%. The company’s consistent dividend raises over the last 14 years indicate a commitment to rewarding shareholders.
Broadcom’s recent quarterly results have been remarkable, with revenue and earnings eclipsing estimates. Notably, the company reported a 43% year-over-year revenue growth to $12.49 billion in the fiscal second quarter.
Moreover, Broadcom’s long-term growth trajectory is robust, evident from its impressive revenue and EPS compound annual growth rates over the past decade. The company’s strategic focus on AI-related chips and custom ASICs positions them strongly in the evolving market landscape.
Assessing Tesla’s Market Position
Tesla, led by the visionary Elon Musk, is a pioneering force in the electric vehicle (EV) market. With a market cap of $629.6 billion, Tesla has been a key player in driving the transition to sustainable energy solutions.
While Tesla has faced challenges in the current market environment, including a 20.4% YTD stock decrease and recent disappointments in delivery and margin numbers, the company remains resilient with a focus on innovation and sustainability.
Tesla’s latest quarterly results showed a decline in revenue and earnings, reflecting ongoing market challenges. However, the company’s strong liquidity position, with a significant cash balance, provides a solid foundation for future growth.
Despite recent setbacks, Tesla’s market leadership in EVs and sustainable energy solutions remains intact, offering long-term growth prospects as the industry continues to evolve.
Revolution on Wheels: Tesla’s Electric Dreams and Eli Lilly’s Pharma Feats
A Cut Above the Rest: Tesla’s Electrifying Vision
Embarking on a journey of electric dreams, Tesla sets its sight on thrilling horizons. With a bold plan to unleash 20 million electric vehicles by 2030, the automaker sprints ahead, leaving even seasoned bulls astounded. Amidst the ruckus, Goldman Sachs shines a lone torch, illuminating Tesla’s path to glory with its optimism for a groundbreaking low-cost EV model. Priced at $25,000 to $30,000, this vehicle whispers promises of a surge in annual volumes that could shake the industry awake.
But that’s not all. Tesla’s dance in the autonomous driving arena dazzles with promise. A sector foreseen to blossom at a fiery 28.6% CAGR by 2032 is the playground where Tesla now leaps. Eyeballs widen as $1 billion gushes into AI infrastructure, nurturing the roots of dominance. Software and hardware whisper harmony, birthing self-driving cars and ride-hailing services. An AI symphony, tuned to the hum of real-world data, guides Tesla’s wheels to the future.
Tales of Tesla’s ascent echo in Wedbush’s symphony. Dan Ives, their analyst, paints a portrait of triumph. “The key to grasping a $1 trillion+ valuation lies in the embrace of Tesla’s autonomous and FSD vision,” he harmonizes. FSD v12.4 orchestrates a turning point, a crescendo of hope, as China’s FSD testing leaps to life.
Amidst the symphony, whispers of a “Hold” rating linger for Tesla’s stock. Shares pirouette beyond the average price target, lured by the siren song of a $310 Street-high aim. A dance of ratings unfolds – of 33 analysts, 9 whisper “Strong Buy,” 2 hum “Moderate Buy,” 15 chant “Hold,” and 7 sigh “Strong Sell.” The stock market, ever the theater of dreams, casts its spell.
In the Heart of Innovation: Eli Lilly’s Pharma Odyssey
A narrative of captivating discovery, Eli Lilly’s saga dates back to 1876. Nestled in Indianapolis, this global healthcare maestro orchestrates symphonies of medications for a legion of maladies. Oncology, diabetes, immunology, and neurology – realms where Lilly’s wand strikes magic. A market cap of $863.9 billion adorns the company’s crest.
LLY’s stock, a phoenix reborn, ascends 55.3% on a YTD pilgrimage, doubling across a solitary year. The tides of glory carry Lilly on their crest, fueled by blockbuster GLP-1 drugs – Mounjaro for diabetes and Zepbound for weight loss. Amidst the tale, a humble dividend yield of 0.57% recalls the company’s roots.
The latest quarter unfurls a tapestry of triumph. Revenues soar by 26%, ascending to $8.8 billion, while earnings flutter skywards by 59.3% to $2.58 per share. Beats resound in quarterly melodies, with EPS outshining expectations over five quarters. CAGR becomes Lilly’s mantra – revenue at 10.69% and EPS at 19.26% over five years, painting a portrait of resilience.
Tales of wealth unfurl as Lilly’s coffers brim. Net cash whispers tales of $1.17 billion, cradled in a $2.46 billion sanctuary of cash and equivalents. The pharma giant’s growth symphony thrums with hope. A new chapter dawns as Lilly’s treasure trove unveils wonders – Mounjaro’s dance with obesity and sleep apnea, a pas de deux of health and harmony. Donanemab pirouettes on the cusp of approval, a dance with destiny that outshines rival Leqembi, whispering promises of market supremacy.
Trails of promise beckon in Lilly’s horizon, with orforglipron for type 2 diabetes and retatrutide for weight loss. Analysts, the stargazers of Wall Street’s skies, blink a “Strong Buy” for LLY’s stock. The market’s pulse races ahead, eclipsing a mean price target of $832.18. A high of $1,023 casts shadows of anticipation, promising a 13% flutter from current realms. Out of 21 analysts, 18 chant “Strong Buy,” 1 dances “Moderate Buy,” while 2 whisper “Hold.” The orchestra plays on, Lilly’s melody in crescendo.