13 Best NASDAQ Penny Stocks To Invest In

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In this article, we discuss 13 best NASDAQ penny stocks to invest in. If you want to skip our discussion on the stock market, head directly to 5 Best NASDAQ Penny Stocks To Invest In

Usually, when a bear market reaches its lowest point, like the United States stock market experienced in October 2022, it typically takes about a year of selling for retail investors to realize that they should be investing instead. Case in point, in November 2023, long-term flows into mutual funds and ETFs turned positive, according to Morgan Stanley’s latest report. The market is upbeat this year, as Wall Street expects the Federal Reserve to achieve a soft landing for the US economy in 2024, with slower growth but no recession, leading to potential interest rate cuts. Analysts predict improved corporate earnings growth for S&P 500 companies, with forecasts for the index's performance in 2024 ranging from 8% to 9%, slightly below its historical average.

Artificial intelligence remains a key investing theme for the year. The stock market concluded 2023 with strong performances, particularly in the NASDAQ composite, rebounding from the significant losses in 2022. The S&P 500 posted a robust 24.2% gain in 2023, more than double its historical average. While the market's first week in January this year experienced losses, historical precedent suggests optimism for the stock market in 2024 following a year with a 20%-plus annual gain. Key themes influencing stock performance include fluctuating Treasury yields, economic indicators, the impact of generative artificial intelligence, and the November election.

The fourth-quarter earnings season has begun with S&P 500 companies reporting a 1.4% year-over-year decline in earnings per share, potentially marking the fourth consecutive annual earnings decline in the past five quarters, according to Forbes. The communication services sector stood out with the highest earnings growth at 40.4%, while the energy sector experienced a 31.4% year-over-year drop, impacting overall growth. Analysts expect a rebound in earnings for the first half of 2024, projecting a 4.6% increase in the first quarter and a 9.4% growth in the second quarter. Despite stagnant fourth-quarter numbers, investors appear optimistic about strong earnings growth in 2024, although concerns about the already priced-in growth, particularly in the technology sector, have been raised. The S&P 500's forward price-to-earnings ratio is currently 20, above its 10-year average, leading to questions about the sustainability of the current market levels. Analysts anticipate further gains over the next 12 months, with a consensus S&P 500 price target suggesting an 8% upside from current levels.