Invest $1,000 in These 3 Promising Stocks for 2024

As we step into 2024, investors are keen to identify stocks that are poised for success. Despite the market's high expectations stemming from a stellar 2023, there are stocks available that offer significant growth potential at a reasonable cost. Below are three such stocks that should be on your radar for investment this year.

Taiwan Semiconductor

Taiwan Semiconductor (TSM), the largest contract chip maker globally, provides key components to tech giants like Nvidia, Apple, and AMD. This places TSMC in a prime position to capitalize on the surging demand for AI-related chips. According to company executives, AI chips are expected to grow from a mid-single-digit revenue share to mid-teens within five years.

The company's downturn in chip production during 2023 is nearing its end. After facing a chip shortage followed by an oversupply because of decreased consumer demand, TSMC anticipates a rebound in 2024, which should lead to growth resurgence. With a trading price of less than 17 times 2024 earnings—well below its five-year average of 23 times earnings—TSMC is considered undervalued. Additionally, analysts project nearly a 20% increase in TSMC's revenue in 2024, indicating a strong potential for a breakout year.

Procore

Emulating the success of leading software-as-a-service (SaaS) companies, Procore (PCOR) offers a unique opportunity within the construction sector. Not long ago, construction sites lacked the technology for online management, leading to inefficiency and delay. Procore's construction management software, however, streamlines processes by creating a central hub for project information, which helps prevent expensive rework and keeps projects within budget.

With a history of robust growth, including a 33% increase in Q3, Procore is trading at just 11 times sales. This presents an attractive investment opportunity in a company that's set to experience significant growth in 2024 and beyond.

dLocal

dLocal (DLO) addresses a niche problem faced by businesses aiming to penetrate emerging markets such as India and Egypt, which typically lack extensive credit card networks. dLocal's payment solutions simplify international expansion for businesses by allowing them to tap into new markets with minimal effort. An impressive clientele, including Amazon, Shopify, Spotify, and Nike, underscores the value of dLocal's services.

With a staggering 69% increase in total processed volume and a 47% revenue jump in Q3, dLocal stands out as a net profitable entity with a solid 25% profit margin. Moreover, its trading price at less than 23 times 2024 estimated earnings presents it as an undervalued stock. By investing in dLocal now, you could potentially reap significant market-beating returns.

investing, stocks, growth