With a new investing year upon us, investors are on the hunt for the best bargain stocks to buy. Last year was certainly a great year for investing, making it even more pronounced to be extremely selective in 2024. There exists a class of companies that have been largely overlooked with the increased focus and attention on enterprise software and AI.
Despite improving financial results and business fundamentals, market conditions have made certain sectors less favorable. However, with profit taking in big tech underway, these bargain stocks hold the potential for substantial returns. This guide will provide valuable insights into companies that may present excellent value and growth in the first month of the new year.
Now, let’s unpack the three best bargain stocks to buy for January 2024!
NextEra Energy (NEE)
NextEra Energy (NYSE:NEE) is a captivating investment idea for January 2024. Standing as one of the largest energy companies in the world, NextEra has many exciting growth prospects ahead.
The renewable energy sector had seen a broad decline in 2023. Highest interest rates had a material impact on construction growth, driving down the scale of investment opportunities. However, with macroeconomic tensions slowly easing, 2024 could be a huge turnaround year.
NextEra is leading the decarbonization of the United States. power supply. More recently, the company added 3,245 megawatts of renewable energy and storage capacity. Their subsidiary, FPL, also plans to add more than 20,000 megawatts of solar capacity in the U.S. by 2032. The company projects adjusted EPS for FY23 in the $2.98-$3.13 range, reflecting approximately 45% YOY growth. This makes NextEra a great bargain stock to buy.
Deere & Company (DE)
Deere & Company (NYSE:DE) is one of the best bargain stocks for 2024. The company continues to deliver strong revenue and EPS growth, despite the ongoing supply chain headwinds and interest rate risk in the economy.
While the majority of the technology sector rose to unprecedented levels in 2023, infrastructure stocks have lagged behind. However, that isn’t necessarily because the companies are not seeing improved financial performance. In fact, it is the exact opposite making them even more compelling investment ideas for 2024.
In FY23, Deere saw record revenue of $61.25 billion, up 16.5% YOY. Additionally, the company delivered record EPS of $34.63 per share. Interest rates and supply chain constraints remained an issue, yet the company still raised their full year guidance multiple times throughout the year. With interest rates set to come down, Deere might be one of the best bargain stocks to consider for 2024.
Caterpillar (CAT)
Caterpillar (NYSE:CAT) closed off the 2023 year near record highs. Now even despite recession fears, growth is likely to accelerate in 2024.
Caterpillar is currently the world’s largest manufacturer of construction equipment. Over the last several years, the stock has provided its shareholders with market beating returns. It earned so much that the stock beat out the S&P 500 (NYSEARCA:SPY) returning an excess of 40% from 2019 to present.
This is for good reason, as management has delivered solid EPS growth while consistently returning cash to shareholders. However, investors should be even more impressed by the company’s recent Q3 financial results. Caterpillar revenue increased 12% YOY to $16.8 billion. Net income increased 37% YOY to $2.79 billion, or $5.45 per share. Growth was largely attributed to higher sales volume, and easing interest rate pressure could be a great sign for FY24.
On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.