Stocks to buy

3 Stocks to Buy Before They Become the Next Trillion-Dollar Companies in 2024

On October 24, the U.S. dollar strengthened against other currencies. Robust economic data showcased the U.S. economy’s strength relative to the United Kingdom and Europe. U.S. business output improved, manufacturing rebounded, and services activity increased while inflationary pressures eased. A rebounding economy means this is the last chance to purchase undervalued companies before they gain traction. Some of those undervalued companies can become the next trillion-dollar companies in 2024.

Chevron Corporation (CVX)

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Chevron Corporation (NYSE:CVX) is an American multinational energy company that specializes in gas and oil with activity in more than 180 countries.

CVX’s stock is down by 10% YTD. The analysts covering the stock are offering a 12-month price forecast with a median-high price of $184 to $215. Those forecasts represent a solid upside from the current price level of $155/share.

The energy industry is valued at $26.97 trillion and is expected to grow at a CAGR of 4.89% by 2028.

Chevron, owing to its significant size, enjoys several competitive advantages. These advantages facilitate a streamlined supply chain and cost-efficiency, ultimately optimizing its capital utilization. The recent conflict between Israel and Palestine is anticipated to cause a rise in gas prices. This development can lead to a proportional increase in oil prices, resulting in higher revenue for Chevron. 

Moreover, the company holds a unique position as one of the first gas companies to operate in Israel, and, at least during the ongoing conflict, it is unlikely to face significant competition in the Israeli market.

Overall, due to the escalation of the Israeli-Palestinian crisis, paired with the increasing demand for energy, CVX has the potential to become the next trillion-dollar company in 2024.

Accenture (ACN)

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Accenture (NYSE:ACN) is a professional services company that provides advice and solutions for businesses using IT SaaS and consultants. ACN stock is up by 9% year-to-date. Yahoo! Finance reports 20 analysts with a mean 1-year price target of $335.80, ranging from $280.00 to $390.00. 16 analysts rate Accenture as a buy or strong buy, with 7 rating the company as a strong buy

The global professional services industry is projected to grow at a 6.33% CAGR through 2028, from $64.77 billion to $88.03 billion. 

Accenture reported solid FYQ4 earnings, with revenue of $15.99 billion growing 4% YoY. The company achieved an EPS of $2.71 beating expectations by $0.08. Accenture also raised its quarterly dividend by 15%. The current quarterly dividend stands at $1.29 per share. Accenture generated an annual free cash flow of $9 billion. The company returned $7 billion of that cash flow to shareholders.

Accenture just completed its acquisition of Anser Advisory, an advisory and management company. This acquisition will help Accenture support clients such as local and state public sector organizations in completing large, long-term infrastructure projects. 

The company has also recently acquired MNEMO Mexico, which specializes in managed cybersecurity services. MNEMO Mexico’s strong client base will help Accenture expand its cybersecurity service capabilities in Latin America. Accenture also acquired On Service Group, a leading provider of business process services. This acquisition will strengthen Accenture’s management of process chains in insurance operations and expand Accenture’s reach in Germany. All three of these acquisitions show Accenture’s diverse strategy of expansion through acquisition.

Accenture has also hopped onto the artificial intelligence growth trend, with its SAP collaboration working to help organizations adopt generative AI solutions across their business processes. The company also announced its $3 billion investment in AI over three years.

Accenture’s strong long-term acquisition strategy and large investment in AI make it a strong international company whose stock is bound to skyrocket in 2024.

Mondee Holdings (MOND)

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Mondee Holdings (NASDAQ:MOND) is a travel technology company that is driving change in the leisure and corporate travel sectors through innovative solutions. The company’s platform processes over 50 million daily searches and generates a substantial transactional volume annually. It is worth noting that MOND stock IPO’d on July 19, 2022.

MOND stock is down 56% year-to-date, putting it in an attractive position for investors. Revenue in the Travel and Tourism market is projected to reach $854.70 billion in 2023 and is expected to grow at a 4.42% CAGR from 2023-2027 $1,016.00 billion by 2027.

Mondee boasts strong financials. Revenue for Q2 2023 increased 24.35% to $57.77 million, and EPS rose 66.67% in the last quarter. Additionally, total assets and short-term investments grew over 50%, paired with a 25.41% growth from cash from operations showing confidence and stability. 

Recently, Mondee has introduced a host of new customer-centric solutions, including the recent launch of the revolutionary AI trip planning tool, Abhi. This is the most powerful and only fully integrated personal AI travel assistant on the market. 

Abhi represents a revolutionary leap forward, acting as a personal travel companion dedicated to helping people plan amazing trips like never before. Using state-of-the-art AI technology, Abhi offers a suite of services that take care of the logistics so travelers can focus on enjoying the journey.

Accordingly, Yahoo Finance analysts rate MOND stock as a buy, as the average analyst target price is $11.40. This new AI tool primes MOND for an explosion in growth potential. The AI sector shows no signs of slowing down, and MOND is already ahead of the competition through its innovative AI planning tools and robust financials. 

On the date of publication, Michael Que 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.

The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.