Riding The Wave: Two Stocks Set To Thrive Despite 2024's Global Economic Chill
Portfolio Pulse from Aditi Ganguly
The Federal Reserve's aggressive monetary policy has reduced inflation and avoided a recession, with rate cuts expected in 2024. Despite global economic slowdown, Enphase Energy Inc. (ENPH) and Prologis Inc. (PLD) are anticipated to perform well. ENPH faced a revenue decline and EPS drop in Q3 but is expanding globally. Analysts predict a 10.9% CAGR in ENPH's EPS over five years. PLD saw a year-to-date increase of 17% and is expected to show stable growth with improved revenue and EPS estimates for Q1 2024.
December 29, 2023 | 6:00 pm
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POSITIVE IMPACT
Enphase Energy Inc. faced a significant stock price drop and revenue/EPS decline in 2023 but is expanding into new markets. Analysts predict a 10.9% EPS CAGR over the next five years, with a positive outlook from Jefferies Group and Mizuho Financial Group.
Enphase's global expansion and the expected decline in interest rates could lead to increased investment and growth in the renewable energy sector, potentially driving up ENPH's stock price in the short term.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Prologis Inc. has seen a 17% stock increase year to date and faces macroeconomic challenges. However, with expected rate cuts, analysts forecast a 13% revenue increase and a 16% EPS improvement for Q1 2024.
The anticipated rate cuts by the Fed could lower borrowing costs and stimulate growth in the logistics real estate sector, which may benefit PLD's financial performance and positively impact its stock price in the short term.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 85