Kiplinger's 8 stocks to buy for 2024

Review of their recommendation

Kiplinger is an American publisher of business forecasts and personal finance advice. At the end of 2023, they have selected 8 stocks.

Without further ado, let’s dig in!

The list itself

Let’s begin with the list:

• Cadence Design Systems

• Coca-Cola

• Delta Air Lines

• Diamonback Energy

• Discover Financial Services

• Pfizer

• Thermo Fisher Scientific

• Vulcan Materials

Cadence Design Software

Expected growth: 12.0%

Net profit margin: 23.2%

ROE / ROCE / ROIC: 33.8% / 30.4% / 24.4%

PE24: 60.6x

FCF Yield: 2.37%

Dividend: none

Coca-Cola

Expected growth: 3.2%

Net profit margin: 24.1%

ROE / ROCE / ROIC: 47.2% / 21.2% / 16.3%

PE24: 22.0x

FCF Yield: 3.71%

Dividend: 3.08%

Delta Air Lines

Expected growth: 0.4%

Net profit margin: 5.8%

ROE / ROCE / ROIC: 51.2% / 12.0% / 7.2%

PE24: 6.4x

FCF Yield: 7.81%

Dividend: 0.41%

Diamonback Energy

Expected growth: 7.6%

Net profit margin: 37.5%

ROE / ROIC: 23.0% / 15.8%

PE24: 7.7x

FCF Yield: 9.82%

Dividend: 5.02%

Discover Financial Services

Expected growth: 5.2%

Net profit margin: 19.7%

ROE : 19.4%

PE24: 8.9x

FCF Yield: -

Dividend: 2.42%

Pfizer

Expected growth: 1.9%

Net profit margin: 6.5%

ROE / ROCE / ROIC: -9.7% / -5.7% / -5.5%

PE24: 18.2x

FCF Yield: 8.35%

Dividend: 5.62%

Thermo Fisher Scientific

Expected growth: 0.5%

Net profit margin: 14.2%

ROE / ROCE / ROIC: 15.4% / 10.4% / 9.0%

PE24: 33.6x

FCF Yield: 3.36%

Dividend: 0.26%

Vulcan Materials

Expected growth: 6.4%

Net profit margin: 11.6%

ROE / ROCE / ROIC: 15.1% / 12.1% / 9.8%

PE24: 28.2x

FCF Yield: 3.00%

Dividend: 0.77%

Overview on the picks for 2024

This is a diversified list of stocks. Some are of very high quality (Cadence Design Systems, for example), while others are discounted and await a rebound in 2024 (Pfizer).

While many are not part of my investable universe, the strategy is clear: play a rebound in sectors that should perform well in 2024 and be diversified to navigate a volatile environment.