LI - 3 Millionaire-Maker Stocks With More Potential Than Nvidia
2024-07-10 07:57:00 ET
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Thanks to Nvidia’s (NASDAQ: NVDA ) astronomical rise this year, high-potential stocks are on everyone’s minds.
NVIDIA’s stock outperformed the S&P 500 with a 166.1% gain in the last year, compared to 26.4%. NVIDIA stock is up 149.51% in 2024. The wider indexes concluded the first half positively, thanks to Nvidia and other AI performers.
Nvidia is helping maintain momentum. It recently introduced the next-generation Blackwell GPU architecture to improve AI speed and efficiency and executed a 10-for-1 stock split on June 7.
At CES 2024, NVIDIA introduced NVIDIA Omnacle for car setups and DRIVE for autonomous driving.
However, Nvidia’s 75x price-to-earnings is worse than 78% of 632 chip firms and far higher than its 10-year average of 45x. Other high-potential stocks may match Nvidia’s performance this year. Analysts appreciate these high-potential stocks because of their growth potential, and their upside is more than 30% in each instance.
Disney (DIS)
Disney ‘s (NYSE: DIS ) stock price has been erratic lately; it is currently $97, a 31.5% increase that supports its “Strong Buy” consensus recommendation.
Disney’s sales in the fiscal second quarter were below analyst projections , driving the current mood; this is the fourth time. A proxy fight headed by independent investor Nelson Peltz further tarnished the market mood .
But Bob Iger’s management won the proxy fight; investors reposed faith, and Disney+ and Hulu made a profit for the first time in Q2 , thus helping to offset the $18 million shortfall of the streaming operation from $659 million a year earlier.
By autumn 2025, ESPN wants to become a stand-alone, interactive digital destination with live events, studio programming and tailored features. Disney+ also performs well on Taylor Swift’s “The Eras Tour” and “Percy Jackson and the Olympians.”
CEO Bob Iger discussed the streaming company’s profitability for the quarter and said that all units covered by the streaming umbrella should aim to be profitable by Q4.
Additionally, Disney is working with Nike (NYSE: NKE ) on a sportswear collection, which is significant as Disney is canceling its Adidas contract.
Disney and Epic Games, owned by Tencent Holdings (OTCMKTS: TCEHY ), are creating a new Fortnite realm . This arrangement lets people play, watch, create and purchase Disney-related digital and physical items using Epic’s gaming platform.
Li Auto (LI)
Li Auto (NASDAQ: LI ) reported that it shipped 47,774 cars in June 2024, 46.7% more than in the same month last year. The company delivered 108,581 cars in the second quarter, 25.5% more than in the same time last year. Li Auto is now the leading Chinese new energy auto brand, delivering 822,345 cars.
The total income for the first quarter of 2024 was about $3.6 billion , 36.4% more than the first quarter of 2023. As of June, Li Auto had 497 shops and 421 repair centers in 148 towns in China. The company also has 614 supercharging stations and 2,726 charging stations, showing that it is even more dedicated to improving the infrastructure for EV users.
In March, Li Auto released and started sending out its high-tech lineup of top MPVs, the Li MEGA and the 2024 Li L series.
In April, Li Auto debuted its five-seat luxury family SUV, Li L6 SUV, at $34,500 . The debut has been greeted well; the stock price rose upon news release. In the cutthroat EV industry, this model is supposed to increase Li Auto’s market share. The L6 offers longer-range choices and more features to draw in a larger clientele.
Warner Bros (WBD)
Warner Bros Discovery (NASDAQ: WBD ) is down 39% this year as the stock market punished them for heavy debt and poor results. However, a revival is imminent. WBD’s average price objective is $12.50, and its consensus rating is “Moderate Buy.” Analysts see a 75.8% increase from $7.11.
WBD’s first-quarter 2024 sales were $9.96 billion, down 7% from last year. Warner Bros. earned over $90 million in positive EBITDA for the quarter. The company lost $966 million, including restructuring charges that will.
The company’s merger-era debt still plagues it. However, the quarter ended with $3.4 billion in cash, and WBD paid down $1.1 billion in debt. WBD bid to pay down outstanding debt.
WBD increased its ad-free Max streaming plan from $15.99 to $16.99. Media companies often change subscription prices. Max will extend to 29 European countries, and WBD promises its finest content yet. Notably, the ID series “Quiet on Set: The Dark Side of Kids TV” was Max and HBO Max’s third-best launch, showing its content is gaining traction. As WBD focuses on streaming, ad revenues have also accelerated.
In addition, recent box office hits include “Dune: Part Two” and “Godzilla vs. Kong: The New Empire,” with over $700 million made on “Dune: Part Two.” These successes at the box office, especially post-pandemic, further solidify WBD’s potential among high-potential stocks.
On the date of publication, Faizan Farooque 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 .
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.
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