Often labeled as risky and volatile, the stock market has also proven to be a powerful tool for generating long-term capital gains. The experiences of countless investors stand as a testament to this fact. Investing in stocks over the long term is a strategic move, as stocks have the potential to compound returns over time and create wealth, especially when dividends are reinvested.
Despite the major losses suffered by many growth stocks in 2022, the resilience of the market was evident in 2023. Growth stocks rebounded, outpacing the overall market and remaining dominant through the first half of 2024. This resilience suggests that there may be room for them to continue outperforming, offering hope for the future.
What are US Stocks?
U.S. stocks are public equity securities of companies based in the United States or those that generate a remarkable portion of their revenue in the U.S. They are listed and traded on the NYSE and the Nasdaq, among others. By holding a U.S. stock, investors own a portion of the underlying company, providing them access to U.S. corporations’ financial activity and value.
U.S. stocks form a widely favored investment choice due to offering a share in the world’s largest economy and business innovation driven by U.S. companies. For individual investors, venturing into a portfolio of diversified U.S. stocks is an effective way to accrue wealth over the long term and gain exposure to the online potential of the American public market.
Why Invest in Top US Stocks?
Investing in the top U.S. stocks can offer several compelling benefits for investors:
1. Access to Industry-Leading Corporations:
The U.S. stock market comprises the largest, most innovative, and most successful corporations in the world in many significant sectors, including technology, healthcare, finance, consumer goods, and more. Investing in the top U.S. stocks offers exposure to the industry leaders driving global trends and will be responsible for shaping the future.
2. Potential for Stronger Long-Term Returns:
U.S. stock market has produced healthy returns throughout history, outperforming other developed markets on average. The S&P 500, which tracks the performance of the largest publicly traded companies (500) in the US, has returned on average over 13% annually throughout the previous decade. It offers the potential to benefit as the top U.S. stocks set the pace for upward growth.
3. Diversification Benefits:
A commitment to U.S. stocks as part of a broader diversified investing strategy offers diversification benefits. Coastal assures consumers they are fully diversified because it can boost risk across multiple industries worldwide.
4. Liquidity and Transparency:
The U.S. stock market is the world’s most significant and liquid. Due to the overall market, investors can easily trade their positions and buy and sell holdings. Additionally, the U.S. stock market has a high level of transparency and regulation, which increases investors’ trust in their investments.
What To Look For When Buying Stocks
When buying stocks, it’s essential to do your research and consider the factors that can impact the performance of every company. Here’s what you need to watch out for:
1. Fundamentals: Start by researching the company’s financial statements, such as their revenue, earnings, profit margins and debt-to-equity ratio. Figures like these help you determine the company’s overall economic health and whether its stock is a worthwhile investment.
2. Understanding Trends: Research reports, news, and analyst predictions can provide insights into where the industry is heading, empowering you to make informed investment decisions.
3. Management: The experience and track record of a company’s management team can significantly impact its success. Look at their history of decision-making, leadership and overall strategy.
4. Competitive advantage: Look for companies with a competitive advantage over their peers, such as strong brand recognition or unique intellectual property. This can give them an edge in the market and help the stock sustain appreciation and dividend payouts over time.
5. Valuation: Assess whether a stock is overvalued or not compared to similar companies in the industry. You can use metrics like price-to-earnings ratio, price-to-sales ratio and the price-to-book ratio to help determine the stock’s valuation.
6. Dividend yield: Always look for stocks that offer a decent dividend yield; dividend payments can, over time, make up a significant part of your return on investment.
7. Risks: Every investment comes with risks, and you need to assess the risks associated with the stock you might purchase. Look at factors like the company’s debt level, overall industry volatility, and geopolitical risks that could impact the company’s performance.
Other Than Stocks, There Are Various Types of Investment in the Stock Market.
What is a Growth Stock?
It’s not just a stock that’s going up. Growth stocks are stocks that increase their profits faster than the average business in their industry or the market as a whole. They’re the ones that are really making waves, developing innovative products or services that are gaining share in existing stock markets, entering new markets, or even creating entirely new industries.
Unlike value stocks, high-growth stocks are more expensive than the average in terms of profitability ratios, such as price-to-sales, price-to-earnings, and price-to-free-cash-flow. Despite their premium price tags, the top growth stocks can deliver fortune-creating returns to investors when they fulfill their tremendous growth potential.
How To Start Investing in Stocks Today?
If you want to start investing in stocks today, the key is to know how to start investing—period.
The first step in solving that puzzle is to create your investment plan. That requires you to answer three questions. First, what are your financial goals? Second, how much time do you have to achieve those goals? Third, how much anxiety in your portfolio can you stomach along the way?
So, how much risk can you handle? That’s what we call your risk tolerance. It’s like a measure of how much anxiety you can stomach in your portfolio. It can be low, moderate or high, and it might indicate how much of your portfolio you want to dedicate to assets like stocks.
Investments tend to rise and fall over time. Some, like stocks, generally experience more significant ups and downs than investments like bonds and cash.
Top US Stocks to invest in 2024
Hence, for Indian investors looking to get their feet in some of the most innovative and resilient companies globally, investing in the best U.S. stocks in 2024 appears to make an attractive candidate. In addition, their superior strength, solid business model, and financial performance suggest they are well-positioned for long-term expansion. This brings us to a more detailed assessment of the top U.S. stocks to invest in 2024.
| Company | Ticker | Stock Exchange | Share Price (USD) | 3-Year CAGR | Domain |
| Tesla | TSLA | NASDAQ | 260.40 | 31% | Automotive |
| Shopify | SHOP | NYSE | 64.76 | 24% | E-commerce |
| Apple Inc | AAPL | NASDAQ | 234.40 | 11.8% | Information Technology |
| Block | SQ | NYSE | 71.89 | 13% | Digital payments |
| Domino’s Pizza Inc | DPZ | NYSE | 483.03 | 3% | Food Industry |
| ETSY | ETSY | NASDAQ | 61.96 | 9% | E-commerce |
| NVIDIA | NVDA | NASDAQ | 127.93 | 54% | Semiconductors |
| Netflix | NFLX | NASDAQ | 656.73 | 8% | Streaming entertainment |
| Amazon | AMZN | NASDAQ | 191.08 | 10% | E-commerce and cloud computing |
| Oracle Corporation | ORCL | NYSE | 143.07 | 9.4% | Software Business |
| Meta Platforms | META | NASDAQ | 499.52 | 11% | Digital advertising |
| SALESFORCE.COM | CRM | NYSE | 253.55 | 15% | Cloud software |
| Roper Technologies Inc | ROP | NYSE | 559.15 | 15.4% | Software and engineered products |
| Alphabet | GOOGL | NASDAQ | 188.50 | 13% | Digital advertising |
Frequently Asked Questions
Q. Which U.S. stock is best to buy now?
Other than the ones mentioned above, here are the other good stocks to buy in 2024:
- Walt Disney Co. (DIS)
- PDD Holdings Inc. (PDD)
- Pimco 25+ Year Zero Coupon U.S. Treasury Index ETF (ZROZ)
- Match Group Inc. (MTCH)
- Grupo Aeroportuario del Sureste SAB de CV (ASR)
- Occidental Petroleum Corp. (OXY)
- Target Corp. (TGT)
- Citigroup Inc. (C)
Q. What are the top 3 stock markets in the U.S.?
Following are the top 3 stock markets in the United States:
- The S&P 500.
- The Dow Jones Industrial Average.
- The Nasdaq Composite Index.
Q. Should I invest in U.S. stocks?
Investing in U.S. stocks is a sound idea for Indian investors to gain access to the largest and most liquid stock market globally. However, investors must thoroughly research the companies, understand the risks involved, and diversify their investments to ensure maximum potential returns while mitigating them.
Q. Is Tesla stock a good buy?
Today, Tesla is trading at over 100 times its estimated 2024 earnings. Analysts estimate Tesla’s earnings will grow by an average of 22% annually for the next three to five years.
Q. How do you buy U.S. stocks in India?
How can I directly invest in foreign stocks from India? You can invest directly in the U.S. stock market by opening an overseas trading account with any domestic or foreign broker. Be mindful of the charges when you decide on the platform to invest in U.S. stocks.
Bottomline
Thanks to their strong business models and consistent financial performance, investing in top U.S. stocks offers significant long-term wealth potential. Despite market volatility, careful research into company fundamentals, industry trends, and valuations can guide informed decisions. The resurgence of growth stocks in recent years underscores the dynamic nature of the market.
As we move forward in 2024, companies like Tesla, Apple, and Amazon present compelling opportunities. By diversifying your portfolio and aligning investments with your financial goals and risk tolerance, you can capitalize on these opportunities and secure a prosperous economic future.
