3 stocks that could make a bull run before 2024 is out

Meta is also performing at a very high level, with revenue increasing 19% year over year and diluted earnings per share (EPS) increasing 37%. These are very high levels considering Meta’s size and demonstrate the strength of the company.

One area where it differs from Alphabet is its price tag, as it trades at 24.5 times forward earnings. This is essentially the same price as the S&P 500, but given how quickly Meta is growing earnings and revenue, it’s a cheap stock price.

Meta Platforms could see a further run-up before the end of the year. I think it’s also a great long-term investment.

ASML is very different from Alphabet and Meta. It doesn’t need to advertise and is the only company in the world that can build its extreme ultraviolet (EUV) lithography machines.

Semiconductor companies use these machines to put traces on chips at a microscopic level. Without ASML’s technology, there would not be the same computing capabilities as today, putting AI advances on hold.

Because ASML is the only company in the world with these capabilities, its machines are highly regulated and a growing number of them are increasingly banned from being sold to China and its allies. This is a problem because China accounted for almost 50% of sales in the third quarter.

However, this was an excessively large share compared to historical averages, and management expects the Chinese revenue share to decline to around 20% by 2025. This decline also affected ASML’s 2025 revenue outlook, as the company reduced its range from EUR 30 billion to EUR 40 billion. from 30 to 35 billion euros.

Investors were not happy with that news and sent shares plummeting after the publication. However, management was clear that the long-term growth picture was still intact and that this was just a bump in the road. The damage to the stock has already been done and it now trades at 33 times forward earnings.

While that may be expensive compared to the other two, it is the cheapest ASML shares have been in a long time. Moreover, ASML has no competition in this area. While the short term may be a bit bumpy, the long-term trend of consumers using more and more powerful chips is undeniable. As a result ASML is a fantastic buy before 2025.

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Suzanne Frey, a director at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, former director of market development and spokeswoman for Facebook and sister of Mark Zuckerberg, CEO of Meta Platforms, is a member of The Motley Fool’s board of directors. Keithen Drury has positions in ASML, Alphabet and Meta Platforms. The Motley Fool holds positions in and recommends ASML, Alphabet, Apple, Meta Platforms and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls to Microsoft and short January 2026 $405 calls to Microsoft. The Motley Fool has one disclosure policy.

3 stocks that could make a bull run before 2024 is out was originally published by The Motley Fool