In this article, we will take a look at the 8 Best Stocks to Buy for High Returns in 2024.

The broader market reached new record highs on October 11, driven by financial stocks posting stronger-than-expected quarterly results. Adding to investor optimism is the recent decline in U.S. inflation, which dropped to 2.4% in September, moving closer to the Federal Reserve’s 2% target. This has fueled hopes of a potential quarter-point rate cut at the Fed’s November meeting. As of October 16, the S&P 500 stood at 5842.47, only eight months after surpassing the 5,000 mark for the first time. Additionally, the September Consumer Price Index revealed a sharper-than-expected rise in consumer prices. However, Omair Sharif, president of Inflation Insights, told Yahoo Finance that while inflation data exceeded expectations, housing inflation is beginning to cool. He also noted a significant decline in food prices since the post-COVID surge, suggesting there are several positive trends to take away from the current market situation.

Adding to that, Carson Group’s chief market strategist, Ryan Detrick, believes the current bull market is still in its early stages, with more gains to come. However, he doesn’t foresee a repeat of the strong returns seen in 2023 and 2024, when the S&P 500 rose 24% and 22%, respectively. Instead, Detrick expects more moderate growth, noting that the average gain for stocks in the third year of a bull market is around 8%, aligning with the typical annual return.

Meanwhile, Jay Woods, chief global strategist at Freedom Capital Markets, highlighted that one of the most striking aspects of the current bull market is how few investors believed in it from the start:

“I think it’s important to preface it with when it started, no one believed it. They just thought it was a bear market rally. And then they doubted that it had legs, and then it was just seven stocks. And now, all of a sudden, it is powerful. And I think the momentum is continuing. You got the rate cycle, you got broadening out, we have wind at our sails, and this bull market should last at least another 12, maybe 18 months.”

On another front, strategists warn that future market gains will hinge on identifying sectors with strong earnings growth. As Artificial Intelligence becomes a key driver of market performance, attention will turn to its impact on profitability across various industries. UBS notes that October has historically been the most volatile month for tech stocks, with the Nasdaq 100 showing an average volatility of 26% in October over the past 40 years, compared to 22% in other months. Given the current geopolitical uncertainties and concerns around export controls, the bank anticipates increased volatility in tech stocks in the near term.

Our Methodology

To compile our list of the best stocks for high returns, we focused on some of the top companies in Insider Monkey’s database that have ana average analyst upside of at least 30%. These companies were then ranked based on their upside potential, in ascending order. We have also mentioned the number of hedge fund investors that held stakes within each company in the second quarter of 2024, out of a total of 912 hedge funds.

At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

8. Western Digital Corporation (NASDAQ:WDC)

Average Analyst Upside: 31.59%

Number of Hedge Fund Holders: 80

Western Digital Corporation (NASDAQ:WDC) specializes in data storage technology, offering products like Hard Disk Drives (HDDs), Solid State Drives (SSDs), and Flash Storage devices, along with cloud storage solutions.

On October 25, Goldman Sachs raised its price target for Western Digital Corporation (NASDAQ:WDC) from $72 to $81, while maintaining a Neutral rating. The firm highlighted Western Digital’s strong first-quarter fiscal performance, noting record non-GAAP gross margins of 38.1% in its HDD division. The company’s enterprise SSD (eSSD) segment also achieved sequential revenue growth, despite challenges in the NAND market.

Looking ahead to the second fiscal quarter ending in December, Western Digital Corporation (NASDAQ:WDC) offered an upbeat forecast. Strength in the Data Center segment, including Nearline HDD and eSSD, is expected to offset slower demand in the PC, smartphone, and consumer markets, which face ongoing inventory issues.

In the second quarter, 80 hedge funds tracked by Insider Monkey held positions in Western Digital Corporation (NASDAQ:WDC), with combined stakes totaling nearly $4.06 billion. As of June 30, Millennium Management emerged as the largest shareholder, with a position valued at approximately $379.71 million.

Parnassus Mid Cap Fund stated the following regarding Western Digital Corporation (NASDAQ:WDC) in its Q2 2024 investor letter:

“We re-initiated a position in Western Digital Corporation (NASDAQ:WDC), a manufacturer of memory semiconductor chips and hard disk drives, as we believe earnings expectations are far too low. Semiconductors have been another of our most-alpha-generative industries, thanks to the industry’s secular tailwinds and our in-house expertise. Western Digital stands to benefit from the rapid growth of memory-hungry AI applications. The valuation for Western Digital was low relative to its peers, giving us a way to participate in AI at a reasonable valuation.”

7. Merck & Co., Inc. (NYSE:MRK)

Average Analyst Upside: 32.02%

Number of Hedge Fund Holders: 96

Merck & Co., Inc. (NYSE:MRK), a leading American multinational pharmaceutical firm headquartered in Rahway, New Jersey, has a legacy rooted in the original Merck Group founded in Germany in 1668. Operating internationally under the name Merck Sharp & Dohme (MSD), Merck is renowned for its work in developing pharmaceuticals, vaccines, biologic therapies, and animal health products.

The company’s strong performance was evident in its Q2 2024 earnings, where it surpassed expectations with an EPS of $2.28, exceeding the anticipated $2.17. Total revenue reached $16.1 billion, marking a 7% increase year-over-year, with its human health segment up by 11%.

Barclays reaffirmed its Overweight rating and $140 price target for Merck & Co., Inc. (NYSE:MRK) on October 24, taking note of new data from Arcus Biosciences on its HIF-2α inhibitor, casdatifan. Arcus’s 34% objective response rate (ORR) is seen as competitive to Merck’s own cancer drug, Welireg. However, Merck’s lead is expected to hold, with combination data from its LITESPARK-011 trial expected in early 2026 and first-line data from LITESPARK-012 later that year.

In addition, Merck & Co., Inc. (NYSE:MRK) has received European Commission approval for two new KEYTRUDA regimens for specific gynecologic cancers based on Phase 3 trial results showing improved progression-free and overall survival rates. The company has also acquired Modifi Biosciences, a cancer therapy specialist, in a deal worth up to $1.3 billion to advance new therapies, including KL-50.

Insider Monkey data from Q2 2024 shows that 96 out of 912 hedge funds held shares of Merck & Co., Inc. (NYSE:MRK),

6. Micron Technology Inc. (NASDAQ:MU)

Average Analyst Upside: 37.37%

Number of Hedge Fund Holders: 120

Micron Technology Inc. (NASDAQ:MU) is a leading provider of memory and data storage solutions, including dynamic random-access memory (DRAM), flash memory, and solid-state drives (SSDs).

TD Cowen recently boosted Micron Technology’s price target to $135 from $115, maintaining a Buy rating on the stock. The firm’s optimism stems from the belief that the anticipated downturn in the memory market will be less severe than expected. Key upcoming milestones are likely to drive the stock’s momentum, including the qualification of Micron’s B100 series, the ramp-up of its 12H High Bandwidth Memory (HBM), and improved supply chain visibility projected for Q2 2025 in the PC and mobile markets.

In Q4 2024, Micron posted a net income of $887 million on $7.75 billion in revenue, a 93% jump from $4 billion in the same quarter last year. Non-GAAP earnings were $1.18 per share. For Q1 2025, Micron expects revenue to hit $8.7 billion, exceeding Wall Street’s projection of $8.21 billion.

As of Q2 2024, 120 hedge funds held stakes in Micron, with a total value of $5.2 billion.

Baird Chautauqua International and Global Growth Fund stated the following regarding Micron Technology, Inc. (NASDAQ:MU) in its Q3 2024 investor letter:

“After Micron Technology, Inc.’s (NASDAQ:MU) price appreciated 54% in 1H24, investors became anxious about potential memory weakness, less clear cyclical recovery pace, and whether competitor Samsung will act rationally with capacity expansion. We maintain our long-term positive view on the industry’s demand/supply situation. We believe Micron is well positioned in technology capability, and that its margins will continue to improve.”

5. Global Payments Inc. (NYSE:GPN)

Average Analyst Upside: 38.00%

Number of Hedge Fund Holders: 66

Global Payments Inc. (NYSE:GPN), a U.S.-based fintech company, delivers payment technology and software solutions across a vast global network of 4.6 million merchant accounts, 4,000 tech partners, and 1,500 financial institutions across more than 100 industries.

At its 2024 Investor Conference, Global Payments Inc. (NYSE:GPN) outlined its strategy for operational transformation and long-term value creation, including potential divestitures worth $500 million to $600 million in annual revenue to streamline operations and enhance profitability.

Moreover, the company reported solid Q2 2024 results, with GAAP revenue reaching $2.57 billion—a 5% year-over-year increase—and GAAP diluted earnings per share (EPS) rising 40% to $1.47.

On October 15, Baird reaffirmed its Outperform rating on Global Payments Inc. (NYSE:GPN) with a $150 price target. The firm expects Q3 EPS to meet projections, with a potential modest slowdown in the Merchant segment. However, currency exchange rates may provide a slight advantage. Baird also highlighted that future stock buybacks could be significant once Global Payments Inc. (NYSE:GPN) achieves a better leverage position.

As of Q2 2024, Insider Monkey’s database showed that 66 hedge funds held stakes in Global Payments Inc. (NYSE:GPN).

Parnassus Investments stated the following regarding Global Payments Inc. (NYSE:GPN) in its Q2 2024 investor letter:

“Global Payments Inc. (NYSE:GPN) stock fell on investor fears that a slowing economy could weigh on payment processing companies. The company will host an investor day focused on improving efficiencies and strategic redeployment of assets in the fall, which we believe will unlock hidden value in the undervalued shares.”

4. PDD Holdings Inc. (NASDAQ:PDD) 

Average Analyst Upside: 39.46%

Number of Hedge Fund Holders: 86

PDD Holdings Inc. (NASDAQ:PDD) is a global commerce conglomerate operating platforms like Pinduoduo and Temu. Pinduoduo offers a wide variety of products—from agricultural goods and apparel to electronics and personal care—while Temu serves as a digital marketplace connecting businesses with consumers.

The company posted robust financials, reporting total revenues of RMB 97 billion (RMB 1 ≈ US$0.14), reflecting an 86% year-over-year growth. GAAP operating profit grew significantly to RMB 32.6 billion, up from RMB 12.7 billion a year ago, while the company ended the quarter with a strong cash position of RMB 284.9 billion.

On October 9, CFRA adjusted its price target for PDD Holdings Inc. (NASDAQ:PDD), lowering it to $113 from $130 but maintaining a Buy rating. This revision reflects a reduced earnings valuation multiple, now at 8.0 times the projected 2025 EV/EBITDA, slightly below the industry peer median of 9.5 times. Despite the adjustment, PDD Holdings Inc. (NASDAQ:PDD) is projected to achieve 60% revenue growth in 2024, driven by its value-for-money focus appealing to cost-conscious consumers. In addition, growth is anticipated to moderate to 25% in 2025 as the company’s overseas expansion, currently spanning over 70 countries, stabilizes.

According to Insider Monkey’s Q2 data, hedge fund interest in PDD Holdings Inc. (NASDAQ:PDD) rose to 86 funds holding long positions, up from 76 the previous quarter. Rajiv Jain’s GQG Partners remains the largest shareholder, with 10.8 million shares valued at $1.43 billion.

Hayden Capital stated the following regarding PDD Holdings Inc. (NASDAQ:PDD) in its Q2 2024 investor letter:

“PDD Holdings Inc. (NASDAQ:PDD): A few weeks ago, Latepost (a leading Chinese technology news outlet) confirmed Pinduoduo’s online grocery initiative is solidly profitable (LINK). According to the article, Duoduo Grocery is able to achieve ~5% net profit margins in competitive markets (where they go up against Meituan Select). In non-competitive markets, they can achieve ~10 – 15% net margins.

The company doesn’t disclose the exact scale of Duoduo Grocery, but our calculations indicate it’s likely around ~RMB 300BN this year, and still growing in the double-digits. At that level, the division is likely contributing ~US $2.5BN in annual profits.

It’s an impressive result, but admittedly, not a huge needle-mover in light of the total $17.6BN net profits the company is expected to make this year (~14% of overall profits)…” (Click here to read the full text)

3. First Solar, Inc. (NASDAQ:FSLR)

Average Analyst Upside: 44.04%

Number of Hedge Fund Holders: 66

First Solar, Inc. (NASDAQ:FSLR), a leading U.S. solar company, supplies thin-film photovoltaic (PV) solar panels for large-scale power plants and has a robust backlog of 75.9 GW in bookings, stretching through 2030 and signaling long-term growth.

In Q2, First Solar, Inc. (NASDAQ:FSLR) reported a 24.7% revenue increase to $1.01 billion, with EBITDA surging 95% year-over-year to $470 million due to higher selling prices and improved gross margins, which reached an impressive 49.4%. The company is also patenting its TOPCon technology to boost solar panel efficiency, with expected royalty income providing an additional revenue stream. Projected earnings growth for 2024 is nearly 54.7%.

Roth/MKM maintained a Buy rating on First Solar, Inc. (NASDAQ:FSLR) in mid-October, but adjusted the price target from $320 to $280, citing near-term headwinds. The firm’s concerns include a slower bookings pace heading into Q3, the upcoming election’s uncertainty, risks of project delays, and potential volume and pricing challenges in India. Despite these obstacles, the Roth/MKM highlighted medium-term policy tailwinds favoring First Solar, Inc. (NASDAQ:FSLR), such as domestic content mandates, antidumping, and countervailing duties (AD/CVD) in solar energy.

As of Q2, hedge funds held $1.68 billion in the FSLR stock, with Citadel Investment Group as the largest shareholder, holding shares valued at $766.56 million.

2. Snowflake Inc. (NYSE:SNOW)

Average Analyst Upside: 46.65%

Number of Hedge Fund Holders: 69

Snowflake Inc. (NYSE:SNOW), based in Bozeman, Montana, offers a cloud-based data storage platform enabling seamless data analysis and low-latency access to shared data sets.

In Q2 of fiscal 2025, Snowflake Inc. (NYSE:SNOW) posted a strong 30% year-over-year increase in product revenue, reaching $829 million, prompting the company to raise its full-year product revenue outlook.

Following the company’s AI World Tour event, Citi reaffirmed its Buy rating and $200 price target for the stock. At the event, Snowflake Inc. (NYSE:SNOW) presented its AI Data Cloud services and introduced new offerings like Cortex AI, Dynamic Tables, Iceberg, and Polaris Catalog. Feedback, however, was mixed: enthusiasm was high for products like Polaris, and Iceberg, which recently became generally available, but their impact on performance remains in the early stages.

Snowflake’s AI features are also now used weekly by roughly 25% of its accounts, showing promising early adoption, though there’s still uncertainty about how this usage will drive consumption revenue.

As of Q2 2024, 69 hedge funds held stakes in Snowflake Inc. (NYSE:SNOW) totaling $3.49 billion, with Altimeter Capital Management leading as the largest shareholder, holding a $1.29 billion position.

Baron Funds, an investment management company, released its second-quarter 2024 investor letter. Here is what the fund said:

“Snowflake Inc. (NYSE:SNOW) is a leading cloud data platform that is predominantly used for data analytics. The stock declined 16.4% as investors evaluated the impact of a recently announced CEO transition, an investment cycle driven by spend on AI, a cybersecurity incident, and a rapidly changing competitive environment. With GenAI capturing a larger portion of the public discourse, Snowflake’s positioning in the future data stack is under scrutiny by both investors and customers. We believe Sridhar Ramaswamy, the newly appointed CEO, can help the business more efficiently transition toward an AI-first world. While Databricks and other key competitors are presenting strong results, we believe Snowflake’s brand, existing customer base, and accelerating product innovation should allow it to continue to capture share in a relatively large and strategic market. Management continues to describe strong demand trends for its core data analytics, which is also demonstrated by the relatively healthy expansion rates among existing customers while new go-to-market initiatives can help grow the customer base further. Longer term, we remain excited about the Snowflake’s strategic opportunity as the data platform for its customers.”

1. Jazz Pharmaceuticals plc (NASDAQ:JAZZ)

Average Analyst Upside: 57.71%

Number of Hedge Fund Holders: 44

Jazz Pharmaceuticals plc (NASDAQ:JAZZ), a biopharmaceutical company, focuses on developing and commercializing treatments in neuroscience and oncology, with involvement in medical marijuana as well.

In Q2 2024, Jazz Pharmaceuticals plc (NASDAQ:JAZZ) reported its highest-ever quarterly revenue, surpassing $1 billion. This record performance was primarily fueled by its key neuroscience drugs, Xywav and Epidiolex/Epidyolex. Xywav, used to treat narcolepsy and idiopathic hypersomnia, saw a 13% year-over-year increase in sales, while Epidiolex, for seizure conditions, grew sales by 22% year-over-year.

RBC Capital Markets raised its price target for Jazz Pharmaceuticals plc (NASDAQ:JAZZ) to $179 from $175, maintaining an Outperform rating. The increase reflects optimism about Jazz’s oncology drug zanidatamab, or “zani,” which is expected to be a significant growth driver. The upcoming PDUFA date of November 29 could also mark a key milestone, as zani seeks approval for second-line HER2-positive biliary tract cancer (BTC).

As of Q2 2024, 44 hedge funds held positions in Jazz Pharmaceuticals plc (NASDAQ:JAZZ), with Vestal Point Capital as the largest shareholder, holding 1.5 million shares valued at over $160 million.

Here’s what Mar Vista Investment Partners, LLC said about Meta Platforms, Inc. (NASDAQ:META) in its Q2 2024 investor letter:

“During the quarter, we established new investments in Broadcom and Meta Platforms, Inc. (NASDAQ:META). We previously divested from Meta during a period of stagnant advertising growth and the company’s initial, significant investment in the metaverse project. At that time, investors appeared complacent to the risks associated to an increasingly competitive landscape, and the Street’s robust financial expectations as the company transitioned towards monetizing short-format video (Reels). The subsequent decline in Meta’s stock price during 2022 reflected these concerns.

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