2024: Discovering the best stocks to invest in your portfolio

Identifying the best stocks to invest in requires more than just observing charts. It is necessary to understand the macroeconomic context, sectoral transformations, and the specific risks of each asset. In this guide, we explore the opportunities that 2024 presents to Brazilian investors, considering different time horizons and risk profiles.

The Context That Will Shape Investments in 2024

The current scenario results from decisions and events that have profoundly impacted the market. The Americanas crisis, with its hidden debts and governance issues, caused ripple effects throughout the national stock exchange and temporarily affected interest rates. However, Brazilian legislative reforms have sent positive signals: the fiscal framework and tax reform significantly improved the country’s international assessment.

Today, Brazil ends 2023 with declining interest rates, a stable real, and the IBovespa in a recovery movement. Internationally, the situation is more complex: US elections, geopolitical conflicts, and dollar volatility create a challenging environment for forecasts.

Sectoral Trends That Define Which Stocks Are Best to Invest In

Artificial Intelligence and Technology

The AI segment transcended the status of novelty in 2023. Tools like Bard and Copilot expand their implementation, while manufacturers like Samsung and Nvidia adapt their hardware to maximize performance in AI applications. Companies dominating these segments tend to capture significant value.

Oil and Raw Materials

International conflicts continue to pressure the supply of oil, iron, and agricultural commodities. For sector companies, this presents real opportunities for expanded margins, reflected in both dividends and stock appreciation.

Domestic Retail in Recovery

A combination of reduced interest rates, lower import volumes, and a weaker dollar creates a favorable environment for domestic commerce. Policies taxing international purchases reinforce this dynamic, harming only imported competition.

The Best Stocks for Those Seeking Long-Term Income

Investors with an extended horizon and focus on dividends find solid opportunities:

VALE3 leads the mining segment with consistent growth. Iron ore, its main product, maintains appreciation. Projections indicate a dividend yield approaching 8.5% by the end of 2024, reflecting the company’s operational strength.

TRPL4 (Isa Cteep) dominates the electric power concession sector with a market value exceeding 1 billion dollars. Its policy distributes at least 75% of net profit to shareholders, having accumulated a 12.76% dividend yield over the last 12 months.

BBAS3 (Banco do Brasil) combines patrimonial solidity with undeniable institutional presence. It manages over 1 trillion reais in resources. In the last quarter of 2023, it distributed 2.25 billion in dividends, with an annualized yield of 8.43%.

Small Caps: High Potential, High Risk

Small cap stocks (market between 250 million and 2 billion dollars) attract investors willing to take greater risks:

SMFT3 (Smart Fit) is the largest gym chain in Latin America with nearly 4 million clients. Despite this, it remains classified as small cap. Appreciation over 50% in 2023, plus a dividend of R$ 0.35 per common share.

RECV3 (PetroReconcavo) produces 35,000 barrels daily, positioning itself as a leader in the Brazilian oil and gas segment. Expected changes in Petrobras’s dividend policy could increase institutional interest in its shares.

FIQE3 (Unifique) expands regional dominance in telecommunications. Its acquisition of Vex at the end of 2023 consolidates presence in Santa Catarina and Rio Grande do Sul, signaling potential for additional growth.

Which Stocks Are Best for Short-Term Gains

Short-term strategies require extreme volatility tolerance and willingness to reposition the portfolio quickly:

MGLU3 (Magazine Luiza) has been off favorite lists for some time. However, expected recovery in the national retail sector could catalyze significant revaluation of its shares in the short term. Risk and reward go hand in hand.

BMOB3 (Bemobi) operates in B2B technology and communications since 2007, serving operators like Vivo, Tim, and Claro. Its services reach 34 million users. Listed on B3 in 2021, it experienced a strong correction, now offering potential for concentrated returns.

PRIO3 (PetroRio) explores territories ignored by large players. Since its entry on B3, it has shown continuous appreciation. Short-term investors can take advantage of this movement, provided they prepare for possible correction.

Building Your Investment Strategy

Deciding which stocks are best to invest in begins with self-discovery: what is your time horizon? What is your risk tolerance? What is your ultimate goal?

2024 offers opportunities on multiple fronts. Defensive stocks with robust dividends, small caps with explosion potential, and cyclical-sensitive shares all find their moments. Diversification permeates all smart strategies.

Use the analyses above as a research basis, but complement with additional reading on corporate governance, fundamental analysis, and risk management. The market rewards those who study and prepare themselves.