Top Stock Investments for 2024: Analysis & Future Potential

TLDR; The video discusses stock investments for 2024, including VICI Properties, Netflix, Costco, S&P Global, and Canadian Pacific, highlighting their performance, catalysts, and future potential.

💼 VICI Properties Analysis

VICI Properties, a Real Estate Investment Trust, underperformed due to rising federal funds rate and competition from high-yield savings accounts.

The relative underperformance is attributed to multiple compression caused by higher interest rates.

Anticipates potential benefits if interest rates drop in 2024, resulting in a relative attractiveness of the company's yield compared to savings accounts.

🎬 Netflix's Strengths for 2024

Netflix raised prices intelligently, leading to a creative net benefit to their revenue.

Anticipates accelerated revenue growth and strong performance due to increased subscribers, ad tier growth, and resolved content-related issues.

Emphasizes the potential of the ad tier's growth and the company's consistent cash flow generation.

🛒 Costco's Resilience and Potential

Costco's consistent superior investment potential is highlighted despite its high PE ratio.

Explains the reasons behind Costco's seemingly high valuation and its unique business model compared to other retailers.

Anticipates potential future benefits from a long-overdue membership price increase and continued growth.

📈 S&P Global's Outlook

S&P Global's recent performance and future potential are discussed, including the impact of a major acquisition and its expected catalysts for growth in 2024.

Highlights the company's projected increase in free cash flow and a clear buyback program, indicating a strong future for the company.

🚂 Canadian Pacific's Prospects

Discusses Canadian Pacific's recent acquisition and its impact on stock performance, emphasizing the potential for future rewards for patient investors.

Anticipates reacceleration of earnings per share growth and revenue, along with flat or decreasing expenses, creating more operating leverage for the business.

Highlights the company's attractive valuations and aggressive projected free cash flow growth for the next 5 years.

⭐️ High Growth Expectations

Canadian Pacific's aggressive 20% annual free cash flow per share growth for the next 5 years aligns with their historical 19% average over the past 5 years.

Future projections are uncertain, but the CEO's trustworthiness and expertise from running railroads make the growth projection credible.

The company is high-quality, reasonably valued, and has competent and trustworthy management, setting it up for a great 2024.

📈 Follow-up and Subscription

The speaker shared their top five companies for 2024 and encourages feedback on favorites.

They will transparently show portfolio performance over time and urge viewers to subscribe for updates.