As we approach the second half of 2024, the stock market continues to thrive amid economic uncertainty. Despite this, there are a few equities that show promising potential for attracting buyers. Finbold has identified Mastercard and Costco stocks as two such equities that could reach a market cap of $500 billion.
Mastercard, a dominant player in the global payments industry, has demonstrated resilience and adaptability in the face of economic shifts. As digital payments become more prevalent, Mastercard has positioned itself as a leader in this transformation. The company’s stock has remained strong throughout the year, currently trading at $447.07 with a year-to-date gain of nearly 6%. This, combined with its projected earnings growth of 25.3% for 2024 (higher than the industry average of 17.1%), suggests that Mastercard has the potential to reach the $500 billion market cap. Additionally, its cash flow growth of 28.5% (above the industry average of 15.5%) further supports this potential.
Costco is also on track to achieve a $500 billion market cap in the second half of 2024. The company has seen a significant increase in its stock price, reflecting strong investor confidence. Costco’s successful financial performance, highlighted by its net sales of $58.52 billion and adjusted earnings of $3.78 per share in the fiscal third quarter, contributes to its potential for growth. Its business model, centered around providing high-quality products at competitive prices, has garnered a loyal customer base and fueled substantial growth. Costco’s global expansion, including new warehouses in China and Spain, taps into growing middle-class populations, further boosting revenue streams. Additionally, the possibility of a membership fee increase adds to the positive outlook for Costco’s stock.
Despite these strong fundamentals, the performance of these stocks will be influenced by the overall economic outlook. It is important to note that this article does not constitute investment advice, as investing always carries risks.
