The stock market and bitcoin have soared to all-time highs since Donald Trump’s victory. Wall Street is betting that lower corporate taxes, less red tape, and other efforts will drive economic and stock market growth everywhere from technology and crypto to infrastructure and beyond.
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Wall Street is also pleased with the outlook for earnings growth and the Fed’s rate cut projections. Of course, near-term profit-taking would hardly be shocking considering the run the market has gone on over the last week and year.
Thankfully, the next dip should be bought up rather quickly since the November-January period is historically the most bullish stretch for the stock market.
Investors looking to add exposure to the stock market to close out 2024 might want to consider buying market-crushing stocks, fueled by impressive upward earnings revisions.
The two stocks we explore today—AppLovin and MasTec—have destroyed the S&P 500 over the last 12 months and earned Zacks Rank #1 (Strong Buys) following their beat-and-raise earnings reports.
APP stands to benefit from long-term growth across digital apps, boosted by artificial intelligence (AI). MTZ is expanding alongside the energy transition and infrastructure spending.
Is This AI-Boosted Stock a Buy After Soaring 620% in 2024?
AppLovin Corporation’s APP growing portfolio empowers companies and app developers to acquire and keep their ideal users, increase value across a customer’s lifecycle, measure their marketing and reach, and more. AppLovin’s machine learning and artificial intelligence (AI)-boosted technologies and offerings help its clients reach their target users in-app, on mobile devices, across CTV, and other critical areas.
AppLovin is thriving as customers flock to its offerings to succeed in the cut-throat world of digital apps where companies big and small fight for eyeballs, downloads, and screentime in our smartphone-obsessed world.
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AppLovin posted 17% revenue growth in 2023, following slightly higher 2022 sales and 93% revenue expansion in 2021. AppLovin posted another beat-and-raise quarter on November 6. Its adjusted earnings soared 316% YoY, with Software Platform revenue up 66% and total sales 39% higher.
APP’s FY25 earnings estimate skyrocketed from $4.16 a share before its Q3 release to $5.75 a share today, helping AppLovin earn its Zacks Rank #1 (Strong Buy). Plus, AppLovin’s earnings estimates skyrocketed 160% over the last year for FY24 and 250% for 2025.
AppLovin is expected to boost its EPS by 314% in 2024 and 42% next year. AppLovin is projected to grow its sales by 40% in 2024 and another 20% in 2025.
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AppLovin shares have skyrocketed 620% YTD and roughly 1,750% in the past two years to more than double Nvidia’s NVDA 800% and blow away digital ad powerhouse Meta’s META 410%.
APP will likely experience some profit-taking to help it cool down and recalibrate its valuation. Any pullback to AppLovin’s 21-day or 50-day moving averages could mark excellent buying opportunities.
Surging MasTec Stock is a Great Investment Across Key Megatrends
MasTec, Inc. MTZ is a leading U.S. infrastructure construction firm, with offerings spanning engineering, building, installation, maintenance, and upgrades. MasTec is growing alongside electrification, grid improvements and expansion, and other key long-term trends across the energy transition and infrastructure spending.
MasTec will also crucially benefit from the power-hungry AI boom. These broader megatrends are projected to continue under a second Trump term as the administration focuses on reshoring and more.
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MasTec reported a beat-and-raise third quarter on Halloween, closing the period with a record 18-month backlog of $13.9 billion, up $1.4 billion YoY. “The macrotrends in our end markets remain favorable and we will prioritize capital allocation to take advantage of opportunities for growth,” CFO Paul DiMarco said in prepared remarks.
MTZ posted 23% sales growth in 2023 and 2022, partially boosted by its Energy Alternatives, Inc. acquisition. The company is projected to boost revenue by 2% in 2024 and 9% next year.
MasTec’s FY24 and 2025 earnings estimates have surged 20% since its Q3 release, earning MTZ a Zacks Rank #1 (Strong Buy). MasTec is projected to grow its adjusted earnings by 84% in 2024 and 45% next year.
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MasTec stock has soared 1,600% in the past 20 years to blow away its highly-ranked Building Products - Heavy Construction industry’s 575% and the S&P 500’s 435%. MTZ broke out to fresh all-time in the last few months, driven by its 84% YTD surge.
Like APP, MasTec might run into a near-term speed bump following its rally. Investors should pay close attention to its 21-day. That said, MasTec still trades 9% below its average Zacks price target, and 11 of the 13 brokerage recommendations Zacks has are “Strong Buys.”
Free: 5 Stocks to Buy As Infrastructure Spending Soars
Trillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.
In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
MasTec, Inc. (MTZ) : Free Stock Analysis Report
AppLovin Corporation (APP) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
