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4 stocks destined to make money
The first-quarter cryptocurrency rally, which saw Bitcoin (BTC) hit a new all-time high, has suddenly come to a halt. Bitcoin, which hit a record high of $73,750 on March 14, has seen a sharp decline since then.
In April, Bitcoin fell 3.9%, after gaining more than 67% in the first quarter. The decline can be attributed to a number of factors, most notably the recently concluded halving event, which occurs once every four years.
Additionally, markets remained volatile in April as rising inflation reignited fears that the Federal Reserve could keep interest rates higher for a longer period. High interest rates negatively impact growth assets such as technology stocks, consumer discretionary stocks and cryptocurrencies.
However, with the Bitcoin halving now over, there is widespread speculation that the reduced supply of Bitcoin will lead to a scarcity-driven price surge for the digital asset in the coming months.
Miners, who play a crucial role in validating and recording transactions, receive rewards from the Bitcoin network in the form of both block rewards and transaction fees. The halving event reduces the block reward by half, with the ultimate goal of limiting the total supply of Bitcoin to 21 million coins. As a result, the decrease in the rate of issuance of new Bitcoins typically leads to an increase in demand for the cryptocurrency, which in turn tends to increase its price.
It goes without saying that Bitcoin still has a lot of potential. Experts believe that the correction is over and that the cryptocurrency will resume its rally soon. Year to date, Bitcoin has rallied 39.3%. Additionally, markets tried to recover in May, following a sharp decline in US GDP and a contraction in manufacturing and services PMI, which raised hopes of multiple rate cuts this year.
Our choices
We have narrowed our search to four cryptocurrency-oriented stocks that have strong potential for 2024. Each of our picks has a Zacks Rank #1. 1 (Strong Buy), 2 (Buy) or 3 (Hold). you can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA Corporation NVDA is a major player in the semiconductor industry and has been one of the biggest success stories of 2023. As a leading designer of graphics processing units (GPUs), NVDA stock value tends to rise in a thriving cryptocurrency market . This is mainly due to the crucial role that GPUs play in data centers, artificial intelligence, and cryptocurrency mining or production.
NVIDIA’s forecast earnings growth rate for the current year is 84.7%. The Zacks Consensus Estimate for current-year earnings has improved 3.1% over the past 60 days. NVIDIA currently has a Zacks Rank of #1. 2.
The story continues
Coinbase Global, Inc. COIN offers financial infrastructure and technology to support the global cryptocurrency economy. COIN provides a primary financial account for consumers in the crypto space, a liquidity marketplace for institutional transactions of crypto assets, and technology and services for developers to build cryptocurrency-based applications and securely accept cryptocurrencies as payment.
Coinbase Global’s expected earnings growth rate for next year is 1,840.5%. The Zacks Consensus Estimate for current-year earnings has improved 402.1% over the past 60 days. Coinbase currently sports a Zacks Rank of #1. 1.
Interactive Brokers Group, Inc. IBKR is a global automated electronic broker. IBKR executes, processes and trades cryptocurrencies. IBKR’s commodity futures trading desk also offers clients the ability to trade cryptocurrency futures.
Interactive Brokers Group expects an expected earnings growth rate of 12.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6.9% over the past 60 days. IBKR currently carries a Zacks Rank #2.
Robinhood Markets, Inc.HOOD operates a financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds, options, gold and cryptocurrencies. HOOD buys and sells Bitcoin, Ethereum, Dogecoin and other cryptocurrencies using its Robinhood Crypto platform.
Robinhood Markets’ forecast earnings growth rate for the current year is 190.2%. The Zacks Consensus Estimate for current-year earnings has improved 175% over the past 60 days. Robinhood Markets currently has a Zacks Rank #2.
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Interactive Brokers Group, Inc. (IBKR) – Free Stock Analysis Report
NVIDIA Corporation (NVDA) – Free stock analysis report
Coinbase Global, Inc. (COIN) – Free stock analysis report
Robinhood Markets, Inc. (HOOD) – Free stock analysis report