3 Stocks Set to Double: Your Fast Track to 2024 Gains

Stocks to buy

The stock market is soaring right now. It might seem too late to get in, given how far momentum stocks have already run up this year. However, there are still great opportunities if you know where to look. These are three quality stocks that have dropped sharply in recent months and are set for a big surge as things turn around. Looking for stocks set to double in 2024? Here are three to put on your watchlist today.

Endava (DAVA)

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Endava (NYSE:DAVA) is one of the three primary offshoring IT consultants worldwide. The business model, in short, is to hire engineers in countries such as Poland, Argentina and India with a lower labor cost than other markets. By using this workforce to fulfill IT contracts for Fortune 500 companies, there is a profitable arbitrage available.

Endava has tripled revenues in recent years and grown profitability tremendously as firms rushed to beef up their IT capabilities during the pandemic-induced e-commerce and remote work booms. As the economy normalized in 2023, however, demand leveled off and DAVA shares collapsed.

Despite a huge decline in the stock price the company reiterated a commitment to 20% annualized revenue growth going forward. The firm is heavily tied to the financials industry for clients and that has caused a bump in the road with the current banking industry troubles, but the long-term trend toward IT outsourcing isn’t going anywhere. I believe Endava shares could triple from here once the company returns to its long-term growth trajectory.

Evotec (EVO)

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Evotec (NASDAQ:EVO) is a German company in the life sciences space. It is a discovery company that helps with development of new clinical products and therapies. Evotec has partnerships with many of the world’s leading pharmaceutical companies and its pipeline covers a wide range of diseases and clinical targets.

Arguably the most compelling part of the company’s model comes from its multiple revenue streams from doing contractual research work for pharma companies. In many cases, it earns the right to a royalty on drugs that it helps research when they go on to obtain regulatory approval. In this way, Evotec can build a portfolio of FDA-approved drugs on which it earns an ongoing royalty stream once commercialized.

Evotec has already validated its business model, growing revenues from $425 million in 2018 to an estimated $1.0 billion for 2024. Shares have recently dropped 40%, creating a great entry point and once sentiment improves this stock has potential to double or more.

Sibanye Stillwater (SBSW)

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It’s been an oddly difficult year for precious metals mining firms. The price of gold has reached new all-time highs, yet gold miners are in a funk. Somehow, it’s even worse for platinum group miners such as Sibanye Stillwater (NYSE:SBSW). SBSW stock has lost roughly half its value over the past year.

That has come as demand for metals that it mines has slipped. Metals such as platinum, palladium, and rhodium are integral in the auto industry, and specifically in helping to lower emissions and make vehicles greener. While EVs had a rough year in 2023, the slump is bound to end sooner or later.

Sibanye Stillwater had remained profitable until recent quarters, and analysts expect it to return to profitability in 2025. However, shares are down 80% from prior highs and are near 5-year lows. This sets up the opportunity for this stock to double or more when conditions improve.

On the date of publication, Ian Bezek held a long position in DAVA stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek.

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