2 Stocks I’d Avoid in 2024 (And 1 I’d Buy!)

While these two stocks have fallen from grace, I would certainly consider this other top performer for 2024, if not far beyond.

| More on:
investment research

Image source: Getty Images

Canadian investors remain cautious about the market, and rightly so. The Federal Reserve in the United States continues to state that until inflation reaches 2%, interest rates won’t be cut. And it’s unlikely that the Bank of Canada will cut its own interest rates until the Fed does so as well.

With that in mind, it remains a relatively volatile place to invest in the markets. This is why right now, I would look at two industries and stocks to match that I would avoid for now. But don’t worry! I’ll then follow that up with one strong stock that’s bound to get stronger.

Tech stocks

Not all tech stocks are created equal, but those involved with retail are certainly likely to continue struggling. Companies in the e-commerce sector aren’t likely to improve by the leaps and bounds we saw in years past and are, therefore, best to avoid in 2024 for now.

Lightspeed Commerce (TSX:LSPD) stock has been struggling over the last few years, trying to move its share price past the $20 mark. Despite improving financials, the company has seen subscriber volume drop. And that’s been worrisome for investors.

Most recently, chief executive officer Dax DaSilva cut employees and is putting more effort towards a profit. Furthermore, he stated that Lightspeed stock wasn’t closed off to the idea of going private. So, until the dust settles and improvements are made, I would stay away from Lightspeed stock.

Oil and gas

Now, it’s true that oil and gas prices are rising at the pump. Yet this all comes from geopolitical tensions continuing around the world — not just in the Middle East but in Russia as well. This has put a strain on oil and gas, leading to a rise in the price of Brent crude oil, rising above US$90 recently per barrel as of last Friday.

However, I would still stay away from oil and gas stocks, even with these higher prices. That’s because this industry has proven that it continues to be quite volatile. And volatility is something we cannot afford this year. Though above them all, I would continue to avoid Enbridge (TSX:ENB).

Enbridge stock may have the stability of pipelines producing recurring revenue. But it simply cannot get past the fact that the world is transitioning to clean energy. Furthermore, environmental and social regulations are making it incredibly difficult to upgrade or create new pipelines. With the future uncertain, it’s no wonder shares have remained under $50 for years now. So, even with that 7.58% dividend yield, I’d avoid it for now.

Material winner!

With all that being said, I would consider one area of materials to be a huge winner in 2024 but far beyond as well. And that’s because of copper. Copper stocks have received attention as they passed the 14-month high last week per metric ton. This comes from supply shortages around the world.

Yet the rise in copper price and shortage has merely brought attention to the fact we need copper. This is why Lundin Mining (TSX:LUN) has done so well. Shares have surged from the copper producer, seeing record copper production during its most recent earnings.

Beyond that, Lundin is opening more mines that should bring in even more record-high production in 2024. So, while 2024 already looks great, and 2023 was great as well, Lundin stock is one company I would continue to invest in for 2024 and beyond.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has positions in Lightspeed Commerce. The Motley Fool recommends Enbridge and Lightspeed Commerce. The Motley Fool has a disclosure policy.

More on Stocks for Beginners

Profit dial turned up to maximum
Dividend Stocks

This 7% Dividend Stock on the TSX is Worth Watching

With this superb TSX stock now trading at the bottom of its 52-week range, it's certainly a dividend stock you'll…

Read more »

bulb idea thinking
Energy Stocks

This Stock Is Miles Ahead of Its Industry: Is It a Buy Now?

This stock has proven to be well worth the investment, especially at a time with increasing demand for clean energy…

Read more »

edit Colleagues chat over ketchup chips
Stocks for Beginners

3 Reasons NFI Stock Looks Like a Screaming Buy

NFI (TSX:NFI) stock has seen shares rise higher and higher, most recently after first-quarter earnings that saw its backlog swell.

Read more »

Bad apple with good apples
Dividend Stocks

Safe and Sound Stocks for Canadians: My Top 5 Choices

Want some of the best stocks for Canadians right now? Here's my top 5 list of stocks to buy today…

Read more »

stock data
Stocks for Beginners

1 Stock to Steer Clear of

TFI stock (TSX:TFII) has seen shares drop by 18% after earnings, but unfortunately it doesn't look like the first quarter…

Read more »

A bull outlined against a field
Stocks for Beginners

2 Top Bargain Stocks Ready for a Bull Run

These two top Canadian stocks look undervalued right now but might not remain cheap for very long.

Read more »

Redwood trees stretch up to the sunlight.
Dividend Stocks

2 Fantastic Growth Stocks to Buy Right Now

These two growth stocks aren't your average growth stocks, as shares rise higher and higher after earnings, and more's to…

Read more »

Canadian Dollars
Stocks for Beginners

3 Stocks to Invest $30,000 in Right Now

Are you looking for some of the best stocks to invest in right now? Here's a trio that offer growth…

Read more »