3 Stocks That Could Skyrocket Before the End of 2024

Opendoor has been in miserable shape since the residential real estate market has dried up. It’s an iBuyer, which means it buys homes to fix up and resell. There have been a handful of other companies getting into this business, which has opened up with the advent of digital. However, the enormous cash load necessary to buy homes has made it a challenging business to operate in, and other companies like Zillow have bowed out. Opendoor is sticking it out, but with fewer properties on the market, it hasn’t been able to grow its business.

There was some progress in the third quarter. It bought 3,504 homes and had 1,006 under contract, and it has 6,288 in inventory — 64% more than last year. However, it’s still well below the performance it was demonstrating before interest rates went up.

That earlier performance should give investors some confidence in the potential for Opendoor to stage a healthy rebound. It has the fundamentals of a good, disruptive business, with its tech-strong digital app, robust machine learning algorithms that create a compelling alternative to traditional realtors, and massive opportunity in a $1.9 trillion industry.

Opendoor stock also jumped on the interest rate cut news, but it’s still down 53% this year. Opendoor stock is a huge risk, but it also comes with incredible potential for rewards for the risk-tolerant investor.

Wayfair has been struggling for years already, ever since its pandemic-driven growth ended. That period exposed the company’s deep and difficult profitability problems, and in the aftermath, it hasn’t been able to connect with customers and generate more growth.

In theory, here’s what to like about Wayfair. The company’s premise makes sense — it sells furniture online and reaches across demographics with its various brand collections. It has excellent technology underpinning its platform, with features like viewing products in a shopper’s home, and it works with thousands of suppliers that use its dropship model and logistics network. Since Wayfair doesn’t have to spend costly sums to keep goods in inventory, instead working as a platform and shipper, it has the perfect setup for strong profitability. However, it just hasn’t been able to scale profitably. Instead, it’s been pouring money into its development without seeing the results necessary to justify it.

The market is conflicted about Wayfair, seeing its dismal performance but also its opportunities. Management has made some hard decisions about expenses, and the third quarter was the ninth straight quarter of narrowing fixed costs. It also had the lowest SG&A expense since 2021. It’s not expecting a miraculous turnaround in this difficult operating environment, where nearly every housewares retailer is under pressure. But Wayfair is making a good showing, considering the times.

If interest rates get cut further, expect positive movement from Wayfair. As the economy improves, it could become a true turnaround stock. However, it’s only for investors with an appetite for risk.

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $359,445!*

• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $45,374!*

• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $484,143!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

See 3 “Double Down” stocks »

*Stock Advisor returns as of December 2, 2024

Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot and Zillow Group. The Motley Fool recommends Opendoor Technologies and Wayfair. The Motley Fool has a disclosure policy.

3 Stocks That Could Skyrocket Before the End of 2024 was originally published by The Motley Fool