E-commerce kingpin Shopify (TSX:SHOP) and uranium miner Cameco (TSX:CCO) — the firm goes by CCJ stock on the NYSE — have been two of the hottest stocks on the TSX Index of late. Their 2023 performance was, indeed, enviable, but just because we’re moving into a new year does not mean we should expect a reversal of the tides.
If anything, I believe there’s value in adding to shares of both red-hot firms, as they look to heat up even further in 2024 (and beyond).
Undoubtedly, momentum investing (buying stocks on the way up) is not everybody’s cup of tea. If you’ve been seasoned as a traditional value investor, it can certainly be hard to justify “chasing” a stock that’s already been on quite the run.
毫无疑问，动量投资（在上涨的过程中买入股票）并不是每个人都喜欢的。如果你是一个经验丰富的传统价值投资者，那么肯定很难证明“追逐”一只已经在运行的股票是合理的。
When it comes to such momentum stocks, though, I believe that value investing is more than just buying dips and taking rain checks on anything that has a bit of momentum behind it.
然而，当谈到这种动量股时，我认为价值投资不仅仅是逢低买入，并对任何有动量的股票进行检查。
If a stock is trading at a price below your estimate of its worth, it’s probably a great buy. And it’s as simple as that. The larger the discrepancy between the underestimated market price and your target price, the better it is for you and the more convincing a stock is. It’s not rocket science.
However, many new investors may seek to overcomplicate things by paying too much attention to the technical picture or treating sell-side analyst price targets (and recommendations) as gospel. At the end of the day, it’s your job to do the homework and find out if a stock under question is really a great buy. Positive share price momentum can be a good thing if the driver behind it is robust enough.
Without further ado, let’s try to find out if Shopify or Cameco stock is the better buy at current levels.
Shopify stock is leaping into 2024 with profound strength. The stock is just shy of $110 per share after breaking through the $100 psychological ceiling of resistance. The next stop? Nobody knows, but pending a severe economic recession, I believe Shopify ought to be worth a heck of a lot more. At writing, the e-commerce darling is a $140 billion company. Personally, I think a strong case could be made for commanding at a valuation north of $200 billion.
Indeed, Shopify is still a generational growth story. As the firm goes from “just e-commerce” to encompassing more markets (think payments, artificial intelligence, and the metaverse), I view Shopify as one of the biggest business stories to ever arise out of Canada. And in 2024, I would not bet against the firm as it continues to add to its momentum.
Could 2021 all-time highs be hit in 2024? Probably not. But I wouldn’t be shocked if shares finish the year higher than $150, as tech continues to drive efficiencies whilst pursuing new growth routes.
Cameco is a leading play on nuclear power, and with the nuclear renaissance likely on the horizon, CCO stock has been the go-to play to ride on the trend. I think nuclear power could help drive uranium prices much higher by the conclusion of 2026.
Though Cameco could pull back here and there, I ultimately believe investors should at least nibble into the name as it continues to heat up on the back of a multi-year (perhaps multi-decade) secular tailwind. Clean energy is a big deal. And nuclear power could play a huge role in cutting down on the global carbon footprint.
All considered, I view CCO stock as a winner poised to win again.
Personally, I like CCO stock more than SHOP stock here, especially if tech is overdue for a correction. The stock may seem pricey, but it’s hard to look past the magnitude of tailwinds.
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