FNB’s top 10 2024 long-term stock picks

The stock market outlook for 2024 remains uncertain due to geopolitical tensions and political considerations, according to Chantal Marx, Head of Investment Research at FNB Wealth & Investments. In a recent interview with CNBC Africa, Marx highlighted the challenges facing global equity markets this year, including the potential impact of geopolitical events and the debate over a US recession. She emphasized the need for a defensive investment strategy in the face of uncertainty, while also seeking value in stocks with low earnings multiples and good dividend yields. Marx provided insights into her top stock picks for both local and global markets in 2024. For local companies, she recommended African Rainbow Capital and Carl Group, citing their discounted valuations and potential for corporate actions. She also mentioned Richemont as a promising pick due to the expected recovery in emerging markets and the company's product composition. BidCorp, a food service distributor, was highlighted for its strong position in a fragmented market and potential for growth in sectors like hotels and catering. In the global market, Marx pointed to Nvidia as a compelling stock pick, noting its strong earnings prospects and relative valuation compared to other tech giants. Alibaba, despite challenges in the Chinese market, was seen as undervalued and poised for strategic restructuring that could unlock hidden value. Overall, Marx's stock picks reflect a mix of defensive strategies, value investing, and growth opportunities in both local and global markets.