4 Stocks Set to Gain

The cryptocurrency rally in the first quarter, during which Bitcoin (BTC) hit an all-time high, has come to a sudden halt. Bitcoin, which reached a record high of $73,750 on March 14, has fallen sharply since then.

Bitcoin fell 3.9% in April after gaining more than 67% in the first quarter. The decline can be attributed to a number of factors, most notably the halving event that occurs every four years.

Additionally, markets remained volatile in April as rising inflation reignited fears that the Fed might keep interest rates higher for longer. High interest rates have a negative impact on growth assets such as technology stocks, consumer discretionary stocks, and cryptocurrencies.

However, with the Bitcoin halving event now over, there is widespread speculation that the decrease in Bitcoin supply will lead to a scarcity-induced price increase for the digital asset in the coming months.

Miners, who play an important role in verifying and recording transactions, receive rewards from the Bitcoin network in the form of both block rewards and transaction fees. The halving event reduces the block reward in half and ultimately aims to limit Bitcoin’s total supply to 21 million coins. As a result, a decrease in the rate of new Bitcoin issuance usually leads to an increase in demand for the cryptocurrency, which in turn causes its price to increase.

It goes without saying that Bitcoin still has great potential. Experts believe that the correction is over and the cryptocurrency will soon resume its rise. Bitcoin has gained 39.3% since the beginning of the year. Additionally, markets are trying to recover in May following the sharp decline in US GDP and contraction in manufacturing and services PMI; This raises hopes for multiple interest rate cuts this year.

Our choices

We’ve narrowed our search to four crypto-focused stocks with strong potential for 2024. Each of our picks carries a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

NVIDIA Corporation NVDA is a major player in the semiconductor industry and one of the standout success stories of 2023. As a leading designer of graphics processing units (GPUs), NVDA shares are trending higher in value in an evolving crypto market. This is primarily due to the important role GPUs play in data centers, artificial intelligence, and the mining or production of cryptocurrencies.

NVIDIA’s expected earnings growth rate for this year is 84.7%. The Zacks Consensus Estimate for current-year earnings has moved 3.1% higher over the past 60 days. Currently, NVIDIA has a Zacks Rank #2.

The story continues

Coinbase Global, Inc. COIN provides financial infrastructure and technology to support the global cryptocurrency economy. COIN provides a primary financial account for consumers in the crypto space, a marketplace with liquidity for institutional cryptoasset transactions, and technology and services for developers to build crypto-based applications and securely accept cryptocurrencies as payment.

Coinbase Global’s expected earnings growth rate for next year is 1,840.5%. The Zacks Consensus Estimate for current-year earnings has moved 402.1% higher over the past 60 days. Coinbase is currently sporting a Zacks Rank of #1.

Interactive Brokers Group, Inc. IBKR is a global automated electronic broker. IBKR operates, processes and trades cryptocurrencies. IBKR’s commodity futures trading desk also offers clients the chance to trade cryptocurrency futures.

Interactive Brokers Group’s expected earnings growth rate for this year is 12.9%. The Zacks Consensus Estimate for current-year earnings has moved 6.9% higher over the past 60 days. IBKR currently has a Zacks Rank #2.

Robinhood Markets, Inc.HOOD operates a financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds, options, gold and cryptocurrencies. HOOD buys and sells Bitcoin, Ethereum, Dogecoin and other cryptocurrencies using the Robinhood Crypto platform.

Robinhood Markets’ expected earnings growth rate for the current year is 190.2%. The Zacks Consensus Estimate for current-year earnings has increased 175% over the past 60 days. Robinhood Markets currently has a Zacks Rank #2.

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Interactive Brokers Group, Inc. (IBKR): Free Stock Analysis Report

NVIDIA Corporation (NVDA): Free Stock Analysis Report

Coinbase Global, Inc. (COIN): Free Stock Analysis Report

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