4 US Companies to Look Out for in the Second Half of 2024
The first half of 2024 has been a strong one for the US market.
All three major US indices, the Dow Jones (^DJI), S&P 500 (^SPX), and NASDAQ Composite Index (^IXIC) have recently surged past their all-time highs.
Investors are hopeful that this positive market sentiment will continue throughout the rest of this year.
As we welcome the second half of 2024 (2H 2024), here are four US companies to consider including in your portfolio.
Disney (NYSE: DIS)
The world-famous House of Mouse is back.
In Disney’s entertainment division, the recent release of the animated movie “Inside Out 2” has been a huge success.
Inside Out 2 swiftly became the top-grossing film of 2024, despite its debut in the middle of June.
According to movie website IMDB, the film has amassed over US$1.25 billion at the box office, setting a new record as the company’s highest-grossing Pixar movie of all time worldwide.
Furthermore, the movie has yet to be screened in another major market, Japan, and is expected to debut on 1 August 2024.
Beyond Inside Out 2, Disney has an exciting lineup of movies set to be released later this year.
These include the live-action version of “The Lion King” that is premiering this December, along with the highly anticipated sequel, “Moana 2”, that is expected to hit the cinemas in November.
In Disney’s Experiences division, Tiana’s Bayou Adventure recently opened at the Magic Kingdom Park in Florida and will be available in Disneyland Resort California later this year.
Tiana’s Bayou adventure is based on the popular 2009 film “The Princess and the Frog”, which was nominated for three Oscars.
Additionally, Disney Treasure, Disney’s latest addition to its cruise line, will begin operations this December.
Entertainment and Experiences are Disney’s two largest revenue generators, contributing 43% and 38% for the first half of fiscal year 2024 (1H FY2024) respectively.
This slate of new movies, along with the new theme park attractions and cruise ship, should help to contribute positively to the company’s top and bottom lines for the remainder of fiscal 2024.
Amazon (NASDAQ: AMZN)
Amazon made recent headlines after surpassing US$2 trillion in market capitalisation.
This milestone positions Amazon as the fifth company in the US to attain this valuation.
The company operates in multiple spheres of business, including e-commerce, entertainment, and web-services.
Under its e-commerce segment, Reuters reported that Amazon will be launching a discount section.
This move should help the e-commerce giant to better compete against the rise of bargain e-commerce platforms such as Temu from Pinduoduo (NASDAQ: PDD) or AliExpress from Alibaba (NYSE: BABA).
For its entertainment division, the highly-awaited new season of Emmy-nominated drama “The Boys” started streaming on Amazon Prime in June this year.
Following the recent Amazon Web-Services (AWS) summit in New York on 10 July 2024, Amazon provided more information about the company’s artificial intelligence (AI) strategy.
Amazon Q applications, Amazon’s AI assistant, will be made available to users in selected regions.
First previewed on 30 April 2024, Amazon Q targets businesses.
Users can generate AI-powered applications using the system, which incorporates an organisation’s data to fully optimise its applications.
elf Beauty (NYSE: ELF)
elf Beauty is an American cosmetics brand that is home to an assortment of brands, including its flagship e.l.f brand which stands for “eyes, lips, face”, along with other brands such as Well People and Keys.
elf Beauty and Roblox (NYSE: RBLX) have announced a collaboration aimed at testing real-world commerce on Roblox’s gaming platform.
Since their partnership in October 2023, elf Beauty introduced its own game, “e.l.f UP! Tycoon”.
The game has garnered over 13.9 million visits.
This initiative marks a strategic effort by elf Beauty to attract more Gen Z consumers by blending beauty with a digital experience.
According to ELF Beauty’s Chief Marketing Officer, Kory Marchisotto, this collaboration is the beginning of the company’s ambition to merge beauty with immersive platforms.
The cosmetics company is committed to fulfilling its company mission of integrating immersive experiences with real-world shopping.
Earlier this year, elf Beauty launched its first-ever beauty shopping experience in Apple’s (NASDAQ: AAPL) newly released Vision Pro.
This partnership with Roblox will raise elf Beauty’s brand awareness.
Furthermore, elf Beauty’s strategy of blending technology and beauty products sets it apart from many of its competitors in the industry.
McDonald’s (NYSE: MCD)
The famous Golden Arches has announced its decision to bring back its popular five-dollar value meal.
This move is part of a broader strategy to address inflationary pressures impacting customers.
McDonald’s CEO, Chris Kempczinski, acknowledged that inflation has impacted demand, as demonstrated by flat year on year revenue in the first quarter of 2024 (1Q 2024).
The fast-food chain will focus more on affordability to attract customers back again.
Other than value meals, McDonald’s is also rolling out various promotions throughout the year.
One such promotion is “Free-Fries Friday”, which will be available in the US, where customers can get free medium fries with any dollar+ purchase within the McDonald’s application.
While these promotions may negatively impact McDonald’s profitability, the company is confident that this will lure back customers and be net positive for the business in the long term.
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Disclosure: Aw Kai Rui does not own any of the stocks mentioned in this article.
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