Are you ready to harness the potential of Growth Stocks for 2024 and beyond? Learn how to grow your money with our top picks for Growth Stocks in 2024 and beyond. Don’t miss out on this chance to make your money work for you!
The financial world is changing fast, and it’s essential to keep up. The last few years have been a bit crazy, with the pandemic causing some stocks to soar and then a market dip in 2022. But now, it’s time to think about the future.
In this article, we’ll talk about investing in growth stocks and highlight the best four growth stocks for 2024. These stocks can bring you profits not just next year, but for a long time.
Whether you’re a new investor or experienced, these stocks can help you grow your money in 2024 and the years to come.
Why Choose Growth Stocks?
So, why should you be interested in growth stocks? Well, a growth stock represents ownership in a company anticipated to experience earnings and sales growth at a pace surpassing the broader stock market’s average.
These companies typically prioritize growth over distributing a significant portion of their earnings as dividends.
But remember, since these are still regular stocks, there’s a chance their value could drop, and you might lose money. The idea when you’re investing in growth stocks is to do your homework and find businesses that can keep growing your money for many years to come, especially if you’re thinking about your retirement plans.
How to Choose the Right Growth Stocks For Your Investment Portfolio
When it comes to picking growth stocks for your own investments, here’s how you can approach it:
- Diversify Your Choices: You see, the stock market can sometimes get really obsessed with just a few big companies. So, for your own benefit, it’s a good idea to explore different options. Look for companies that stand out in terms of quality, stability, and trustworthiness.
- Start with the Big Players: Begin by checking out the 100 largest companies in the S&P 500 Index. This way, you get a broad view of what’s out there. But here’s the catch: make sure you don’t end up picking more than one company from the same type of business. Diversifying your investments can help reduce risk.
- Dig into the Numbers: It’s time to get your detective hat on. Look at some key things about these companies – how much money they make, how much they sell, how much cash they have, and how their stock prices have been doing.
- Plan for the Future: Think ahead. Consider a 2-3 year timeframe for your investments. Focus on finding companies that are real champs in their industries. You want the kind of companies that have a big, protective moat around their business, just like Warren Buffett talks about.
- Keep an Eye on Valuation: Now, here’s where things get a bit tricky. When it comes to growth stocks, they can seem pretty expensive compared to how much money they’re making. But don’t let that scare you off. People are paying a premium because they believe these companies will keep growing like crazy, and that means more earnings and more sales. So, when you’re picking growth stocks, think about their potential to grow and become even more valuable in the future.
Keep in mind that investing in stocks always comes with a bit of risk, so it’s essential to do your homework and consider what’s right for your own financial goals and plans.
What are the Top Growth Stocks For 2024?
At the end of December 2023, the S&P 500 has shown significant gains, rising by 23%. But it’s essential to recognize that not all stocks have followed suit. In 2023, many stocks that performed well in 2022 have seen a decline.
For example, the S&P 500 Pure Value index has only seen a 5% gain this year, while the Nasdaq-100 tech index has surged by an impressive 52%.
In bull markets, growth stocks tend to shine. Here are five standout picks to consider right now. These companies are positioned to make a mark in the investment landscape and could be prime candidates for your portfolio in the next bullish phase.
1. Amazon(NASDAQ: AMZN)
Amazon is still on the growth track, consistently uncovering fresh avenues to boost sales and diving into entirely new ventures to complement its already extensive range of offerings.
A big part of their current focus is on artificial intelligence (AI), which plays a significant role in how they run things and brings forth fantastic opportunities. They’re investing heavily in generative AI, especially for Amazon Web Services (AWS).
This technology lets software developers easily create all sorts of content and marketing materials with just a few simple commands. These services have the potential to be groundbreaking and could become major drivers of growth as more people start using them.
Amazon is back to experiencing double-digit sales growth, with a comfortable 13% increase over the previous year in the third quarter of 2023, just in time for the busy holiday season. What’s more, their profitability has made a strong comeback.
In the same quarter, their operating income shot up more than four times, and their net income more than tripled, rising from $2.9 billion to a whopping $9.9 billion.
Don’t make the mistake of thinking Amazon’s growth story is finished. They’re also expanding into sectors like advertising and healthcare while holding tight to their “day one” philosophy, which means they’re always on the lookout for fresh ideas.
Although Amazon’s stock price is currently below its 2021 peak, don’t be surprised if it starts climbing back up in 2024.
2. Galaxy Digital (OTCPK: BRPHF)
Galaxy Digital provides financial services related to cryptocurrencies, especially for big-time investors. They do a bit of everything in the crypto world: trading, lending, derivatives, asset management, and more. Plus, they’ve got their fingers in over 200 crypto-related startup pies.
Now, usually, you might prefer to have Bitcoin (BTC-USD) and Ethereum (ETH-USD) in your crypto portfolio, and that’s a solid choice. But here’s the thing: those big-name cryptocurrencies are already pretty massive.
On the other hand, the whole crypto ecosystem around them is still pretty young. So, a smaller player like Galaxy Digital, with a market cap of less than 1% of Bitcoin’s, could potentially give you a 100x return, but yes, it also comes with more risk.
Galaxy Digital might not get a report card from Seeking Alpha’s factor grades because it’s a smaller Canadian-listed stock (though it’s based in New York).
But with a market cap of $2.4 billion and managing assets worth $4.5 billion (that’s grown by 124% in a year), and a whopping 157% return this year, it’s safe to say Galaxy Digital would score well in the growth department and, to some extent, on the value front.
Hence, Galaxy Digital could be a winner, especially because it’s one of the few publicly traded crypto-focused companies that isn’t all about mining.
3. Global-e Online (NASDAQ: GLBE)
Global-e is another name that’s worth considering as a growth stock for 2024. They specialize in running a platform that helps e-commerce retailers, whether they are big players or smaller businesses, expand their reach internationally.
Already, they count top-tier clients like Walt Disney and LVMH among their customers, and they keep adding more big names, such as Guess Watches and Tory Burch.
Their platform is like a crucial tool for any online retailer looking to tap into global markets and discover new sales opportunities. The potential for growth by selling products worldwide far outweighs the costs associated with using Global-e’s services.
What’s even more exciting is their partnership with Shopify. Shopify is a major player in the e-commerce world, and Global-e powers their Shopify Markets Pro service. This collaboration has the potential to drive significant growth for Global-e.
Although Global-e’s growth rate has slightly slowed since going public in 2021, sales still managed to increase by an impressive 27% year-over-year in the third quarter.
Now, with changes in the economic situation, including inflation and interest rates, there’s a potential rebound in retail sales on the horizon. E-commerce is growing faster than overall retail, and Global-e is well-positioned to ride this wave of growth in 2024 and beyond.
4. Microsoft (NASDAQ:MSFT)
In the world of tech, Microsoft stands tall as the second-most valuable company, boasting a whopping market capitalization of $2.8 trillion.
This tech giant has a track record of delivering consistent gains for investors, with its stock surging by an impressive 268% since 2018.
Over the same period, Microsoft’s annual revenue has seen a robust 68% increase, and its operating income has climbed by an impressive 106%.
Microsoft owes much of its success to its potent brands, including Windows, Office, Xbox, and Azure. These have solidified its dominant position in the tech industry and provided the financial muscle needed to invest in high-growth markets.
In 2023, Microsoft made a significant move into the world of artificial intelligence (AI) by acquiring a 49% stake in OpenAI, the developer of ChatGPT.
Microsoft has wasted no time incorporating AI into its product lineup. ChatGPT’s technology has found its way into Microsoft’s search engine, Bing, while Azure, Microsoft’s cloud platform, now boasts a range of AI-powered tools.
Even its productivity platforms, like Microsoft 365, have seen enhancements with the introduction of Copilot, an AI assistant.
The company is making strides in monetizing its AI venture. For instance, they offer the smart assistant as a $30 add-on to a Microsoft 365 subscription, hinting at their long-term plan to cash in on their AI investments.
With its massive user base spread across various services, Microsoft is well-positioned to explore numerous income-generating opportunities through AI.
While Microsoft’s price-to-earnings (P/E) ratio of 36 might suggest it’s a tad expensive, its strong foothold in the tech market and its substantial growth potential in AI justify its valuation.
As a result, Microsoft emerges as an exciting growth stock to consider for 2024 and beyond. So, if you’re in the market for long-term growth, Microsoft could be the golden ticket.
Final Thoughts
In conclusion, it’s essential to remember that all stocks, including growth stocks, come with a certain level of risk in the market.
Nevertheless, when you build your investment portfolio for 2024, the four stocks we’ve explored in this article are certainly deserving of your attention as promising growth stocks for 2024.
What sets these companies apart is their exceptional quality and their ability to shine in their respective industries. They have demonstrated a remarkable capacity to adapt to changing markets and evolving circumstances.
This adaptability not only helps them weather market fluctuations but also positions them to deliver profitable returns to their investors.
