- These growth stocks have the potential to boom in 2024.
- Sociedad Quimica y Minera de Chile has shown an impeccable run in generating returns, in view of which it is anticipated to grow even higher.
With the ever-changing investment landscape, growth stocks have garnered decent attention for investors who are looking to seize the opportunities birthed by market shifts. However, recent concerns about tech layoffs and reduced revenue growth have adversely affected the market for growth stocks.
However, multiple bank failures in March have shifted this attention to themselves. In view of these events, growth stocks can flourish. Additionally, compared to defensive stocks, growth stocks provide greater value.
Let us look at seven growth stocks that are expected to provide higher returns in 2024.
Visa (NYSE; V) is a leading credit card company with a stronghold in financial transactions. On average, the company boasts more than 50% net income margins in the last five years.
The company saw exponential growth during the lockdown period as people avoided touch, thus opting for touch-free payments and eCommerce solutions. Due to robust cross-border payments, the firm has been able to show steady growth in the last few quarters.
Adobe, NASDAQ; ADBE, has deemed itself to be a juggernaut in the graphics space with leading graphic tools like Adobe Premiere Pro, PhotoShop, etc. In recent years, the firm has widened its spectrum by acquiring different pieces of software for its content cloud and professional offerings.
Last year, the company recorded a 30 million increase in its creative cloud subscribers with a run rate of 1 million subscribers per quarter. The firm is looking to capitalise on the artificial intelligence market with the release of the beta version of its art generator called Firefly, which allows users to enhance the quality of their photos and videos with the help of AI.
Datadog, NASDAQ; DDOG, employs a software-as-a-service model to provide cloud monitoring and security services. The company allows its clients to securely monitor their digital infrastructure from a single location. These functions significantly reduce blind spots and vulnerabilities.
The company has shown significant growth with its revenue being $101 million in 2017 to a whopping $1.7 billion in 2022. Analysts predict that the company will continue to grow by more than 30% in the future.
Sociedad Quimica y Minera de Chile (SQM)
Sociedad Quimica y Minera de Chile, NYSE; SQM, is a chemical conglomerate and the biggest producer of lithium, which is clearly reflected by the triple-digit growth in its lithium sales.
With respect to this, last year, the company’s earnings per share increased by 585%, with a 730% increase in free cash flows. Based on these numbers, the price of SQM stock is expected to boom in the foreseeable future.
Fiverr International (FVRR)
Fiverr International, NYSE; FVRR, is an infamous marketplace for freelancers that has expanded in the gig economy. The company’s top-line growth averaged more than 50% in the last five years.
However, the company looks determined in its approach. With spending-per-buyer of $262 in the fourth quarter, compared to $242 last year, the company looks determined to tap into the full potential of powerful workplace trends.
Taiwan Semiconductor (TSM)
Taiwan International, NYSE; TSM, is a trendsetter in the semiconductor landscape, and has consistently been providing its investors with enormous returns for the past decade. The company covers 57% of the market share of the semiconductor, which is unarguably the largest in the industry.
The company saw revenue growth of more than 42.6% on a year-on-year basis which is 170% higher than its last 5-year average. The semiconductor market took a hit due to softness in the market, however, analysts predict that the company is expected to generate 20%+ growth in 2024.
Nvidia, NASDAQ; NVDA, is a tech powerhouse. The GPU giant keeps tabs on every tech trend, from autonomous driving to crypto mining. Its GPUs empower more than 700 applications across sectors.
Currently, the company is eyeing to capitalize on the AI markets with its new hardware and software, which are designed especially for the AI sphere. This includes powerful GPUs such as the H100, which is the fastest GPU for AI. Keeping AI aside, the company manages to generate double-digit growth with its core operations.