There seems to be good news for the markets with the likelihood of rate cuts in 2024. With potential expansionary policies, the S&P 500 is likely to trend higher. Of course, challenges remain in the form of inflation and geopolitical tensions. However, I’m still optimistic and I believe that several stocks and sectors are poised to create value. The focus of this column is on attractive growth stocks that are likely to double in 2024.
It’s important to remind investors that growth stocks witnessed a deep correction in 2022. And the recovery has been relatively muted in the current year. However, there will probably be several growth stocks delivering multibagger returns in the next 12 months.
In my view, the three stocks discussed represent companies that are likely to report stellar numbers through 2024. Further, these companies have strong fundamentals and look attractive for the long-term portfolio.
Let’s discuss three attractive growth stocks that seem poised to surge higher.
Riot Platforms (RIOT)
Bitcoin (BTC-USD) is surging higher and already trades above $35,000. With potential rate cuts coming in 2024, the outlook is bullish for the cryptocurrency. Further, Bitcoin halving and possibly introduction of Bitcoin spot ETF are catalysts. Riot Platforms (NASDAQ:RIOT) is the best Bitcoin mining stock to buy that can easily double in 2024.
The first reason to like Riot is a strong balance sheet. As of Q2 2023, the company reported zero debt and a cash buffer of $289 million. Further, digital assets were worth $221 million. With high financial flexibility, the company is positioned to pursue aggressive growth as Bitcoin surges.
As a matter of fact, big expansion plans are underway. By Q3 2024, Riot is looking to double hash rate capacity to 20.1 EH/s. Further, the plan is to boost capacity to 35 EH/s in 2025. This will imply robust revenue and cash flow upside.
Miniso Group (MNSO)
Miniso Group (NYSE:MNSO) seems to be in a phase of consolidation after a massive rally of 350% in the last 12 months. I believe that renewed upside is in the cards with a forward price-to-earnings ratio of 24.5 looking attractive. I must add that Miniso has also initiated dividends and the current yield is 1.62%.
For Q4 2023, Miniso reported robust revenue growth of 40.3% on a year-on-year basis to $448.5 million. Besides stellar growth, the company reported an 820-basis point expansion in EBITDA margin to 26.3%. Given these growth metrics, MNSO stock looks undervalued.
Miniso has opened 592 stores in the last financial year. Of this, 214 stores were in the overseas markets. The company is building strong global presence and as aggressive store opening continues, there is visibility for robust growth and dividend upside.
Li Auto (LI)
Li Auto (NASDAQ:LI) stock had touched highs of $47 in July. LI stock has however corrected to current levels of $35. I believe that a renewed rally is on the cards and LI stock is poised to double by the end of 2024.
It’s worth noting that Li Auto continues to surprise on the growth front. For October, the company delivered 40,422 vehicles, which was higher by 302.1% on a year-over-year basis. With aggressive retail expansion, the growth trajectory is likely to remain stellar. Further, LI MEGA is due for launch towards the end of the year and will further support deliveries growth.
Li’s Q3 2023 deliveries were robust and the company will report results on Nov. 9. That’s an immediate catalyst for stock reversal after some profit booking driven correction. Li Auto also has a strong cash buffer of $10.17 billion and will ensure aggressive investments towards product development and retail expansion.
On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
