SPECIAL REPORT The Top 7 Stocks for 2024

The 3 Most Promising Growth Stocks to Buy for 2024

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  • These three promising growth stocks provide the boost any portfolio needs to at least match the market long-term.
  • Meta Platforms (META): The social media giant remains resilient in the face of growing regulatory challenges.
  • Li Auto (LI): The company opened pre-orders for its multi-purpose vehicle on Friday, with a strong growth outlook ahead.
  • Alphabet (GOOG, GOOGL) Big investors like Bill Ackman are bullish on the stock, for good reason.
promising growth stocks - The 3 Most Promising Growth Stocks to Buy for 2024

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The recent bullish momentum in the market has benefited investors who have stayed investing in the most promising growth stocks. Indeed, many of the companies listed below are among this year’s best performers or poised for outperformance.

Those who held through the 2008 recession with high-growth stocks have generally outperformed those who hesitated putting their money to work. Thus, even if we are due a market decline, finding high-quality growth stocks that can weather the storm ought to be the goal of investors right now. 

Amid economic uncertainties, these promising growth stocks have demonstrated resilience, making them attractive investments for robust portfolios weathering market fluctuations. As the year concludes, these three formidable stocks hold promise to outpace the market in 2024 and beyond.

Meta Platforms (META)

Threads app logo seen on screen. Instagram Threads app is a micro blogging platform, developed by Facebook Meta.
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Meta Platforms (NASDAQ:META), recognized for its social media dominance with Facebook, Instagram, WhatsApp and Messenger, spearheads global digital connectivity. In 2023, CEO Mark Zuckerberg’s vision for efficiency materialized. Q3 revenue surged 23% to $34.1 billion, surpassing estimates by $678 million. The company’s diluted earnings per share rose 168% to $4.39.

Meta operates in two segments: Family of Apps (FoA), housing its social media platforms and Reality Labs (RL), which focuses on augmented and virtual reality. Despite RL’s ongoing losses, FoA reported a 24% revenue increase and an 87% rise in operating profit in Q3, mitigating losses. The company’s robust user base supports lucrative targeted advertising, a key revenue driver, with advertising revenue reaching $33.6 billion, up 23% in the quarter.

Meta could thrive amidst regulatory challenges by leveraging new rules and emphasizing the value of ad-supported apps. Priced at around 19-times forward earnings, the stock offers potential for robust growth as revenue accelerates and operating margins expand.

Li Auto (LI)

Solid State Battery for EV Electric Vehicle, new research and development batteries with solid electrolyte energy storage for automotive car industry, cathode. 3d illustration. Top Battery Stocks to Buy
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Li Auto (NASDAQ:LI) announced the commencement of mass production and delivery of its first electric car in February. The company’s MEGA multi-purpose vehicle features 800-volt charging and CATL’s latest Qilin batteries. This provides a 500 km range on a 12-minute charge. With over 10,000 pre-orders, Li Auto aims to surpass BMW, Mercedes-Benz and Audi sales in China by 2024.

Li Auto, Tesla’s (NASDAQ:TSLA) main competitor in China, introduced its first electric multipurpose vehicle, the seven-seat Li Mega. Priced under 600,000 yuan, it marks the company’s entry into the full-electric vehicle market. This targets family consumers in China’s booming automotive sector.

Over the long term, I think Li’s lineup of new models and its focus on quality and its brand, should bode well in the fast-growing Chinese EV market. As more of the Chinese population enters the middle class, Li Auto’s vehicles will become highly sought after.

Alphabet (GOOG, GOOGL)

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Alphabet (NASDAQ:GOOG), NASDAQ:GOOGL) significantly increased investment in generative AI, focusing on Google search and cloud services. Q3 2023 revenue reached $76.7 billion, with 22% and 11% year-over-year growth in Google Cloud and Search revenue. Generative AI drove YouTube ad revenue soaring to $7.95 billion. 

Alphabet plans extensive AI integration across all business segments, leveraging its vast data advantage. With a price-earnings ratio of 25-times, Alphabet remains attractively priced, making it a prudent investment as AI demand grows. Despite Alphabet being a top-tier company with a surging stock price, GOOG stock remains reasonably priced.

Contrary to skeptics, Alphabet’s journey to a $2 trillion market cap appears inevitable. With a trailing price-earnings ratio around 25-times, it isn’t excessively valued. The company’s ongoing product enhancements, such as the improved performance of Google’s gen-AI chatbot, Bard, contribute to its shareholder value and growth potential in the coming quarters.

On the date of publication, Chris MacDonald has a LONG position in META. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.


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