The new year is upon us, and investors cannot ignore the best growth stocks to buy. The stock market ascension in 2023 was led by mega-cap technology stocks, and this year’s gains will be spread more broadly. However, that doesn’t mean that some of the market leaders are not set for continued momentum.
Talks about an impending recession continue to loom on Wall Street, making investors wary of the future that’s ahead. Inflation remains sticky, and many economists believe that rate cuts might not come until the back half of 2024. But the truth is that it is trending in the right direction, and there are many promising signs of a new bull market underway. That is why now is a great time to search for companies that can outperform the market.
Below are 3 growth stocks on the brink of soaring 50% or more in 2024!
Meta Platforms (META)
Meta Platforms (NASDAQ:META) should be at the top of your list of the best growth stocks to buy in 2024. Not too long ago, the company plunged from record highs as it suffered from the advent of inflation and higher interest rates.
It was certainly not a pleasant sight for Meta, as the company is heavily reliant on its advertising revenue. However, in 2023 Meta’s restructuring efforts and cost-cutting measures have been material. This has allowed them to increase operating income in FY23, despite their colossal losses of $46.5 billion at their Meta Reality Labs division.
In Q3 2023, Meta’s revenue increased 23% YOY to $34.1 billion. Net income increased to 163% YOY to $11.58 billion, or $4.39 per share. During the quarter, Meta’s headcount decreased by 24% with layoffs being a large part of their cost-cutting measures. While the company expects CAPEX infrastructure costs to increase in FY24, Meta’s generative AI strategy is just beginning to take shape.
Netflix (NFLX)
Netflix (NASDAQ:NFLX) is undoubtedly one of the top growth stocks to consider for this year. The company is about to close off a strong 2023 fiscal year, primarily driven by restructuring efforts and new business prospects.
After a year of declining advertising revenue in FY22, Netflix has made a complete turnaround and the future looks bright. They have not only cracked down on password sharing, but their new ad-plan membership continues to gain momentum. Netflix raised prices for both its basic and premium plans, with its new ad-plan membership growing 70% quarter-over-quarter.
It is clear that their new ad-plan membership is working after reporting global subscribers of 8.76 million in Q3 2023. Netflix expects FY23 FCF of $6.5 billion, up from their previous forecast of $5 billion. With management’s plan to accelerate revenue growth and expand operating margin in FY24, now is a great time to scoop up shares in the new year.
Check Point Software (CHKP)
Check Point Software (NASDAQ:CHKP) may have stolen the show when considering the best growth stocks of 2024. The cybersecurity industry is set for rapid growth over the next decade, and Check Point might be the most compelling investment idea.
There is a strong likelihood that you may have never heard of this company before. However, they have been operating in the cybersecurity industry for more than 3 decades now. What makes this company stand out amongst its competitors is its history of strong financial performance.
Over the last decade, Check Point has consistently grown its revenue and EPS. In Q3 2023, security subscription revenue increased 15% YOY. EPS increased 19% YOY to $1.75 per share, with operating income representing 38% of revenues. Check Point completed 3 acquisitions in Q3, including the acquisition of Perimeter 81 to deliver faster full-stack SASE solutions. With the cybersecurity race in full effect, Check Point remains a top growth stock that investors cannot ignore in 2024.
On the date of publication, Terel Miles did not have (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.
