Growth stocks surprised many investors last year after rebounding from a disappointing 2022. With the New Year upon us, investors are wondering if growth stocks will follow a similar script or veer off course. This drove us to write this list of the top growth stocks to watch in 2024.  

While the broad market’s fate is yet to be determined, it’s possible to find opportunities in any market. Some growth stocks that sizzled in 2023 can deliver impressive encores and reward investors who accumulate shares this year. 

Growth stocks have become front-and-center as high returns lead to more momentum. Investors looking for growth opportunities may want to consider these top stocks.

Duolingo (DUOL)

Learning a second language has many benefits, such as improving your memory and your ability to multitask. These benefits explain why 70% of people want to learn a new language. While consumers can learn languages through many resources, few of them compare to Duolingo (NASDAQ:DUOL).

Users can choose from more than 40 languages on the Duolingo app, and it recently expanded to offer math and music lessons. These lessons serve as great complements to the app’s language learning resources. This expansion makes it possible for Duolingo to become an all-encompassing app in the future that also offers science, history, and other subjects. 

Duolingo is offering more resources for its members, but the stock is richly valued with a 119 forward P/E ratio. This growth stock isn’t for everyone, but exceptional revenue and earnings growth can make the valuation more reasonable by the end of 2024.

The app grew its daily active users by 63% year-over-year in the third quarter. That growth resulted in a 43% year-over-year revenue jump. The company raised full-year guidance and turned a $2.8 million profit in the quarter. That net income is a big turnaround from last year’s $18.4 million net loss. 

First Solar (FSLR)

The hottest growth stocks in 2024 aren’t always the stocks that performed well in 2023. First Solar (NASDAQ:FSLR) and many other renewable energy stocks got pounded in 2023 as headwinds proved to be a challenge.

The Federal Reserve is keeping interest rates steady and many analysts believe rate cuts are on the way. Lower rates will help the entire economy and can breathe new life into solar energy stocks. 

First Solar is in a great position relative to other solar energy companies. The corporation continues to grow revenue and earnings at incredible rates. Revenue increased by 27% year-over-year while net income surged by 646% year-over-year in the third quarter. 

The stock was up by roughly 18% in 2023 after stumbling in the second half. Shares have gained 270% over the past five years. First Solar is a contrarian pick, but growth stocks as a whole were contrarian picks at the start of 2023. A 13 forward P/E ratio makes this stock look like a bargain based on its growth rates. 

Lululemon (LULU)

Lululemon (NASDAQ:LULU) is an athletic apparel brand that is quickly gaining market share. The number of stores has steadily grown over the years. Lululemon has more than 600 locations.

The corporation reported 19% year-over-year revenue growth in the third quarter at a time when larger athletic apparel brands were experiencing slower revenue growth rates. International expansion has been fueling revenue growth, and that trend has continued in the recent quarter. While revenue from North America increased by 12% year-over-year, international sales were up by 49% year-over-year.

Further penetration into global markets can help Lululemon achieve further growth. The company’s financials were healthy enough for the board to approve a $1 billion stock buyback on November 29, 2023. The firm currently has $1.1 billion in cash on its balance sheet.

In an earnings presentation, Calvin McDonald, CEO of Lululemon, indicated the holiday season has been going well. “As we enter the holiday season, we are pleased with our early performance and are well-positioned to deliver for our guests in the fourth quarter,” he stated.

Getting in before the next earnings report can be beneficial, but investors should remember that the stock trades at a 36 forward P/E ratio. Not everyone wants to take on that much risk, but long-term shareholders have been happy. The stock has roughly quadrupled over the past five years. If you are looking for growth stocks to watch in 2024, start here.

On this date of publication, Marc Guberti held a long position in DUOL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.