2024 has started in the same manner as 2023. The S&P 500 is rising steadily pulling growth stocks consistently higher, which is leading more investors to seek out stocks predicted to grow. It’s also leading us to look for stocks that could get swept up in the buying spree.

Investors have plenty of reason to believe that the stock market will continue to grow in 2024. Even though rate cuts from the U.S. Federal Reserve have been delayed, the S&P 500 and other benchmark indices continue to hit higher highs. However, rest assured, when those rate cuts are enacted that should logically spur another round of growth.

Potential investors should also note that most of the names discussed below are very well established. We are not playing in the highly speculative world of penny stocks where 30% growth is easily found but volatility reigns supreme. These stocks are much more stable and therefore much more likely to preserve investor capital.

Nvidia (NVDA)

It should be no surprise that Nvidia (NASDAQ:NVDA) leads off this article on growth stocks predicted to grow. The dominant chip firm has consistently provided bullish updates since early 2023. Investors have seen the shares skyrocket during that period which has consistently raised questions of how much longer it can continue to rise. The answer – based on analyst target prices – is as much as 80%.

While I’m just as bullish, let’s first address one of the biggest arguments against it: Valuation. Bears believe that Nvidia is overvalued. However, investors who consider its price-to-earnings (P/E) ratio a valid argument against it should consider that it’s only priced higher than 79% of competitors. It’s very easy to make an argument that Nvidia is not overvalued given its position relative to almost any other company.

The simple truth is that Nvidia has best monetized AI. Until another firm can compete against it and replace its difficult to source chips there is no good reason to bet against its continued growth. 

Microsoft (MSFT)

Another one of the top stocks predicted to grow is Microsoft (NASDAQ:MSFT). To date, it’s been a step behind Nvidia in monetizing the emergence of generative artificial intelligence. Yet, investors should make no mistake about it, Microsoft is a similarly dominant force in AI. 

To quickly get it out of the way, Wall Street believes that Microsoft shares could grow by as much as 50% from their current levels this year. 

Investors need look no further than the company’s most recent earnings report in order to substantiate that forecast. Microsoft grew by 18% in Q4. That net income increased by 33% during the same period: the company is finding profitability from AI’s emergence.

Investors should pay particular attention to the cloud. It’s one of the most important business segments for Microsoft and one of the strongest reasons to believe in its future growth. Azure and cloud service revenue grew by 30% during the 4th quarter.

Azure Is either the best or second best cloud offering depending upon how you measure it. It’s also undeniably among the most fertile grounds for continued growth via the application of AI and a great reason to believe in continued growth. 

Vita Coco (COCO)

Let’s switch gears completely and consider Vita Coco (NASDAQ:COCO), another one of the top stocks predicted to grow in 2024. The company sells coconut water products under its brand name and has emerged as a very interesting CPG stock.

To begin, the headline numbers tell a promising story for Vita Coco. Sales grew by 15% during the period with net profit more than doubling during the same time frame. The company was particularly attractive from the perspective of net income which grew to $47 million from $8 million during the prior year. 

The fact that the company is beginning to produce much higher earnings is probably its greatest asset at this time. investors should also consider that the coconut water Market is a strong industry. It is expected that the coconut water market will grow at an annual rate of 16% between 2024 and 2031. Vita Coco is one of the leading names in the space and is very well-established. It is growing at roughly that rate currently. 

Analysts believe that COCO shares could grow by slightly more than 30% in the next 12 to 18 months. 

PayPal (PYPL)

PayPal (NASDAQ:PYPL) is one of the more interesting fintech stocks to consider at the moment. It is one of the earliest and best-established names in that space. And it has also fallen dramatically over the past few years as fintech competition has heated up. 

As a result shares that peaked above $300 during the pandemic are now trading at $60. Wall Street believes that PYPL shares offer a lot of hidden value and that they could double. It will continue to be among the more heavily discussed stocks predicted to grow.

The reason that PayPal is so interesting is simply that it represents a conundrum to investors: Revenues were higher than forecast and payments increased by 15% yet the company continues to face strong competition. That competition has resulted in continuing declines in active accounts. 

PayPal is doing better than had been expected but many wonder if those competitors will continue to erode its account base. There is no clear answer at this point but given how much upside there is in PYPL shares, it is absolutely worth betting on.

Tesla (TSLA) 

Tesla (NASDAQ:TSLA) is positioning itself to compete against its primary Chinese rival, BYD (OTCMKTS:BYDDY). The company and its stock have been much maligned throughout late 2024 and into early 2023 as EV industry dynamics shifted quickly and unfavorably. The result is that TSLA shares now trade for $200 and have 75% upside at the moment.

So, let’s get back to the idea of competition with BYD and why it matters to investors. One of the simplest and most powerful reasons to believe in Tesla at this point is that it will release its Roadster in 2025. The company recently announced that it will release its long delayed Roadster. The timing of the announcement likely was not coincidental. BYD recently announced that it will release an EV supercar for the Chinese market, the Yangwang U9. 

For fans of Tesla and investors in its stock the hope is that it will awaken something in Elon Musk. Warren Buffett is an investor in BYD and believes that its CEO is Musk’s equivalent. Perhaps Musk’s famous drive will be redirected into Tesla which could reinvigorate the firm. The roadster announcement may be the beginning.

Advanced Micro Devices (AMD)

Advanced Micro Devices (NASDAQ:AMD) continues to carve out its position as the primary competitor to Nvidia in the data center space. That is the chief reason investors should believe that the company stock can approach its target price.

The company will continue to ramp up production of its MI300 chips which are targeting Nvidia’s dominant chips. It is clear that the primary buyers of those chips have a strong interest in AMD’s offering. Microsoft and Meta (NASDAQ:META) buy the majority of competitor chips sold by Nvidia. Yet, both companies desire to put pricing pressure on Nvidia which sells those chips at extremely high prices.

In turn, both firms announced that they would buy AMD’s MI300 chips as a replacement for Nvidia’s chips. Major investment houses believe that by the end of 2024 data center chips will account for 50% of AMD’s revenues. That figure stood at 10% just five years ago. AMD is the clear-cut choice for investors who have any doubt at all about Nvidia’s ability to continue to dominate the generative AI space, especially in the context of data centers. 

Rentokil Initial (RTO)

Rentokil Initial (NYSE:RTO) provides pest control and hygiene services and products. While that arguably doesn’t make it the most interesting stock it does remain interesting due to its growth potential.

Analysts believe that the stock could grow an additional $10 above its current price of $28 on average. The high water mark sits at $47 which implies near triple-digit returns. Unsexy, blue-collar industry stocks are every bit as interesting for investors from the perspective of potential returns.

The company holds leading market shares in most of the markets in which it operates and that gives it a wide moat. While that’s a strong reason to believe in the company, there is another: Increasing urbanization.

Much of the world continues to migrate into urban centers while per capita spending on pest control services continues to rise. That is setting up a strong scenario for the firm over the coming years. As mentioned, the company has a strong presence in the markets in which it operates and should continue to experience organic growth as a result of that positioning. Those factors combine to make it a stock that is predicted to grow overall.

On the date of publication, Alex Sirois 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.