The initial public offering (IPO) and the subsequent listing is one of the best times to buy new growth stocks. The markets are still in a phase of understanding the business potential and there is limited analyst coverage. Over time, quality IPOs grab the limelight and there is a stock re-rating. This column discusses seven new growth stocks to buy from the IPOs of 2024 that can create massive wealth.

There has been a revival in the U.S. IPO market in the first half of 2024 with 82 IPOs raising total proceeds of $18.6 billion. In terms of number of deals, the healthcare and technology sector have been the leaders. A deep dive into these listing will provide investors with multiple interesting stories.

Of course, valuation is a key consideration at a time when the index trades near all-time highs. The focus is therefore on new growth stocks that look attractively valued.

Tempus AI (TEM)

There is likely to be an increasing role for artificial intelligence (AI) in the healthcare sector globally. Tempus AI (NASDAQ:TEM) is a medical technology company that seems positioned to benefit. The company is a provider of next-generation sequencing diagnostics, polymerase chain reaction profiling and molecular genotyping, among others.

It’s worth noting that Tempus AI is on a high-growth trajectory. For 2023, the medical technology company reported revenue growth of 65.8% to $531.8 million. All the business segments, genomics, data and services, reported robust growth.

Tempus has been making significant investments in R&D and the results are showing in the form of approvals. In June, the company received U.S. Food and Drug Administration (FDA) clearance for its “Tempus ECG-AF device that uses AI to help identify patients who may be at increased risk of atrial fibrillation.”

The Centers for Medicare & Medicaid Services has also granted “Advanced Diagnostic Laboratory Test” status for the company’s next-generation sequencing assay. These developments are likely to boost growth in the genomics division.

PACS Group (PACS)

PACS Group (NYSE:PACS) is another attractive IPO from the healthcare sector. It’s worth noting that the IPO price was $21 and PACS stock has surged by 70% from those levels to $35.8. However, at a forward P/E of 24.3x, the stock remains attractive.

As an overview, PACS Group operates skilled nursing and assisted living facilities in the United States. Currently, the company operates 200 facilities across nine states. The company has been aggressively acquiring new facilities and with ample headroom for penetration in new states, growth visibility is robust.

An important point to note is that the company’s mature facilities have an occupancy rate of 94.6%. The key reason is a lower cost-of-care per day as compared to inpatient rehabilitation facilities or long-term acute care hospitals.

For 2024, PACS Group has guided for revenue of $3.7 billion. On a year-over-year basis, revenue growth is expected at 19%. With continued acquisition of new facilities, I expect robust growth to sustain coupled with healthy EBITDA.

Contineum Therapeutics (CTMN)

Staying with the healthcare sector, Contineum Therapeutics (NASDAQ:CTNM) is another attractive name to consider. Contineum is a clinical-stage biotechnology company with focus on developing novel oral small molecule therapies for neuroscience, inflammation and immunology indications.

The first point to note is that Contineum has an attractive pipeline. PIPE-307 is in the second phase of clinical trials for RRMS (relapsing-remitting multiple sclerosis). Another PIPE-307 candidate is in the first phase of trials and is for depression. It’s worth noting that both these programs are in collaboration with Johnson & Johnson (NYSE:JNJ).

Additionally, PIPE-791 is for idiopathic pulmonary fibrosis. There are three million patients globally and therefore the addressable market is significant. With the IPO, the biotech company has a strong proforma cash balance of $225.9 million. This will ensure the necessary financing for clinical trials.

It’s worth noting that there is “encouraging data” related to PIPE-307. With phase two trials initiated, the coming quarters are likely to deliver positive news that will ensure that CTMN stock remains in an uptrend.

Ibotta (IBTA)

Ibotta’s (NYSE:IBTA) stock IPO was at $88 in April. However, the stock has corrected by almost 24% from the IPO price. I see this as a good buying opportunity with IBTA stock trading at a forward P/E of 21.6x.

As an overview, Ibotta is a technology company that offers the “Ibotta Performance Network.” This allows consumer packaged goods brands to deliver digital promotions to consumers. Within the United States, the company has an addressable market of $200 billion. This puts into perspective the growth potential.

For 2023, Ibotta reported revenue of $320 million, which was higher by 52% YoY. For the same period, the adjusted EBITDA margin was 26%. Further, for Q1 2024, revenue growth was 43% YOY to $82.3 million.

Clearly, Ibotta is on a high-growth trajectory and it’s a matter of time before the stock surges higher. I must add here that possible expansion beyond the U.S. in the next 12 to 24 months can be another growth acceleration catalyst.

ZEEKR Intelligent Technology (ZK)

ZEEKR Intelligent Technology (NYSE:ZK) is an attractive name among electric vehicle companies from China. With sentiments bearish for the EV industry, ZK stock has remained weak after the IPO. I see this as a good buying opportunity with business developments remaining positive.

It’s worth noting that for the first half of 2024, ZEEKR has delivered 87,870 vehicles. On a YoY basis, vehicle deliveries have increased by 106%. Amidst macroeconomic headwinds and intense competition, deliveries growth has been robust. In June 2024, ZEEKAR announced expansion into Malaysia and Indonesia. These are attractive markets and will contribute to the growth momentum.

For Q1 2024, ZEEKR reported revenue of $1.1 billion, which was higher by 73% YoY. Besides healthy revenue growth, vehicle margin was attractive at 14%. With operating leverage, I expect the narrowing of operating losses to continue in the coming quarters. Positive business developments are likely to translate into a sharp reversal rally for ZK stock.

Loar Holdings (LOAR)

Loar Holdings (NYSE:LOAR) has been among the best performing IPOs of 2024. After listing at $28, LOAR stock has surged by 123% to current levels of $62.50. The valuations look stretched and I would wait for a 15% to 20% correction to accumulate. In the long term, LOAR stock can be a massive value creator.

As an overview, Loar Holdings is a manufacturer and supplier of niche aerospace and defense components. Between 2012 and 2023, the company’s revenue has grown at a CAGR of 38%. This growth has been backed by 16 acquisitions. Given the tailwinds for the defense sector, it’s likely that healthy growth will sustain for Loar.

Last month, Loar announced the acquisition of Applied Avionics for a consideration of $385 million. The latter is a manufacturer of highly engineered avionics interface solutions. For the current year, the acquisition will have an incremental impact on sales and EBITDA of $40 million and $21 million respectively. Overall, with organic growth, industry tailwinds, and a track record of successful acquisitions, Loar Holdings is worth considering.

Viking Holdings (VIK)

Viking Holdings (NYSE:VIK) stock listed at $24 in April and currently trades at $35.7. However, at a forward P/E of 26.6x, VIK stock remains attractive for fresh exposure.

As an overview, Viking provides destination-focused journeys on rivers, oceans, and lakes globally. As of Q1 2024, the company had 80 river vessels and nine ocean ships. Additionally, Vikings had two expedition ships and one time-chartered river ship.

For Q1 2024, Viking reported revenue growth of 14.2% YoY to $718.2 million. This growth was backed by an increase in the fleet size coupled with higher occupancy. It’s also worth noting that for the 2024 and 2025 seasons, Viking had sold 91% and 39% of its capacity passenger cruise days. It’s therefore likely that results will be steady for the next 12 to 18 months.

Further, Viking River and Viking Ocean have a strong committed order book through 2030. This is likely to ensure steady growth and new vessels join the fleet.

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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.