10 Best Growth Stocks to Buy for 2024

After strong performance in 2023, U.S. gross domestic product growth started to cool in the fourth quarter and only grew by 1.6% in the first quarter. Economists expect growth to stay flat in coming quarters, and while predictions for a U.S. recession have mellowed, a downturn isn't off the table yet. It may become difficult for investors to find reliable growth stocks to buy if interest rates remain at 23-year highs for an extended period. Nevertheless, growth stocks outperformed value stocks in 2023, and many investors expect that trend to continue in 2024 if the Federal Reserve pivots to rate cuts.

10 Best Growth Stocks to Buy for 2024:Nvidia Corp. (NVDA)

High-end semiconductor maker Nvidia has been one of the most spectacular growth stories in the entire stock market in the past 15 years. Nvidia's growth numbers have wowed Wall Street, especially for a company of Nvidia's size. Nvidia's revenue grew 265% year over year in the fourth quarter, while its net income skyrocketed by 768%. Analyst Angelo Zino says unprecedented artificial intelligence and cloud computing demand will continue to support strong growth numbers for Nvidia. He projects 80% revenue growth in fiscal 2025 and 20% growth in 2026. CFRA has a "buy" rating and $1,000 price target for NVDA stock, which closed at $826.32 on April 25.

10 Best Growth Stocks to Buy for 2024:Alphabet Inc. (GOOG, GOOGL)

Alphabet is one of the world's largest online search and advertising companies and is the parent company of Google and YouTube. In the first quarter, Alphabet reported 15% revenue growth, which included 28% Google Cloud revenue growth. Zino says Alphabet has tremendous free cash flow potential, and he is bullish on the company's AI technology potential. He projects 12% revenue growth in 2024 and 10% growth in 2025. He says the company will integrate additional AI tools into its enterprise products, cloud services, search and YouTube businesses. CFRA has a "buy" rating and $175 price target for GOOGL stock, which closed at $156 on April 25.

10 Best Growth Stocks to Buy for 2024:Meta Platforms Inc. (META)

Meta Platforms is a market leader in social media and online advertising and is the owner of Facebook, Instagram and other platforms. Meta regained its growth groove in 2023, and reported 27% year-over-year revenue growth in the first quarter of 2024. Zino says Meta's margin trajectory is improving and the stock is attractively valued given its many growth opportunities. He says the company's cost-cutting efforts coupled with an improving digital ad spending environment will continue to drive earnings growth. He projects 18% revenue growth in 2024. CFRA has a "buy" rating and $540 price target for META stock, which closed at $441.38 on April 25.

10 Best Growth Stocks to Buy for 2024:JPMorgan Chase & Co. (JPM)

JPMorgan Chase is one of the world's largest banks and financial services companies with roughly $3.7 trillion in assets. In 2023, JPMorgan acquired First Republic Bank after it failed during the regional banking crisis and was seized by the Federal Deposit Insurance Corp. JPMorgan reported double-digit revenue growth in each of the past five quarters. Analyst Kenneth Leon says JPMorgan is gaining market share in multiple core businesses, and he projects a rebound in investment banking in the second half of 2024. CFRA has a "buy" rating and $215 price target for JPM stock, which closed at $193.37 on April 25.

10 Best Growth Stocks to Buy for 2024:Tesla Inc. (TSLA)

Tesla is the leading U.S. electric vehicle manufacturer. Tesla's year-over-year revenue fell by 9% in the first quarter, and automotive segment revenue dropped 13%. Analyst Garrett Nelson says production from Tesla's factories in Texas and Germany and the first wave of Cybertruck deliveries have set the table for Tesla's growth to rebound in 2024 and beyond. In addition, Nelson says first production of the company's Next Gen platform in 2025 could be an additional growth driver. He projects 10% revenue growth in 2024. CFRA has a "buy" rating and $210 price target for TSLA stock, which closed at $170.18 on April 25.

10 Best Growth Stocks to Buy for 2024:Mastercard Inc. (MA)

Mastercard is one of the world's largest credit card and payments providers. In the fourth quarter, Mastercard reported 13% revenue growth, 11% net income growth and 10% gross dollar volume growth. Analyst Alexander Yokum says Mastercard will continue to gain market share in coming years as the global transition to a cashless economy continues. Yokum says payment volume growth will significantly outpace consumer spending growth in the coming years, which should help Mastercard outperform. He projects 13% revenue growth in 2024 and 12% growth in 2025. CFRA has a "buy" rating and $550 price target for MA stock, which closed at $462.11 on April 25.

10 Best Growth Stocks to Buy for 2024:Salesforce Inc. (CRM)

Salesforce is the world's largest provider of cloud-based customer relationship management software. In addition to its organic growth, Salesforce has grown via a string of acquisitions in recent years, including its 2020 buyout of Slack. Salesforce reported 11% revenue growth and 1,575% net income growth in the fourth quarter. Zino says Salesforce shares are attractively valued given the company's comprehensive portfolio of products, market share gains and earnings growth opportunities. He projects about 9% annual revenue growth through at least fiscal 2027. CFRA has a "strong buy" rating and $330 price target for CRM stock, which closed at $273.14 on April 25.

10 Best Growth Stocks to Buy for 2024:Advanced Micro Devices Inc. (AMD)

Shares of microprocessor and graphics semiconductor stock Advanced Micro Devices are up a whopping 3,445% over the past decade, and AMD reported 10% revenue growth and a 3,076% net income growth in the fourth quarter. Even after the stock's big run, Zino says the growth outlook for AMD's central processing unit data center servers and AMD's opportunities to further improve its balance sheet suggest the stock still may have significant upside remaining. He projects 16% revenue growth in 2024 and 20% growth in 2025. CFRA has a "buy" rating and $200 price target for AMD stock, which closed at $153.76 on April 25.

10 Best Growth Stocks to Buy for 2024:Intuit Inc. (INTU)

Intuit produces accounting and management, tax preparation and personal finance software. In the fiscal second quarter, Intuit reported 11% revenue growth, 110% net income growth and 18% revenue growth in its small business and self-employed group business. Analyst Janice Quek says Intuit has executed well in a challenging macroeconomic environment. In addition, Quek says catalysts such as Live Full Service for Turbo Tax, Intuit Assist and other new AI features will help the company maintain double-digit sales growth. She projects 11.8% revenue growth in fiscal 2024. CFRA has a "buy" rating and $715 price target for INTU stock, which closed at $626.39 on April 25.

10 Best Growth Stocks to Buy for 2024:Applied Materials Inc. (AMAT)

Applied Materials is the world's largest wafer fabrication equipment supplier for the semiconductor industry. In the first quarter, Applied Materials reported flat revenue growth but 18% net income growth. Analyst Brooks Idlet says Applied Materials' leadership positions in multiple critical semiconductor production businesses position the company to generate solid growth numbers in coming years. Idlet says demand from foundry/logic technology transitions will support etch and deposition tools sales growth. He projects revenue growth will accelerate from 2% in fiscal 2024 to 7% in 2025. CFRA has a "buy" rating and $233 price target for AMAT stock, which closed at $197.50 on April 25.

6 Hot Growth Stocks To Buy Right Now in 2024

In this article, we discuss the 6 hot growth stocks to buy now. If you want to read about some more growth stocks that are active in the market, go directly to the 6 Hot Growth Stocks To Buy Right Now.

As 2024 moves forward, the outlook for both the stock and bond markets undergoes regular fluctuations, influenced by various factors such as economic data releases, Federal Reserve communications, and changes in interest rate forecasts. As an example, the Federal Reserve hiked its benchmark interest rate 11 times from March 2022 to July 2023 amid resurgent inflation, reaching its highest level in more than two decades. This uptick in borrowing costs has contributed to alleviating inflationary pressures, with recent data showing consumer prices increasing by only 3.1% from January 2023, marking a decline from the peak of 9.1% in June 2022 and edging closer to the Fed's 2% target.

Surprisingly, progress against inflation has been notable without inflicting significant economic hardship, with unemployment remaining below 4% for 24 consecutive months. Moreover, employers have consistently added an average of 244,000 jobs per month over the past year, with December and January seeing over 300,000 new jobs each. This combination of subdued inflation and GDP growth has fostered optimism that perhaps the Fed can achieve a rare "soft landing."

On the other hand, the current year has an array of growth opportunities spanning different sectors within the capital markets. Leading the forefront is the technology sector, with artificial intelligence (AI) spearheading innovation. Its swift advancements and widespread integration across various industries render it an appealing option for investors pursuing growth and transformative prospects. As an illustration to this point, venture capital investments in generative AI and AI-related startups surged to nearly $50 billion the past year alone, with notable startups such as OpenAI, Anthropic, and Inflection commanding substantial portions of these investments.

Following suit is the healthcare sector, securing the second spot, as it progresses alongside developments in medical technologies and a growing emphasis on personalized medicine. The increasing demand for GLP-1, a medication class utilized in managing type 2 diabetes (T2D), is a key factor driving this trend. According to research by J.P. Morgan, the GLP-1 category is projected to surpass $100 billion by 2030, with growth attributed equally to its use in treating both diabetes and obesity.

When it comes to stock selection for substantial returns in such times, focusing on growth stocks is a popular strategy. Growth stocks are characterized by higher share prices relative to their earnings per share, reflecting expectations of significant future growth. One metric commonly used to identify growth stocks is the price-to-earnings ratio (P/E ratio). This ratio compares the current share price to the earnings per share, indicating the premium that the market is willing to pay for a stock's earnings potential.

Some of the notable companies included in our list of hot growth stocks to buy are Salesforce, Inc. (NYSE:CRM) and Advanced Micro Devices, Inc. (NASDAQ:AMD), as well as industry giants like NVIDIA Corporation (NASDAQ:NVDA) and Uber Technologies, Inc. (NYSE:UBER), among others listed below.

6 Hot Growth Stocks To Buy Right Now

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Our Methodology

In this piece, we utilized stock screeners to identify stocks meeting specific criteria as of March 28. Our selection criteria included stocks with an average 3-month volume surpassing 3 million and a P/E ratio exceeding 50. Additionally, we incorporated a quarterly revenue growth rate of over 10% as another parameter for our list. Lastly, we provided insights into the number of hedge funds invested in each stock, shedding light on growth stocks favored by hedge funds.

Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years . That’s why we pay very close attention to this often-ignored indicator.

Hot Growth Stocks To Buy Right Now in 2024——1. Palantir Technologies Inc. (NYSE:PLTR)

• P/E Ratio: 254.82
• Avg Volume: 70.81 million
• rterly Revenue Growth: 19.61%
• Number of Hedge Fund Holders: 44

Palantir Technologies Inc. (NYSE:PLTR) operates as a software company specializing in data fusion platforms, facilitating both machine-assisted and human-driven data analysis. Its product platform includes Palantir Gotham, Palantir Apollo, and Palantir Foundry.

Following encouraging financial results in the fourth quarter, Palantir Technologies Inc. (NYSE:PLTR) witnessed a 19% surge in its stock. Revenue increased by 20% to $608 million, driven by robust demand for its Artificial Intelligence Platform (AIP) among commercial customers, although growth in the government segment remained subdued. Additionally, GAAP net income tripled to $93 million as Palantir focused on cost control measures.

According to Insider Monkey's analysis of 933 hedge fund portfolios for the December quarter of 2023, 44 had stakes in Palantir Technologies Inc. (NYSE:PLTR). D. E. Shaw emerged as the largest investor, owning 20.75 million shares valued at $356.39 million.

Much like Salesforce, Inc. (NYSE:CRM), Advanced Micro Devices, Inc. (NASDAQ:AMD), NVIDIA Corporation (NASDAQ:NVDA) and Uber Technologies, Inc. (NYSE:UBER), Palantir Technologies Inc. (NYSE:PLTR) is one of the best trending growth stocks.

Hot Growth Stocks To Buy Right Now in 2024——2. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)

• P/E Ratio: 883.17
• Avg Volume: 3.94 million
• Quarterly Revenue Growth: 32.63%
• Number of Hedge Fund Holders: 62

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a cybersecurity technology company headquartered in Austin, Texas, USA. Specializing in cloud workload and endpoint security, threat intelligence, and cyberattack response services, it plays a crucial role in safeguarding digital assets.

On March 14, analysts at Cantor Fitzgerald maintained an Overweight rating and set a price target of $400 for CrowdStrike Holdings, Inc. (NASDAQ:CRWD).

In the fourth quarter of 2023, 62 out of the 933 hedge funds tracked by Insider Monkey had investments in CrowdStrike Holdings, Inc. (NASDAQ:CRWD). The largest hedge fund investor in the company is Jim Simons’s Renaissance Technologies, with holdings valued at $450 million.

TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its fourth quarter 2023 investor letter:

    “Across the Information Technology universe, we seek companies possessing differentiated capabilities, products, and services. CrowdStrike Holdings, Inc. (NASDAQ:CRWD) provides cloud-delivered protection across endpoints and cloud workloads. Their stock rallied 53% on the heels of solid fiscal third quarter results, with net new annualized recurring revenues accelerating sequentially.”

Hot Growth Stocks To Buy Right Now in 2024——3. Shopify Inc. (NYSE:SHOP)

• P/E Ratio: 857.44
• Avg Volume: 9.86 million
• Quarterly Revenue Growth: 23.58%
• Number of Hedge Fund Holders: 68

Shopify Inc. (NYSE:SHOP) stands as a premier provider of internet infrastructure for commerce, offering a suite of tools that empower businesses to establish, expand, market, and oversee retail operations across various scales. Serving millions of businesses in 175 countries, Shopify Inc. (NYSE:SHOP) plays a pivotal role in bolstering a diverse array of enterprises.

As of December 2023, Insider Monkey's analysis of 933 hedge fund portfolios revealed that 68 of them held shares of Shopify Inc. (NYSE:SHOP). Notably, the largest shareholder among them was Arrowstreet Capital, led by Peter Rathjens, Bruce Clarke, and John Campbell, with shares valued at $1.6 billion.

Artisan Mid Cap Fund stated the following regarding Shopify Inc. (NYSE:SHOP) in its fourth quarter 2023 investor letter:

    “Among our top contributors were Chipotle, DexCom and Shopify Inc. (NYSE:SHOP). We got a chance to initiate a position in Shopify during the 2022 growth stock selloff, with the view that this is a leading e-commerce franchise that will continue to benefit from key secular tailwinds. Like many market participants, we were concerned about the company’s capital-intensive fulfillment investments in the face of a slowing e-commerce market and welcomed the news that it decided to exit the logistics business in favor of a capital-light partnership model. This change in strategy significantly narrows the downside range of outcomes, and allows us to focus on what it does so well: develop great e-commerce software solutions for brands of all sizes. We have been encouraged by Shopify’s subsequent pace of innovative new product enhancements, which include the use of AI assistants to help brands run their businesses.”

Hot Growth Stocks To Buy Right Now in 2024——4. Block Inc (NYSE:SQ)

• P/E Ratio: 14582.76
• Avg Volume: 10.80 million
• Quarterly Revenue Growth: 24.13%
• Number of Hedge Fund Holders: 75

Block Inc. (NYSE:SQ), originally named Square Inc., is an American public company founded in 2009 by Jack Dorsey and Jim McKelvey. It operates across various sectors within the financial technology industry. With nearly 4 million merchants and 51 million users as of 2023, Block's service network has experienced substantial growth.

The surge in Block Inc. (NYSE:SQ) shares followed the release of its Q4 results and strong 2024 EBITDA guidance. In the fourth quarter, Block Inc. (NYSE:SQ) reported a net income of 2 cents per share, a significant improvement compared to the loss of 93 cents per share in the year-ago period.

In the fourth quarter of 2023, 75 out of the 933 hedge funds tracked by Insider Monkey held stakes in Block Inc. (NYSE:SQ), marking a notable increase from 60 hedge funds in the previous quarter.

Hot Growth Stocks To Buy Right Now in 2024——5. Merck & Co., Inc. (NYSE:MRK)

• P/E Ratio: 998.11
• Avg Volume: 8.69 million
• Quarterly Revenue Growth: 13.82%
• Number of Hedge Fund Holders: 98

Merck & Co., Inc. (NYSE:MRK), a renowned American multinational pharmaceutical company headquartered in Rahway, New Jersey, has a rich history dating back to the Merck Group, founded in Germany in 1668. As the American arm of this esteemed group, the company operates as Merck Sharp & Dohme or MSD outside the United States and Canada, maintaining a leading position in the pharmaceutical industry. Its focus areas include the development of medicines, vaccines, biologic therapies, and animal health products.

With a track record of consistent dividend growth spanning 11 consecutive years, Merck & Co., Inc. (NYSE:MRK) currently offers a quarterly dividend of $0.77 per share, translating to a dividend yield of 2.33% as of March 28.

In the fourth quarter of 2023, 98 out of the 933 hedge funds tracked by Insider Monkey held shares of Merck & Co., Inc. (NYSE:MRK). Among them, Ken Fisher’s Fisher Asset Management emerged as the company’s largest investor, with holdings valued at $1.4 billion.

Hot Growth Stocks To Buy Right Now in 2024——6. Eli Lilly and Company (NYSE:LLY)

• P/E Ratio: 136.85
• Avg Volume: 3.20 million
• Quarterly Revenue Growth: 28.10%
• Number of Hedge Fund Holders: 102

Founded in 1876, Eli Lilly and Company (NYSE:LLY) is a renowned American pharmaceutical company based in Indianapolis, Indiana. Named after its founder, Colonel Eli Lilly, a pharmaceutical chemist and Civil War veteran, the company has a global presence, operating in 18 other countries.

Eli Lilly and Company (NYSE:LLY) currently pays out a quarterly dividend of $1.30 per share and has demonstrated consistent dividend growth over the past decade. Furthermore, the company has a notable track record of uninterrupted dividend payments to its shareholders for 138 years. As of March 16, the stock offers a dividend yield of 0.69%.

As of the end of December 2023, 102 out of the 933 hedge funds profiled by Insider Monkey had purchased and held shares of the company. Among these, Ken Fisher’s Fisher Asset Management held the largest stake in Eli Lilly and Company (NYSE:LLY), valued at $2.6 billion.

Similar to Salesforce, Inc. (NYSE:CRM), Advanced Micro Devices, Inc. (NASDAQ:AMD), NVIDIA Corporation (NASDAQ:NVDA) and Uber Technologies, Inc. (NYSE:UBER), Eli Lilly and Company (NYSE:LLY) is a hot growth stock to invest in.