As we enter 2024, in an ever-evolving world and markets, the ability to adapt and evolve with the times is a must. If you are interested in investing, it is essential to do very thorough research on stocks, exchange-traded funds and other investment vehicles. Here are the three best growth stocks for 2024.
Forbes USA article by Rob Isbitts – translated by Lisa Deleforterie
Why growth stocks?
Growth stocks are stocks of a company whose earnings and sales are expected to grow faster than the average of the entire stock market. These companies tend to focus more on growth than paying out a large portion of their profits as dividends.
The most significant growth companies often have a loyal customer base and/or significant market share in their industry. Investors can potentially make money investing in growth stocks by selling the stock in the future if its value has increased. Of course, since it is still a stock, there is always a risk that the stock will lose value and the investor will lose money. The goal of investing in growth stocks is to carefully research and identify companies that have the potential to sustainably grow capital for years to come, especially as you think about your retirement needs.
3 best growing stocks for 2024
These three growth stocks: BlackRock, Salesforce, and Nike are part of the short list of growth stocks to consider for 2024. Each of these companies has unique aspects, while being renowned in their sector for their quality and constant growth. While past performance is no guarantee of future returns, these companies are poised for continued growth in the future and are worth considering by investors once they do their own research, as nothing here should be construed as investment advice.
- Black stone
– Industrial area: Asset Management and Custodian/Financial Bank
– Market capitalization: 112 billion dollars (101.3 billion euros)
– Share price: $757.40 (€685.14)
– dividend yield: 2.7%
– price/earnings ratio: 21.3
– price/turnover ratio: 6.5
Company presentation
BlackRock is a public investment manager. Founded in 1988 and headquartered in New York, with offices around the world, BlackRock is the world’s largest asset manager with more than $9 trillion (€8.14 trillion) in assets under management.
Why invest in this stock
BlackRock is by far the largest issuer of exchange-traded funds (ETFs), and its latest filing for a spot bitcoin ETF is attracting investor attention as it would be the first of its kind if approved by the SEC (Securities and Exchange Commission). , which will likely happen in early 2024.
- Salesforce (CRM)
– Industrial area: Application software/information technology
– Market capitalization: 248 billion dollars (224.3 billion euros)
– Share price: $256.23 (€231.79)
– dividend yield: None
– price/earnings ratio: 97.4
– price/turnover ratio: 7.4
Company presentation
Salesforce is one of the latest companies to join the Dow Jones. Started in 1999 as a pioneering subscription-based software-as-a-service company that offers customer relationship management (CRM) with software and data hosted on the Internet—a truly revolutionary innovation for During the 2010s, Salesforce grew through acquisitions of small start-ups and is today the third largest enterprise software company, behind Microsoft and Oracle.
Why invest in this stock
As a large company in 2020, its period of growth through acquisitions has slowed, but Salesforce has been able to turn around to continue growing in value by increasing its profit margins.
- Nike
– Industrial area: Footwear/Consumer discretion
– Market capitalization: 182 billion dollars (164.6 billion euros)
– Share price: 119.85 (108.42 euros)
– dividend yield: 1.3
– price/earnings ratio: 37.0
– price/turnover ratio: 3.6
Company presentation
Nike was founded in 1964 as Blue Ribbon Sports and was renamed Nike in 1971. The company struggled after going public in 1980 until it signed Michael Jordan in 1984, revolutionizing sports marketing and helping Nike gain international fame. Through acquisitions and endorsements from sports celebrities, Nike has become the largest supplier of sports footwear and apparel, with sales of more than $51 billion (€46 billion). ) for the financial year 2023.
Why invest in this stock
Nike has seen many ups and downs throughout its long history, and the past two years have been exceptionally turbulent, with factory closures related to the Covid-19 pandemic followed by a rise in inventory while consumer spending fell in 2022. Since then, Nike has worked to regain its footing, reduce excess inventory and accelerate growth through 2024 by changing direction and restructuring the company.
Investment strategies to put yourself on the road to success
Successful investing does not happen overnight. Investing is a blend of science and art, and an investor’s understanding, determination and research will make the difference in the success of long-term investment strategies. Investors should understand their personal goals, risk tolerance and future capital needs and develop a strategy to mitigate risk and achieve their goals.
Choosing an aggressive, passive strategy or a balance between the two, long-term or short-term, depends on the investor. Bottom line: Every investor should do their own research and develop an individual strategy, with professional help if necessary.
Conclusion
Growth stocks have risks, as do all stocks in the market, but the three stocks described in this article are worth considering for investing in 2024 once you’ve done your own in-depth research. These are a trio of quality companies that excel in their field and have been able to adapt to changing markets and circumstances, allowing them to survive market fluctuations and return profits to their investors.
The methodology for these growth stock picks
In a stock market very focused on a small number of very large companies, the goal here was to look elsewhere with an emphasis on quality, stability and consistency. Forbes started with the 100 largest components of the S&P 500 index and compiled a list containing no more than one stock from each economic sector, then analyzed several traditional fundamental metrics based on earnings, sales, cash flow cash flow and price analysis. The award was taken into account. Forbes took a 2-3 year perspective and focused on finding true leaders in their industries with significant isolation from the competition. Growth stock valuations are extremely high, and to pick growth stocks in this investment climate, it’s important to look at companies that have the potential to grow at these above-average valuations because they can continue to rapidly increase their earnings and revenue. Forbes experts have crunched the numbers, researched and analyzed to bring you the best stocks in 2024. Download one of the most popular and anticipated reports from ForbesThe 12 Best Stocks to Buy in 2024.
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