Top 5 Growth Stocks to Buy in 2024 Hand Over Fist.

After entering bear market territory in 2022, the three major indexes rebounded last year. Nasdaq It roars past. S&P 500 You get a profit of 43%. Of course, no one can predict with certainty what the index will do this year, but since bear markets always lead to bull markets, there is reason to be optimistic about the future.

And that means now is a great time to start buying growth stocks. These companies typically excel in rising markets, as we saw last year, but the good news doesn’t end there. If you choose high-quality growth stocks, they are likely to win you over the long term as well.

Even after last year’s rally, many of these stocks are still trading at reasonable prices, making them perfect buying opportunities. Could 2024 be the year of growth? maybe. Here are the top five stocks you can buy with your fists to take profits.

Image source: Getty Images.

1. Amazon

you can think Amazon (AMZN -0.36%) As the ultimate growth stock. The company is dominant in two fields that are showing double-digit growth: e-commerce and cloud computing, and is also thriving in the hot field of artificial intelligence (AI).

AI can help Amazon’s e-commerce business become more efficient, reduce costs and benefit profit growth. And new AI tools from Amazon Web Services (AWS) will increase demand for cloud services. This is key because AWS has generally driven Amazon’s overall profits.

And speaking of revenue, Amazon has demonstrated the ability to grow revenue over time and the ability to bounce back quickly after difficult times. The recession forced Amazon to improve its cost structure and report higher quarterly profits last year after posting an annual loss in 2022.

Amazon stock today appears very reasonably priced relative to its past valuations, especially when considering its future growth prospects and future earnings estimates.

AMZN PE Ratio (Forward) Data from YCharts

2. Etsy

Etsy (ETSY -3.70%) It suffered as the economy began to weaken as shoppers were unable to purchase as many discretionary items as they used to. And most of the products you find on Etsy (handmade and vintage items) fall into this category.

But here’s why Etsy could take off and why it offers the best long-term prospects. First, the company maintained the revenue gains it made in the early stages of the pandemic, remained profitable in its most recent quarter, and has a solid cash position of more than $1 billion. Second, Etsy’s capital-light business model means it doesn’t need to invest heavily in infrastructure to grow and can convert 90% of its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) into free cash flow. .

Lastly, Etsy has done a great job retaining customers and growing its customer base even during difficult times. Active buyers recently hit an all-time high of 92 million. That’s why this stock is an absolute steal, trading at just 15 times earnings estimates.

3. Chewy

Chewy (blow -4.44%) We achieved a significant milestone in 2022 when we reported our first full-year earnings. Online sellers of pet supplies had a good time despite the difficult economic environment, increasing overall sales, net sales per active customer, gross margin and other metrics in the most recent quarter.

There’s reason to believe that, over time, Chewy could capture a large slice of the US total $144 billion pet market. With services like Autoship, which automatically delivers your favorite products to your doorstep on a regular basis, Chewy has proven that it can build a loyal customer base. Autoship accounts for more than 75% of Chewy’s total sales.

Chewy stands out because it offers a variety of services, from supplies to prescription drugs to pet health insurance. The company recently announced its expansion into the veterinary space, opening its first Chewy Vet Care clinic.

Chewy stock currently trades at 37 times future earnings estimates. That’s a bargain considering analysts are predicting double-digit annual growth for the company over the next five years.

4. Teladoc Health

Teladoc Health (TDOC 0.29%) We are a leader in the rapidly growing telemedicine market. The company’s stock price has fallen over the past year as investors have become concerned about Teladoc’s ability to turn revenue growth into profits.

But early last year the company shifted its strategy to balance its pursuit of revenue growth with its goal of achieving profitability. Now, we’re not seeing the double-digit revenue growth we’ve seen in the past, but we’re seeing improvements in EBITDA and free cash flow.

Teladoc said it expects to deliver EBITDA and free cash flow growth exceeding revenue growth over the next few years. This is thanks to current efficiency improvements and future developments. And all of this shows progress toward profitability.

The telehealth leader is also focusing on chronic disease treatment, a key growth area that has helped boost revenue recently.

So Teladoc’s growth and stock performance could be poised to take off. And it’s a steal today, trading at near rock-bottom prices when it comes to sales.

TDOC PS Ratio data from YCharts

5. CRISPR therapeutics

CRISPR therapeutics‘ (CRSP -0.91%) The growth story has just begun. The gene-editing specialist recently received regulatory approval for its first product, which could be a blockbuster. The United States has approved Casgevy for sickle cell disease and expects to announce a decision on the product for beta thalassemia in March. Britain has already approved treatments for two blood disorders.

Biotech companies share profits with larger companies. Vertex Pharmaceuticals, but this new revenue stream still represents a big milestone. Casgevy sales will help CRISPR Therapeutics fund other pipeline programs. And this approval is important because it shows regulators are willing to accept treatments based on this new technology, a technology that is used throughout the company’s pipeline. So this is definitely positive news for CRISPR Therapeutics moving forward.

Today, CRISPR Therapeutics’ stock is trading much lower than it was a few years ago, when there was much less visibility into the company’s future. Given the company’s recent product approvals and growth potential, the stock could explode higher from here, making it one of the best stocks to own in 2024.