Economists around the world expect U.S. economic growth to slow in coming quarters, and some are still calling for a mild U.S. recession. It may become difficult for investors to find reliable growth stocks to buy if interest rates remain at 22-year highs for an extended period.
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Nevertheless, growth stocks outperformed value stocks in 2023, and investors expect that trend to continue in 2024 if the Federal Reserve pivots to rate cuts. Here are 10 of CFRA Research analysts’ top growth stocks that have reported at least 15% annual revenue growth in the past three years:
| Stock | Implied upside over Jan. 17 close |
| Alphabet Inc. (ticker: GOOGL) | 10% |
| Amazon.com Inc. (AMZN) | 18.6% |
| Nvidia Corp. (NVDA) | 7% |
| Meta Platforms Inc. (META) | 5.9% |
| Tesla Inc. (TSLA) | 39.2% |
| Exxon Mobil Corp. (XOM) | 24.8% |
| AbbVie Inc. (ABBV) | 11.1% |
| Chevron Corp. (CVX) | 13.2% |
| Salesforce Inc. (CRM) | 10.5% |
| Advanced Micro Devices Inc. (AMD) | -6.3% |
Alphabet Inc. (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 third quarter, Alphabet reported 11% revenue growth, which included 22% Google Cloud revenue growth. Analyst Angelo Zino says Alphabet can maintain annual revenue growth of between 6% and 11% through at least 2025, and the company’s incredible earnings and free cash flow potential make it an attractive option for growth investors. Zino is particularly bullish on the company’s artificial intelligence technology. CFRA has a “buy” rating and $157 price target for GOOGL stock, which closed at $141.47 on Jan. 17.
Amazon.com Inc. (AMZN)
E-commerce and cloud services giant Amazon has been one of the best-performing growth stocks of all time. Unfortunately, Amazon shares are down 2.8% in the past three years as revenue growth has slowed to just 12.6% in the most recent quarter. While Amazon’s growth may not be what it once was, analyst Arun Sundaram says Amazon has transformed into a highly profitable cash flow machine. He projects 13% revenue growth in 2024, including 25% advertising sales growth and 17% Amazon Web Services revenue growth. CFRA has a “buy” rating and $180 price target for AMZN stock, which closed at $151.71 on Jan. 17.
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. In recent quarters, Nvidia’s growth numbers rebounded in a major way, suggesting a cyclical downturn in the semiconductor market may finally be over. Nvidia’s revenue grew 205% year over year in the third quarter, while its net income skyrocketed by 1,259%. Zino says generative AI is creating unprecedented demand for Nvidia’s chips, and he projects 41% revenue growth for Nvidia in fiscal 2025. CFRA has a “buy” rating and $600 price target for NVDA stock, which closed at $560.53 on Jan. 17.
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. After three straight quarters of negative year-over-year revenue growth to close out 2022, Meta’s growth rebounded to positive territory in the first half of 2023 and came in at an impressive 23% in the third quarter. Zino says Meta’s margins are trending higher, and the stock has both an attractive valuation and several potential growth catalysts ahead. He projects 13% revenue growth in 2024. CFRA has a “buy” rating and $390 price target for META stock, which closed at $368.37 on Jan. 17.
Tesla Inc. (TSLA)
Tesla is the leading U.S. electric vehicle manufacturer. Tesla’s revenue growth slowed to just 9% in the third quarter, and automotive segment revenue growth was just 5%. Analyst Garrett Nelson says Tesla’s new factories in Texas and Germany coupled with the rollout of the Cybertruck have set the stage for Tesla’s next growth phase. Nelson estimates Tesla has more than 2 million Cybertruck reservations, and he says non-unionized Tesla was a relative winner of the recent United Auto Workers strike. Nelson projects 30% revenue growth in 2024. CFRA has a “buy” rating and $300 price target for TSLA stock, which closed at $215.55 on Jan. 17.
[Best Tech Stocks to Buy for 2024]
Exxon Mobil Corp. (XOM)
Exxon Mobil is the largest U.S. oil major. Oil majors aren’t traditionally considered high-growth stocks, but favorable energy market conditions in recent years have made oil stocks some of the highest-growth companies in the market. Exxon reported a 19% year-over-year drop in revenue in the third quarter, but revenue was still up about 23% on a two-year basis. Analyst Stewart Glickman says Exxon should benefit from property development in the Permian Basin, and its proposed acquisition of Pioneer Natural Resources Co. (PXD) will also be a growth driver. CFRA has a “buy” rating and $121 price target for XOM stock, which closed at $96.98 on Jan. 17.
AbbVie Inc. (ABBV)
AbbVie is a global pharmaceutical company. Its key drug is Humira for treating rheumatoid arthritis, psoriasis, Crohn’s disease and other conditions. AbbVie’s revenue growth has dropped into negative territory in the past three quarters as Humira continues to face competition from biosimilars. However, analyst Sel Hardy says AbbVie’s new immunology drugs, Skyrizi and Rinvoq, are positioned to help boost AbbVie’s growth profile in 2024 and beyond. In fact, AbbVie projects at least 52% combined compound annual revenue growth for these two drugs through 2025. CFRA has a “buy” rating and $180 price target for ABBV stock, which closed at $162.04 on Jan. 17.
Chevron Corp. (CVX)
Chevron is a global oil major that operates exploration and production, refining, marketing and petrochemical businesses. Much like Exxon, Chevron’s revenue was down 18% year over year in the third quarter but was up 22% on a two-year basis. Glickman says Chevron has several key growth catalysts ahead in 2024, including Australian liquefied natural gas production, deepwater production in the Gulf of Mexico and further developments in the DJ Basin, Permian Basin and Kazakhstan. He predicts Chevron will return to revenue growth in 2024. CFRA has a “buy” rating and $162 price target for CVX stock, which closed at $143.12 on Jan. 17.
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 workplace messaging platform Slack. Salesforce reported 11% revenue growth and an impressive 483% net income growth in the third quarter. Zino says Salesforce has an attractive valuation, is gaining market share and has potential to significantly improve profitability. He projects annual revenue growth of between 9% and 11% through at least fiscal 2026. CFRA has a “strong buy” rating and $300 price target for CRM stock, which closed at $271.44 on Jan. 17.
Advanced Micro Devices Inc. (AMD)
Shares of microprocessor and graphics semiconductor stock Advanced Micro Devices are up a whopping 3,732% over the past decade, but Zino says the growth outlook for AMD’s central processing unit data center servers suggests the stock still has room to run. AMD reported just 4.2% revenue growth in the third quarter, but net income was up 353% from a year ago. Zino says AMD will expand margins in 2024 thanks to an improving product mix and new product launches. He projects 21% revenue growth in 2024. CFRA has a “buy” rating and $150 price target for AMD stock, which closed at $160.17 on Jan. 17.
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10 Best Growth Stocks to Buy for 2024 originally appeared on usnews.com
Update 01/18/24: This story was previously published at an earlier date and has been updated with new information.
