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.
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Here are 10 of CFRA analysts’ top growth stocks that have reported at least 15% annual revenue growth in the past three years:
| Stock | Implied upside from April 25 close* |
| Nvidia Corp. (ticker: NVDA) | 21% |
| Alphabet Inc. (GOOG, GOOGL) | 12.2% |
| Meta Platforms Inc. (META) | 22.3% |
| JPMorgan Chase & Co. (JPM) | 11.2% |
| Tesla Inc. (TSLA) | 23.4% |
| Mastercard Inc. (MA) | 19% |
| Salesforce Inc. (CRM) | 20.8% |
| Advanced Micro Devices Inc. (AMD) | 30.1% |
| Intuit Inc. (INTU) | 14.1% |
| Applied Materials Inc. (AMAT) | 18% |
*Based on current CFRA 12-month target prices.
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.
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.
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.
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.
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.
[READ: 10 Best Tech 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.
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.
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.
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.
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.
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10 Best Growth Stocks to Buy for 2024 originally appeared on usnews.com
Update 04/26/24: This story was previously published at an earlier date and has been updated with new information.
