Economists around the world are expecting 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 23-year highs for an extended period.
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Nevertheless, growth stocks outperformed value stocks in 2023, and investors are anticipating that trend will continue in 2024 when the Federal Reserve eventually pivots to rate cuts. 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 over June 24 close |
| Nvidia Corp. (ticker: NVDA) | 17.7% |
| Alphabet Inc. (GOOG, GOOGL) | 6.0% |
| Meta Platforms Inc. (META) | 8.2% |
| Tesla Inc. (TSLA) | 25.9% |
| JPMorgan Chase & Co. (JPM) | 8.1% |
| Exxon Mobil Corp. (XOM) | 13.9% |
| Mastercard Inc. (MA) | 18.2% |
| Chevron Corp. (CVX) | 21.1% |
| Advanced Micro Devices Inc. (AMD) | 24.8% |
| Salesforce Inc. (CRM) | 25.0% |
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. Revenue grew 262% year over year in the fiscal first quarter, while its net income skyrocketed by 628%. Analyst Angelo Zino says Nvidia is well positioned to benefit from artificial intelligence edge computing technology in coming years, including autonomous vehicles and AI agents. Zino projects sovereign AI will grow exponentially. CFRA has a “buy” rating and $139 price target for NVDA stock, which closed at $118.11 on June 24.
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 projects Alphabet can maintain annual revenue growth in the 10% to 14% range through at least 2025. He says the company has a tremendous opportunity in AI technology, including its Gemini AI model, its enterprise AI tools and integration of AI features into its search and YouTube businesses. CFRA has a “buy” rating and $190 price target for GOOGL stock, which closed at $179.22 on June 24.
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 has regained its growth groove, reporting an impressive 27% revenue growth in the first quarter. Zino says Meta has an attractive growth profile and discounted valuation. While heavy investments in AI technology and the metaverse will weigh on margins, Zino says Meta should have no problem maintaining at least 10% annual earnings growth. He projects at least $40 billion in free cash flow in 2024. CFRA has a “buy” rating and $540 price target for META stock, which closed at $498.91 on June 24.
Tesla Inc. (TSLA)
Tesla is the leading U.S. electric vehicle manufacturer. Unfortunately, Tesla’s revenue dropped 9% year over year in the first quarter, including a 13% decline in automotive segment revenue growth. Analyst Garrett Nelson says rising Cybertruck deliveries and Tesla’s new factories in Texas and Germany will help drive a return to growth for Tesla in 2024 and beyond. Nelson estimates Tesla has more than 2 million Cybertruck reservations. Beyond 2024, he says Tesla’s next-generation platform will likely be a growth driver in 2025. CFRA has a “buy” rating and $230 price target for TSLA stock, which closed at $182.58 on June 24.
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., or FDIC. JPMorgan reported double-digit revenue growth in each of the past five quarters. Analyst Kenneth Leon says JPMorgan is gaining market share from competitors across several of its core businesses, and the investment banking industry is rebounding from cyclical lows in 2024. CFRA has a “buy” rating and $215 price target for JPM stock, which closed at $198.88 on June 24.
[READ: 10 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 3.4% year-over-year drop in revenue in the first quarter, but Exxon’s 2023 revenue was still up about 88% on a three-year basis. Analyst Stewart Glickman says Exxon’s acquisition of Pioneer Natural Resources and development of its properties in the Permian Basin and Guyana will create value for investors. CFRA has a “buy” rating and $130 price target for XOM stock, which closed at $114.05 on June 24.
Mastercard Inc. (MA)
Mastercard is one of the world’s largest credit card and payments providers. In the first quarter, Mastercard reported 11% revenue growth, 28% net income growth and 10% gross dollar volume growth. Analyst Alexander Yokum says Mastercard’s relatively high exposure to international markets will help the company outperform its payment peers in both earnings and revenue growth in coming years. Yokum says growth in digital payments and more transaction layers in the payment ecosystem will benefit Mastercard’s business. He projects payment volume growth will outpace consumer spending growth. CFRA has a “buy” rating and $540 price target for MA stock, which closed at $456.96 on June 24.
Chevron Corp. (CVX)
Chevron is a global oil major that operates exploration and production, refining, marketing and petrochemical businesses. Like Exxon, Chevron’s growth numbers haven’t been particularly impressive in recent quarters. However, the company’s 2023 revenue was up 107% on a three-year basis. Glickman says Chevron will have several key growth catalysts by 2025, including developments in the Permian Basin, the Gulf of Mexico, the DJ Basin and Kazakhstan. Chevron also has relatively high exposure to natural gas, and Glickman says U.S. natural gas prices are starting to rebound. CFRA has a “buy” rating and $193 price target for CVX stock, which closed at $159.31 on June 24.
Advanced Micro Devices Inc. (AMD)
Shares of microprocessor and graphics semiconductor stock Advanced Micro Devices are up a whopping 3,967% over the past decade. AMD reported 2% revenue growth and an impressive 188% net income growth in the first quarter. Even after the stock’s big run, Zino says the introduction of AMD’s next-generation EPYC processors and graphics processing units will facilitate the next stage of AMD’s growth. In addition, he says a growing mix of next-generation product sales and stabilizing personal computer demand will boost margins through 2025. CFRA has a “buy” rating and $200 price target for AMD stock, which closed at $160.25 on June 24.
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 670% net income growth in the first quarter. Zino says Salesforce is gaining market share and has opportunities to further improve its profitability. He says the stock is also attractively valued, even if annual revenue growth slows to between 7% and 9% through fiscal 2027. CFRA has a “strong buy” rating and $300 price target for CRM stock, which closed at $239.94 on June 24.
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10 Best Growth Stocks to Buy for 2024 originally appeared on usnews.com
Update 06/25/24: This story was previously published at an earlier date and has been updated with new information.
