If you've been investing for any length of time, you've probably heard a lot of time-honored investment maxims. Things like "time in the market beats timing the market." One that I like to keep in mind is to "skate where the puck is moving."
There's a reason for that. Investors frequently believe they need special knowledge to be successful at investing. Let's be clear: you do have to put in the work. But the information you need to be a successful investor is not unknowable, even without a background in finance or accounting.
However, investors can choose from thousands of stocks, ETFs, and mutual funds. And that's just equities. There are also bonds, precious metals, real estate, and – for those so inclined – cryptocurrency to consider. It's impossible to stay on top of every emerging story.
Sometimes you need a little nudge.
This special presentation focuses on growth stocks that may be flying under investor's radars. Some of these stocks are already growing – and have room to grow some more. Others haven't participated in the rally but have strong growth potential in 2024 and beyond.
Quick Links
- Nu Holdings
- QuickLogic
- Li Auto
- Riot Platforms
- Enphase Energy
- Sociedad Quimica y Minera de Chile
- Home Depot
#1 - Nu Holdings (NYSE:NU)
The first company on this list is from the fintech sector. But Nu Holdings Ltd. (NYSE: NU) may not be well-known to investors. That's because it's not a U.S. company. However, Nu is the largest fintech bank in North America.
The digital-first bank was founded in 2013 as a way to disrupt the Latin American banking system, which is dominated by a small number of large banks. Among other things, this trapped customers in an ecosystem of high fees for limited services.
The company has already signed up five million customers and has a total addressable market that can potentially bring in millions more. Revenue is growing year-over-year, and the bank is solidly profitable. Nu Holdings is also projecting earnings growth of 75% in the next 12 months.
The concern is how much of that growth is priced into a stock up 97% in the last 12 months. The Nu Holdings analyst ratings on MarketBeat show that analysts are beginning to bid NU stock higher, with UBS Group AG (NYSE: UBS) reiterating its Buy rating with a price target of $11.50.
About NU
Nu Holdings Ltd. provides digital banking platform and digital financial services in Brazil, Mexico, Colombia, and internationally. It offers Nu credit and debit cards; Ultraviolet credit and debit cards; and mobile payment solutions for NuAccount customers to make and receive transfers, pay bills, and make everyday purchases through their mobile phones.
Read More - Current Price
- $13.32
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 5 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $16.21 (21.8% Upside)
#2 - QuickLogic (NASDAQ:QUIK)
Artificial intelligence is driving a super cycle in the chip sector. QuickLogic Corporation (NASDAQ: QUIK) is a fabless chipmaker. That means the company designs and markets semiconductors and owns its intellectual property. But since it's a fabless company, it doesn't fabricate (i.e., fab) them.
QuickLogic has seen a sharp spike in revenue largely fueled by unprecedented demand for chips to handle AI applications. In its most recent quarter, the company posted positive earnings. And the company is projecting a full year of positive earnings.
QUIK stock up 116% in the last 12 months. So, it's logical to wonder if it can move any higher. And the company is not widely covered by analysts. However, here's something to consider. QuickLogic is mainly known for designing chips for industrial and defense applications. That niche is likely to grow due to demand from aerospace and defense contractors. The company also has a history of beating analysts' expectations.
About QuickLogic
QuickLogic Corporation operates as a fabless semiconductor company in the United States. The company offers embedded FPGA intellectual property, low power, multicore semiconductor system-on-chips, discrete FPGAs, and AI software; and end-to-end artificial intelligence/machine learning solution with accurate sensor algorithms using AI technology.
Read More - Current Price
- $7.08
- Consensus Rating
- Buy
- Ratings Breakdown
- 2 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $11.50 (62.4% Upside)
#3 - Li Auto (NASDAQ:LI)
Chinese stocks took a beating in 2023. Li Auto Inc. (NASDAQ: LI) was a notable exception. The stock is up 18% in the last 12 months despite being down 25% in the last three months. Li Auto is the leading manufacturer of electric vehicles (EVs) within the People's Republic of China.
However, this appears to be a case of a rose getting buried among the thorns. A lack of demand in the United States has beaten down the EV sector. The same can't be said of China. In the company's third quarter 2023 earnings report, Li Auto reported a 271% year-over-year increase in revenue. And the bottom line grew at a similar year-over-year pace.
Elon Musk has already sounded the alarm about the potential dominance of Chinese EV makers. In fact, Li Auto outsold Tesla Inc. (NASDAQ: TSLA) in October 2023 and now leads China in EV sales.
The Li Auto analyst ratings on MarketBeat project a stock price gain of 164% in that same time. That's likely due to the company's expectation that it will increase earnings by more than 83.5% in the next 12 months.
About Li Auto
Li Auto Inc operates in the energy vehicle market in the People's Republic of China. It designs, develops, manufactures, and sells premium smart electric vehicles. The company's product line comprises MPVs and sport utility vehicles. It offers sales and after sales management, and technology development and corporate management services, as well as purchases manufacturing equipment.
Read More - Current Price
- $22.78
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 4 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $33.94 (49.0% Upside)
#4 - Riot Platforms (NASDAQ:RIOT)
No matter how you feel about Bitcoin (BTC) as an asset class, you must acknowledge that it's been one of the best-performing assets in 2024. Riot Platforms Inc. (NASDAQ: RIOT) gives you a way to invest in a blockchain future without owning the digital currency.
Here's why. Bitcoin is "mined" via specialized, high-speed computers that compete to solve complex cryptographic problems. Riot operates one of the largest blockchain mining networks in the world. As a result, it has the lowest mining costs, which means it's a very efficient company. That's not the case with many Bitcoin miners.
The company's low mining costs will stand out as the next Bitcoin halving occurs in April 2024. This means miners' profits will be cut in half (as Bitcoin nears its maximum supply of 21 million). This will benefit efficient operators like Riot even as RIOT stock is up 161% in the last 12 months.
About Riot Platforms
Riot Platforms, Inc, together with its subsidiaries, operates as a bitcoin mining company in North America. The company operates through three segments: Bitcoin Mining, Data Center Hosting, and Engineering. It also provides co-location services for institutional-scale bitcoin mining companies; critical infrastructure and workforce for institutional-scale miners to deploy and operate their miners; operation of data centers; and maintenance/management of computing capacity.
Read More - Current Price
- $12.15
- Consensus Rating
- Buy
- Ratings Breakdown
- 11 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $16.35 (34.6% Upside)
#5 - Enphase Energy (NASDAQ:ENPH)
Solar stocks zigged when they were supposed to zag last year. And if you were an investor in Enphase Energy Inc. (NASDAQ: ENPH), you know how painful it's been. ENPH stock is down 39.5% in the last 12 months, and that's after a 41% increase in the stock price in the last three months.
The issue was the company's guidance, which became prescient in its most recent quarter as revenue and earnings fell sharply year-over-year. However, the maker of solar-focused semiconductor-based home energy solutions continues to have a strong long-term story as the United States continues its transition to renewable energy.
Enphase is forecasting 87% earnings growth in the next 12 months. A reason to believe in that forecast is that the company has the highest margins in the industry. Lower interest rates could also be a potential catalyst. And the Enphase Energy analyst ratings on MarketBeat show a 16% upside for ENPH stock.
About Enphase Energy
Enphase Energy, Inc, together with its subsidiaries, designs, develops, manufactures, and sells home energy solutions for the solar photovoltaic industry in the United States and internationally. The company offers semiconductor-based microinverter, which converts energy at the individual solar module level and combines with its proprietary networking and software technologies to provide energy monitoring and control.
Read More - Current Price
- $63.38
- Consensus Rating
- Hold
- Ratings Breakdown
- 14 Buy Ratings, 15 Hold Ratings, 4 Sell Ratings.
- Consensus Price Target
- $102.09 (61.1% Upside)
#6 - Sociedad Quimica y Minera de Chile (NYSE:SQM)
Lithium stocks were expected to be attractive investments in 2023. But as supply outpaced demand on declining EV demand, many of these investments dragged down portfolios. Sociedad Quimica y Minera de Chile (NYSE: SQM) was no different. SQM stock is down over 55% in the last 12 months.
The Chilean-based company has a diversified portfolio, but about 75% of its revenue comes from lithium. That could hold the stock price down as lithium prices are expected to be down through at least the first half of 2024.
However, the opportunity for the company comes in its brine asset, the Salar de Atacama, which has the highest lithium concentration in the world. The company is also taking steps to secure more lithium production in Australia and China.
As the lithium supply-demand dynamic flips in its favor, SQM stock is an attractive long-term investment, trading at just 5.4x forward earnings.
About Sociedad Química y Minera de Chile
Sociedad Química y Minera de Chile SA operates as a mining company worldwide. The company offers specialty plant nutrients, including sodium potassium nitrate, specialty blends, and other specialty fertilizers under Ultrasol, Qrop, Speedfol, Allganic, Ultrasoline, ProP, and Prohydric brands. It also provides iodine and its derivatives for use in medical, agricultural, industrial, and human and animal nutrition products comprising x-ray contrast media, biocides, antiseptics and disinfectants, pharmaceutical intermediates, polarizing films for LCD and LED screens, chemicals, organic compounds, and pigments, as well as added to edible salt to prevent iodine deficiency disorders.
Read More - Current Price
- $38.78
- Consensus Rating
- Hold
- Ratings Breakdown
- 4 Buy Ratings, 3 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $48.69 (25.5% Upside)
#7 - Home Depot (NYSE:HD)
Home Depot (NYSE: HD) is one part of a virtual duopoly with Lowe's Companies Inc. (NYSE: LOW) in the United States. HD stock presents an anomaly for investors. The stock is up 11% in the last 12 months, even though revenue and earnings have fallen year-over-year.
But a closer look at the HD chart shows that much of the growth has come in the last three months. That might suggest that investors are becoming bullish on interest rate cuts that could boost the housing market.
However, with the amount and timing of those rate cuts in question, Home Depot still appears to be a buy because the company has successfully integrated e-commerce and omnichannel services into its business model. That's important because home improvement is a niche market that even Amazon.com Inc. (NASDAQ: AMZN) has been unable to successfully crack.
The Home Depot analyst ratings on MarketBeat show that analysts are moving their price targets for the stock higher, and Home Depot offers a solid dividend that has increased for the last 14 years, has a 2.33% yield and an annual payout of $8.36 per share.
About Home Depot
The Home Depot, Inc operates as a home improvement retailer in the United States and internationally. It sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products. The company also offers installation services for flooring, water heaters, bath, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, and windows.
Read More - Current Price
- $399.98
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 23 Buy Ratings, 6 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $426.00 (6.5% Upside)
At MarketBeat, we passionately believe that every investor can succeed, and we work hard to provide our subscribers with the tools they need. One way we do this is by identifying potential opportunities wherever they exist.
The market in 2024 is likely to be a stock picker's market, as it was in 2023. What does that mean? It means that there are opportunities in every sector, but not every stock will participate in that rally equally, if at all.
Not every stock on this list is appropriate for every portfolio. But the goal is to give you at least one stock on this list that may be a good fit for your investment objectives. If that's the case for you, be sure to put it on your MarketBeat watchlist so you never miss an update that may affect your investing decision.
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