3 (Non-AI) Growth Stocks Could Be Big Winners in 2024
In the ever-evolving landscape of investment opportunities, the allure of artificial intelligence often dominates headlines. However, amidst the digital frenzy, there lies a trio of non-AI growth stocks poised to steal the spotlight in 2024. Buckle up as we unveil the untapped potential of these three contenders. Each hold the promise of substantial gains and redefine the meaning of “winner” in the unpredictable world of finance.
Prepare to shift your focus from algorithms to authentic growth with these three non-AI, non-tech growth stocks in 2024.
Shopify (SHOP)
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Shopify’s (NYSE:SHOP) stock soared 115% this year, reaching $76, with the potential to double in 2024. In Q3, revenue grew by 25%, outpacing total e-commerce spending. With a 450% return over five years, Shopify’s asset-light model, generating $1.7 billion in Q3, positions it for continued growth.
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Additionally, Shopify and X partner to simplify catalogue uploads for merchants, enhancing product visibility on X. The collaboration aims to expand awareness, offering increased exposure for Shopify sellers on the X platform. X pursues payment licenses, exploring peer-to-peer payments. If successful, it could open significant opportunities for Shopify retailers.
Therefor, though doubling may be challenging, Shopify has strategic levers to pull. International expansion, fulfillment network growth, and payment ecosystem enhancement offer potential upside surprises. If e-commerce growth re-accelerates, shares might regain previous highs. While not guaranteed, Shopify’s growth story, reasonable valuation, and potential catalysts make it a bullish candidate for outsized returns.
Celsius Holdings (CELH)
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Celsius Holdings (NASDAQ:CELH) surged over 4,370% over the past five years, disrupting the beverage industry and securing a distribution deal with PepsiCo (NASDAQ:PEP). Despite recent stock declines, Celsius remains a strong investment opportunity, offering potential growth.
Also, CELH experienced a remarkable 105% year-over-year (YOY) revenue surge to $385 million in Q3 2023, a substantial increase from the $17 million reported in Q3 2018. The company’s success is attributed to marketing its drinks as healthier alternatives, aligning with the growing wellness trend.
And, Celsius effectively expands its product reach, securing placements in diverse sales channels, including grocery stores, gyms, and Amazon. The strategic partnership with PepsiCo, initiated in late 2022, has significantly contributed to market share gains, bolstering optimism among investors. Despite rapid growth, Celsius achieved a positive net income of $84 million last quarter. Therefore, this marks a turnaround from the Q3 2022 net loss of $182 million, suggesting potential sustainability in profitability.
Crocs Inc. (CROX)
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Despite its cult-like popularity, Crocs (NASDAQ:CROX) faced challenges in a softer consumer environment, leading to a slowdown in its growth rate.
While the stock showed a year-to-date (YTD) decline of 3.98%, it enjoyed a recent 25% surge in December. That was coupled with a favorable holiday season and an attractive valuation at 8-times forward earnings. So CROX presents a compelling buying opportunity.
Also, the brand faced challenges stemming from its $2.5 billion acquisition of Heydude in early 2022, falling short of the predicted $1 billion brand status by 2024. Despite Heydude’s decline, Crocs’ core brand thrived, contributing 75% to total sales, with significant international expansion potential.
In 2023, Crocs exceeded revenue expectations, targeting over 11% growth compared to 2022, surpassing the guided 10-11% growth. Q4 2023 revenue is expected to grow 1% YOY, a positive shift from the previous estimate of a 4.1% decrease. CEO Andrew Rees highlighted strong performance, market share gains, and robust free-cash flow, enabling substantial debt reduction.
As of Monday morning, CROX stock surged 20.4%, with 4 million shares traded, surpassing the daily average of 1.5 million shares.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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