2 growth stocks to watch after 2024

One of the key benefits of investing in growth stocks YesinThey may have a lot of untapped potential. Growth stocks are often considered as a long-term investment strategy. By owning these stocks, investors can benefit from compounding returns and potentially accumulate wealth over many years.

Many growth stocks are found in sectors known for innovation and disruptive technology. Investing in these companies gives you exposure to industries that will shape the future, with the potential to: big profit over time.

Here we look at two growth stocks from two different sectors that can provide diversification for investors.

My first choice is the semiconductor company Advanced Micro Devices (AMD), commonly known as AMD. While market darling Nvidia (NVDA) dominates the chip industry, AMD has also consolidated its position in recent years. for a long time, AMD stock price increased surprisingly 4,215% In the last 10 years.

My second choice is Etsy (ETSY), an e-commerce company that rose to fame during the pandemic. Even in the post-pandemic era, the company’s journey from niche market to global e-commerce giant is a story of resilience.

Let’s dig deeper to see why these two stocks are the hottest growth stocks for 2024 and beyond.

Advanced Micro Devices Co., Ltd.

AMD, valued at $236.8 billion in market capitalization, is looking to challenge the dominance of its competitors and capture significant market share in the semiconductor space. Known for its innovative products and strategic initiatives, AMD has been on an impressive growth trajectory with a positive outlook.

Stocks went up Last year it was 127%This significantly outpaced the 43.4% rise in the Nasdaq Composite Index ($NASX), which has a high proportion of tech stocks.

AMD’s fundamentals have grown in 2023. Artificial intelligence (AI) Hurry.After last year’s slump in the data center business, the sector is gradually recovering, with sales $1.6 billion The third quarter was flat compared to the previous year. However, this metric has since increased by 21% due to accelerated customer adoption of AMD’s 4th generation EPYC CPUs.

Total revenue was $5.8 billion, an increase of 4% year over year. Diluted earnings per share (EPS) for the quarter also rose 4% to $0.70, beating consensus estimates by $0.02 per share.

AMD’s growth is not limited to the consumer and data center segments. The company is also making progress in other markets, such as gaming consoles.

According to CEO Lisa Su, AI “billions of dollars Growth opportunities arise for AMD across the cloud, edge, and increasingly diverse intelligent endpoints. ”

To integrate open AI software into its hardware, AMD made strategic acquisitions in 2023. Open Source AI Software Expert Nod.ai and A leader in AI software Mipsology.

Since the third quarter, the company has released some Critical high-end processors with AI, including Ryzen Threadripper PRO 7000 WX series processors, Ryzen Threadripper 7000 series processors, Ryzen 7045HX3D series mobile processors, and Ryzen 5 5600X3D processors for gaming.

As AI advances, AMD’s growth prospects in the coming years look solid. The continued demand for high-performance graphics processors in a variety of sectors bodes well for the company.

What management expects 4th quarter earnings This is in line with the consensus estimate of $6.14 billion. In addition, the adjusted gross profit margin in the fourth quarter could reach 51.5%. Looking ahead, the analyst predicts that by 2024, sales will increase by 17% year-on-year.

What are analysts saying about AMD?

With an optimistic outlook for semiconductor stocks, Analyst Stifel, KeyBanc, Bernstein, Mizuho, ​​Truist, and be Few other companies raised their price targets on AMD stock this month.

Overall, Wall Street gives AMD a Strong Buy rating. Of the 30 analysts covering the stock, 24 rate it a “strong buy,” one rate it a “moderate buy,” and five rate it a “hold.”

AMD has already surpassed that level. average target price $143.53.the Target price is high at $200However, it does mean a potential upside of 37% over the next 12 months.

Etsy stock

In the fast-paced world of e-commerce, Etsy has established itself as a unique and thriving marketplace, bringing together creators, artisans, and buyers from around the world. Since its founding in 2005, Etsy has evolved from a niche platform for handmade and vintage items to a global marketplace serving a diverse range of buyers and sellers.

The COVID-19 pandemic has accelerated the growth of e-commerce worldwide, and Etsy was no exception. However, the company continued to see strong growth last year despite macroeconomic challenges that affected consumer discretionary spending.

recently 3rd quarter, despite the headwinds, the company added 6 million new buyers to its platform. Etsy’s consolidated gross merchandise sales (GMS), a key metric that measures the total amount of goods sold on the platform, increased by 1.2% to $3 billion. This increased his revenue by 7%. $636.6 million than the previous year. Management said the revenue growth was driven by “transaction fee income from Etsy ads, payments revenue, and off-site advertising.”

Etsy’s net income was $87.9 million, compared with a loss of $963 million in the year-ago period. In April 2022, Etsy increased transaction fees for sellers from 5% to 6.5% to increase revenue. Despite the fee increases, active sellers on the platform increased by 19% in the third quarter to 8.8 million.

The company’s growth prospects remain promising due to its unique business model. The continued shift to online shopping, the platform’s commitment to fostering a sense of community, and its ability to adapt to market trends all contribute to the company’s optimistic outlook. Additionally, as consumers seek unique and sustainable products, Etsy’s focus on handmade and vintage items fits well with these changing tastes.

Notably, Wall Street doesn’t expect the company to report dramatic growth as macroeconomic headwinds continue. However, Etsy is expected to grow steadily, with sales expected to increase by 5.4% and profits by 3.8% in 2024.

Etsy trades at 15 times forward 2024 earnings, which is lower than its average price-to-earnings ratio of 55 times over the past five years.

What are analysts saying about Etsy?

Wall Street rates Etsy stock a “moderate buy.” Of the 27 analysts covering the stock, 10 rate it a “strong buy,” two rate it a “moderate buy,” and 13 rate it a “hold.” Moreover, one analyst rates the stock as a “moderate sell” and another recommends it as a “strong sell.”

of average target price The stock’s price of $85.58 is 20.4% above current levels, while the street’s high price target of $170 implies an expected upside of 139%.

On the date of publication, Sushree Mohanty did not have any positions (directly or indirectly) in any securities mentioned in this article. All information and data in this article is for informational purposes only. For more information, please see the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.