Heading into 2024, the prospects for
growth stocks look bright owing to the improving economic conditions and the possibility of rate cuts in the next year. Investors can consider these stocks, which have the potential to deliver above-average earnings growth. However, growth stocks come with higher risk and volatility compared to other stocks. Thus, to help investors choose top-growth stocks, TipRanks offers a
stock screener tool.
Using this tool, we have shortlisted five stocks that have received Strong Buy ratings from analysts and whose price targets reflect an upside potential of more than 20%. These stocks also carry Outperform
Smart Scores (i.e., 8, 9, or 10) on TipRanks. Lastly, these companies’ revenues have witnessed a compound annual growth rate of over 10% in the past three years.
Here are the five stocks that investors can consider.
Nvidia (
NASDAQ:NVDA
) – The chip giant has a price forecast of $661.35, which implies a 35.4% upside potential.
NVDA’s revenues have witnessed a 17.4% three-year CAGR. The stock has a
Smart Score of nine.
Cenovus Energy (
NYSE:CVE
) – Cenovus is a Canadian integrated oil and natural gas company. Its price forecast of $24.42 implies a 46% upside potential from the current levels. The company’s
revenue has grown at a CAGR of about 73%.
CVE stock carries a Smart Score of “Perfect 10.”
Lamb Weston (
NYSE:LW
) – Lamb Weston is an American-based frozen potato product maker. The stock’s average price target implies an upside potential of 20.7%. Its
revenues increased at a CAGR of 13.5% in the past three years. Also,
LW has a Smart Score of eight.
AstraZeneca (
NASDAQ:AZN)
– AZN is a multinational pharmaceutical and biotechnology company. Analysts currently see an upside potential of 22.2% in the stock. Also, it has a
Smart Score of eight, and its
topline has grown at a CAGR of 18.5%.
Enterprise Products Partners (
NYSE:EPD
) – This company provides midstream energy services to producers and consumers of natural gas, natural gas liquids, and crude oil in North America. EPD stock’s average price target implies a consensus upside of 21.4%.
Its revenues increased at a CAGR of 28.9% and has a
Smart Score of “Perfect 10.”
Disclosure
Artificial Intelligence (AI) has been a primary catalyst behind the rally in the financial market over the past year. Given its rapid adoption and deployment across various sectors, the trend could be sustained in 2024 as well. With this in mind, we have identified two AI stocks – Nvidia (
NASDAQ:NVDA
) and SoundHound AI (
NASDAQ:SOUN
) – with a Strong Buy consensus rating and upside potential of over 30%.
Are Nvidia Shares a Good Buy?
According to analysts, Nvidia stock is a Strong Buy based on 31 Buy recommendations and three Hold ratings. Nvidia has been the leader in the AI space, with its GPUs (graphics processing units) considered the engine powering the AI revolution.
Notably, AI presents a multi-year growth opportunity for Nvidia, driving its
revenue and cash flows. The strong, broad-based demand for Nvidia’s accelerated computing products and its focus on launching new products augur well for growth.
Thanks to the stellar demand for its products, Nvidia stock has gained about 234% year-to-date. Meanwhile, analysts’ average price target suggests further upside in NVDA stock over the next 12 months.
Analysts have an average price target of $661.35 on NVDA shares, representing 35.44% upside potential from current levels.
What is the Outlook for SOUN Stock?
SoundHound offers voice AI solutions. The company’s focus on expanding its Chat AI platform and channel partner ecosystem has led to solid growth in its revenue and solidified its competitive positioning in the voice AI space.
Besides for organic growth, SOUN focuses on strategic acquisitions to expand its product portfolio and accelerate growth. It recently announced the acquisition of SYNQ3 to broaden its AI customer service solutions. The deal positions SoundHound as the leading voice AI provider for restaurants in the United States, substantially expanding its market presence to more than 10,000 locations.
Four analysts cover SOUN stock, and all recommend a Buy. SOUN stock has gained about 17% year-to-date. Meanwhile, the
average analysts’ price target of $4.40 per share suggests 112.56% upside potential over the next 12 months.
Bottom Line
Nvidia and SoundHound are poised to benefit from the growing deployment of AI over the next year. Further, Wall Street analysts are bullish about NVDA and SOUN stocks in the AI sector. Also, these stocks offer significant upside potential over the next 12 months based on analysts’ average price target.
Disclosure
Fool.com contributor Parkev Tatevosian compares Tesla (NASDAQ: TSLA) with Nvidia (NASDAQ: NVDA) to determine which is the better artificial intelligence (AI) stock to buy today to prepare your investment portfolio for 2024.
Designed to provide broad exposure to the Style Box - Large Cap Blend category of the market, the Invesco S&P 500 Quality ETF (SPHQ) is a smart beta exchange traded fund launched on 12/06/2005.
When the history books are written, 2023 could go down as a turning point for artificial intelligence (AI). Multiple companies rolled out impressive AI chips, large language models, and AI applications.
How is SPY stock faring? The
SPDR S&P 500 ETF Trust has inched down 0.08% in the past 5 days, but has risen 25.74% year-to-date.
According to TipRanks’ unique ETF analyst consensus, determined according to a weighted average of its holdings’ analyst ratings, SPY is a Moderate Buy. The Street’s average price target of $513.34 implies an upside of 8.4%.
Currently, SPY’s five holdings with the highest upside potential are Bio-Rad Laboratories (
BIO
), Warner Bros. Discovery (
NASDAQ:WBD
), United Airlines (
UAL
), Halliburton (
HAL
), and Nvidia (
NVDA
). Its five holdings with the greatest downside potential are Robert Half International (
RHI
), Expeditors International (
EXPD
), Franklin Resources (
BEN
), Seagate Tech (
STX
), and Waters (
WAT
).
Revealingly, SPY’s ETF Smart Score is eight, implying that this ETF is likely to outperform the market averages.
Power up your ETF investing with TipRanks. Discover the
Top Equity ETFs with High Upside Potential, carefully curated based on TipRanks’ analysis.
Disclosure
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