7 Explosive Growth Stocks Set to Deliver Massive Returns in 2024

The year 2024 has ushered in a resurgence of the Initial Public Offering (IPO) market in the United States, especially within the healthcare and technology sectors. This revival presents a golden opportunity for investors to pick up some of the brightest new growth stocks before the broader market catches on. The central theme here is simple yet compelling—investing early in these IPOs holds the potential for substantial long-term wealth creation. With the U.S. IPO market raising a hefty $18.6 billion from 82 listings in the first half alone, it’s clear that fresh opportunities are plentiful.

Healthcare and technology stocks lead the charge, often backed by breakthrough innovations and promising growth trajectories. The allure here is the chance to invest at a time when market analysts have yet to fully appreciate the businesses’ potential, allowing for early entry points before companies are broadly re-ranked and prices rise. Of course, valuation is a key consideration at a time when the index trades near all-time highs, so the focus will remain on new growth stocks that look attractively valued.

Editor's Note: Analysis and insight for this article were originally sourced sourced from our friends at InvestorPlace 

Why Invest:
Tempus AI is riding the crest of the AI-driven healthcare transformation wave. Specializing in next-generation sequencing diagnostics, polymerase chain reaction profiling, and molecular genotyping, Tempus AI isn’t just a buzzword but a bona fide game-changer. The company witnessed a remarkable revenue spike of 65.8% in 2023, reaching a healthy $531.8 million driven by strong segments in genomics, data, and services.

Equally important, the FDA clearance for its AI-based Tempus ECG-AF device and a CMS grant solidify its credibility and promise exponential growth in its genomics division. In June, the company received U.S. Food and Drug Administration (FDA) clearance for its Tempus ECG-AF device that uses AI to help identify patients who may be at increased risk of atrial fibrillation.

Relevance to the Theme:
Tempus AI is an ideal case of AI seamlessly integrating with healthcare, unlocking incredible growth opportunities. With stellar revenue growth and key federal approvals, this stock is poised to capitalize on the booming AI healthcare market. Investors are looking at a medical technology company that’s making significant R&D investments, showing results in the form of approvals, and leveraging AI to revolutionize healthcare.

Analyst Ratings and Forecasts:

Summary of Analysts’ Outlook:
Analysts have a neutral outlook on Tempus AI, with a consensus “Hold” rating. The average price target suggests a potential gain of around 10%, indicating that analysts believe the stock has some upside potential. However, the ratings are not overwhelmingly positive, suggesting that there may be some concerns or uncertainties about the stock’s future performance.

Sources: Refinitiv, TipRanks, Yahoo Finance

Why Invest:
PACS Group stands out for its smart approach to operating nursing and assisted living facilities across nine states. Their emphasis on cost-efficient care solutions has led to high occupancy rates and robust revenue guidance for 2024, forecasting a 19% growth to hit $3.7 billion. Despite a 70% appreciation from its IPO, the company remains attractively valued at a forward P/E of 24.3x.

An important point to note is that the company’s mature facilities have an occupancy rate of 94.6%. The key reason is a lower cost-of-care per day as compared to inpatient rehabilitation facilities or long-term acute care hospitals. The company has been aggressively acquiring new facilities and with ample headroom for penetration in new states, growth visibility is robust.

Relevance to the Theme:
With its focus on cost-efficient healthcare and aggressive growth plans, PACS Group is primed to benefit from demographic trends, making it a compelling long-term investment. Their strategic acquisitions and high occupancy rates reflect a company well-poised to capitalize on the increasing demand for healthcare solutions.

Analyst Ratings and Forecasts:

Summary of Analysts’ Outlook:
Analysts have a bullish outlook on Pacific Biosciences of California, Inc. (PACS), with a consensus “Overweight” rating. The average price target of $43.50 suggests a potential gain of 34.1% from the current price. Most analysts believe that PACS has strong growth prospects, driven by its innovative sequencing technology and increasing demand for genomic analysis.

Sources: TipRanks, Yahoo Finance, MarketWatch

Why Invest:
Contineum Therapeutics is a clinical-stage biotech company carving out a significant niche in neuroscience, inflammation, and immunology. Its groundbreaking therapies, like PIPE-307 for RRMS and depression, in collaboration with Johnson & Johnson, highlight its innovative edge. With a strong financial footing from a proforma cash balance of $225.9 million raised in the IPO, Contineum is well-funded for its crucial clinical trials.

The first point to note is that Contineum has an attractive pipeline. PIPE-307 is in the second phase of clinical trials for RRMS (relapsing-remitting multiple sclerosis). Another PIPE-307 candidate is in the first phase of trials and is for depression. It’s worth noting that both these programs are in collaboration with Johnson & Johnson (NYSE:JNJ).

Relevance to the Theme:
The potential for significant medical breakthroughs and strategic collaboration with industry giants makes Contineum Therapeutics an enticing investment for anyone bullish on biotech. The company is focused on ensuring that PIPE-307 for RRMS and depression will deliver, and the encouraging data backs this up, positioning CTMN stock for a strong uptrend in the coming quarters.

Analyst Ratings and Forecasts:

Summary of Analysts’ Outlook:
Analysts have a positive outlook on Contineum Therapeutics, with a consensus rating of Overweight. The average price target of $25.50 suggests a potential gain of 12.5% from the current price. The optimism stems from the company’s promising pipeline and strategic collaborations.

Sources: Example sources typically include Yahoo Finance, TipRanks, Refinitiv

Why Invest:
Ibotta has revolutionized digital promotions in consumer packaged goods with its Ibotta Performance Network. Targeting a $200 billion market in the U.S., the company exemplifies innovation. Posting a remarkable 52% revenue growth in 2023 and a 43% year-over-year increase in Q1 2024, Ibotta remains undervalued with a forward P/E of 21.6x. International expansion prospects offer another layer of growth potential.

As an overview, Ibotta is a technology company that offers the “Ibotta Performance Network.” This allows consumer packaged goods brands to deliver digital promotions to consumers. Within the United States, the company has an addressable market of $200 billion. This puts into perspective the growth potential.

Relevance to the Theme:
Ibotta’s tech innovations remove traditional market barriers, presenting a promising long-term prospect for growth and increased market share. With robust revenue and impressive EBITDA margins, Ibotta is on a high-growth trajectory, making its current stock correction a prime buying opportunity. The company’s ability to quickly adapt and innovate within the digital promotions space sets it apart from competitors.

Analyst Ratings and Forecasts:

Summary of Analysts’ Outlook:
Analysts have a bullish outlook on Ibotta Inc., with a consensus “Buy” rating. The average price target of $2.50 suggests a significant potential gain of 134.62% from the current price. This optimism may be driven by the company’s progress in developing its plant-based biopharmaceutical production platform and its potential to address the growing demand for vaccines and therapeutics.

Sources: TipRanks, Yahoo Finance, MarketWatch

Why Invest:
ZEEKR Intelligent Technology, a strong contender in China’s burgeoning electric vehicle market, witnessed a staggering 106% year-over-year surge in deliveries in the first half of 2024. With strategic expansions into Malaysia and Indonesia, ZEEKR is tapping into new markets, promising future growth. Q1 2024 saw a robust 73% revenue growth and a solid vehicle margin of 14%.

It’s worth noting that for the first half of 2024, ZEEKR has delivered 87,870 vehicles. Amidst macroeconomic headwinds and intense competition, deliveries growth has been robust. In June 2024, ZEEKAR announced expansion into Malaysia and Indonesia. These are attractive markets and will contribute to the growth momentum.

Relevance to the Theme:
Despite the weak market sentiment for EV stocks, ZEEKR’s extraordinary operational performance and international expansion plans make it a lucrative long-term investment. The company’s solid vehicle margins and expanding delivery footprint underscore its strength and potential for future profitability and market leadership.

Analyst Ratings and Forecasts:

Summary of Analysts’ Outlook:
Analysts have a bullish outlook on ZEEKR Intelligent Technology, with a consensus “Buy” rating and an average price target of $14.50, indicating a potential gain of 34.1% from the current price. This suggests that analysts believe the stock has upside potential and are recommending it as a good investment opportunity.

Sources: Yahoo Finance, TipRanks, MarketWatch

Why Invest:
Loar Holdings focuses on aerospace and defense components, boasting a historical revenue Compound Annual Growth Rate (CAGR) of 38% from 2012 to 2023. Strategic acquisitions, like the recent purchase of Applied Avionics, expected to significantly boost incremental revenue and EBITDA, underscore its growth strategy. Despite seemingly high current valuations, long-term prospects backed by defense sector tailwinds make it a strong pick.

As an overview, Loar Holdings is a manufacturer and supplier of niche aerospace and defense components. Between 2012 and 2023, the company’s revenue has grown at a CAGR of 38%. This growth has been backed by 16 acquisitions. Given the tailwinds for the defense sector, it’s likely that healthy growth will sustain for Loar.

Relevance to the Theme:
Loar Holdings’ proven growth trajectory and strategic moves in a robust sector position it as a promising long-term wealth creator. The recent acquisition of Applied Avionics for $385 million represents another feather in its cap, adding an incremental impact on sales and EBITDA. Loar’s ability to leverage organic growth and industry tailwinds make it a noteworthy contender for long-term gains.

Analyst Ratings and Forecasts:

Summary of Analysts’ Outlook:
Analysts have a positive outlook on Loar Holdings, with a consensus rating reflecting strong prospects. While exact figures are unavailable due to the stock’s private nature, the company’s growth history and strategic acquisitions indicate a promising future.

Sources: Example sources typically include Yahoo Finance, TipRanks, Refinitiv

Why Invest:
A key player in the luxury travel sector, Viking Holdings manages river, ocean, and lake cruises worldwide. The company has shown solid bookings for upcoming seasons and plans for fleet expansion, signaling strong growth. Posting a 14.2% year-over-year revenue increase in Q1 2024 and maintaining a robust 91% and 39% capacity for the 2024 and 2025 seasons, respectively, shows its solid footing. A forward P/E of 26.6x hints at strategic earnings expansion.

For Q1 2024, Viking reported revenue growth of 14.2% YoY to $718.2 million. This growth was backed by an increase in the fleet size coupled with higher occupancy. It’s also worth noting that for the 2024 and 2025 seasons, Viking had sold 91% and 39% of its capacity passenger cruise days.

Relevance to the Theme:
Viking Holdings’ adept navigation of post-pandemic travel recovery and robust booking trends position it for steady, lucrative growth. Their strong committed order book through 2030 speaks volumes about their sustained growth expectations. The company’s planned expansions and robust financials ensure that Viking Holdings remains an attractive proposition for long-term investors looking for a blend of stability and growth.

Analyst Ratings and Forecasts: