$1,500 in Hand? Here Are 2 Top Growth Stocks to Consider Investing in for 2024 and Beyond

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,500 in Hand? Here Are 2 Top Growth Stocks to Consider Investing in for 2024 and Beyond

Bear markets come and go, but history has time and time again taught investors that bull markets not only tend to survive these periods, but eventually push stocks higher than they were. they were before the economic downturn. Bull and bear markets can present opportunities for the long-term investor who is focused on buying great companies, not just stock prices.

If you have cash to invest, now is always a good time to add or create positions at quality companies with wide moats and compelling long-term growth stories. An investment of $1,500 in one or both of these stocks could generate significant returns for your portfolio over the next few years. Let’s take a closer look.

1. Eli Lilly

Elie Lilly (NYSE:LLY) is one of the world’s largest pharmaceutical companies by market capitalization and revenue. With almost 150 years of business under its belt, it’s safe to say that this is one of the top companies to consider if you want to invest in the healthcare space.

Over the past five years, Eli Lilly has provided investors with a total return of nearly 540%. This represents approximately four times the yield of S&P500 during this same period. Although its dividend yields less than 1%, its dividend payout has increased by approximately 100% over this five-year period.

Eli Lilly has been in the news more recently for the success of its weight-loss drug Zepbound and its diabetes drug Mounjaro, both derived from the same active ingredient, tirzepatide. Mounjaro got the regulatory green light in 2022, while Zepbound was just approved late last year. Both of these drugs still have years of revenue potential before a patent cliff occurs.

Eli Lilly also benefits from a portfolio of existing blockbuster drugs, such as cancer drug Verzenio and diabetes drug Jardiance. The company reported total revenue of $34 billion in 2023, an increase of 20% from the previous year. Over the past five years, the company has increased its annual revenue by approximately 50%.

If you’re looking for stable yields and dividend income, Eli Lilly hits the mark on both fronts.

2. Shopify

Shopify (NYSE: SHOP) has had its share of ups and downs over the past few years. From surging in popularity with investors during the pandemic to some key operational changes implemented to stem the tide of rising costs and a challenging operating environment, Shopify has continued to move forward as a company.

A series of high-profile layoffs and the divestiture of most of its logistics business just about a year after its expansion into fulfillment has understandably worried some investors. However, the company’s realignment to focus on its core, asset-light business model appears to be paying off.

Shopify’s bread and butter comes from its two core businesses. The first are subscriptions, like the monthly or annual fees that merchants pay to use the platform. The other encompasses a wide range of merchant solutions, which include services such as Shopify Pay and Shopify Point of Sale.

Merchant solutions are by far the company’s largest revenue growth driver. In 2023, Shopify reported total revenue of $7.1 billion, an increase of 26% from the previous year. Of this total, $5.2 billion was attributable to merchant solutions revenue, an increase of 27% from 2022, and $1.8 billion came from subscription solutions revenue, an increase of 23 % from one year to the next.

Shopify Gross margin for the 12-month period it was just under 50%. And where the company reported negative free cash flow of $186 million in 2022, the company raked in $905 million in free cash flow in 2023. The company’s shares have been up single digits since the start of the year, but around 75% year-on-year. There is.

With a company at this stage of its maturity, you won’t see skyrocketing returns overnight, but this stock has proven the ability to significantly outperform the market over time.

Should you invest $1,000 in Eli Lilly right now?

Before buying Eli Lilly stock, consider this:

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Rachel Warren has positions in Shopify. The Motley Fool posts and recommends Shopify. The Motley Fool has a disclosure policy.

Do you have $1,500? 2 Top Growth Stocks to Buy Now for 2024 and Beyond was originally published by The Motley Fool

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