Three Stocks Poised to Double in Value by 2024

Three Stocks Poised to Double in Value by 2024

The market has grown this year, but we have to wait for holiday favors. You might be surprised by how many stocks are actually in the race. Fewer than three dozen companies with a market cap of at least $2 billion are up at least 50% in 2024. Can they continue to ride the good times?

Securities in Celsius securities (NASDAQ:CELH), Soft green (NYSE:SG)And Instacart (NASDAQ: BASKET) are among 35 companies with market valuations exceeding $2 billion and up at least 50% this year. They are well positioned to more than double this year. Let’s see why they might make it.

1. Celsius: up 64%

Celsius shares are shining this year, and that’s to be expected since it’s a fast-growing player in the sparkling functional beverage space. This year’s initial jump is no accident. The stock has more than tripled in the past year. Celsius has gotten five baggers in the last three years and a staggering 63 baggers in the last five years.

Growth will inevitably slow for its line of juice-flavored beverage products that help burn fat and calories. But for now, Celsius continues to defy gravity. Bears thought growth would end last year. They were wrong. They thought the same thing the year before. They were Really fake. This is probably a good time to point out that short interest is at an all-time high this month.

Three Stocks Poised to Double in Value by 2024

Image source: Getty Images.

Revenues have more than doubled for three consecutive years. The company is also profitable, with a double-digit percentage in every quarter of 2023.

Growth in the United States will slow, but it is time for international growth to take over. Celsius announced three new international expansion markets earlier this year, which is worth watching since international sales currently represent only 4% of its revenue.

Let’s end with a data point that might blow your mind. Put aside the tendency of energy drink makers to exceed their profit targets: the stock of drinks is a 62-bagger over the past five years and trades at 57 times next year’s earnings. You could have bought all of Celsius five years ago for less than it is expected to bring in next year.

2. Sweetgreen: up 95%

The Sweetgreen premium salad spinner was a hot newbie when it hit the market at $28 in late 2021. The IPO debuted at $52. In March of last year, the stock bottomed at just over $6. The concept was growing at a rapid pace, but lack of profitability was just one of the problems keeping Sweetgreen off the radars of growth investors.

Sweetgreen is a seller of high-priced salads. It thrives on busy lunchtime crowds, often made up of well-off office workers placing combo orders. One of the chain’s main revenue drivers is Sweetgreen Outpost, a batch delivery program through which businesses apply for office delivery positions. Orders are consolidated each morning, delivered before lunchtime. The program was hit hard by the pandemic, but is thriving now as businesses return to in-office work and personal relationships.

Revenue grew 29% better than expected in his last trimester. New restaurant openings and a 6% increase in same-store sales are driving revenue growth. Sweetgreen is still posting losses, but its restaurants’ profit margins are improving significantly. Investors have responded, with shares more than tripling over the past year. The stock has already almost doubled this year, and it’s only mid-March.

3. Instacart: up 59%

I wasn’t the only one who was initially hesitant when Instacart hit the market in the fall of last year. Do we really need another publicly traded player in the cutthroat world of third-party delivery apps? The market’s first reaction was a yawn. Instacart went public at $30, and that’s exactly where it closed at the end of its first week of trading.

Business hasn’t improved since the trading floor premiered. The same company whose prospectus promoted an 80% compound annual growth rate between 2018 and 2022 has slowed down. Revenues grew just 19% in 2023, half the growth recorded the year before. During its first quarter as a public company, sales rose just 6%, and the company announced layoffs in February.

But Instacart knows a thing or two about the grocery aisle, and its positive point is that its business model is already profitable. It also dominates its niche. Analysts forecast modest revenue growth of 8% this year and 9% in 2025, but they also see strong improvement in profitability over that period. Don’t obsess over the ingredients. Just enjoy the recipe.

Should you invest $1,000 in Celsius right now?

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Rick Munarriz has positions in Celsius. The Motley Fool has posts and recommends Celsius. The Motley Fool recommends Sweetgreen. The Mad Motley has a disclosure policy.

3 stocks that are on track to double in 2024 was originally published by The Motley Fool

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