The stock market in 2024 is off to a promising start, especially for growth stocks with millionaire potential that have reached a larger scale. However, it’s still difficult to predict where things may end up in the coming months. From my perspective, I don’t foresee a drastic downturn, at least for the first half of 2024, given the current projections for strong GDP growth and a robust job market. These tailwinds suggest growth stocks should continue performing well over the next few months.
Now feels like an opportune time to highlight under-the-radar growth stocks with millionaire potential that have lagged over the past couple of years as the post-pandemic comedown turned many high-flying stories into losers. But with macro conditions appearing sunnier, the fortunes of some unloved growth companies may soon shift. Let’s have a look!
ACV Auctions (ACVA)
ACV Auctions (NASDAQ:ACVA) operates an online wholesale vehicle marketplace that I believe positions it strongly for explosive growth in 2024. This innovative company utilizes a mobile app and web platform to facilitate live auctions between car dealers to buy and sell used vehicles. It also provides robust data and inspection services to bring transparency and fairness to the transactions.
The business has seen tremendous expansion in recent years, with revenue skyrocketing over 400% since 2019. Although not yet profitable, ACVA has consistently reduced losses over time. Analysts forecast profitability emerging in 2024, catalyzing a surge in earnings. Estimated EPS in 2026 is nearly 10x higher compared to 2024. Using 2026 EPS projections, the forward P/E ratio sits at a modest 12.6x. With the used vehicle market rapidly shifting online and cars aging longer than ever, ACV stands ready to capitalize.
I expect 2024 to demonstrate accelerating revenue growth and strong progress toward profitability for ACV Auctions. This fast-expanding disruptor still seems overlooked, offering a prime moonshot opportunity before the market catches on. Once profits materialize as projected, the small losses should quickly fade from investors’ minds.
LuxUrban Hotels (LUXH)
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LuxUrban Hotels (NASDAQ:LUXH) tap into the thriving hospitality industry by leasing properties in major urban markets and renting rooms to travelers. This stock witnessed a tremendous 377% growth from November 2022 to an early 2024 high before recently falling 34% due to a slight 4% revenue miss. But I believe this decline sets up an exciting buying opportunity.
Despite the minor miss against lofty expectations, LUXH is still expected to deliver substantial profits in 2024. Using these projections, the forward P/E ratio drops to an ultra-low 7x. Meanwhile, predicted revenue growth remains explosive, with 181% expansion in 2023 and 116% in 2024. The 50% annual growth forecasted through 2025 further highlights LuxUrban’s vast share gain runway. Even amidst temporary economic bumps, the thriving travel sector won’t abandon LUXH anytime soon.
Sure, huge growth brings risks if execution stumbles. But LUXH has surpassed estimates before, with Q2 2023 and Q1 2023 revenue impressing by 14.3% and 7.5%, respectively. I won’t blindly trust sky-high predictions, but this company clearly houses tremendous potential. With rates perhaps dropping later in 2024, LUXH may liftoff just as profitability hits. The recent decline leaves a compelling entry point for this high-upside moonshot stock.
Riot Platforms (RIOT)
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Riot Platforms (NASDAQ:RIOT) predominantly mines Bitcoin (BTC-USD) – an asset class viewed skeptically by some investors. But RIOT’s niche strategy and low-cost structure position it for success, making the stock a potential 2024 moonshot if cryptocurrency tailwinds reemerge.
The company participates in Texas’ electricity demand response program, earning power credits by temporarily reducing consumption during high usage periods. These credits slash RIOT’s energy expenditures – its largest expense in mining Bitcoin. As a result, RIOT holds an industry-leading breakeven cost of only $5,537 per Bitcoin.
With Bitcoin recently stabilizing around $43,000, the company generates strong mining profits. If prices rise into 2024 amid renewed interest, surging revenue could refocus investor attention on RIOT stock’s huge upside potential. Bitcoin’s upcoming “halving” event, reducing mining rewards to control supply increases, could serve as a catalyst. Any 2024 rate cuts might provide added momentum.
Despite cryptocurrencies’ reputation for volatility, RIOT’s niche strategy offers differentiation. The company’s ultra-low production costs help weather price declines while maximizing profits in bull markets. While RIOT carries risks as a crypto-levered play, its positioning perfectly aligns with a 2024 rebound.
On the date of publication, Omor Ibne Ehsan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.
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