3 Growth Stocks That Could Soar 50% or More by Year’s End

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The allure of growth stocks that exhibit the potential to surge 50% or more by year’s end captivates many. These companies are often industry veterans driven by rapid revenue growth, profits and innovation. 

A unique opportunity exists to capitalize on emerging market trends, including artificial intelligence, cloud computing and digital payments. While they can put investors onto a volatile path, the potential for significant outperformance may be worthwhile. With the right blend of foresight, due diligence and risk management, these high-growth companies can make early investors extremely wealthy. 

Now, let’s unravel the best growth stocks that could soar 50% or more by year’s end.

Amazon (AMZN)

Closeup of the Amazon logo at Amazon campus in Palo Alto, California. The Palo Alto location hosts A9 Search, Amazon Web Services, and Amazon Game Studios teams. AMZN stock

Source: Tada Images / Shutterstock.com

Amazon (NASDAQ:AMZN) is currently the largest cloud computing company in the world through its subsidiary, Amazon Web Services (AWS). They are also a market leader in global e-commerce and are making some serious strides in advancing generative AI.

Amazon’s dominance in e-commerce remains undeniable, but its cloud computing division drives most of the company’s profitability. AWS continues to command the leading market share, powering millions of businesses. More recently, Amazon has been investing significantly in generative AI.

Their Amazon Bedrock platform is one of the most comprehensive solutions for building, scaling and deploying advanced AI applications. This platform, along with its custom AI chips, will be crucial to meet the growing demands of AI workloads. With cost-cutting measures in 2023 finally starting to materialize, Amazon is one of the top growth stocks to buy for 2024.

Paychex (PAYX)

Paychex Flex app is seen in the App Store on an iPhone

Source: Tada Images / Shutterstock.com

Paychex (NASDAQ:PAYX) is a leading growth stock contender specializing in human capital management software for small to medium-sized businesses. The company boasts a strong track record of consistent revenue growth and profitability, and its long-term growth prospects are compelling.

Paychex operates in an inherently resilient sector. Regardless of macroeconomic conditions, businesses will always require payroll and HR services, making their suite of services essential. They have also continued to make strategic investments into digital solutions, including cloud-based platforms, to streamline customer experience and operational efficiencies.

Moreover, Paychex boasts a strong margin profile while generating significant cash flows from operations. Their commitment to driving shareholder value through dividends and share buybacks underscores their confidence in future growth. This is reflected in their recent $400 million share repurchase plan, returning 75% of its net income to shareholders on record in fiscal 2023. 

Automatic Data Processing (ADP)

In this photo illustration the stock market information of Automatic Data Processing, Inc. displays on a smartphone with the logo of Automatic Data Processing, Inc. ADP stock.

Source: IgorGolovniov / Shutterstock

Automatic Data Processing (NASDAQ:ADP) stock had a strong operational year in 2023, and management is projecting double-digit bottom-line growth this year. Demand for their human capital software solutions remains strong, instilling confidence in shareholders for the 2024 fiscal year. 

Automatic Data Processing is one of the major players in the payroll and HR solutions space. ADP primarily serves large enterprises, providing solutions tailored to their specific needs. In FY23, revenue increased 9% YOY to $18 billion. Net income increased by 16% to $3.4 billion, with adjusted EBITDA margin up 130 basis points to 24.8%. The company’s strong execution, new business booking growth and margin expansion highlight the true impact of this transformative business. They are also not shying away from new growth initiatives as they push into AI to accelerate customer productivity. With management guiding 10-12% EPS growth in 2024, ADP stock should be kept on your radar. 

On the date of publication, Terel Miles did not have (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.

Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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