Top Growth Stocks to Watch in 2024
Wall Street had a strong performance in 2023, with the Nasdaq Composite gaining 44%. This has led to a surge in the stock market, making it an opportune time for retail investors to consider investing in fundamentally strong growth stocks. Two such stocks to watch in 2024 are SoFi Technologies and CrowdStrike.
SoFi Technologies is a diversified fintech company that offers a range of consumer financial services, including loans, credit cards, and brokerage accounts. Its online-only model allows for lower costs and a focus on product development and technological advancements. The company also provides platform-as-a-service technology solutions to financial and non-financial institutions, diversifying its revenue base.
A year of economic uncertainty and higher interest rates, SoFi demonstrated resilience in 2023. The company saw significant growth in deposits, with over 90% coming from loyal customers. This growth is a testament to the trust customers have in SoFi’s platform. Additionally, the company’s focus on leveraging its banking charter has resulted in a 90% increase in net interest income. With plans to further reduce its cost of capital and a strong balance sheet, SoFi is well-positioned for continued growth.
CrowdStrike, a leading endpoint security player, also had an impressive year in 2023, with its shares soaring 142%. The company’s Falcon platform offers a comprehensive solution for cybersecurity needs. This has resulted in a large addressable market and a growing customer base, with a dollar-based net retention rate of over 120% for 12 consecutive quarters.
With the increasing frequency and cost of cyberattacks, the demand for its AI-powered cybersecurity solutions is only expected to grow. This, coupled with its strong financial performance, makes CrowdStrike a top growth stock to watch in 2024.
SoFi Technologies and CrowdStrike are two growth stocks that have shown resilience and strong performance in 2023.
