3 Growth Stocks That Can Double in 2024 (2024)

Growth stocks give investors the opportunity to beat the market. These stocks can help investors retire sooner and achieve their financial goals. However, growth stocks tend to have more risk and involve extra hours.

You have to stay on top of growth stocks and look for hidden opportunities. However, it can be worth the effort if you buy a growth stock that doubles in one year. Some growth stocks are incredibly risky while others have reasonable valuations based on what you are getting. These are some of the growth stocks that can potentially double in 2024.

ZeroFox (ZFOX)

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ZeroFox (NASDAQ:ZFOX) is a high-risk, high-reward cybersecurity penny stock that currently trades at $0.58 per share. It’s yet another SPAC merger gone wrong, as shares are down by 89% year-to-date. The 5-year loss is slightly worse at 94%.

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Growth investors are often more patient with stocks that have high losses with the hopes that they can become profitable in the future. ZeroFox certainly has potential and has displayed optimistic signs.

The company offers an AI-enabled platform that combines digital risk protection, threat intelligence, external attack surface management and disruption to protect customers at scale. ZeroFox achieved positive free cash flow for the first time in thesecond quarter of fiscal 2024. The firm also expects to achieve quarterly free cash flow on a sustained basis in the second half of fiscal 2025.

Subscription revenue is growing faster than service revenue and produces higher gross profits. The company currently has approximately 2,400 total customers and $185.9 million in annual recurring revenue as of the third quarter of fiscal 2024. The company’s guidance calls for $214-$217 million in revenue for fiscal 2024.

ZeroFox has182 customers paying over $100,000in annual recurring revenue. That’s a 27% year-over-year increase. Revenue went up by 50% year-over-year which has been common for the cybersecurity company. Net losses are getting smaller.

The company’s quarterly revenue almost exceeds its $68 million market cap. That small market cap combined with high growth and narrowing losses suggest this risky stock can potentially double in 2024.

Perion (PERI)

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Perion(NASDAQ:PERI) is another small, but less risky, company. The $1.5 billion adtech company has gained more than 1,100% over the past five years on the back of innovative ad technology. While other advertising giants lost ground in 2022, Perion continued to report impressive revenue and earnings growth during that challenging year.

Even with a sudden spike in mid-December due to astrategic acquisition, Perion still remains undervalued. It’s gaining market share faster than household names in the advertising industry while having a 13 P/E ratio.

Revenue increased by 17% in thethird quarter, and a 28% year-over-year net income increase makes the report more attractive. The company’s recent $100 million acquisition barely made a dent in financials, as the company held $523.6 million in cash and cash equivalents at the end of September.

Perion CEO Tal Jacobson stated that the company expects to complete another purchase in 2024. The company’s business model has already delivered exceptional growth, and new acquisitions can lead to more market share. Great synergies between Perion and its acquired companies can result in customers using multiple advertising services under the Perion umbrella.

Celsius (CELH)

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Celsius(NASDAQ:CELH) is the most valuable company on this list by market cap. The $11 billion company features high revenue and earnings growth which can make the valuation more attractive over time.

Shares are up by 48% year-to-date but have soared by 4,600% over the past five years. Stocks that report significant gains aren’t necessarily overvalued. Rising consumer demand can enable more of a good thing, and Celsius fits this category.

The sports beverage company partnered withPepsi(NYSE:PEP) in 2022 toincrease its distribution. The partnership allows Celsius to reach more people in the international markets.

Celsius continues to grow at a rapid rate which is mostly fueled by North America. In thethird quarter, revenue grew by 104% year-over-year. Revenue from North America made up $371 million of the company’s $385 million revenue for the third quarter.

Comparatively speaking, Pepsigenerated almost 60% of its revenue from North Americain the 12 weeks ended September 9, 2023. If Celsius can make North America represent 60% of total revenue, the stock can skyrocket. It may take a few years for Celsius to reach that level, but North American growth is still robust.

On this date of publication, Marc Guberti held long positions in ZFOX, PERI and CELH. The opinions expressed in this article are those of the writer, subject to theInvestorPlace.comPublishing Guidelines.

Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.

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