The stock market in 2024 is showing promise for growth stocks with millionaire potential that have achieved a larger scale. However, the future remains uncertain and difficult to predict. The current projections for strong GDP growth and a robust job market suggest that growth stocks should continue performing well over the next few months.
It’s an opportune time to highlight under-the-radar growth stocks with millionaire potential that have lagged over the past couple of years. The post-pandemic comedown turned many high-flying stories into losers. But with the macro conditions appearing more favorable, the fortunes of some overlooked growth companies may soon change.
ACV Auctions (ACVA)
ACV Auctions (NASDAQ:ACVA) operates an online wholesale vehicle marketplace and is positioned for explosive growth in 2024. The innovative company uses 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, 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.
2024 is expected to demonstrate accelerating revenue growth and strong progress toward profitability for ACV Auctions. This fast-expanding disruptor still seems overlooked, offering a prime opportunity before the market catches on. Once profits materialize as projected, the small losses should quickly fade from investors’ minds.
LuxUrban Hotels (LUXH)
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 tremendous growth before recently falling due to a slight revenue miss, setting 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. 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.
LUXH may liftoff just as profitability hits. The recent decline leaves a compelling entry point for this high-upside moonshot stock.
Riot Platforms (RIOT)
Riot Platforms (RIOT) is a stock that has attracted attention and seen significant growth in recent times.”
Riot Platforms Poised for 2024 Success
The Low-Cost Niche Strategy
Riot Platforms (NASDAQ:RIOT) specializes in mining Bitcoin (BTC-USD), an asset class that may raise eyebrows among certain investors. However, the company’s niche strategy and cost-effective structure position it favorably for future success, potentially propelling the stock to unexpected heights by 2024 if cryptocurrency winds blow in their favor.
The Unique Edge
The company actively engages in Texas’ electricity demand response program, earning power credits by temporarily reducing consumption during peak usage periods. These credits significantly reduce RIOT’s energy expenditures, the largest cost component in Bitcoin mining, resulting in an industry-leading breakeven cost of only $5,537 per Bitcoin.
Potential Profit Amidst Stable Bitcoin Prices
With Bitcoin stabilizing around $43,000, Riot Platforms is experiencing robust mining profits. If Bitcoin prices surge in the lead-up to 2024, accompanied by renewed interest, the company could witness a significant revenue spike, recapturing investor attention towards the colossal upside potential of RIOT stock. Additionally, the upcoming “halving” event for Bitcoin, which will reduce mining rewards to manage supply increases, may act as a catalyst. Furthermore, potential 2024 rate cuts could provide an additional push.
Resilience Against Volatility
Despite the well-known volatility attached to cryptocurrencies, RIOT’s specialized strategy provides a noteworthy differentiating factor. The company’s ultra-low production costs act as a shield during price declines while maximizing profits in bullish market conditions. Although RIOT bears the mark of a crypto-leveraged investment and carries its own inherent risks, its positioning seamlessly aligns with a potential resurgence in 2024.
On the publication date, the writer did not hold any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to publishing guidelines.
