- Leonardo DRS looks strong in its approach toward carrying out its business operations, resulting in big numbers of growth.
- Li Auto’s financials display promising growth in its stock price in 2024.
The S&P 500 index is expected to reach 4500 by 2024, which clearly shows that the markets are facing macroeconomic challenges that will further subdue the index. The subdued index doesn’t mean that there won’t be handsome returns for stocks, in fact, there are stocks with the potential to give 100% returns in 2024.
Back in 2023, the S&P 500 Index traded 13% higher year-to-date. During that time, Tesla and NVIDIA stocks reflected growth of 137% and 194%, respectively. This article delves into the top 3 growth stocks that can make you rich in 2024.
RIOT Games
Founded by Brandon Beck and Marc Merill, Riot Games is an American Video game maker, publisher, and esports tournament organizer based in Los Angeles, California. It created the infamous multiplayer online battle game League of Legends and the first-person shooting game Valorant.
The company is listed on the NASDAQ as RIOT and is an attractive name for hefty returns. Considering its growth outlook, the stock is considered undervalued even after witnessing a rally of 244% for the year.
Looking at the company’s fundamentals, as of quarter 1 of 2023, it reported its debt to be zero and a cash buffer of $188 Million. The company’s balance sheet displays digital assets worth $202 Million, which shows that the company has higher elasticity for aggressive growth of mining capacity.
As of quarter 1, Riot Games has already magnified its capacity to 10.5 EH/s. If we look at its capacity on a year-on-year basis, it has risen by 144%. Riot Games follows a low-cost mining approach for Bitcoin mining, with a mining gross margin of 58% for the first quarter. It is expected that the stock price of Riot Games will reach new heights with a robust cash flow mechanism.
Leonardo DRS
The Arms company, Leonardo DRS, listed on the NASDAQ as DRS, is certainly among the stocks to look out for to gain hefty returns. The company deals in defense products and technologies, including advanced sensing, force protection, electric power and propulsion, and network computing.
The company reported its last year’s revenue to be $2.75 Billion with an EBITDA (Earning Before Interest, Tax, Dividend and Amortization) of $323 Million. This figure is incomparable to DRS’s quarter 1 order backlog of 2023 $4.3 Billion which clearly shows revenue visibility.
The net leverage of 1.5 provides flexibility for the company to make investments in product development.
Li Auto
The Chinese electric car manufacturer, Li Auto, is yet another name to look out for in 2024 to earn hefty returns. Listed as LI on the NASDAQ, the stock has shown an immense growth rate of 58% for the year-to-date 2023.
The company delivered a total of 28,277 vehicles for the month of May. The deliveries surged by 146% on a year-on-year basis. This growth has been backed by the launch of new models and aggressive retail expansion.
If we talk about the company’s financials, as of quarter 1 of 2023, the company had a vehicle margin of 19.8%, showing that among inflation and competition, the margin remains steady. Another important point to note is the company’s cash flows, which stood at $975.9 Million for the quarter. At the end of the first quarter, Li Auto boasted cash and cash equivalents of $9.6 Billion.
