While 2023 was a year of relative outperformance for equities, select high-growth stocks saw their growth slow due to uncertainties like recession fears and higher interest rates. That said, there are many who believe the outlook for 2024 appears promising, as inflation eases and the economy strengthens. Amidst uncertainty about interest rates and recession risks, top growth stocks have seen a dip, presenting an opportunity.
For those looking to capture the upside others are leaving on the table, quality matters. In that regard, here are three must-have millionaire-maker growth stocks to add to your portfolio now.
Meta Platforms (META)
Meta’s revenue surged to $34.1 billion, a 23% year-over-year increase, surpassing analysts’ estimates by $700 million. Net income rose 164% to $11.6 billion ($4.39 per share), surpassing the consensus estimate by $0.76. In the first nine months of 2023, 98% of Meta’s revenue came from advertising.
The company’s core ad business, which had experienced three consecutive quarters of year-over-year revenue declines, rebounded in the first quarter of 2023 and continued to grow significantly in the following two quarters.
Additionally, Meta Platforms aims for a year-end sales boost. The Quest 3 virtual reality headset, priced at $499, targets gamers and supports Xbox games. It’s slated to be released before Apple’s Vision Pro headset, coming in early 2024. Meta also introduced updated Ray-Ban smart glasses with voice-activated photo and video capture. Meta anticipates Q4 revenue growth of 13%-24%, outperforming expectations. It lowered full-year expense forecast to $87-$89 billion. Although Reality Labs’ losses are set to increase, the stock’s valuation at 18 times forward earnings makes it an attractive investment.
Restaurant Brands (QSR)
Restaurant Brands (NYSE:QSR) is one fast food conglomerate many investors may not have heard of. With four core banners under its purview, this quick service restaurant operator is one of the best in the business. Most readers may be familiar with the companies Burger King and Tim Hortons banners, which cater to cost-conscious working and middle-class families.
The company has achieved robust growth over the long-term, and has also provided investors with a hefty dividend yield (currently around 3.3%). Led by Patrick Doyle, Restaurant Brands has seen significant revenue growth, which continued in the company’s strong Q2, culminating in 10.2% growth in Burger King’s same-store sales. Notably, QSR stock has gained 14% in the past year.
Loop Capital recently upgraded QSR stock to buy on this report, citing a robust 8.5% to 9% same-store sales increase, surpassing the 7.7% estimate. They raised the price target to $81 from $77. Considering a stock’s future outlook is crucial for investors seeking growth. Restaurant Brands International anticipates a 71% earnings increase in the coming years, pointing to a positive future and potentially higher share value.
Advanced Micro Devices (AMD)
Santa Clara-based semiconductor manufacturer, Advanced Micro Devices (NASDAQ:AMD), saw a 64% stock price increase last year. AMD is actively competing in the generative AI and cloud computing sectors. The company recently acquired Nod.ai, an open AI software company, to enhance their AI capabilities. AMD will report its Q3 2023 earnings on October 31 after market close.
The AI GPU market’s rapid growth, driven by high-demand in data centers, is dominated by Nvidia (NASDAQ:NVDA), with over 90% market share. However, AMD’s upcoming MI300 GPU series, with exceptional memory bandwidth, positions it as a significant player in AI inferencing. Accordingly, if AMD can capture more of the market (as many think is possible), this is a stock with some serious upside-potential.
AMD’s current price-to-sales ratio sits at 7.5-times, close to its five-year average of 7.56-times. Analysts project revenues of $35.3 billion in 2026, more than 150% of the forecasted $22.8 billion this year. With a steady sales multiple, AMD stock could appreciate roughly 54% over the next three years if analysts are correct. Thus, AMD remains an intriguing choice for investors, given the company’s position in AI and data center (and the secular catalysts supporting these sectors).
On the date of publication, Chris MacDonald has a LONG position in META and QSR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.