3 Growth Stocks That Could Soar in 2024 and Beyond

The market has not been kind to some of my favorite stocks. Celsius Holdings (CELCH 4.17%), Roku (ROKU 5.37%)and Disney (DIS -0.37%) it’s trading lower this year — but 2024 isn’t over yet.

I think all three can bounce back, beating the market in the final months of the year. Growth should continue into 2025 and beyond.

These growth stocks are out of favor now, but certainly not in flavor. Here’s a closer look at why all three names can skyrocket after a slow start this year.

1. Celsius

Growth has slowed considerably for the functional drink specialist, with a product that aims to speed up calorie and fat burning if sipped just before cardio activity. I still think Celsius can warm up again. The same company that has more than doubled sales for three straight years has been deadly this year – shares are down 62% since peaking in March.

Revenue slowed to 37% growth in the first three months of this year. The 23% year-over-year growth the company posted in its second quarter last week is understandably worse. However, Celsius initially rose following its latest financial update. The results actually beat the maximum 20% gain that analysts were targeting. The bottom line was even more impressive.

Data source: Yahoo! Finance. EPS = earnings per share.

Profitability has expanded in this scalable business. The 65% increase in earnings per share in its most recent quarter is just the latest double-digit percentage beat. The market usually rewards companies that consistently beat expectations, but like a Celsius-assisted workout, the stock keeps getting thinner.

Image source: Getty Images.

Short-term challenges remain. Celsius’ share of the country’s energy drink market rose to 11 percent from 9.6 percent a year earlier, but it has fallen in succession. There’s no new rival to get in the way of the company’s functional turf, but after years of monstrous growth just by expanding its reach, it’s clear that the company’s days of triple-digit growth are over.

The stock trades at a reasonable 30 times the analyst’s profit target for next year. International sales are still part of the overall revenue mix, but outpaced North American growth with 30% growth. Some have also speculated that the unusually warm summer has shifted consumption to traditional water for hydration.

Fall and cooler weather are just around the corner. Despite recent hiccups, Celsius remains one of the fastest growing beverage stocks. It might be time for another sip.

2. Roku

The TV streaming pioneer continues to improve even as its stock continues to deteriorate. Shares of Roku have been cut in half since hitting a short-term high last December.

Roku checks all the right boxes and TV boxes, and its losses are reduced. It extended its streak of double-digit revenue growth to five quarters, and engagement continues to grow. The market is unimpressed, choosing instead to channel navigation to other growth opportunities.

Despite competing with some of the most valuable companies in the consumer-tech world, Roku continues to be the runaway leader in usage. A spring Comscore CTV Intelligence study found that Roku’s operating system had a 47 percent share of the time U.S. viewers spent on smart TVs.

The Roku Channel — its own offering — has seen its audience grow 75 percent over the past year. This week it launched The Roku Sports Channel, which, like its flagship offering, is a free, ad-supported way for its users to check out a wide range of sports programming.

3. Disney

Let’s end with a media company that has been around for more than 100 years now. Disney may not look like a growth story, as its revenue has failed to exceed 6% in each of the past five quarters. Even his flagship theme park business hit a hiatus. There’s a bigger story going on here with the master storyteller.

Disney announced over the weekend a long list of attractions that will be revamping its theme parks in the coming years. His studio is back after releasing two of the summer’s biggest films in back-to-back months. Disney+ is finally turning the corner on profitability, and the streaming business is growing its revenue more than enough to offset the gradual decline of linear media networks.

Analysts are cutting profit estimates for the next fiscal year in light of Disney’s heavy investments to fuel growth going forward, but that’s the price it must pay to accelerate growth. It’s a story worth telling, and with an anticipated earnings multiple in the teens, it’s an attractively priced story with a potential fairytale ending.