In this article, we discuss the 11 best revenue growth stocks to invest in. If you want to read about some more such stocks, go directly to the 5 Best Revenue Growth Stocks to Invest in.
As we navigate through 2024, the outlook for both the stock and bond markets experiences regular fluctuations, driven by a myriad of factors including economic data releases, Federal Reserve communications, and shifts in interest rate forecasts. Initially, investors anticipated multiple interest rate cuts by the Federal Reserve over the year, with expectations of the first cut occurring in March. However, in light of a string of favorable economic indicators, the Fed has signaled that a rate cut in March is unlikely. As a result, investors are recalibrating their assessments of stocks and bonds, anticipating fewer rate cuts to commence at a later date than previously anticipated.
The Commerce Department’s report on economic growth reveals a 3.1% year-over-year expansion in the fourth quarter of 2023, fueled by robust consumer spending in sectors like healthcare, dining, and automobiles. This robust performance, combined with potential future rate cuts, has bolstered market sentiment, with bulls expressing optimism and setting higher targets for the S&P 500 index. Katie Stockton, founder and managing partner of Fairlead Strategies, suggested that the S&P 500 could reach 6,100 in the long term if new highs are reached. Despite certain stocks being overbought, Stockton highlighted signs of market strength, signaling the start of a bull market.
On a contrasting note, analysts with a long-term perspective anticipate that the Federal Reserve will eventually commence rate cuts. At the same time, robust earnings growth and economic resilience will propel the S&P 500 upward towards the end of 2024. Goldman Sachs has recently revised its year-end target for the S&P 500 to 5,200, an increase from its earlier projection of 5,100. David Kostin of Goldman Sachs anticipates that the robust earnings performance of mega-cap stocks, particularly those within the Magnificent Seven group, will play a significant role in driving S&P 500 profits in 2024.
Given the circumstances outlined above, it’s no wonder that renowned companies like Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN) remain top contenders as some of the best revenue stocks to invest in, both in the eyes of analysts and investors.
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Our Methodology
For this list, we made use of a stock screener to identify stable companies showcasing revenue growth surpassing 10%. Our methodology focused on identifying the best revenue growth stocks while taking into account hedge fund sentiment as of the fourth quarter of 2023. The list is arranged in ascending order based on the number of hedge fund holders. It’s noteworthy that hedge funds’ top 10 consensus stock picks have outperformed the S&P 500 Index by more than 140 percentage points over the last decade (see the details here). Hence, we place significant importance to this often-overlooked indicator.
11. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 109
Quarterly Revenue Growth: 74.00%
Headquartered in New York City and incorporated in Delaware, JPMorgan Chase & Co. (NYSE:JPM) is a prominent American multinational financial services corporation and the largest bank in the United States.
On December 12, JPMorgan Chase & Co. (NYSE:JPM) announced a quarterly dividend of $1.05 per share on its outstanding common stock. The dividend was slated to be paid on January 31 to shareholders of record as of January 5, 2024.
A total of 109 hedge funds tracked by Insider Monkey had JPMorgan Chase & Co (NYSE:JPM) shares in their portfolios heading into the last quarter of 2023. The biggest stakeholder of JPMorgan Chase & Co (NYSE:JPM) was Ken Fisher’s Fisher Asset Management which owns a $1.7 billion stake in JPMorgan Chase & Co (NYSE:JPM).
Madison Sustainable Equity Fund stated the following regarding JPMorgan Chase & Co. (NYSE:JPM) in its fourth quarter 2023 investor letter:
“We updated the sustainable scorecard for JPMorgan Chase & Co. (NYSE:JPM). JP Morgan continues to have an Average rating across Governance, Social and Environmental factors. JP Morgan is using its business to improve climate change. JP Morgan has targeted $2.5 trillion in financing between 2021 and 2030 to advance long-term solutions to address climate change and sustainable development. The Board has oversight of corporate responsibility and ESG matters, but ESG and Sustainability are addressed across the firm. JPM does listen to shareholders. After a 31% For Vote on executive compensation in 2022, the Board will not be granting any special awards to Jamie Dimon or Daniel Pinto and if awarded to other Named Executive Officers, there will be a direct performance condition associated with the award. The Compensation Committee limited the cash percentage of Dimon and Pinto’s compensation.”
Much like Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN), JPMorgan Chase & Co. (NYSE:JPM) operates as one of the best revenue stocks to invest in.
10. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 105
Quarterly Revenue Growth: 13.22%
Headquartered in California, Adobe Inc. (NASDAQ:ADBE) is a versatile software company offering a wide range of products and solutions that empower individuals, teams, and enterprises to create, publish, and promote content. Renowned as a top choice for content creators, students, professionals, and consumers alike, Adobe Inc. (NASDAQ:ADBE) also operates a Digital Experience segment, serving brands and businesses in managing, implementing, and monetizing customer experiences.
On December 13, Adobe Inc. (NASDAQ:ADBE) announced a Q4 non-GAAP EPS of $4.27 and revenue of $5.05 billion, surpassing Wall Street estimates by $0.13 and $30 million, respectively. This solid performance underscores Adobe’s continued strength in the market. Additionally, the company demonstrated confidence in its future by repurchasing approximately 1.8 million shares during the quarter.
Insider Monkey dug through 933 hedge fund holdings for last year’s December quarter and discovered 105 Adobe Inc. (NASDAQ:ADBE) shareholders. Ken Fisher’s Fisher Asset Management was the biggest investor since it held a $2.7 billion stake.
9. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 113
Quarterly Revenue Growth: 14.06%
Headquartered in Minnetonka, Minnesota, UnitedHealth Group Incorporated (NYSE:UNH) is a leading American multinational corporation specializing in managed healthcare and insurance services, operating as a for-profit entity. The corporation is structured into four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. Recognized as one of the best revenue growth stocks to buy, UnitedHealth Group Incorporated (NYSE:UNH) offers a quarterly dividend of $1.88 per share as of February 16.
UnitedHealth Group Incorporated (NYSE:UNH) saw a significant increase in hedge fund interest, with the number of hedge fund positions rising to 113 by the end of the quarter. This marked an increase from the 104 positions held in the previous quarter. The consolidated value of these stakes is more than $11.1 billion.
8. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 120
Quarterly Revenue Growth: 10.16%
Based in Santa Clara, California, Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company specializing in the development of computer processors and associated technologies, serving both business and consumer markets.
On February 1, Citi analyst Christopher Danely highlighted an upward revision in Advanced Micro Devices, Inc. (NASDAQ:AMD)’s guidance for artificial intelligence-related revenue. The company now anticipates $3.5 billion in sales for the current year, a significant increase from the previous estimate of $2 billion. Citi suggested that AMD might deliberately be underestimating, and the CEO expressed confidence in surpassing the $3.5 billion figure for this year.
By the end of 2023’s fourth quarter, out of the 933 hedge funds surveyed by Insider Monkey, 120 had invested in the firm. Advanced Micro Devices, Inc. (NASDAQ:AMD)’s largest hedge fund shareholder is Ken Fisher’s Fisher Asset Management as it owns 28 million shares that are worth $4.1 billion.
7. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 129
Quarterly Revenue Growth: 15.44%
Headquartered in San Francisco, California, Uber Technologies, Inc. (NYSE:UBER) operates technology platforms connecting consumers with independent ride service providers, offering various transportation modes such as public transit, bikes, and scooters. Additionally, Uber provides on-demand food delivery, freight services, business fleet solutions, and same-day delivery options, serving over 142 million monthly active platform consumers across 70 countries.
In the fourth quarter of 2023, Uber Technologies, Inc. (NYSE:UBER) reported a significant 22% year-over-year increase in gross bookings, reaching $37.6 billion, with trips growing by 24% year-over-year to 2.6 billion, averaging approximately 28 million trips per day. On February 7, Uber Technologies, Inc. (NYSE:UBER) announced its fourth-quarter GAAP EPS of $0.66 and revenue of $9.9 billion, surpassing Wall Street estimates by $0.49 and $140 million, respectively.
129 out of the 933 hedge funds part of Insider Monkey’s Q4 2023 database had bought and owned the firm’s shares. Uber Technologies, Inc. (NYSE:UBER)’s largest hedge fund shareholder is D. E. Shaw’s D E Shaw through its $886 million investment.
6. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 131
Quarterly Revenue Growth: 11.27%
Salesforce, Inc. (NYSE:CRM) is a prominent American cloud-based software company specializing in customer relationship management. Offering a suite of tailored software and applications covering sales, customer service, marketing automation, e-commerce, analytics, and application development, Salesforce, Inc. (NYSE:CRM) caters to a diverse range of business needs.
On January 30, BofA designated Salesforce, Inc. (NYSE:CRM) as one of their top picks for 2024. Analyst Brad Sills highlighted Salesforce’s strategic positioning to further expand its market share in the cumulative $200 billion market. Notably, Sills emphasized Salesforce’s competitive advantage, boasting a market share of only 15% and a robust moat derived from its extensive installed base of over 150,000 customers in the core sales/front office category.
As of the end of the fourth quarter of 2023, 131 hedge funds tracked by Insider Monkey had stakes in Salesforce Inc (NYSE:CRM), up from 122 funds in the previous quarter. This shows a spike in hedge fund sentiment for Salesforce Inc (NYSE:CRM).
Salesforce Inc (NYSE:CRM) joins Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN) as one of the best revenue stocks to invest in.
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Disclosure. None. 11 Best Revenue Growth Stocks to Invest in is originally published on Insider Monkey.