10 Best Growth Stocks Of May 2024 (2024)

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Vita Coco had its initial public offering in 2021. The company sells coconut water, coconut oil and other coconut-related products around the world.

COCO has been seeing exceptional growth. Analysts project that will continue, with earnings per share, or EPS, expected to increase an average of 15.8% in its next fiscal year.

The company has a “B” financial health rating from Morningstar.

The stock is trading below its 52-week high and has a price/earnings ratio of 41. Higher P/E ratios are common among top growth stocks because investors are generally willing to pay more for a company that is growing rapidly.

Live Nation Entertainment owns ticketing and booking rights for music entertainment events. It merged with ticket seller Ticketmaster in 2010.

After posting losses for many years, LYV became profitable in 2022 and has seen big earnings growth since. Analysts estimate the company will average an annual EPS increase of 41.9% over the next fiscal year and a 7.8% sales increase.

Sales have seen triple digit percentage growth over the past three years. The company has a “B” financial health rating from Morningstar.

The stock is trading below its 52-week high and its all-time 2022 high. LYV’s share price gain has outpaced the over the past decade, averaging 15.9% per year versus 12% per year for the S&P 500.

Nvidia is a leading maker of computer graphics processors, chipsets and related multimedia software. Its graphics processing units are widely prized for artificial intelligence applications.

Earnings saw a big jump over the last year, and analysts anticipate that will continue with estimated 66.3% EPS growth next fiscal year on sales growth of 56.6%.

NVDA has an “A” financial health rating from Morningstar. The company is also buying back shares, which helps bolster shareholder value by reducing the number of shares outstanding. The current buyback yield is 0.6%.

Are NVDA shares pricey? The company has a P/E ratio of 71.9, which may seem high, but investors are willing to pay higher prices for exceptional growth. And that is what Nvidia has provided and, equally important, continues to promise.

Full Truck Alliance is a platform that allows trucking companies and other businesses in the logistics field to be more efficient and reduce costs. The China-based company’s software helps shippers and truckers match cargos by weight, size, available space and destinations.

The company is coming up on three years of sales and earnings data, both of which have grown each year since the company had its IPO in 2021.

Analysts project 28.6% EPS growth next fiscal year, which is below the five-year average yearly growth estimate. EPS jumped 371.4% over the last year. Sales are expected to increase 22.2% next year.

The company has a “B” financial health rating from Morningstar. The share price has traded in a narrow range since mid-2023.

While the company’s P/E ratio is 27.9, which is slightly pricier than the 23.6 for the broad market in the form of the S&P 500, YMM still has much higher growth prospects than the typical S&P 500 stock over the next five years.

Yelp is an online platform that provides user reviews and information about businesses. Quarterly earnings per share have been erratic, moving between positive and negative since the second quarter of 2021. Earnings saw a 152% increase over the past year. Analysts project 23.4% growth of profits next year. Sales have also been rising the last three years. They are expected to climb another 9% next year.

The company has an “A” financial health rating from Morningstar and is trading at a P/E ratio of 34.7. YELP’s forward P/E ratio is 25.9. The stock is trading below its 52-week high. YELP has a buyback yield of 6.7%, but that hasn’t helped total return. The stock averaged a negative 6.1% annual total return over the last decade.

Earnings per share have climbed in the past five years and are forecast to increase at nearly double that pace in the next five years. YELP needs to make good on that outlook to justify its P/E ratio value and to regain its lofty share price high from a decade ago.

WillScot Mobile provides flexible workspace and storage solutions. Sales and EPS have been on a steady trend higher since 2020. Analysts estimate 27.5% EPS growth next fiscal year.

The company has a “B” financial health rating and is trading at a P/E of 25.0. That combined with the stock trading below its 52-week high may attract growth investors looking for a good deal.

The company has the highest buyback yield on the list at 11%. Shareholders tend to like that trend because it should help buoy individual investors’ profits by splitting them among fewer shares. The stock has performed admirably over the last decade, averaging 16.2% annual total return.

Meta, which owns Facebook, Instagram and WhatsApp, is also a leader in virtual reality technology. Meta saw strong earnings growth over the past year and decent sales gains too, after both had dropped in 2022. Over the last year earnings increased by 31.9% and analysts project 22.1% EPS growth on sales growth of 13.2% next year. The company has an “A” financial health rating from Morningstar.

The stock sold off in 2022 and traded down to a P/E of 7.4. After rallying throughout 2023 the P/E is now 33.0 with a Forward P/E of 21.4. Given its recent and projected earnings growth, its forward P/E ratio seems to be a fair valuation for a stock that has averaged annual total returns of 20.6% over the past decade.

Just remember, this stock has been volatile. Meta’s share price fell about 75% from mid-2021 to late 2022. Then it rallied more than 300% to near its recent all-time high.

T-Mobile provides wireless services to over 100 million U.S. residents. Over the years, TMUS’s EPS has been erratic, seeing both big increases and declines. Analysts expect earnings growth to persist for the next several years.

TMUS has an “A” financial health rating from Morningstar. Due to earnings volatility, the P/E ratio has also been erratic, running from about 12 to above 100 over the past five years. The current reading is 25.3, with a forward P/E ratio of 16.5. However, the stock is trading near all-time highs.

At 7.1%, T-Mobile has the second-highest buyback yield on this list. That, combined with EPS and sales growth, have helped TMUS’s total return rally an average of 17.4% per year over the past decade.

Insulet makes an insulin infusion system for diabetics. The company increased earnings considerably over the past year, and analysts anticipate 26.9% growth next fiscal year and even stronger average annual growth over the next five years. Sales are expected to rise 20% next year.

Annual sales have increased yearly since 2016. The company has a “B” financial health rating from Morningstar. PODD’s total return over the past decade averaged 18.5% annually versus 12.1% for the broad market in the form of the S&P 500 Index.

Having posted several years of modest earnings per share, PODD’s high P/E of 116 shows investors’ bullish sentiment. The company will need high earnings growth to justify its current valuation. Then again, this looks like a good time to buy. The stock is trading significantly below its 52-week high after declining through much of 2023.

Skechers is a footwear and apparel company that sells its products in approximately 180 countries.

Over the last three years sales have increased close to an average of 20% per year and EPS has increased 74.7% on average per year.

Analysts are projecting 20.2% EPS growth on sales growth of 10.5% next year. The company has a “B” financial health rating.

The stock has performed strongly over the last decade, averaging a 20.2% total return per year. The stock is near its 52-week high. P/E values have fluctuated between 6.8 and 81.3 over the last five years, and the current P/E is 18.5.

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