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Identifying high potential growth stocks to buy before they gain attention on Wall Street can be a lucrative investment strategy. While established giants often dominate the headlines, a new breed of companies quietly shapes industries and demonstrates remarkable growth potential.
These emerging players, often operating in innovative sectors, offer investors the opportunity to get in on the ground floor before valuations skyrocket. Each company’s unique value proposition, solid financial performance and favorable market conditions could propel them to greater heights in the years ahead. If you have a little tolerance for risk, look no further than these three up-and-coming companies.
Now, let’s discover the top growth stocks to buy in May 2024.
First Solar (FSLR)
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First Solar (NASDAQ:FSLR) has emerged as a leading solar panel manufacturing industry player. While the entire industry was crushed by inflation and higher interest rates in 2023, the company reported record earnings results.
First Solar has become a darling when investors consider the best solar stocks. The company has stolen the reins from Enphase, which has struggled to navigate the current macroeconomic environment. Moreover, they are known for their thin-film solar technology. This technology offers higher energy yields and a lower carbon and water footprint than its competitors. In their latest Q1 FY24 results, revenue increased 45% YOY to $794 million.
Net income ballooned 456% YOY to $237 million, or $2.20 per share. They are currently ramping up production in 2024, with manufacturing capacity expansions in Alabama, Louisiana and Ohio. With plans to reach 25 GW of generating capacity by 2026, FSLR stock is one of the top growth stocks to buy in 2024.
Fiserv (FI)
Fiserv (NYSE:FI) provides financial technology solutions, serving many clients in the banking, insurance and investment sectors. The company has been flying under the radar despite its rapid revenue, EPS and FCF growth over the last three years.
Fiserv’s expertise in technology-driven solutions in the fintech space positions it for continued growth. They have remained in the shadows of their large-cap fintech counterparts, such as Visa and Mastercard. However, they are slowly entering the mainstream with more analyst coverage. The 2023 fiscal year was another record year for top and bottom-line growth. Revenue increased 7% YOY to $19.09 billion, with net income up 21% to a record $3.06 billion.
Their first-quarter earnings also demonstrate continued operational excellence with an operating margin up 370 bps to 24.2%. Management has maintained strong top and bottom line guidance for FY24, making Fiserv one of the best growth stocks to buy on any dips in May.
ON Semiconductor (ON)
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ON Semiconductor (NASDAQ:ON) is undoubtedly one of the top growth stocks to buy in 2024. Despite a slowdown in the solar, energy storage and EV markets, they remain well positioned for growth over the next decade.
ON Semiconductor is a unique company that produces advancing semiconductor components that target some of the top emerging industries in the world. The company’s SiC power module line is crucial to the burgeoning renewable energy market.
Despite slowing revenue growth, they have managed to navigate the complex environment in the last 12-18 months. ON Semi has continued to make strategic investments by expanding its manufacturing facility in Bucheron, South Korea, to produce up to 1 million silicon wafers per year. Additionally, they are diversifying away from their SiC platform, strengthening their analog and mixed signals platforms. This will deliver industry-leading technologies that will work to enable full-stack solutions for automotive, industrial and cloud end markets.
On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
