I strongly believe that 2024 is likely to be a year to remain invested in growth stocks. After a big correction in 2022, there are several growth stocks to buy that trade at attractive valuations. Bank of America (NYSE:BAC) believes that the S&P 500 index can potentially touch 5,000 in 2024. Furthermore, chief economists at major banks believe that the Federal Reserve is likely to cut rates in 2024. In general, expansionary policy is good for the markets as the dollar weakens.
Therefore, it’s a good time to accumulate undervalued blue-chip and growth stocks. For stocks that are under-the-radar, the upside potential can be significant once they are in the limelight. And even among the list of growth stocks, there are names that are still under-the-radar.
This column focuses on these growth stocks to buy that are yet to grab the limelight but hold immense potential.
Transocean (RIG)
Transocean (NYSE:RIG) stock is a good way to play the renewed upside in oil. Crude oil is trading near $90 per barrel. With prospects of rate cut next year, I expect crude to trade above $100 per barrel.
Even with volatility in oil prices, RIG stock has surged by 86% for year-to-date. However, the growth stock looks undervalued and is poised for a sustained rally.
An important point to note is that Transocean reported an order backlog of $9.9 billion as of September. The backlog provides clear revenue visibility and with a positive market outlook, I expect the order intake to remain robust.
Furthermore, Transocean has plans to deleverage and with clear cash flow visibility. The company expects to reduce debt by $3 billion in the next few years. Credit metrics are therefore likely to improve. This is another catalyst for RIG stock upside.
Miniso (MNSO)
Miniso Group (NYSE:MNSO) stock, representing the Chinese retailer and wholesaler of lifestyle products, has surged by almost 140% for year-to-date. However, MNSO stock deserves more attention and potentially higher valuation. At a forward price-earnings ratio of 24.9, the stock is worth considering.
The company’s financials point to a major turnaround story and the rally has been backed by strong fundamental developments. Miniso has announced dividends with the current yield at 1.6%. Further, a share repurchase program of $200 million has also been announced and the Company seems focused on shareholder value creation.
For Q4 2023, Miniso reported revenue growth of 40.3% on a year-on-year basis to $448.5 million. For the same period, adjusted EBITDA increased by 101.3% to $118 million. Strong growth has been driven by international expansion and aggressive store openings. With a big addressable market, the growth outlook remains robust.
Lithium Americas (LAC)
Lithium Americas (NYSE:LAC) is another massively undervalued name among growth stocks to buy. The under-the-radar stock has corrected by 35% in the last 12 months. The correction has largely been due to a near-term decline in lithium price. I see this as a golden opportunity to accumulate with LAC stock poised to deliver multibagger returns.
I must mention at the onset that shareholders have already approved the split of the company into two entities. Lithium Americas will focus on assets in North America. Further, Lithium Argentina will focus on the Argentina asset. I believe that this split will translate into value unlocking in the coming quarters.
For Lithium Americas, the Thacker Pass project is a prized asset. The after-tax net present value of the asset is estimated at $5.7 billion. Currently (pre-split), Lithium Americas commands a market valuation of $3 billion. This is indicative of the level of undervaluation.
On the date of publication, Faisal Humayun did not hold (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.