Growth stocks can be the adrenaline that your portfolio needs. These companies prioritize rapid expansion, reinvesting profits back into the business to fuel long-term growth.
The best growth stocks to buy can often be a tricky quest, as there can be a number of different prospects on your radar. However, if you look in the right places you will find ones that stand out in their respective fields. While they may carry higher volatility, they also possess the potential for outsized returns. As we look towards 2032, several candidates stand out as monster growth stocks with the potential for life-changing gains within the decade.
Now, here are the top 3 monster growth stocks to buy that are on pace to surge by 2032!
Netflix (NFLX)
Netflix (NASDAQ:NFLX), the godfather of streaming, has revolutionized the world of entertainment. Last year was truly transformative to say the least, and 2024 is set to be a record year for the company.
Netflix is on the path forward for accelerated growth over the next few years, as management’s restructuring efforts begin to take shape. There are many reasons to believe that Netflix will become Wall Street’s new darling, as the company sees a resurgence in revenue and profits in 2024. Moreover, Netflix’s cost-cutting efforts have bolstered their FCF to new heights while seeing meaningful margin expansions quarter over quarter.
Its new ad-plan membership is the cornerstone of its new strategy, which has resulted in a massive boost to global subscribers. In its latest quarterly results, revenue increased 15% year-over-year (YOY) to $9.37 billion. Net income rose 79% YOY to $2.33 billion, or $5.28 per share. Management raised their FY24 operating margin guidance to 25%, further showcasing the company’s ability to drive profitable growth.
Automatic Data Processing (ADP)
Automatic Data Processing (NASDAQ:ADP) might not sound like the most exciting growth stock, but its steady business model is incredibly lucrative. The company has delivered exceptional revenue and earnings growth over the past decade.
ADP is a giant in the world of human resources and payroll processing, serving over a million clients globally. The firm’s impressive performance history showcases its strengths. ADP is a dividend aristocrat, signaling decades of consistent dividend increases while returning capital to shareholders. Furthermore, the company’s large moat has allowed it to weather the fluctuations in the broader economy.
In the 2023 fiscal year, ADP delivered record revenue and earnings while generating robust FCF from operations. Adjusted EBITDA margin expanded by 130 bps, highlighting their ability to drive strong, profitable growth YOY. With a strong track record and guidance for FY24, ADP is one of the best growth stocks to buy in 2024 for both growth and stability.
Spotify (SPOT)
Spotify (NYSE:SPOT) has been the biggest disrupter in the music business, making it a tech darling with immense potential. The growing popularity is a catalyst for even more growth, and its push for more exclusive and original content could further solidify its market leadership.
Spotify remains the world’s largest music streaming platform and has nearly one-third of the global music streaming market share. The platform continues to see strong double-digit growth quarter over quarter in MAUs and boasts more than 600 million users. Spotify seems to just be getting started and holds immense long-term potential to drive its user base in developing markets. Moreover, management’s strong execution has been demonstrated in their ability to drive profitable growth. In Q1 FY24, revenue swelled 20% YOY to $3.6 billion. The operating margin hit an impressive 27.6%, with operating income swinging to positive. Spotify has built on its streak of double-digit growth in MAUs and premium subscribers and doesn’t look to slow down anytime soon.
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.