The ability to adapt and to change with the times is a necessity. How does that happen in the investing world? Doing very careful research into stocks, exchange-traded funds and other investment vehicles for growing income in 2024 and beyond. Read on for a shortlist of quality growth stocks in which to consider investing.

Why Growth Stocks?

A growth stock is a share in a company predicted to grow earnings and sales at a rate above the average for the broad stock market. These companies tend to be more focused on growth than paying out a large portion of their earnings as dividends.

The most prominent growth companies often have a loyal customer base and/or a significant market share of their industry. Investors can potentially make money investing in growth stocks through selling shares in the future if they’ve gone up in value. Of course, since these are still stocks, there is always the risk of the shares dropping value and the investor losing money. The goal in investing in growth stocks is to carefully research and identify businesses with the potential to sustainably grow capital for years into the future, especially if you are thinking about your retirement needs.

The 3 Best Growth Stocks For 2024

These three growth stocks; BlackRock BLK +0.2%, Salesforce and Nike, make my shortlist of growth stocks to consider for 2024. Each of these companies have unique aspects, yet are well-known in their industry for quality and consistent growth. While past performance is no guarantee for future returns, these are companies poised to continue growing in the future, and worth considering for investors, once they do their own research, as nothing here should be construed as investment advice.

1. Blackrock (BLK)

• Industry/sector: Asset Management and Custody Banks/Financials
• Market cap: $112 billion
• Stock Price: $757.40
• Dividend Yield: 2.7%
• Trailing Price/Earnings Ratio: 21.3
• Trailing Price/Sales Ratio: 6.5

Why It Is A Top Pick 

BlackRock is the biggest issuer of exchange-traded funds (ETFs) by far, and its most recent application for a spot bitcoin ETF is drawing investors attention, since it would be the first of its kind if approved by the SEC, something that has a high possibility of happening in early 2024.

2. Salesforce (CRM)

• Industry/sector: Application Software/Information Technology
• Market cap: $248 billion
• Stock Price: $256.23
• Dividend Yield: None
• Trailing Price/Earnings Ratio: 97.4
• Trailing Price/Sales Ratio: 7.4

Why It Is A Top Pick

As a large company in the 2020s, its time of growth by acquisitions has slowed but Salesforce has successfully pivoted to continue to grow in value by increasing profit margins.

3. Nike (NKE)

• Industry/sector: Footwear/Consumer Discretionary
• Market cap: $182 billion
• Stock Price: $119.85
• Dividend Yield: 1.3%
• Trailing Price/Earnings Ratio: 37.0
• Trailing Price/Sales Ratio: 3.6

Why It Is A Top Pick

Over its long history Nike has been affected by many ups and downs, and the past couple of years have been exceptionally bumpy, due to pandemic-related shutdowns of factories, followed by a surge of stock, while consumer spending dropped in 2022. Since then, Nike has been working on regaining its footing, reducing its overstock and looking to accelerate growth heading into 2024 through leadership changes, and restructuring within the company.

Investing Strategies To Position For Success

Successful investing doesn’t happen overnight. Investing is a mix of science and art, and the understanding, dedication and research of the investor will make a difference in the success of long-term investment strategies. Investors need to understand their personal goals, risk tolerance and future needs for capital and create a strategy to mitigate risk and reach their goals.

Whether the strategy is aggressive, passive or a mix of both, long-term or short-term, will depend on the investor. The bottom line: Each investor needs to do his/her research and create an individual strategy, with the assistance of professionals if desired. (Forbes)