Most basketball players don't play the game just because they like to dribble. They want to win. In the same vein, most investors don't buy stocks just because they like a company's products. They want to make money.
Making money is a lot easier when you invest in companies with strong underlying businesses and exceptional growth prospects. Here are three unstoppable growth stocks that could make you richer in 2024.
1. Amazon
Owning shares of Amazon (AMZN 3.43%) in 2023 would have made you plenty of money. The stock soared by nearly 81%. I think that Amazon's impressive momentum can continue this year.
One reason behind Amazon's sizzling gains last year was its improving profitability. The company's earnings skyrocketed by more than 240% year over year in the third quarter. This impressive jump was due in large part to Amazon's focus on streamlining its operations to boost profits. I expect those efforts will continue to pay off in the coming quarters.
The surge in interest in generative AI stood out as another major tailwind for Amazon in 2023. Don't think this AI boom will be only temporary. I predict that Amazon will benefit from it in all areas of its operations for years to come.
In particular, more organizations are likely to move their apps and data to the cloud to harness the power of generative AI. This should work to the advantage of Amazon Web Services, which ranks as the leading cloud services provider based on market share.
2. MercadoLibre
MercadoLibre (MELI 3.09%) is sometimes referred to as the "Amazon of Latin America." There's certainly a similarity in the two stocks' trajectories: Shares of MercadoLibre vaulted nearly 86% higher last year.
MercadoLibre runs a huge e-commerce platform that operates in 18 Latin American countries. This platform ranks as the market leader based on unique visitors and page views in every major country in the region.
The company is also the leader in fintech in Latin America with its Mercado Pago business unit. This is a major growth market for MercadoLibre, as evidenced by total payment volume in online payments soaring by triple digits in 2023 Q3.
I'm optimistic about MercadoLibre's newer ventures as well. The company's credit card total payment volume recently topped $1 billion for the first time. It also launched Mercado Play, an advertising-supported streaming service. MercadoLibre's short video platform, Clips, is gaining momentum. Overall, this business and stock appear to be unstoppable.
3. Vertex Pharmaceuticals
Vertex Pharmaceuticals (VRTX -0.06%) was the worst performer of these three stocks in 2023. However, that's not anything to be ashamed of considering that the biotech stock rose by 41% last year after delivering a 31.5% gain in 2022. I feel good about Vertex's prospects this year, too.
Just days ago, the company picked up its second U.S. regulatory approval for Casgevy. The gene-editing therapy now has the green light to be used to treat both sickle cell disease and transfusion-dependent beta-thalassemia. It will take a while for Casgevy's revenue to ramp up, but Goldman Sachs projects peak annual sales of $3.9 billion.
Two other new products could be on the way soon. Vertex hopes to move forward with regulatory filings for its non-opioid pain drug candidate VX-548 and a cystic fibrosis combination therapy featuring vanzacaftor, tezacaftor, and deutivacaftor. Both could be blockbusters if approved.
In the meantime, sales for Vertex's current cystic fibrosis franchise should continue to grow. The company's goal is to also launch yet another new drug in the not-too-distant future -- inaxaplin, as a treatment for APOL1-mediated kidney disease (AMKD). This could open up a huge new market for Vertex. AMKD affects more patients worldwide than cystic fibrosis. If approved, inaxaplin would be the first therapy to treat the underlying cause of the disease.
