3 Growth Stocks to Turn $250,000 Into $1 Million: February 2024

    Date:

    Growth stocks give investors the opportunity to earn elevated returns that outperform market indices. These corporations often exhibit rising revenue and earnings. Getting into these stocks early can offer tremendous upside.

    Some of these stocks fly under the radar for several months or years before they get mainstream attention. Therefore, investors looking for ways to grow their capital may want to consider these three assets. 

    Elf Beauty (ELF)

    Image of teen girls taking a selfie on a shopping trip.

    Source: Studio Lucky/Shutterstock.com

    Elf Beauty (NYSE:ELF) offers affordable beauty and skincare products and is a big hit among Gen Z. The company only uses ethical ingredients in its beauty products. People are becoming more conscious of ingredients they consume, which bodes well for the beauty corporation.

    Also, this shift in consumer behavior has rewarded long-term investors. Elf Beauty delivered another quarter of impressive results highlighted by 85% year-over-year (YOY) revenue growth. The cosmetics firm increased its market share by 305 basis points and achieved its 20th consecutive quarter of sales growth.

    Additionally, net income grew at an even faster pace and was up by 184% YOY. The company’s net profit margin came in at 15.44%. Elf Beauty has been a top momentum stock with a 123% gain over the past year and a 5-year gain of 1,678%. Shares trade at a 48.5 forward P/E ratio.

    Looking forward, valuation will become more attractive as ELF continues to report high revenue and net income growth. Therefore, investors should have a multi-year horizon if they want to accumulate shares in this corporation.

    Celsius Holdings (CELH)

    three energy drinks contrasted against a white background

    Source: Shutterstock

    Sports drinks are a hot commodity. Loyal customers frequently buy these beverages, allowing companies to report high revenue and earnings growth. These drinks become engrained habits that fit into people’s day-to-day lives.

    Celsius Holdings (NASDAQ:CELH) is capitalizing on the sports drink market and is gobbling up market share. Revenue increased by 104% YOY in the third quarter of 2023. Almost all of the firm’s revenue comes from North America. CELH is now starting to penetrate international markets, which can lead to explosive revenue growth moving forward.

    By the time domestic revenue growth decelerates, international sales can take its place. Also, the company is extremely profitable, reporting 146% YOY net income growth. This improvement helped the company secure a 21.82% net profit margin in the quarter.

    Despite soaring by 5,247% over the past five years, Celsius Holdings’ stock has only been up by 3% over the past six months. Thus, a rally seems imminent. And investors have already bid up the stock by 25% since the end of January. The company’s March earnings report can serve as a catalyst for a higher stock price.

    Sterling Infrastructure (STRL)

    Source: Shutterstock

    Sterling Infrastructure (NASDAQ:STRL) is a construction company that develops e-infrastructure solutions in high-demand markets like the southeast and southwest portions of the U.S. 

    E-infrastructure solutions encompass data centers, warehouses, and other types of properties. Data center demand has been picking up due to AI and has helped the stock surge in recent years. 

    Sterling Infrastructure’s stock has more than doubled over the past year and is up by 480% over the past five years. Despite the big rally, shares still trade at a 17-forward P/E ratio and a 0.87 PEG ratio. These valuation metrics suggest the stock has more room to run.

    STRL delivered robust financials in the third quarter of 2023. Diluted EPS increased by 25% YOY while the e-infrastructure solutions backlog reached $891 million. That represents a 48% YOY increase. The company’s profit margins have been rising quickly. Further, it is possible for the company to report double-digit profit margins in one of its 2024 reports.

    On this date of publication, Marc Guberti held long positions in ELF and CELH. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

    Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.

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