2 Resilient Growth Stocks Set to Thrive in 2024

Investing in the stock market has proven to be a reliable method for growing wealth, particularly for those with a long-term viewpoint. Despite short-term fluctuations, the stock market generally trends upwards over time. Each investor's portfolio performance is influenced by a number of factors, including their chosen stocks, investment frequency and amounts, industry focus, and their risk tolerance.

For those interested in acquiring growth stocks with strong financial foundations and robust business models, 2024 presents an opportunity to add two standout stocks to their portfolios.

UnitedHealth Group: A Health Industry Powerhouse

UnitedHealth Group, a leader in both healthcare services and insurance, continues to grow its global influence. The company's two primary segments, UnitedHealthcare and Optum, cover an expansive range of health-related services. UnitedHealthcare offers various insurance products, whereas Optum comprises Optum Health, Optum Insight, and Optum Rx—focused on medical care, healthcare analytics consulting, and pharmacy care services, respectively.

Despite facing higher patient claims leading to increased costs, UnitedHealth maintained profitability with steady revenue growth. In 2023, the company reported $372 billion in revenue, marking a 15% increase over the previous year, with strong growth in both UnitedHealthcare and Optum segments. Operations earnings also saw a 14% year-over-year rise to $32 billion, with $29 billion generated in operating cash flow.

UnitedHealth consistently rewards shareholders through dividends, now yielding 1.45%, and has seen a significant increase over the past five years. The company's long history of annual dividends and quarterly dividends since 2010 position it as a reliable, profit-reaping healthcare stock for 2024.

Shopify: E-commerce Giant with Exponential Growth

Shopify has witnessed a whopping 100% increase in its stock value over the past year, fueled by a brighter outlook among investors and strong business recovery. Shopify, which powers approximately 11% of global e-commerce websites and 28% in the U.S., offers a plethora of services and plans to businesses at different growth stages, starting as low as $39 per month for a basic plan.

The e-commerce sector is expected to continue expanding, with a 9% compound annual growth rate leading to a $5 trillion market size by 2028. With e-commerce penetration still having significant room for growth, Shopify is poised to benefit significantly from the industry's expansion.

Recently, Shopify reported a 25% increase in revenue to $1.7 billion, along with $276 million in free cash flow and $718 million in GAAP profits. The company has undergone restructuring, including layoffs and exiting its fulfillment business, to streamline operations. These difficult yet strategic moves have placed Shopify on a path of efficiency and focus, making it a compelling choice for investors in 2024.

growth, stocks, investing