3 Growth Stocks With the Potential to Explode in 2024 (Part-1)

The S&P 500 and Nasdaq Composite have reached record highs after their recent rallies. Along with market optimism over lower inflation, many stocks have reached new highs. Revenue and earnings are rising for many corporations, justifying greater values and fueling the surge.

There's no better moment to find long-term growth stocks. Consumer sentiment should rise as interest rates fall, boosting optimism. Selecting stocks with solid market positions, good track histories, and smart management will yield tremendous profits. Three equities with these traits could rise for the rest of the year. Why we think these three stocks will do well.

1. Chipotle Chipotle Mexican Grill (NYSE: CMG) has 3,400 outlets in the U.S. and Europe selling a variety of Mexican-inspired dishes. The corporation has grown steadily for three years, including 2023.

Revenue rose 14% to $9.9 billion in 2023, with comparable restaurant sales up 7.9%. Chipotle increased its restaurant operating margin to 26.2% from 23.9% and overall operating margin to 15.8% from 13.4%. With a record 271 new restaurants this year, the Mexican-themed brand expanded.

From $7.5 billion in 2021 to $9.9 billion in 2023, Chipotle has grown steadily. Net profit rose from $653 million to $1.2 billion while share count declined by nearly 3%, boosting earnings per share 94% from $22.90 to $44.34. All three years, free cash flow increased from $840 million in 2021 to $1.2 billion in 2023.

Chipotle plans to open 285–315 restaurants in 2024. Management expects mid-single-digit comparable restaurant sales growth for the year

 As part of its internationalization efforts, Chipotle signed its first development partnership with Alshaya Group to open Middle Eastern outlets last year. New eateries in Dubai and Kuwait will boost the company's revenue.

Chairman and CEO Brian Niccol believes Chipotle can open 7,000 U.S. stores while improving margins.

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