11 Up-and-Coming Stocks to Invest In | The Motley Fool (2024)

Some of the best growth stocks aren't household names, at least not yet. These up-and-coming companies are still relatively early in their growth cycle. Investors could potentially earn enormous returns as they reach their full potential.

Here's a closer look at some of the most intriguing up-and-cominggrowth stocks. Although riskier than more mature companies, they offer investors some of the highest return potential.

11 Up-and-Coming Stocks to Invest In | The Motley Fool (1)

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11 best up-and-comers

11 best up-and-coming stocks in 2024

One of the bestlong-term investment strategies for increasing wealth is to invest in the stocks of companies rapidly expanding their businesses by tapping into new market opportunities, such as solving major problems. People who invest moneyin emerging companies often reap the highest rewards.

Not every up-and-coming company will be successful, which makes this a higher-risk strategy. Still, the reward for investing in one of these companies can be well worth it since one big win can produce game-changing returns. With that upside potential in mind, here's a list of 11 up-and-coming stock ideas investors might want to consider:

Data source: Company websites and YCharts. Market cap data as of May 19, 2024.
StockTicker SymbolMarket CapDescription
BILL Holdings(NYSE:BILL)$6.3 billionA software company that helps automate the receipt and payment of bills and invoices
Coinbase Global(NASDAQ:COIN)$51 billionThe largest cryptocurrency exchange
CrowdStrike Holdings(NASDAQ:CRWD)$83.7 billionA cloud-based cybersecurity company
Docebo(NASDAQ:DCBO)$1.1 billionA cloud-based learning management platform
MongoDB(NASDAQ:MDB)$27 billionA developer data platform company
Lemonade(NYSE:LMND)$1.3 billionAn AI-powered insurance company
Chewy(NYSE:CHWY)$7 billionA leading pet-focused e-commerce site
Snowflake(NYSE:SNOW)$50.6 billionA cloud-based data storage platform
Toast(NYSE:TOST)$15 billionA cloud-based restaurant management software company
PubMatic(NASDAQ:PUBM)$1.2 billionA company that helps digital publishers sell their available ad space
Zscaler(NASDAQ:ZS)$26.8 billionA cloud-based cybersecurity company

Here's a closer look at these up-and-coming companies.

Stocks 1 - 4

1. BILL Holdings

BILL Holdings is a financial technology(fintech) company that provides small and mid-sized enterprises (SMEs) with financial automation software. The company's software automates the receipt and payment of bills and invoices. It works seamlessly with most popular accounting programs and makes it easy for companies to approve payments.

The artificial intelligence (AI)-enabled, cloud-based company is growing rapidly. Its revenue surged 65% in its 2023 fiscal year, rising to over $1 billion. The company is growing organically and through acquisition. In 2022, it purchased Finmark, a leading financial planning software provider.

BILL expects to continue increasing its customer count and transaction volume and expanding its relationships with existing customers. These drivers should enable it to continue growing briskly in the future.

2. Coinbase Global

Coinbase Global is the largestcryptocurrency exchange in the U.S. It allows users to buy and sell cryptocurrencies, such as Bitcoin(BTC -0.11%) andEthereum(ETH -0.02%). The platform completed its initial public offering in 2021.

Coinbase aims to build the crypto economy -- a fair, accessible, efficient, and transparent financial system powered by crypto. As more people start trading cryptocurrency and other digital assets, Coinbase will likely continue thriving.

3. CrowdStrike Holdings

CrowdStrike Holdings is a cloud-basedcybersecurity platform that relies on big data and AI to detect threats and prevent breaches. Cybersecurity is a rapidly expanding market, considering threats continue to grow. That's powering brisk growth for CrowdStrike. Its annual recurring revenue (ARR) surged 34% in its fiscal year 2024 to $3.4 billion.

The company sees ARR rising to over $10 billion in the next five to seven years. And that's only a fraction of the opportunity it sees ahead. CrowdStrike believes its total addressable market opportunity should reach more than $225 billion by 2028 as the cybersecurity market grows and the company expands its capabilities.

4. Docebo

Docebo is a software-as-a-service (SaaS)company offering businesses cloud-based educational and training resources. Its software includes the Learn learning management system. This solution allows businesses to train their workers and educate customers.

The company is rapidly expanding its customer count and contract value, with its average contract increasing fourfold since 2016. That's helping drive rapid revenue growth -- Docebo's revenue surged 27% in its 2023 fiscal year. The company is also adding new customers to its platform, which should continue powering robust revenue growth.

Stocks 5 - 8

5. MongoDB

MongoDB is a developer data platform company. Through its Atlas platform, it allows users to create, transform, and disrupt industries by enabling them to capitalize on the power of software and their data.

The company is growing briskly. Revenue rocketed by 31% to almost $1.7 billion in its 2024 fiscal year. MongoDB expects to continue expanding rapidly as more customers join its Atlas platform to unleash the power of their data.

6. Lemonade

Lemonade is a tech-based insurance company that uses an AI-powered platform to make it easier for customers to buy insurance and process claims. Customers can buy a new insurance policy in a matter of minutes, and Lemonade can process claims in a few seconds. That's lightning fast compared to the days it often takes traditional insurance companies to process and pay out claims.

The company is growing quickly. Its customer count was nearly 2.1 million in mid-2024, up 13% from the previous year. It's also collecting a higher premium per customer (up 8% year over year) as it expands its offerings to include renter, home, life, auto, and pet insurance.

Lemonade is also expanding internationally, launching homeowners insurance in France in early 2024. It serves customers in the U.S., Germany, the Netherlands, France, and the U.K. With the insurance industry ripe for disruption, Lemonade can squeeze out a lot of growth by grabbing more market share.

7. Chewy

Chewy is a pet-focused e-commerce company. It operates an online store and provides pet insurance and veterinary services. The company opened its first physical pet care clinic in 2024 and has expanded its reach into Canada. Chewy earns high praise for its customer service.

The company's sales increased by over 10% in 2023 to $11.2 billion, driven by a rising average net sales per customer as more customers subscribed to its autoship service. Chewy's expansion into adjacent markets is growing its total addressable market opportunity, giving it plenty of room to run.

8. Snowflake

Snowflake operates a cloud-based data warehouse platform. It offers companies solutions to store all the data they collect while making it easily accessible.

The company is expanding rapidly. Snowflake's product revenue soared 38% to almost $2.7 billion in its 2024 fiscal year, powered by new customers and growing its relationships with existing ones. Snowflake sees a massive $248 billion future market opportunity for its cloud data platform. Its ability to capture this growing opportunity will help it to continue delivering strong financial results.

Stocks 9 - 11

9. Toast

Toast is a cloud-based restaurant management software company. The company's point-of-sale and management system helps restaurants enhance their operations, boost sales, and deliver a better guest experience.

The software company grew its ARR run rate by 32% to $1.3 billion in the first quarter of 2024. A big growth driver was its addition of new locations. It added over 6,000 new locations in the first quarter of 2024, growing the total by 32% over the past year to more than 112,000. The company still has a long growth runway ahead, given there are around 750,000 restaurants in the U.S. alone.

10. PubMatic

PubMatic developed a cloud-based system to assist digital publishers with selling their available ad inventory to advertisers. The company leverages the power of its owned-and-operated infrastructure to process data and deliver the best results to clients quickly.

PubMatic's revenue growth accelerated to 20% year over year in the first quarter of 2024, a record period for the company. Its investments in building its infrastructure and supporting fast-growing markets, like online video, should continue driving above-average growth.

11. Zscaler

Zscaler is a cloud-based cybersecurity platform. Increasingly, employees and customers need to access information stored in offsite data centers instead of a central server. They're also often viewing it from remote locations instead of the office. Zscaler helps them securely access this information from remote locations.

The company's revenue climbed 35% in its fiscal 2024 second quarter. The cybersecurity company continues to grow rapidly as new clients join its integrated platform and existing ones expand their relationships. Companies increasingly find they can consolidate their security architecture with Zscaler's better and lower-cost platform.

It set an ambitious goal to boost its ARR to $5 billion in the coming years (up from an expected $2.1 billion-plus figure in fiscal 2024). Zscaler aims to achieve its bold target by bringing new customers into its network and upselling existing ones.

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These up-and-coming stocks are worth a closer look

These tech-powered companies are all working to provide innovative solutions to some of the biggest problems facing other businesses and consumers. Their innovation positions them for robust growth in the coming years. Investors should at least consider putting these up-and-comers on their watch list.

FAQ

11 best stocks to buy and watch now: FAQ

What are the 10 best stocks to buy right now?

The best stocks to buy right now can change based on market conditions and other factors. However, in May 2024, some of the 10 best stocks to buy were:

  1. PayPal (NASDAQ: PYPL)
  2. CrowdStrike (NASDAQ:CRWD)
  3. MercadoLibre (NASDAQ: MELI)
  4. Shopify (NYSE: SHOP)
  5. Airbnb (NASDAQ: ABNB)
  6. Intuitive Surgical (NASDAQ: ISRG)
  7. Walt Disney (NYSE: DIS)
  8. Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B)
  9. Amazon (NASDAQ: AMZN)
  10. Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL)

What stocks will skyrocket in 2024?

It's anyone's guess what stocks will skyrocket each year. However, in 2024, artificial intelligence is the hot investment trend, so companies focused on AI are skyrocketing. Notable AI stocks include Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), and Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL). These and other AI stocks will likely continue riding the current wave higher in 2024 and potentially beyond.

Matt DiLallo has positions in Bill Holdings, Chewy, CrowdStrike, Lemonade, PubMatic, Snowflake, Toast, and Zscaler. The Motley Fool has positions in and recommends Bill Holdings, Bitcoin, Chewy, Coinbase Global, CrowdStrike, Docebo, Ethereum, Lemonade, MongoDB, PubMatic, Snowflake, Toast, and Zscaler. The Motley Fool has a disclosure policy.

11 Up-and-Coming Stocks to Invest In | The Motley Fool (2024)
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