3 Stocks That Could Make You Richer in 2024

INTRODUCTION

It's a great time to have money in the stock market. The S&P 500 and Dow Jones Industrial Average have both set new all-time highs this year, and the Nasdaq Composite is up almost 34% over the last 12 months.
In short, it's a target-rich environment for stock pickers. So let's have a look at three stocks that I believe can help make investors richer in 2024.
A jar full of $100 bills on a desk.
Image source: Getty Images.

1. Ferrari

Topping my list is Ferrari (NYSE: RACE). This Italian company, known for its high-performance, luxury sports cars, has seen its stock steadily climb over the last few years. Shares are up 217% since 2019.
Like fellow European luxury brand LVMH, Ferrari is cashing in on extravagance. Ferrari's vehicles typically come with a sales price ranging from $300,000 to $600,000. Some models can sell for as much as $3 million.
Needless to say, these are not cars for the masses. Rather, Ferrari targets highly affluent consumers willing to pay top dollar for sports cars that make statements.
And it's a business model that has produced fantastic results. Trailing 12-month revenue has grown from $3.7 billion in 2019 to nearly $6.5 billion as of this writing. Operating margin -- a key measure of profitability -- has increased from 24% to 26.8% over the last five years.
RACE Revenue (TTM) Chart
With revenue growing 17% as of its most recent earnings report (the three months ending on Dec. 31, 2023), Ferrari remains a name to remember for growth-oriented investors.

2. e.l.f. Beauty

Next is e.l.f. Beauty (NYSE: ELF). e.l.f. -- which stands for "eyes, lips, and face" -- is a cosmetics company on the rise. Founded in 2004, the company debuted via an initial public offering (IPO) on the New York Stock Exchange in 2016.

The company produces and sells value-priced makeup and skincare products online and at various retailers. Chief among those retailers is Target, where it now stands as the retailer's top-selling color cosmetic brand, according to data from Nielsen.
Source: e.l.f. earnings presentation.
e.l.f.'s stock has surged as the brand's popularity has taken off. Shares are up an eye-popping 1,730% since 2019, recording an incredible 78% compound annual growth rate (CAGR) over that period.
What's more, analysts expect big things as more and more consumers learn about the company and it expands product offerings. Wall Street expects the company's sales to rise 71% in 2024 to almost $1 billion. In 2025, sales are estimated to rise to $1.25 billion, an increase of 25% year-over-year.
Furthermore, with a market cap of less than $10 billion, the company could be a buyout candidate for larger cosmetics or consumer-facing companies. At any rate, growth investors should keep an eye on e.l.f.

3. Palantir Technologies

Last on my list is Palantir Technologies (NYSE: PLTR). Palantir is a big data analytics company that uses artificial intelligence (AI) to examine immense data sets, recognize patterns, and deliver actionable insights.Today that's more important than ever, as organizations large and small find themselves awash in a sea of data. Palantir caters to both governmental and commercial organizations, helping them drive productivity, accuracy, and efficiency.

Financially, Palantir is clearly executing at a high level. Trailing-12 month revenue has soared from $1.2 billion in 2021 to $2.2 billion now. Similarly, free cash flow -- in many ways the ultimate measure of a company's ability to deliver shareholder returns -- has increased more than 10x, from $62 million in 2021 to $697 million today.

Should you invest $1,000 in Palantir Technologies right now?

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