Investing in growth stocks is one of the most effective ways to grow your wealth and enjoy a comfortable retirement.
The good news is that the US market offers a plethora of choices when it comes to attractive growth stocks.
As an investor, it’s important for you to assess each business to identify its pros and cons to ensure that you are comfortable investing in it.
We highlight four attractive US growth stocks that should help to accelerate the value of your investment portfolio.
Ferrari (NYSE: RACE)
Ferrari is a leading luxury brand that sells sports cars and promotes racing.
Its brand logo, the prancing horse, symbolises exclusivity, innovation, and cutting-edge performance.
Ferrari reported a strong set of earnings for 2024 with revenue rising 11.8% year on year to €6.7 billion.
Operating profit climbed 16.7% year on year to €1.9 billion while net profit surged 22.5% year on year to €1.5 billion.
The business also generated a healthy positive free cash flow of €937.5 million, up 10.6% year on year.
The board recommended a dividend of €2.986 per share which is a 22% year-on-year increase over the previous year’s dividend.
A total of 13,752 Ferrari sports cars were delivered in 2024, up 1% year on year.
Management believes that further growth is expected for 2025, with its order book covering the entire 2026 fuelled by the 12Cilindri family order intake.
The company’s priorities for this year include competing to be at the top in Formula 1 and launching new Ferrari models.
Its goal is also to build scale and expand the visibility of its brand.
Full Truck Alliance (NYSE: YMM)
Full Truck Alliance, or FTA, operates a digital freight platform that connects shippers with truckers to facilitate shipments across various distances, cargo weights, and types.
The company delivered a solid set of earnings for the first nine months of 2024 (9M 2024).
Revenue climbed 33.8% year on year to RMB 8.1 billion.
Operating profit more than doubled year on year to RMB 1.6 billion while net profit stood at RMB 2.5 billion, up 54.2% year on year.
Operating statistics were also encouraging.
For the third quarter of 2024 (3Q 2024), 51.9 million orders were fulfilled, representing an increase of 22.1% year on year.
FTA’s platform had 2.84 million average shippers monthly average users, a 33.6% year-on-year improvement.
During 2023’s Investor Day, management identified that spot demand for China’s road transportation market had tremendous demand for online penetration.
There is around RMB 3 trillion of non-contracted spot demand that could potentially be taken online, thereby increasing the number of users on FTA’s platform.
Sea Limited (NYSE: SE)
Sea Limited is a technology company with three key divisions – digital entertainment (Garena), e-commerce (Shopee), and digital financial services (SeaMoney).
Sea reported a commendable set of earnings for 9M 2024.
Revenue rose 25.6% year on year to US$11.9 billion, led by a 34% year-on-year increase in e-commerce revenue.
Operating profit improved by 26.7% year on year to US$356.4 million but net profit tumbled 20.5% year on year to US$207 million.
Excluding one-off items, Sea Limited’s net profit would have climbed 18.4% year on year to US$362.1 million.
The business also generated a healthy positive free cash flow of US$2 billion for 9M 2024.
Shopee continued to post solid operating numbers, with gross merchandise value for 3Q 2024 rising nearly 25% year on year to US$25.1 billion. Total orders increased 27.3% year on year to 2.8 billion.
Over at Garena, its massively popular Free Fire game continued to attract new users, which was up 25% year on year.
Quarterly active users (QAU) rose 15.5% year on year to 628.5 million for 3Q 2024.
The more important metric was quarterly paying users, which climbed even more than QAU with a 23.2% year-on-year increase to 50.3 million.
Meta Platforms (NASDAQ: META)
Meta Platforms is a social media behemoth that owns chat programme WhatsApp, photo sharing site Instagram, and social media site Facebook.
The company reported a strong set of earnings for 2024 as revenue rose 22% year on year to US$164.5 billion.
Operating profit surged 48% year on year to US$69.4 billion with net profit leaping 59% year on year to US$62.4 billion.
Meta Platforms’ free cash flow increased by 22.7% year on year to US$54.1 billion.
The company saw increased activity on all its apps, with family daily active people climbing by 5% year on year to 3.35 billion.
In line with the good results, Meta Platforms also raised its quarterly dividend by 5% year on year to US$0.525.
Free cash flow may take a hit this year, though, with CEO Mark Zuckerberg planning to spend US$65 billion in 2025 to power its artificial intelligence (AI) ambitions.
The company is also planning major investments into AI-powered humanoid robots that can help with a variety of mundane tasks.
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Disclosure: Royston Yang owns shares of Meta Platforms.
