Growth investors have seen their fair share of bumps in the road in recent years, with some of the big companies they follow being forced to take on some real challenges. Several of these growth stocks managed to claw their way back and are once again delivering meaningful returns. If you have the investment capital and risk appetite to put money into growth-oriented stocks, now might be a good time to put money into quality companies.
As you determine which companies you want to invest in, it’s important to only use cash that you won’t soon need for monthly financial obligations and to ensure you thoroughly understand any company you buy before adding it to your investment basket adds.
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With these elements in mind, here are two top growth stocks to consider that look like screaming buys in November.
TransMedics Group (NASDAQ:TMDX) is a medical technology and device company focused on organ transplant therapy for patients with end-stage organ failure. The company was founded in 1998 and one of the achievements the company is most known for is its Organ Care System (OCS). The TransMedics OCS is a device that enables the maintenance and preservation of donor organs, from storage to transport of those organs to transplant patients.
The device can perform numerous functions, including imitating the temperature of the human body and transmitting nutrients to keep the donor organ healthy. Three types of organs can be preserved and stored in the TransMedics OCS: lungs, livers and hearts. The OCD can, in many cases, maintain the health of organs outside the human body for up to 24 hours.
With traditional cold storage methods traditionally used to facilitate organ transplants, numerous complications frequently occur, ranging from ischemia to increased post-transplant complications. Ischemia is a common problem in organ transplants that occurs when insufficient blood flow to the donor organ causes damage to the tissue that can deteriorate further after the transplant.
With the TransMedics OCS, the risk of ischemia is greatly reduced, as well as the risk of possible complications. Another integral aspect of TransMedic Group’s growth strategy is its logistics operations, which even include an air fleet that it uses to transport donor organs. TransMedics had 18 of its own aircraft in its fleet at last count.
Management believes the company is on track to achieve its goal of 10,000 OCD transplant cases per year in the US by 2028. Total revenue in the third quarter of 2024 totaled approximately $109 million, up 64% from a year ago. Management noted that this revenue growth was driven by the continued adoption of OCS across all three bodies, as well as logistics revenues.
While TransMedics Group reported a net loss of $25.4 million a year ago, it generated a net profit of $4.2 million last quarter. Management also forecasts full-year 2024 revenue growth of 76% to 84% compared to 2023. Investors looking to co-own an innovative company disrupting the multibillion-dollar global transplant market may want to take another look at this healthcare stock .
Shopify(NYSE: STORE) has built an explosive global footprint since the company was first founded nearly two decades ago. The company controls approximately 10% of the global e-commerce software market and is the largest e-commerce software platform in the US with a market share of approximately 30%.
Keep in mind that the US e-commerce market is worth over $1 trillion. It is the second largest e-commerce market in the world after China. Shopify’s market opportunity is only growing in core North American markets and internationally as the global e-commerce industry expands.
In the third quarter of 2024, Shopify reported its fifth consecutive quarter of growth in gross merchandise value (GMV), the total value of merchandise sold in a given period. Gross payment volume (GPV) is also accelerating rapidly. Operating income more than doubled in the third quarter, while revenue growth accelerated 26% year over year to $2.2 billion.
Shopify’s software and hardware solutions are known for their integrations with a wide range of offerings from the global partner ecosystem. However, its own in-house solutions such as Shopify Payments (a payment processing service for merchants) and Shop Pay (a seamless payment option for customers) are proving to be the main growth drivers.
Case in point: Shopify Payments offerings handled $43 billion in GPV in Q3 2024, up a whopping 31% from a year ago, which accounted for 62% of total GMV. For Shop Pay, this product offering handled $17 billion in GMV in the third quarter, up 42% year-over-year, comprising 41% of GPV.
Shopify remains highly profitable, with third-quarter operating income up 132% to $283 million and net income up 15% from a year ago to $828 million. It also delivered a free cash flow margin of 19%, with total free cash flow exploding 53% year over year to $421 million. While some investors may shy away from e-commerce given the current growth environment, Shopify is proving it’s a comeback kid. It’s definitely not too late to grab some stocks that can generously boost your returns over the next five years or more.
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*Stock Advisor returns November 18, 2024
Rachel Warren has positions in Shopify. The Motley Fool holds positions in and recommends Shopify and TransMedics Group. The Motley Fool has a disclosure policy.
2 Hyper Growth Stocks That Are Screaming Buys in November was originally published by The Motley Fool
