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Growth stocks showed more gains during the first quarter of 2024 with the group’s benchmark, the SPDR Portfolio S&P 500 Growth ETF (SPYG), up by another 14.84%.
The minerals sector outperformed this time around, with mining companies, such as Coeur and Harmony, coming to life. Insurance firm Hippo Holdings, semiconductor maker Semtech, and healthcare technology company Staar Surgical all saw gains in their stock prices and outperformed the benchmark ETF.
The data below are current as of April 8, 2024.
Key Takeaways
- Growth stocks are companies with the potential for above-average price appreciation because of possibly increased revenues and earnings.
- Investors are less likely to be paid dividends, as growth companies tend to reinvest earnings back into the business.
- Growth stocks typically come with the chance of greater volatility than value stocks. It’s a trade-off; pursuing high returns means accepting the risk of many ups and downs in price.
- Sector/Industry: Non-Energy Minerals / Precious Metals
- Price: $4.80
- Market Cap: $1.86 billion
- Year-to-date total return: 37.50%
The stock started 2024 at $3 and traded at $4.80 on April 8—a 37.50% gain, making this Canadian miner one of the top-performing stocks among those trading for less than $50. It participated in the outperformance of the precious metals sector as a whole, as fears of greater inflation took hold amid doubts that the Fed would cut interest rates.
With a market capitalization of $1.86 billion, Coeur’s earnings this year are up by 86%, following a drop of 2.67% over the past five years.
- Sector/Industry: Finance/Insurance Brokers/Services
- Price: $25.39
- Market Cap: $544.56 million
- Year-to-date total return: 64%
Hippo Holdings began the year at $9 and traded at $25.39 on April 8, a remarkable gain of 64%. The insurance company specializes in homeowners’ property and casualty policies and just authorized a $50 million stock repurchase program, detailed in their recent SEC filings.
On March 6, Hippo beat analyst expectations of earnings and revenues, leading to a spike in the stock price. This year’s earnings are up by 67%.
- Sector/Industry: Non-Energy Minerals / Precious Metals
- Price: $8.91
- Market Cap: $5.65 billion
- Year-to-date total return: 24.50%
Harmony Gold Mining rose from $6 at the beginning of the year to $8.91 on April 8, an increase of 24.5%, amid the rising price of the precious metals mined by the company. With inflation fears resurfacing, money managers are seeking the so-called safe haven of gold equities. This South Africa-based miner has a market cap of $5.65 billion and is showing a 76% increase in earnings this year.
- Sector/Industry: Electronic Technology / Semiconductors
- Price: $35
- Market Cap: $2.19 billion
- Year-to-date total return: 40%
Semtech’s price increased from $21 in January to $35 on April 8. That’s a quick 40% gain in just over three months. The company’s earnings are up by 370% this year. In business since 1960 with corporate headquarters in Camarillo, Calif., Semtech has a market capitalization of $2.19 billion. The stock is a Russell 2000 component and a holding of the iShares Russell 2000 exchange-traded fund.
- Sector/Industry: Health Technology / Medical Specialties
- Price: $48
- Market Cap: $2.42 billion
- Year-to-date total return: 39.58%
Staar Surgical’s stock price moved rose from $29 in January to $48 by April 8—a gain of 39.58% after the company announced positive preliminary net sales for the first quarter of 2024.
The California-based company designs and manufactures implantable lenses for the eyes. This quarter marked the highest quarterly sales of those lenses in the U.S. since Staar obtained U.S. FDA approval for the lenses in March 2022.
How We Selected These Growth Stocks
We selected these growth stocks based on their stock price appreciation from the beginning of the year until April 8, 2024. We only listed companies that are trading under $50 per share and are listed on the Nasdaq or the New York Stock Exchange (NYSE).
Growth stocks are companies that focus on revenue growth over other metrics. They typically use capital gained from operations to reinvest into the company rather than giving investors dividend payments, as most value companies will focus on. Because of the increased attention growth companies put towards growing revenue, these stocks can be more volatile than other similar companies.
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As of the date this article was written, the author does not own any of the above stocks.