The two best growth stocks to buy in 2024 and beyond

Bear markets come and go, but history has shown investors time and time again that bull markets not only tend to outlast these periods, but ultimately lead to higher stock prices than during downturns. Both bull and bear markets present opportunities for long-term investors who focus on buying great companies, not just stock prices.

If you have the cash to do so, it's a good time to add to or build a position in a quality company with a wide moat and compelling long-term growth. A $1,500 investment in one or two of these stocks can generate significant returns for your portfolio for years to come. Let's take a closer look.

1. Lilly

come with a giftfirms(NYSE: LLY)It is one of the largest pharmaceutical companies in the world in terms of market capitalization and revenue. With a history of nearly 150 years, it is arguably one of the leading companies investing in the healthcare sector.

Over the past five years, Lilly has generated an aggregate return of nearly 540% for investors. This is about Standard & Poor's 500 The dividend yield is less than 1%, but its dividend payout ratio has increased by about 100% over the five-year period. Although its dividend yield is less than 1%, its dividend payout ratio has grown by about 100% over this five-year period.

Eli Lilly has made headlines recently for the success of its weight-loss drug Zepbound and its diabetes drug Mounjaro, both of which are derived from the same active ingredient, tiotropium, with Mounjaro getting the green light from Gwen in 2022, and Zepbound just getting approved late last year. Both drugs have years of revenue potential before the patent cliff hits.

Lilly is also benefiting from its existing blockbuster drug portfolio, such as the anti-cancer drug Verzenio and the diabetes drug Jardiance. the company reports aggregate revenues of $34 billion in 2023, an increase of 20% from the previous year. over the past five years, the company's annual revenues have grown by approximately 50%. the company's revenues have increased by about $4 billion in the past five years. the company's revenues are expected to grow by $4 billion in 2023, an increase of $4.6 billion from the previous year.

If what you need is a steady stream of returns and dividend income, Lilly has both.

2. Shopify

Over the past few years.Shopify (NYSE: SHOP)It's been through its fair share of ups and downs. From being courted by investors during a pandemic, to implementing some key operational changes to stem the tide of rising costs and poor operating conditions, Shopify has moved on as a business.

Just a year or so after entering the logistics space, Shopify made a series of well-publicized layoffs, stripping out much of its logistics business, which had some investors worried. But the company's realignment of its business to focus on its core asset-light business model seems to have paid off.

Shopify's bread and butter comes from two core businesses. The first is the subscription business, such as the monthly or annual fees merchants pay to use the platform. The other is a variety of merchant solutions, including services like Shopify Pay and Shopify Point of Sale.

Merchant solutions are the largest micro-driver of the company's revenue growth. in 2023, Shopify's aggregate revenue was $7.1 billion, an increase of $26%. of this total, $5.2 billion came from merchant solutions revenue, up $27% from 2022, and $1.8 billion came from subscription solutions revenue, up $23% year-over-year.

Shopify's 12-month gross margin is close to 50%, and the company's 2022 free cash flow is negative $186 million, while its 2023 free cash flow comes in at $905 million. The company's shares are up a single digit from the start of the year, but are up about 75% from a year ago.

For a mature company, you can't get a lightning bolt overnight, but this stock has proven that it has the ability to significantly outperform the market over time.

Should you invest $1,000 in曏 Eli Lilly now?

Consider the following before purchasing stock in Eli Lilly and Company:

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*Stock Advisory Rates as of March 25, 2024

Rachel Warren owns shares of Shopify.The Motley Fool owns shares of Shopify and recommends Shopify.The Motley Fool has a disclosure policy.

Top 2 Growth Stocks to Buy for 2024 and Beyond was originally published by The Motley Fool.