2024 was a bumper year for US growth stocks.
The bellwether S&P 500 Index gained 23.3% last year, building on a rally of 24.2% back in 2023.
The two-year gain amounts to 53%, which has not been witnessed since 1997 to 1998.
The technology-heavy NASDAQ Composite Index also pulled off an impressive performance, gaining 28.6% in 2024.
If you are looking for promising growth stocks that can enable your portfolio to soar in 2025, here are four that you can consider.
Garmin (NYSE: GRMN)
Garmin is an engineering company that manufactures GPS navigation and wearable technology products for the automotive, aviation, marine, outdoor, and fitness markets.
For the first nine months of 2024 (9M 2024), Garmin saw its revenue rise 19.5% year on year to US$4.5 billion.
Operating profit jumped 43.4% year on year to US$1.1 billion while net profit climbed 30.5% year on year to US$975.7 million.
The business also generated a healthy positive free cash flow of US$839.7 million for 9M 2024, up nearly 10% year on year.
Garmin paid out a quarterly dividend of US$0.75, slightly above the US$0.73 paid out in the previous year.
The company continued its innovative streak with the launch of the Fenix 8 and Enduro 3 series of outdoor adventure watches.
Last month, Garmin also launched Descent X50i, its largest dive computer with a 3-inch colour touchscreen display.
Divers can use this system to communicate with one another underwater and monitor vital aspects such as each other’s tank pressure, depth, and distance in areas where visibility may be limited.
In October, the company acquired Luminshore, a company that designs and manufactures high-performance above and underwater LED lighting systems for boats.
Paycom Software (NYSE: PAYC)
Paycom Software offers a cloud-based human resource and payroll system in an easy-to-use package to help customers with their entire employment life cycle.
Like Garmin, Paycom also reported a robust set of earnings for 9M 2024.
Revenue increased by 10.3% year on year to US$1.4 billion while operating profit climbed 41% year on year to US$485.8 million.
Net profit surged 50% year on year to US$388.4 million.
The business also churned out a positive free cash flow of US$232 million for 9M 2024, up almost 8% year on year.
Paycom paid out a quarterly dividend of US$0.375 per share.
Management guided for 2024 full year revenue of between US$1.866 billion and US$1.873 billion.
At the midpoint, this guidance will represent a 10% year-on-year increase from 2023’s revenue of US$1.694 billion.
Palo Alto Networks (NASDAQ: PANW)
Palo Alto Networks is a cybersecurity company providing AI-powered solutions for network security, cloud security, and security operations.
Its unified, scalable platform helps to streamline management and provides operational efficiency along with comprehensive protection.
The business delivered a sparkling performance for its fiscal 2024 (FY2024) ending 31 July 2024.
Revenue increased by 16.5% year on year to US$8 billion with operating profit soaring 76.6% year on year to US$683.9 million.
Because of a significant tax credit, Palo Alto Networks’ net profit surged more than fivefold year on year to US$2.6 billion.
The cybersecurity company continued to see healthy growth in revenue and profits for the first quarter of fiscal 2025 (1Q FY2025) ending 31 October 2024.
Revenue increased nearly 14% year on year to US$2.1 billion while operating profit climbed 33.1% year on year to US$286.5 million.
Net profit came in at US$350.7 million, up 80.6% year on year.
Palo Alto Networks also generated a positive free cash flow of US$1.47 billion for 1Q FY2025, in line with the previous year.
Remaining performance obligations grew 20% year on year to US$12.6 billion, showcasing the company’s ability to continue snagging increased business in FY2025.
Cummins (NYSE: CMI)
Cummins designs, manufactures, and distributes engines, filtration, and power generation products.
The company employs around 75,500 people and serves its customers through thousands of dealer locations worldwide.
For 9M 2024, the engineering firm saw revenue inch up 0.5% year on year to US$25.7 billion while operating profit edged up 1.5% year on year to US$3 billion.
Net profit shot up nearly 63% year on year to US$3.5 billion.
Cummins also generated a positive free cash flow of US$381 million for 9M 2024, although this was down from the prior year’s US$1.2 billion.
The business paid out a quarterly dividend per share of US$1.82, an 8.3% year-on-year increase over last year’s US$1.68.
The company is raising its 2030 financial targets with its business expected to contribute US$43 billion to US$48 billion in revenue by then.
Sales should grow by 5% to 7% per annum till 2030 while earnings per share is projected to grow by more than 7% to 9% annually.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
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