Just a year ago, the markets were recuperating from bearish conditions, and the speculative vibe around growth stocks was palpable. And now, here we stand in 2024, amidst a freshly minted bull market. The iconic S&P 500 recently achieved a record high, signaling the onset of a much-awaited era of optimism and prosperity.

Historically, bull markets have held sway longer than bear markets, offering extended periods of portfolio growth. To leverage this bullish temperament, investing in growth stocks stands to be a prudent move. These stocks tend to flourish during bull markets and times of economic resurgence. Here are the top growth stocks that warrant attention in 2024.

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1. Amazon’s Dominance in Growth Markets

Amazon (NASDAQ: AMZN) continues to reign as an ideal growth stock, straddling two high-growth domains: e-commerce and cloud computing. Amazon is also heavily investing in the burgeoning field of artificial intelligence (AI), a move that is bolstering its earnings trajectory.

AI has not only amped up efficiency in Amazon’s operations, leading to cost reduction, but also provides AI tools to clients through its cloud computing arm, Amazon Web Services (AWS). The escalating demand in this domain augurs well for AWS’ revenue, a factor vital to Amazon’s profitability, as historically AWS has been a key profit driver. Amazon’s recent endeavors to revamp its cost structure are yielding results. In 2022, the company reported its first annual loss in about a decade. However, by early last year, Amazon was churning out quarterly net income gains and witnessing a turnaround in cash flow. The most recent quarter saw the company’s net income tripling and a significant increase in free cash flow to over $21 billion. Return on invested capital has also been on an upward trajectory over the past year.

AMZN Return on Invested Capital data by YCharts

Amazon’s efficiency enhancements across its fulfillment network are noteworthy, transitioning to a regional model from a national one in the U.S. The decreased delivery distances have improved Amazon’s “cost to serve,” with further potential for enhancements.

Despite Amazon’s stock surge last year, the scope for further growth is far from exhausted, making it poised to excel in this bullish market.

2. Carnival’s Spectacular Cruise Comeback

Carnival (NYSE: CCL) faced tumultuous times earlier in the pandemic when cruise operations came to a standstill. Nevertheless, the globe’s largest cruise operator has orchestrated a remarkable recovery. The surge in demand for cruise vacations is evidenced by Carnival’s robust revenue and bookings. Carnival reported record revenue in the most recent quarter, with bookings in the two weeks around Black Friday hitting an all-time high.

For the fiscal year ending in November, Carnival reported record revenue exceeding $21 billion and embarked on the new year with its strongest booked position to date, factoring in occupancy and price. This has significantly contributed to earnings growth, such as reporting a narrower-than-expected U.S. GAAP net loss of $74 million and positive adjusted net income of $1 million for the year.

The prevailing concern among investors about Carnival’s debt levels is receding. While the pandemic-induced hiatus weighed heavily on Carnival, resulting in substantial accrued debt, the company has made significant headway by trimming debt by $4.6 billion from its peak. Carnival anticipates continued growth in adjusted free cash flow to further pare down its debt.

Carnival’s record booking volumes and customer deposits fuel optimism about earnings, with the company’s operational streamlining and fuel cost reduction efforts adding to its earnings growth potential.

Therefore, as Carnival powers through its revival and growth narrative, there couldn’t be a more opportune time to embrace this stock.

3. Apple’s Unyielding Brand Magnetism

Apple (NASDAQ: AAPL) stands tall in the market, spearheading with iconic products like the iPhone and Mac computers. However, this doesn’t signify a growth plateau for the company. Three key factors are poised to prop up Apple’s earnings trajectory in the foreseeable future.

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Firstly, Apple’s brand allure ensures customer loyalty, deterring users from veering towards rival products and instead enticing them to acquire the latest iPhone or Apple Watch. This brand sway is integral to Apple’s competitive advantage or economic moat, a pivotal element that can perpetuate the company’s leadership over time.