Despite moving sideways for much of March, the stock market remains near all-time highs and there are plenty of stocks that are trending upwards. Stocks that suffered during the Covid-19 pandemic and struggled to get their operations back online and their financial house in order now appear to be back on track.
The market for initial public offerings (IPOs) also looks to be healthy right now, with shares of newly listed companies such as Birkenstock (NYSE:BIRK) and Arm Holdings (NASDAQ:ARM) firmly in the green after their debuts. Wherever you find them, there are certain stocks that are hot right now and outperforming by a big margin. Here are three stocks that could crush the market in 2024.
Astera Labs (ALAB)
Astera Labs (NASDAQ:ALAB) just held its IPO on March 20. For a semiconductor company with a $5.50 billion valuation that plays in the red hot artificial intelligence (AI) space, the market debut was quite understated. It certainly didn’t attract the attention of the Reddit IPO even though the companies have similar valuations and are each technology concerns.
However, Astera Labs is worth a look and could crush the market. The company makes semiconductor-based connectivity products and operates in the area of AI infrastructure. Clients include Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD). While Astera Labs is unprofitable, it’s been improving. Its loss declined 55% year-over-year in 2023 to $26.3 million while sales grew 45% to $115.8 million.
Cava Group (CAVA)
Speaking of IPOs, one of the most successful over the past year has come from Cava Group (NYSE:CAVA), the restaurant chain specializing in Mediterranean cuisine. Since holding its IPO in June 2023, CAVA stock has risen an impressive 74%, with the majority of that gain coming this year. Quickly achieving profitability and an aggressive growth strategy are the main catalysts that have the stock marching higher.
At the end of February, the company reported fourth quarter 2023 earnings per share (EPS) of 2 cents. While that might seem like pennies, it was double the 1 cent per share profit expected among analysts. Revenue in the quarter totaled $177.2 million, up 52.5% year-over-year and also ahead of estimates. Cava Group opened 72 new restaurant locations in 2023 and plans to open another 52 this year.
Airbnb (ABNB)
Home rental company Airbnb (NASDAQ:ABNB) has come roaring back after the pandemic and 2024 looks like the year its stock could crush the market. In mid-February, Airbnb reported much better-than-expected financial results for the last quarter of 2023 and offered a strong outlook for the year ahead. The still unprofitable company announced a loss per share of 55 cents, much better than a loss of 62 cents expected on Wall Street.
Revenue in Q4 2023 increased 17% to $2.22 billion, topping forecasts of $2.17 billion. Airbnb reported 98.8 million nights and experiences booked in the final quarter of 2023, up 12% from a year earlier. Equally important, the company said it got a strong start to this year with more than six million people ringing in the New Year in an Airbnb. Plus, the company announced plans to buyback up to $6 billion of its own stock.
ABNB stock has gained 40% in the last 12 months, including a 22% increase in 2024.
On the date of publication, Joel Baglole held a long position in NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.