2 Cheap Growth Stocks to Watch in 2024

Check out Alimentation Couche-Tard (TSX:ATD) stock and another cheap growth gem in the new year.

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Just because the stock markets are starting to get a tad overheated (perhaps overvalued, depending on who you ask) doesn’t mean you can’t continue to do well from here. As a DIY investor who can pick your spots, it can make sense to pay more attention to the less-loved areas of the market for contrarian value opportunities. Indeed, you can find such plays in almost any “type” of market climate.

Typically, certain sectors tend to be more overheated than others. And though it can be painful to watch others continue to gain in stocks that have always tended to look overheated or overvalued, I think it’s far better to be safe than sorry in the investment world.

As a DIY investor, you can stick with value plays and avoid the overly frothy, even bubbly stocks that are likeliest to be the first to fall if the market’s legs begin to wobble.

After last year’s hot run, it’s time to re-focus on cheap growth stocks, ones that can do well over extremely extended periods of time (10-15 years or more). Though they may take some damage if today’s overvalued bubble plays burst, I view the following names as bound to recover and make higher highs in the years that follow.

Without further ado, let’s check out the following growth plays that I believe look nothing short of enticing, even in an uncertain 2024.

Alimentation Couche-Tard

Alimentation Couche-Tard (TSX:ATD) shows us all that you don’t need a front-row seat to the latest, hottest tech trends to clock in enviable returns. The stock has been steadily appreciating in recent years, rewarding the patience of investors who stood by the stock, even amid dire macro forecasts.

Thus far, Couche-Tard has remained robust in the face of a pandemic, inflation, and even global supply chain challenges. Up next, a recession could weigh. But as an incredibly resilient (and convenient) consumer staple, I expect its superb rally won’t be derailed, especially since many investors already have a downturn on their radars. The real upside, I believe, lies in the company’s long-term merger and acquisition strategy. Over the next four-and-change years, Couche-Tard plans to continue its growth.

As the company experiments with fresh food and new in-store layouts, I expect margins (and sales) to trend higher over time as the firm continues to resonate with its customers. Personally, I think fresh foods (think subs) and hot foods (like pizza) are what will draw people into gas (or charging) stations, even if they have no car to fill up! Perhaps an acquisition of a food-focused gas station chain (think Sheetz in the eastern U.S.) could be in the cards between now and 2028.

With an 18.85 times trailing price-to-earnings multiple, I continue to view Couche as a discounted growth stock to stash in a TFSA for 10-20 years!


Another growth play that’s easy to overlook is Salesforce (NYSE:CRM), the tech firm run by the legendary Marc Benioff. The stock’s been on a run of late, surging over 81% in the past year, thanks in part to better-than-expected numbers and new artificial intelligence innovations.

In the new year, I think Salesforce can power even more gains as it proves to the world it does have the AI prowess to compete with the likes of the very best in the industry. Stick with Benioff, and I think the long-term rewards could have the potential to be great!

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Joey Frenette has positions in Alimentation Couche-Tard and Salesforce. The Motley Fool has positions in and recommends Alimentation Couche-Tard. The Motley Fool recommends Salesforce. The Motley Fool has a disclosure policy.

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