3 Growth Stocks That Could Skyrocket in 2024 and Beyond

Investing in growth requires that you invest your money in promising businesses with great long-term potential. You need to choose companies with a proven track record, sustainable tailwinds, and competent management teams.

These stocks should have steady share prices that rise over time, giving you significant capital gains that will help you realize your retirement dreams. You just need to be patient to see your investments grow over the years, even decades.

The technology and software-as-a-service sectors are great places to start looking for companies that can grow their revenues, profits, and free cash flow. Some of these stocks can be beaten in the short term due to unmet expectations, making them tempting buys if you can hold them during volatility.

Here are three software companies whose stock prices I think could rise as they grow.

Image source: Getty images.

1. Snowflake

Snowflake (NYSE:SNOW) has a software-as-a-service platform that enables organizations to combine disparate data sets to perform data analytics. The company’s shares fell sharply after it issued weak sales guidance for fiscal 2025 and announced the retirement of its CEO, Frank Slootman, who was replaced by Sridhar Ramaswamy, a veteran executive at AlphabetThis is Google.

Investors should look beyond this decline and be impressed by Snowflake’s steady growth over the years. Revenue more than doubled from $1.2 billion in fiscal 2022 to $2.8 billion in fiscal 2024.

Gross profit fared even better, increasing from $760.9 million to $1.9 billion in the same period, while gross margin increased from 62.4% to 68%. Free cash flow improved significantly over the three years, increasing from $81.1 million in fiscal 2022 to $778.9 million in fiscal 2024.

The numbers continued to impress in the first half of the current fiscal year. Revenue rose 30.8% year over year to $1.7 billion, while gross profit improved 30.7% to $1.1 billion. Free cash flow of $390.4 million was up about 11% from a year earlier.

The software company’s remaining performance obligations (RPO) rose 47% year-over-year to $5.2 billion, indicating healthy revenue growth in the coming year. Total customers grew 47.8% year-over-year to 5,231 in Q2 2025, while the number of customers contributing more than $1 million in product revenue increased from 399 to 510 during the same period.

Management believes its total addressable market of $152 billion in 2023 will more than double to $342 billion by 2028. This large market size will provide Snowflake with ample opportunity to continue its impressive revenue and free cash flow growth.

Even though the company’s stock is down 40% this year, it is trading at one of the lowest price-to-sales ratios of just 11.1. This is a great opportunity for investors who have the patience and persistence to wait for the market to recognize the quality of this company.

2.Salesforce

Sale (NYSE:CRM) uses artificial intelligence (AI) to deliver customer relationship management (CRM) analytics, tools, and insights on its platform. The company’s share price has remained almost unchanged since the beginning of the year, even as its business continues to improve.

Total revenue increased from $26.5 billion in fiscal 2022 to $34.9 billion in fiscal 2024. Operating income increased nearly tenfold, from $548 million to $5 billion during the same period, while net income nearly tripled, from $1.4 billion to $4.1 billion, and free cash flow increased from $5.3 billion to $9.5 billion.

The company continued its earnings momentum in the first half of the current fiscal year. Revenue rose 9.5% year-over-year to $18.5 billion, while operating income increased 85% to $3.5 billion. Net income doubled year-over-year to $3 billion. Free cash flow of $6.8 billion increased 40% year-over-year.

Salesforce also announced a quarterly dividend of $0.40 per share, for an annual dividend of $1.60. Management forecasts that the company’s total addressable market will grow by 13% annually from 2022 to 2026, reaching $290 billion, providing the company with ample opportunity to increase market share.

Earlier this month, the company acquired Own Company, a provider of data protection and management solutions, for about $1.9 billion, a purchase that aims to make customer data more secure and accessible.

Salesforce also unveiled Agentforce, a suite of autonomous AI agents designed to help employees perform mundane tasks across service, sales, marketing, and commerce. The goal is to help customers become more efficient with AI agents that analyze data, make decisions, and optimize marketing campaigns. These software improvements should improve customer loyalty and ensure Salesforce can continue to grow its customer base and spend.

3. UiPath

UiPath (NYSE: PATH) isn’t your typical AI company, but it’s still helping many organizations work more collaboratively. Its platform provides robotic process automation (RPA) to automate repetitive employee tasks.

The stock has been battered this year after CEO Rob Enslin abruptly resigned and Daniel Dines was reappointed as CEO. The corporate shakeup has seen the RPA company’s shares fall nearly 50% year to date.

Despite this, the company has continued to grow. From fiscal 2022 to fiscal 2024, revenue increased from $892.3 million to $1.3 billion, and gross profit increased from $723.4 million to $1.1 billion. It had negative free cash flow in the first two of those three fiscal years, but free cash flow turned positive in fiscal 2024 at $291.7 million.

Revenue and free cash flow continued to trend upward in the first half of fiscal 2025. Revenue increased nearly 13% year over year to $651.4 million, and gross profit was $532.8 million, up 10% year over year. Free cash flow increased 32% year over year to $143.8 million. The company recently unveiled new platform features that include generative AI. UiPath Autopilot is designed to help software developers by making it easier and faster to test that software. These improvements, along with many other features built into the company’s platform, should increase customer loyalty while attracting new customers. As evidence, the number of customers with more than $100,000 in annual recurring revenue increased from 1,930 to 2,163 in the most recent quarter.

During UiPath 2022 Investor Day, management forecasted a total addressable market of $93.2 billion. Investors should be confident in the company’s potential and the chances of brighter days ahead.

Is it worth investing $1,000 in Salesforce now?

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Suzanne Frey, a director at Alphabet, is a member of The Motley Fool’s board of directors. Royston Yang holds positions in Alphabet. The Motley Fool holds positions in and recommends Alphabet, Salesforce, Snowflake, and UiPath. The Motley Fool has a disclosure policy.