Look around a little and you can find stocks that have gained a lot this year. The Magnificent Seven tech stocks are getting all the media attention, but they are not the only securities that have posted impressive gains. The narrative that the current stock market rally is concentrated in only a handful of mega-cap tech stocks is not really accurate. There are other growth stocks that have increased 50% or more since the start of 2023. Many of these other companies have seen significant boosts in their share prices since they issued better-than-expected third-quarter financial results. As the year draws to a close and the rally in equities gathers steam, these less well-known stocks appear to have momentum behind them and could scale new heights in 2024. If you are looking for the best growth stocks to buy in December, take a look at these top three choices.
PDD Holdings (PDD)
PDD Holdings (NASDAQ:PDD) is a Chinese discount e-commerce company. Some analysts describe it as a cross between Amazon (NASDAQ:AMZN) and Walmart (NYSE:WMT). While not as well known as other similar Chinese companies, PDD Holdings is proving to be a major growth stock. The company’s share price soared 16% immediately after it reported quarterly results that crushed Wall Street estimates. The growth comes as the company’s discount products appeal to consumers amid an economic slowdown in China.
PDD, which owns discount online platforms Pinduoduo in China and Temu internationally, announced third-quarter earnings per share (EPS) of 11.61 Chinese yuan ($1.64 USD). Revenue in Q3 totaled 68.8 billion yuan ($9.7 billion USD). Both numbers were well above the consensus estimates of analysts who forecast earnings of 8.95 yuan a share on revenue of 55.2 billion yuan. PDD’s earnings were up 35% from a year ago, while its revenue grew 94% year-over-year (YOY) in Q3.
PDD stock is now up 67% this year and appears to have momentum behind it, making it one of the top growth stocks recommended right now.
Zscaler (ZS)
For a lesser known cybersecurity firm whose stock is growing at a brisk clip, checkout Zscaler (NASDAQ:ZS). The company just reported blowout quarterly results that trounced Wall Street forecasts and showed continued growth across the company. Zscaler reported EPS of 67 cents for what was its fiscal first quarter, which was well above analyst forecasts of 49 cents. Revenue totaled $496.7 million, up 40% from a year ago, and ahead of the $473 million expected on the Street.
Zscaler said that its billings during the quarter rose 34% to $456.6 million, which also beat consensus estimates of $441 million. ZS stock initially declined 6% after company executives said they intend to boost spending to help grow market share. But the stock quickly reversed course and rose 1%. In terms of guidance, Zscaler forecasts revenue of $505 million to $507 million and EPS of 57 cents to 58 cents for the current quarter. That guidance was better than the consensus view among analysts.
Year-to-date (YTD), ZS stock is up 81%, bringing its five-year gain to over 400%. Investors wanting one of the best growth stocks available right now should definitely take a look at ZS.
Pinterest (PINS)
For another red hot growth stock, see Pinterest (NYSE:PINS). The social media company’s stock jumped 18% higher after it reported strong Q3 results that beat estimates on both the top and bottom lines. PINS stock has now gained 32% in the last month and is up 45% YTD. The momentum in the stock began to build after Pinterest reported EPS of 28 cents compared to the 20 cents that had been expected among analysts. Revenue rose 11% from a year earlier to $763.2 million in the quarter, also beating forecasts.
Equally important, the company said that the number of worldwide monthly active users on its platform rose 8% during Q3 from a year ago to 482 million. Analysts were expecting 473 million monthly users. Average revenue per user was $1.61, topping projections of $1.59. Looking ahead, Pinterest said it expects revenue growth of 11% to 13% in the current fourth quarter. The company also said that its fourth-quarter operating expenses will likely decline by 13% YOY.
These results were music to the ears of both investors and analysts who have been bidding PINS stock up on expectations that the company has now successfully emerged from its post-pandemic hangover and is back in growth mode. PINS is another one of the best growth stocks that investors should be buying right now.
On the date of publication, Joel Baglole did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.