3 Growth Stocks That Could Soar in 2024 and Beyond

Growth investment It requires you to invest your money in promising businesses with great long-term potential. You need to choose companies with proven track records, sustainable tailwinds, and talented management teams.

The stock prices of these stocks should increase steadily over time, allowing you to make significant capital gains that will help you realize your retirement dreams. You just need patience to see your investments grow over the years or even decades.

Technology and software-as-a-service sectors are a great place to start looking for businesses that can grow their top and bottom lines, and free cash flowSome of these stocks may decline in the short term due to not meeting expectations, which makes them attractive buys if you can hold on despite the volatility.

Here are three software companies whose stock prices I think could rise as they continue to grow:

Image source: Getty images.

1. Snowflake

Snowflake (NYSE: SNOW) It has a software service platform that allows organizations to bring together disparate data sets to perform data analytics. The company saw its shares fall sharply when it issued a weak sales outlook for fiscal 2025 and announced that its CEO, Frank Slootman, was retiring. Slootman was replaced by Sridhar Ramaswamy, a veteran executive. AlphabetGoogle’s.

Investors should look past this decline and be impressed by Snowflake’s consistent growth over the years, with revenue more than doubling from $1.2 billion in fiscal 2022 to $2.8 billion in fiscal 2024.

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

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

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

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

Despite its shares falling 40% since the beginning of the year, it still trades at one of the lowest price-to-sales ratios of just 11.1, presenting a great opportunity for investors who have the patience and determination to wait for the market to understand the quality of the company.

2. Sales Force

Sales force (NYSE:CRM) uses artificial intelligence To offer customer relationship management (CRM) analytics, tools, and insights on its (AI) platform. The company’s stock price has remained nearly flat since the beginning of the year, even as its business continues to improve.

Total revenue grew 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 increased 9.5% to $18.5 billion from the previous year, while operating income increased 85% to $3.5 billion. Net income doubled to $3 billion from the previous year. Free cash flow of $6.8 billion was up 40% from the previous year.

Salesforce also announced a quarterly dividend of $0.40 per share and an annual dividend of $1.60. Management predicts that its total addressable market will grow 13% annually from 2022 to 2026 to reach $290 billion, providing ample opportunity to expand market share.

Earlier this month, the company acquired Own Company, a provider of data protection and management solutions, for approximately $1.9 billion. The acquisition aims to improve the security and availability of customers’ data.

Salesforce also introduced Agentforce, a set of autonomous AI agents designed to help employees handle mundane tasks in service, sales, marketing, and commerce. The goal is to help customers increase productivity by having AI agents analyze data, make decisions, and optimize marketing campaigns. These software improvements should improve customer loyalty and enable Salesforce to continue to improve customer growth and spending.

3.UiPath

UiPath (NYSE: ROAD) isn’t a typical AI company, but it still helps multiple organizations work more collaboratively. Its platform provides robotic process automation (RPA) to automate repetitive employee tasks.

Shares have fallen sharply this year after CEO Rob Enslin abruptly resigned and Daniel Dines was reappointed as CEO. Due to this corporate shakeup, the RPA company’s stock is down nearly 50% since the beginning of the year.

However, the business has grown steadily. From fiscal 2022 to fiscal 2024, revenue rose from $892.3 million to $1.3 billion, while gross profit rose from $723.4 million to $1.1 billion. The first two of those three fiscal years saw negative free cash flow, 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 by about 13% year over year to $651.4 million, while gross profit increased by 10% year over year to $532.8 million. Free cash flow increased by 32% year over year to $143.8 million. The company recently announced new platform features that incorporate generative AI. UiPath Autopilot aims to help software developers while making testing that software easier and faster. These enhancements, along with the many other features the company has built into its platform, should attract new customers and increase customer loyalty. As evidence, customers with more than $100,000 in annual recurring revenue jumped from 1,930 to 2,163 in the latest quarter.

At UiPath’s 2022 Investor Day, management projected a total addressable market of $93.2 billion. Investors should feel confident about the business’s potential and the chances of better days ahead.

Should you invest $1,000 in Salesforce right now?

Before buying stock in Salesforce, consider:

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Suzanne Frey, an executive at Alphabet, is a member of the board of directors of The Motley Fool. Royston Yang The Motley Fool has positions in and recommends Alphabet, Salesforce, Snowflake, and UiPath. The Motley Fool disclosure policy.