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2 Top Stocks to Buy in 2024 That Could Make You a Fortune

Motley Fool - Mon Jan 15, 7:23AM CST

Well-chosen growth stocks could help you earn a tidy sum in the stock market. Here are two promising companies that are particularly attractive investments today.

1. Archer Aviation

Technology that once resided only in the realm of science fiction is quickly becoming a reality. Archer Aviation(NYSE: ACHR) wants to transport you to the airport on a flying taxi -- and rides may be available sooner than you might think.

Archer is spearheading a burgeoning urban air mobility market that could climb to a staggering $1 trillion by 2040, according to Morgan Stanley. Its innovative electric vertical take-off and landing (eVTOL) vehicles can reach top speeds of 150 miles per hour. Archer's Midnight aircraft is designed to supplant 60- to 90-minute car commutes with 10- to 20-minute air taxi flights.

Importantly, Midnight is engineered to operate with a safety profile comparable to commercial airlines, which historically have had far lower accident rates than cars and trucks. The all-electric aircraft also produces zero operating emissions, which should appeal to environmentally focused commuters.

A passenger is walking near one of Archer Aviation's eVTOL vehicles.

Archer Aviation's Midnight aircraft.

Archer is backed by several notable transportation giants, including Boeing, United Airlines, and Stellantis. Archer has raised more than $1.1 billion in growth capital from its growing list of prominent investors and partners.

The company expects to launch commercial operations by 2025, and sales are likely to soar in the years that follow. Today, you have a chance to get in at the ground level before this small-cap company takes flight and ignites a potentially massive, trillion-dollar market.

2. DraftKings

The sports betting market will grow nearly threefold to over $230 billion by 2032, according to Acumen Research and Consulting. Industry leader DraftKings(NASDAQ: DKNG) could well be your best bet to cash in on this lucrative global trend.

Governments around the world are legalizing sports betting to boost tax revenue. Within the U.S., DraftKings operates sportsbooks in 26 states. More states, including potentially massive markets like California, are expected to legalize sports gambling to shore up their heavily strained budgets in the coming years. International markets also hold promise. DraftKings is seeking to expand its operations in Canada, where it operates a sportsbook in Ontario.

This torrid pace of expansion can be seen in DraftKings' financial results. The company is adding customers at a rapid clip. Monthly unique payers on DraftKings' platform leaped 40% year over year to 2.3 million in the third quarter. Better still, robust user engagement contributed to a 14% increase in average revenue per player to $114. Together, these favorable trends drove DraftKings' revenue higher by 57% to $790 million.

Crucially, the sports betting leader's profitability is also improving at a swift pace. DraftKings' profit margins tend to rise in the years after it enters a new market. Smaller competitors are falling by the wayside, with several former rivals choosing to shutter their sportsbook operations rather than continue to incur large losses.

The company, in turn, projects that its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) will reach as high as $450 million in 2024, compared to a loss of $105 million in 2023. Management believes that figure could grow to $2.1 billion by 2028 from just its existing markets.

DraftKings clearly has a long runway for expansion ahead. That, combined with its quickly improving profit margins, makes its stock a smart bet today.

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

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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool recommends Stellantis. The Motley Fool has a disclosure policy.

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