Wall Street ended November on a solid note maintaining an impressive rally since January 2023. In 2023, the Dow, the S&P 500 and the Nasdaq Composite — rallied 13.7%, 23.9% and 43.4%, respectively. After this astonishing performance, year to date, the Dow, the S&P 500 and the Nasdaq Composite — have advanced 18.5%, 27.6% and 31.9%, respectively.
The Fed’s dovish stance and favorable economic data should drive the U.S. stock markets in the last month of the year too. Under this circumstance, we recommend five growth stocks for December. These are: monday.com Ltd. MNDY, Inspire Medical Systems Inc. INSP, Ingredion Inc. INGR, Parsons Corp. PSN and Impinj Inc. PI
Near-Term Catalysts
The Fed reduced the benchmark lending rate by 75 basis points to 4.50-4.75% in two consecutive FOMC meetings in September and November. The CME FedWatch interest rate derivative tool currently shows a 66% probability that the central bank will cut the Fed fund rate by another 25 basis points in the December FOMC meeting.
The fundamentals of the U.S. economy remain rock solid. The U.S. GDP grew at 1.6%, 3% and 2.8%, respectively, in first three quarters of 2024. On Nov 27, the Atlanta Fed GDPNow projected the GDP growth rate for the fourth quarter at 2.7%. This indicates no signs of softness.
The Department of Commerce reported that the Personal Consumption Expenditure (PCE) price index for October increased 0.2% month over month and 2.3% year over year. Core PCE (excluding volatile food and energy items) price index — the Fed’s favorite inflation gauge — rose 0.3% on month over month and 2.8% on year over year. Both metrics were in line with consensus estimates.
The Conference Board reported that the U.S. consumer confidence index for November came in at 111.7, beating the consensus estimate of 111. The metric for October was revised upward to 109.6 from 108.7 reported earlier.
In November, the Present Situation Index — based on consumers’ assessment of current business and labor market conditions — increased to 140.9 from 136.5 in October. The Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions — rose to 92.3 from 91.9 in October, well above the threshold of 80, which usually signals an imminent recession.
5 Growth Stocks to Buy for December
These five stocks have strong potential for December and have seen positive earnings estimate revisions in the last 30 days. Each of our picks sports a Zacks Rank #1 (Strong Buy) and has a Growth Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks in the past three months.
Zacks Investment Research
Image Source: Zacks Investment Research
monday.com Ltd.
monday.com develops software applications in the United States, Europe, the Middle East, Africa, and internationally. MNDY provides Work OS, a cloud-based visual work operating system that consists of modular building blocks used and assembled to create software applications and work management tools.
MNDY also offers product solutions for work management, sales CRM, software development verticals, business development, presale, and customer success services. MNDY serves organizations, educational or government institutions, and distinct business units of an organization.
Impressive Short-Term Upside for MNDY Stock
monday.com has an expected revenue and earnings growth rate of 25.6% and 11.7%, respectively, for 2025. The Zacks Consensus Estimate for next-year earnings has improved 8.8% over the last 30 days.
The average short-term price target of brokerage firms represents an increase of 17.9% from the last closing price of $280.80. The brokerage target price is currently in the range of $270 to $355. This indicates a maximum upside of 26.4% and a downside of 3.8%.
Inspire Medical Systems Inc.
Inspire Medical Systems is a medical technology company focused on the development and commercialization of innovative, minimally-invasive solutions for patients with obstructive sleep apnea (OSA). INSP’s proprietary Inspire system is the first and only FDA-approved neurostimulation technology that provides a safe and effective treatment for moderate to severe OSA.
INSP has developed a novel, closed-loop solution that continuously monitors a patient’s breathing and delivers mild hypoglossal nerve stimulation to maintain an open airway. A significant body of clinical data supports the safety and efficacy of INSP.
Huge Short-Term Upside for INSP Shares
Inspire Medical Systems has an expected revenue and earnings growth rate of 19.1% and 52.6%, respectively, for 2025. The Zacks Consensus Estimate for next-year earnings has improved 0.5% in the last seven days.
The average short-term price target of brokerage firms represents an increase of 27.1% from the last closing price of $191.90. The brokerage target price is currently in the range of $193 to $270. This indicates a maximum upside of 40.7% and no downside.
Ingredion Inc.
Ingredion is an ingredients solutions provider specializing in nature-based sweeteners, starches and nutrition ingredients. INGR serves diverse sectors in food, beverage, brewing, pharmaceuticals and other industries.
INGR’s sweetener products include dextrose, glucose, polyols, HFCS and Maltodextrin. INGR’s nutrition solutions include prebiotic fibers, resistant starch, soluble fibers and Inulin fibers. INGR’s starch-based products include both industrial and food-grade starches.
Solid Short-Term Upside for INGR Stocks
Ingredion has an expected revenue and earnings growth rate of 1.3% and 6.1%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 3.7% in the last 30 days.
The average short-term price target of brokerage firms represents an increase of 12.4% from the last closing price of $149.11. The brokerage target price is currently in the range of $147 to $178. This indicates a maximum upside of 19.4% and a downside of 1.4%.
Parsons Corp.
Parsons is a provider of technology-driven solutions. PSN is focused on the defense, intelligence and critical infrastructure markets. PSN provides integrated solutions and services in North America, the Middle East, and internationally. PSN operates through Federal Solutions and Critical Infrastructure segments.
PSN offers technical design and engineering services and software which consists of cybersecurity, intelligence, defense, military training, connected communities, physical infrastructure and mobility solutions.
Excellent Short-Term Upside for PSN Shares
Parsons has an expected revenue and earnings growth rate of 6.8% and 11.9%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 3.2% in the last 30 days.
The average short-term price target of brokerage firms represents an increase of 19.9% from the last closing price of $94.75. The brokerage target price is currently in the range of $81 to $130. This indicates a maximum upside of 37.2% and a downside of 14.5%.
Impinj Inc.
Impinj operates a cloud connectivity platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. PI’s platform wirelessly connects items and delivers data about the connected items to business and consumer applications. PI’s platform comprises endpoint ICs, a miniature radios-on-a-chip that attaches to a host item and includes a number to identify the item.
PI primarily serves retail, supply chain and logistics, automotive, aviation, banking, datacenters, food, healthcare, industrial and manufacturing, linen and uniform tracking, sports, and travel industries through original equipment and device manufacturers, tag service bureaus, systems integrators, value-added resellers, independent software vendors, and other solution partners.
Robust Short-Term Upside for PI Shares
Impinj has an expected revenue and earnings growth rate of 19.5% and 33.9%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 4.2% in the last 30 days.
The average short-term price target of brokerage firms represents an increase of 30% from the last closing price of $188.21. The brokerage target price is currently in the range of $200 to $270. This indicates a maximum upside of 43.5% and no downside.
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