Growth stocks represent companies poised for rapid expansion, beating both the overall market and industry peers. This growth potential translates to large capital appreciation for investors. Also, investing in growth stocks can be a long-term strategy, as these companies reinvest profits to drive future expansion.
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One way to identify these stocks is through their past revenue or earnings growth. Today, we have shortlisted stocks whose revenue has grown at a five-year CAGR of more than 15%. Along with this parameter, we have zeroed in on stocks that have received Strong Buy ratings from analysts.
Here are this week’s stocks:
Meta Platforms (META) – Meta is a technology company specializing in social media, virtual reality, and digital communication through platforms like Facebook, Instagram, and WhatsApp. Its average price target of $760.16 implies a 6.77% upside potential from the current levels. The company’s revenue has grown at a five-year CAGR of 16.3%.
Bank of America (BAC) – Bank of America provides a wide range of banking and financial services. The stock’s average price target of $52.86 implies an upside potential of 10.72%. Its revenue increased at a CAGR of 21% in the past five years.
Broadcom (AVGO) – AVGO develops and supplies a wide range of semiconductor and infrastructure software solutions. AVGO stock has a price forecast of $237.13, which implies a 2.49% upside potential. AVGO’s revenues have witnessed a 16.6% five-year CAGR.
