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 10%. Along with this parameter, we have zeroed in on stocks that have received Strong Buy ratings from Wall Street analysts.
Here are this week’s stocks:
Trade Desk (TTD) – This technology company specializes in programmatic advertising, enabling data-driven digital ad buying across various channels. The stock has a price forecast of $87.84, which implies a 25.04% upside potential. TTD’s revenues have witnessed a 30.7% five-year CAGR.
Permian Resources (PR) – This independent oil and natural gas company develops high-return assets in the Delaware Basin. Its average price target of $17.87 implies a 21.90% upside potential from the current levels. PR’s revenue has grown at a five-year CAGR of about 56%.
Synopsys (SNPS) – Synopsys is an electronic design automation (EDA) company that provides software, IP, and services for designing and verifying advanced semiconductors and systems. The stock has a price forecast of $598.58, which implies a 24.86% upside potential. SNPS’s revenues have witnessed a 10.6% five-year CAGR.
What Is Tipranks’ Smart Growth Newsletter?
TipRanks’ Smart Growth Newsletter provides top growth investment ideas on a weekly basis, based on TipRanks’ data and analysis. The newsletter includes macro-economic, market-wide, and company-specific analysis to help investors understand the trends that may influence their growth investments.
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