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 5%. 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:
DraftKings (DKNG) – This company provides digital sports entertainment and gaming services. Its average price target of $54.43 implies a 57.22% upside potential from the current levels. The company’s revenue has grown at a five-year CAGR of nearly 51%.
ServiceNow (NOW) – ServiceNow provides cloud computing solutions that automate enterprise IT operations. NOW stock’s average price target of $1,064.33 implies an upside potential of 4.16%. Its revenue increased at a CAGR of over 19% in the past five years.
Uber Technologies (UBER) – This transportation company offers ride-hailing, courier services, and food delivery services. The stock has a price forecast of $98.61, which implies a 14.9% upside potential. UBER’s revenues have witnessed a 31.6% 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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