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 Wall Street analysts.
Here are this week’s stocks:
TSMC (TSM) – TSMC produces chips for major tech companies globally. Its average price target of $267.57 implies a 13.75% upside potential from the current levels. The company’s revenue has grown at a five-year CAGR of about 17%.
Pinterest (PINS) – Pinterest is a visual discovery and social media platform where users find and save ideas for interests like fashion, home decor, and recipes. PINS stock’s average price target of $41.68 implies an upside potential of 9.14%. Its revenue increased at a CAGR of 16.6% in the past five years.
ServiceNow (NOW) – This cloud-based software company helps businesses automate and manage digital workflows across IT, operations, and customer service. The stock has a price forecast of $1,096.93, which implies a 14.13% upside potential. NOW’s revenues have witnessed a 19.4% 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 macroeconomic, market-wide, and company-specific analysis to help investors understand the trends that may influence their growth investments.
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