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:
Insulet (PODD) – Insulet provides insulin delivery systems for people with diabetes. PODD stock’s average price target of $359.44 implies a 16.63% upside potential from the current levels. The company’s revenue has grown at a five-year CAGR of over 18%.
Intuit (INTU) – This financial software company is known for products such as TurboTax, QuickBooks, and Credit Karma that help individuals and businesses manage their finances. INTU stock’s average price target of $845.45 implies an upside potential of 18.5%. Its revenue increased at a CAGR of 16.23% in the past five years.
ARM Holdings (ARM) – This semiconductor and software design company creates energy-efficient processor architectures used in mobile devices. ARM stock has a price forecast of $170.76, which implies a 19.85% upside potential. The company’s revenues have witnessed a five-year CAGR of 14.59%.
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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