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:
Synopsys (SNPS) – Synopsys is an electronic design automation (EDA) company that provides software, IP, and services for designing and verifying advanced semiconductors and systems. SNPS stock’s average price target of $640.13 implies a 4.28% upside potential from the current levels. The company’s revenue has grown at a five-year CAGR of about 11%.
Datadog (DDOG) – This cloud platform helps businesses watch and track their apps, servers, and data in real time. DDOG stock’s average price target of $159.15 implies an upside potential of 24.2%. Its revenue increased at a CAGR of 34.8% in the past five years.
DoorDash (DASH) – This online food delivery and logistics platform connects customers with restaurants and local businesses. DASH stock has a price forecast of $303.61, which implies a 21.7% upside potential. The company’s revenues have witnessed a five-year CAGR of 30%.
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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