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 20%. 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:
Duolingo (DUOL) – Duolingo is a language-learning platform and mobile app that aims to make learning new languages fun and accessible. DUOL stock’s average price target of $479.71 implies a 51.7% upside potential from the current levels. The company’s revenue has grown at a five-year CAGR of about 36%.
On Holding (ONON) – This Swiss sportswear company is known for its innovative performance running shoes and apparel. ONON stock’s average price target of $64.61 implies an upside potential of 43.55%. Its revenue increased at a CAGR of 40.4% in the past five years.
HubSpot (HUBS) – This software company provides a cloud-based platform for marketing, sales, customer service, and CRM to help businesses grow. HUBS stock has a price forecast of $684.61, which implies a 49.08% upside potential. The company’s revenues have witnessed a five-year CAGR of 24%.
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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