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:
Carvana (CVNA) – This online used-car retailer is known for its car vending machines and convenient home-delivery buying experience. CVNA stock’s average price target of $430 implies a 29.78% upside potential from the current level. The company’s revenue has grown at a five-year CAGR of about 20%.
Importantly, TipRanks AI Analyst expects CVNA’s revenue to grow by 39.48%, compared with the Consumer Cyclical sector’s average of 1.52%. The company is benefiting from rising retail unit sales, driven by strong e-commerce execution and inventory scale.
Visa (V) – This global payment technology company facilitates digital payments and electronic money transfers between consumers, businesses, and financial institutions. V stock’s average price target of $394.40 implies an upside potential of 14.82%. Its revenue increased at a CAGR of 10.46% in the past five years.
According to TipRanks AI Analyst, Visa’s revenue is expected to grow by 11.38% in comparison to the Financial sector’s average of 9.73%. The company’s revenue growth is driven by rising global payments volume and strong gains in Visa Direct transactions.
Philip Morris International (PM) – This global tobacco company is known for its cigarette brands and its shift toward smoke-free products. PM stock’s average price target of $190.20 implies an upside potential of 20.88%. The company’s revenue has grown at a five-year CAGR of 7.59%.
The company’s revenue is expected to rise by 7.44%, according to TipRanks AI Analyst. This compares favorably with the Consumer Defensive sector’s average of 1.93%. Philip Morris’ revenue growth is driven by strong demand for smoke-free products.
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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