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:
BlackRock (BLK) – This global investment management firm is known for its asset management services and iShares ETF platform. BLK stock’s average price target of $1,355.91 implies a 33.45% upside potential from the current level. The company’s revenue has grown at a five-year CAGR of about 5%.
Importantly, TipRanks AI Analyst expects BLK’s revenue to grow by 15.79%, compared with the Financial sector’s average of 9.73%. BlackRock’s revenue growth is aided by strong inflows into its iShares ETF platform, rising assets under management, and increased demand for its advisory services.
Vistra Energy (VST) – Vistra operates a diversified portfolio including natural gas, nuclear, solar, and battery storage. VST stock’s average price target of $237.93 implies an upside potential of 36.8%. Its revenue increased at a CAGR of 8% in the past five years.
According to TipRanks AI Analyst, Vistra’s revenue is expected to grow by 42.77% in comparison to the Utilities sector’s average of 6.62%. The company’s revenue is rising thanks to higher realized energy and capacity prices, strategic acquisitions, and growing demand for clean power solutions.
AppLovin (APP) – This technology company provides software and tools to help app developers market their mobile apps. APP stock’s average price target of $749.28 implies an upside potential of 40.15%. The company’s revenue has grown at a five-year CAGR of 26.6%.
The company’s revenue is expected to rise by 28.69%, according to TipRanks AI Analyst. This compares favorably with the Communication Services sector’s average of 2.83%. AppLovin’s revenue growth is driven by its AI-powered advertising platform and strong demand for automated creative optimization tools.
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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