Growth stocks are companies whose earnings and revenue are expected to increase faster than most of their peers. Their strategy to reinvest profits drives continued growth, offering investors both near-term upside and long-term capital appreciation. Thus, investors usually buy them for price gains, not for dividends.
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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:
Coca-Cola (KO) – This beverage company sells iconic soft drinks and other beverages in more than 200 countries. KO stock’s average price target of $79.44 implies a 6.19% upside potential from the current level. The company’s revenue has grown at a five-year CAGR of 7.35%.
Importantly, TipRanks AI Analyst expects Coca-Cola’s revenue to grow by 2.93%, compared with the Consumer Defensive sector’s average of 1.93%. Strong pricing, steady global demand, and growth across its diverse beverage portfolio are the key factors driving Coca‑Cola’s revenue higher.
Autodesk (ADSK) – Autodesk makes design software used by architects, engineers, and builders to create and plan projects. ADSK stock’s average price target of $371.05 implies an upside potential of 46.73%. Its revenue increased at a CAGR of 10.09% in the past five years.
According to TipRanks AI Analyst, ADSK’s revenue is expected to grow by 15.62% in comparison to the Technology sector’s average of 8.5%. The company’s revenue growth is fueled by strong demand for cloud‑based design tools, rising subscription renewals, and growing adoption of Autodesk’s digital construction and manufacturing software.
Dynatrace (DT) – This software company uses AI to monitor and optimize the performance, security, and reliability of complex cloud and enterprise applications. DT stock’s average price target of $59.37 implies an upside potential of 55.86%. The company’s revenue has grown at a five-year CAGR of 19.3%.
The company’s revenue is expected to rise by 18.5%, according to TipRanks AI Analyst. This compares favorably with the Technology sector’s average of 8.5%. Dynatrace’s revenue growth is driven by strong demand for cloud‑native observability, and rising enterprise adoption of AI‑driven monitoring tools.
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