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.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
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:
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 $398 implies a 15.64% upside potential from the current level. The company’s revenue has grown at a five-year CAGR of about 10.5%.
Importantly, TipRanks AI Analyst expects Visa’s revenue to grow at 11.38% which is much above the Financial sector’s average of 9.69%. The company is benefiting from solid core trends, new pricing, and lower incentives.
Interactive Brokers (IBKR) – This online brokerage firm offers trading and investment services across stocks, options, futures, forex, bonds, and funds globally. IBKR stock’s average price target of $69.50 implies an upside potential of 12.46%. Its revenue increased at a CAGR of 31% in the past five years.
According to TipRanks AI Analyst, IBKR’s revenue is expected to grow at 12.3% in comparison to the Financial sector’s average of 9.69%. The company’s topline is benefiting from rising interest from international clients in U.S. assets, expansion of cryptocurrency offerings, and strong global presence.
DoorDash (DASH) – This technology company connects consumers with local restaurants and merchants through its on-demand food and goods delivery platform. DASH stock has a price forecast of $305.23, which implies an 18.99% upside potential. The company’s revenues have witnessed a five-year CAGR of 30%.
The company’s revenue is expected to rise by 23.78%, according to TipRanks AI Analyst. This compares favorably with Consumer Cyclical sector’s average of 1.3%. The topline is supported by strong growth in key areas such as the U.S. marketplace, advertising revenue, and international expansion.
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.
Stay ahead of the market – subscribe now!