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 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:
Carnival (CCL) – Carnival operates multiple cruise line brands across global destinations. CCL stock’s average price target of $35.81 implies a 28.03% upside potential from the current level. The company’s revenue has grown at a five-year CAGR of about 35%.
Importantly, TipRanks AI Analyst expects CCL’s revenue to grow by 7.14%, compared with the Consumer Cyclical sector’s average of 1.52%. The company is benefiting from smooth operational execution and market demand, which points to potential for sustained expansion.
Workday (WDAY) – This cloud-based software company provides enterprise solutions for finance, human resources, and planning. WDAY stock’s average price target of $281.42 implies an upside potential of 19%. Its revenue increased at a CAGR of 14.38% in the past five years.
According to TipRanks AI Analyst, WDAY’s revenue is expected to grow by 14.21% in comparison to the Technology sector’s average of 8.5%. The company’s revenue growth is driven by strong adoption of AI tools, which are helping businesses manage people and finances more efficiently.
Chipotle Mexican Grill (CMG) – This fast-casual restaurant chain is known for its burritos, bowls, and focus on fresh ingredients. CMG stock’s average price target of $55.29 implies an upside potential of 35.51%. The company’s revenue has grown at a five-year CAGR of 13.59%.
The company’s revenue is expected to rise by 8.57%, according to TipRanks AI Analyst. This compares favorably with the Consumer Cyclical sector’s average of 1.52%. Chipotle’s topline growth is aided by strong demand for digital orders, menu innovation, and the steady expansion of new restaurant locations.
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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