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:
United Airlines (UAL) – United Airlines is a major U.S. airline that operates an extensive global network for passenger and cargo travel. UAL stock’s average price target of $129.46 implies a 31.42% upside potential from the current level. The company’s revenue has grown at a five-year CAGR of about 30%.
Importantly, TipRanks AI Analyst expects UAL’s revenue to grow by 4.24%, compared with the Industrials sector’s average of 2.89%. Strong premium demand, brand loyalty, and strategic route expansion are key factors driving United Airlines’ revenue growth.
Walt Disney (DIS) – Walt Disney is a global entertainment conglomerate known for its iconic brands in media, theme parks, and film production. DIS stock’s average price target of $139.11 implies an upside potential of 23.97%. Its revenue increased at a CAGR of 6.92% in the past five years.
According to TipRanks AI Analyst, Disney’s revenue is expected to grow by 5% in comparison to the Communication Services sector’s average of 2.83%. The company’s revenue growth is driven by strong streaming performance, theme park attendance, and strategic content licensing.
Newmont Mining (NEM) – This gold mining company produces gold and other precious metals across global operations. NEM stock’s average price target of $103.48 implies an upside potential of 32.01%. The company’s revenue has grown at a five-year CAGR of 10.2%.
The company’s revenue is expected to rise by 26.25%, according to TipRanks AI Analyst. This compares favorably with the Basic Materials sector’s average of 2.86%. Newmont Mining’s revenue growth is driven by higher gold prices and increased copper output.
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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