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:
ServiceNow (NOW) – This cloud-based software company helps businesses automate and manage digital workflows across IT, operations, and customer service. NOW stock’s average price target of $1,161.27 implies a 28.42% upside potential from the current level. The company’s revenue has grown at a five-year CAGR of about 19.4%.
Importantly, TipRanks AI Analyst expects NOW’s revenue to grow by 21.12%, compared with the Technology sector’s average of 8.5%. The company is gaining from strong growth in AI and Data Cloud demand.
Uber Technologies (UBER) – This transportation company offers ride-hailing, courier services, and food delivery services. UBER stock’s average price target of $109.81 implies an upside potential of 12.28%. Its revenue increased at a CAGR of 31.6% in the past five years.
According to TipRanks AI Analyst, UBER’s revenue is expected to grow by 18.15% in comparison to the Technology sector’s average of 8.5%. The company’s revenue is growing consistently due to strong market demand and effective service expansion.
Eli Lilly (LLY) – This global pharmaceutical company develops innovative medicines for diabetes, cancer, and other serious health conditions. LLY stock’s average price target of $910.53 implies an upside potential of 9.93%. The company’s revenue has grown at a five-year CAGR of 12.91%.
The company’s revenue is expected to rise by 36.83%, according to TipRanks AI Analyst. This compares favorably with the Healthcare sector’s average of 22.53%. Eli Lilly’s revenue growth is aided by growing demand for its products, market expansion, and FDA approvals for its treatments.
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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