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:
Pinterest (PINS) – Pinterest is a visual discovery and social media platform where users find and share ideas through images, videos, and curated boards. PINS stock’s average price target of $39.52 implies a 45.8% upside potential from the current level. The company’s revenue has grown at a five-year CAGR of about 16.6%.
Importantly, TipRanks AI Analyst expects PINS’ revenue to grow by 16.79%, compared with the Communication Services sector’s average of 4.14%. Pinterest’s revenue growth is aided by a growing user base and a strategic focus on AI and international markets.
Snowflake (SNOW) – This cloud-based data platform provides data warehousing, analytics, and sharing solutions for businesses. SNOW stock’s average price target of $270.94 implies an upside potential of 0.51%. Its revenue increased at a CAGR of 43.7% in the past five years.
According to TipRanks AI Analyst, Snowflake’s revenue is expected to grow by 28.37% in comparison to the Technology sector’s average of 8.5%. The company’s revenue is rising thanks to strong demand, AI product upgrades, and strategic cloud partnerships that helped expand its reach.
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 $980.89 implies an upside potential of 1.31%. The company’s revenue has grown at a five-year CAGR of 12.9%.
The company’s revenue is expected to rise by 45.41%, according to TipRanks AI Analyst. This compares favorably with the Healthcare sector’s average of 22.53%. Eli Lilly’s revenue growth is driven by growing demand for its products, market expansion, and recent 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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