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:
Royal Caribbean (RCL) – This global cruise company operates multiple cruise brands and offers travel experiences to destinations worldwide. RCL stock’s average price target of $365.33 implies a 10.96% upside potential from the current level. The company’s revenue has grown at a five-year CAGR of about 49%.
Importantly, TipRanks AI Analyst expects RCL’s revenue to grow at 12.1%, which is much above the Consumer Cyclical sector’s average of 1.5%. The company is gaining from a strong recovery and demand for cruise vacations.
DraftKings (DKNG) – This company provides digital sports entertainment and gaming services. DKNG stock’s average price target of $55.36 implies an upside potential of 26.28%. Its revenue increased at a CAGR of 19% in the past five years.
According to TipRanks AI Analyst, DKNG’s revenue is expected to grow at 25.8% in comparison to the Consumer Cyclical sector’s average of 1.5%. DraftKings’ iGaming growth, rise in active iGaming customers, and increased engagement support its top-line performance.
Autodesk (ADSK) – This software company provides design and engineering tools, including AutoCAD and solutions for the architecture, manufacturing, and media industries. ADSK stock has a price forecast of $364.26, which implies a 12.29% upside potential. The company’s revenue has grown at a five-year CAGR of 10.09%.
The company’s revenue is expected to rise by 14%, according to TipRanks AI Analyst. This compares favorably with the Technology sector’s average of 8.5%. Autodesk’s revenue growth indicates robust demand for its products, and it benefits from investments in AI to enhance product capabilities.
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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