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:
Salesforce (CRM) – This cloud-based software company provides a customer relationship management (CRM) platform and enterprise applications. CRM stock’s average price target of $332.42 implies a 35.38% upside potential from the current level. The company’s revenue has grown at a five-year CAGR of about 12.3%.
Importantly, TipRanks AI Analyst expects CRM’s revenue to grow at 8.3%, compared with the Technology sector’s average of 8.5%. The company is gaining from strong growth in AI and Data Cloud demand.
Atlassian (TEAM) – This software company offers tools like Jira, Confluence, and Trello that help teams collaborate and manage projects. TEAM stock’s average price target of $244.82 implies an upside potential of 48.28%. Its revenue increased at a CAGR of 20.09% in the past five years.
According to TipRanks AI Analyst, TEAM’s revenue is expected to grow at 19.66% in comparison to the Technology sector’s average of 8.5%. The company’s large enterprise deals, rising AI adoption, and strategic partnerships indicate positive momentum.
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 has a price forecast of $44.15, which implies a 33.2% upside potential. The company’s revenue has grown at a five-year CAGR of 16.65%.
The company’s revenue is expected to rise by 17%, according to TipRanks AI Analyst. This compares favorably with the Communication Services sector’s average of 2.83%. Pinterest’s revenue growth is aided by a growing user base and a strategic focus on AI and international markets.
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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