Looking for impressive returns despite uncertain market conditions? Well, investors can use TipRanks’ Stock Comparison tool to discover the Best Growth Stocks. Using this tool, one can also compare the growth stocks based on several factors, such as analyst price targets, hedge fund signals, and Smart Scores, to name a few.
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Unity Software (NYSE:U), Teladoc Health (NYSE:TDOC), and Block (NYSE:SQ) are three such growth stocks that investors can consider holding for the long term. Also, Wall Street analysts see solid upside potential in these three stocks’ share prices over the next 12 months.
Let’s take a closer look at these stocks.
Unity Software
Unity is a video game software development company. The company has a commendable history of revenue growth, as it has witnessed a compound annual growth rate (CAGR) of about 29% over the last five years. Also, it is worth highlighting that last month, Unity reported its first-ever profitable quarter on an adjusted basis since going public in September 2020.
The company’s topline is benefiting from the addition of ironSource’s (acquired in November 2022) end-to-end platform for mobile app creators. Furthermore, Unity’s efforts to diversify its offerings through strategic acquisitions bode well for long-term growth.
Is U Stock a Buy or Sell?
Analysts are cautiously optimistic about U stock. It has a Moderate Buy consensus rating based on six Buy, five Hold, and one Sell recommendations. Further, the average price target of $41.90 implies 42.1% upside potential. Shares of the company have gained 9.6% year-to-date.
Teladoc
Teladoc Health is a multinational telemedicine and virtual healthcare company. Its revenues have grown at a five-year CAGR of 41.9%, reflecting solid top-line growth momentum. Going forward, the company expects the challenging macroeconomic environment to persist. Despite this, the management has guided for a 6% to 11% revenue growth in the full-year 2023.
BetterHelp, the company’s mental health platform, is expected to support Teladoc’s growth story by increasing its customer base. Moreover, the company’s focus on the chronic care business is expected to drive performance, going forward.
What is the Forecast for TDOC Stock?
On TipRanks, Teladoc has a Moderate Buy consensus rating based on six Buys and 12 Holds. At $30.76, the average TDOC stock price target implies 21.3% upside potential. Shares have risen over 12% year-to-date.
Block
Block operates as financial services and digital payments company. The company’s top line has witnessed a CAGR of 39.6% over the past five years. Strong revenue performance in the recently reported quarter helped Block lift investors’ sentiments and received admiration from several analysts.
One of the biggest growth drivers for the company is its Cash App, a one-stop financial service solution for all customers’ needs. Furthermore, the Afterpay Buy Now, Pay Later platform is likely to continue witnessing improving trends in the near term.
Is Block a Buy or Sell?
Overall, Block commands a Strong Buy consensus rating based on 20 Buys and five Holds. The average SQ stock price target of $99.95 suggests about 27% upside. Shares have climbed 21% so far in 2023.
Concluding Thoughts
All three stocks have delivered a decent performance in the past year despite facing several macro headwinds. Given analysts’ confidence in the stocks and their future growth prospects, investors might want to consider these stocks for deeper research.
