These are the 3 Best Growth stocks to buy in April 2024, as per Wall Street analysts. Growth stocks are typically high-risk, high-reward stocks. The revenue growth of these companies generally tends to outperform the market amid a favorable economic backdrop. Several high-growth companies might not be profitable in the initial phase, as they aggressively invest in the expansion of their businesses.
We sorted three growth stocks with incredible business models, the potential to disrupt their sectors, and the possibility of generating high growth in the coming years. What’s best, Wall Street analysts are highly optimistic about these businesses and see over 20% upside in their stocks over the next twelve months. Let’s dive right into them.
#1 CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
CrowdStrike is a Software-as-a-Service provider with operations in the U.S. and international markets. The cybersecurity technology company offers cloud workload and endpoint security, threat intelligence, and cyberattack response services. In the past year, CRWD shares have skyrocketed by nearly 156%.
Remarkably, this cybersecurity firm has outpaced analysts’ estimates in all past eight consecutive quarters. In Fiscal 2024 (ended January 31, 2024) CRWD posted adjusted earnings per share (EPS) of $3.09, up 100.6%, while revenues jumped 36% to $3.06 billion. Moreover, the company beat the consensus estimates for both the top and bottom lines for Q4 FY24.
As of January 31, 2024, CRWD’s ARR (Annual Recurring Revenue) rose 34% to $3.44 billion. The company is steadfastly focused on reaching an ARR of $10 billion and more.
Backed by continued business momentum, CRWD projects FY25 revenue in the range of $3.925 to $3.989 billion and adjusted EPS to be between $3.77 and $3.97, showing tremendous growth potential.
What is the Price Target for CRWD Stock?
On TipRanks, the average CrowdStrike price target of $396.16 implies 30.3% upside potential from current levels. Also, CRWD stock wins a Strong Buy consensus rating, backed by 37 Buys versus one Hold rating.
#2 Uber Technologies (NYSE:UBER)
This ride-hailing service provider needs no introduction. Uber Technologies also offers food and courier delivery services and freight transportation services globally. The Transportation-as-a-Service (TaaS) provider reported its first-ever profitable year in FY23 and also announced a share buyback program of up to $7 billion. In the past year, UBER shares have zoomed 110.1%.
Uber is set to release its Q1 FY24 results on May 8, before the market opens. The Street expects Uber to post diluted earnings of $0.22 per share compared to a loss of $0.08 in the prior year. Meanwhile, the consensus for net sales is pegged at $10.09 billion, reflecting an increase of 14.4% compared to Q1 FY23. Uber has exceeded analysts’ estimates in five of the eight past quarters. Importantly, Uber expects Gross Bookings to reach between $37.0 billion and $38.5 billion in Q1 FY24.
The ride-sharing service provider is expected to record robust growth in the years ahead, backed by a global pick-up in travel demand and back-to-office mandate worldwide. Plus, analysts believe that Uber’s potential to cross-sell its services presents the opportunity to capture a larger market share, reduce its customer acquisition costs, and drive additional margin expansion.
Is Uber a Buy, Hold, or Sell?
With 34 Buys and two Holds, UBER stock has a Strong Buy consensus rating on TipRanks. The average Uber Technologies price target of $87.19 implies 26.3% upside potential from current levels.
#3 Block (NYSE:SQ)
Block is a financial technology company with five unique segments. Square is an ecosystem of commerce solutions, business software, and banking services. Cash App is a peer-to-peer payment app. Spiral builds free, open-source projects advancing the adoption of Bitcoin (BTC-USD). TIDAL is a marketplace for musical artists, while TBD is building an open developer platform to make Bitcoin access easier.
As of December 31, 2023, Cash App boasted 56 million monthly active users, while Square handled $53.5 billion of gross payment volume (GPV) in the fourth quarter.
Block is scheduled to report its Q1 FY24 results on May 2, after the market closes. The Street expects Block to post adjusted EPS of $0.72 on revenue of $5.83 billion, showing massive growth potential. In the prior year period, Block posted adjusted EPS of $0.40 on revenue of $4.99 billion.
Block has exceeded consensus estimates in five of the past eight quarters. Block is expected to outperform market expectations based on the expansion of its Cash App to higher income cohorts and accelerated adoption of Bitcoin. A recent post from founder Jack Dorsey also noted that Square is building its own Bitcoin mining rig.
Is Block a Buy or Sell?
With 26 Buys and four Hold ratings, SQ stock commands a Strong Buy consensus rating on TipRanks. The average Block price target of $90.42 implies 21.4% upside potential from current levels. In the past year, SQ shares have gained 23.7%.
Ending Thoughts
The above three growth stocks offer a compelling investing opportunity with favorable growth prospects. Analysts favor these three stocks and expect notable share price appreciation, making them worth considering.
