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 pre-tax earnings have grown at a five-year CAGR of more than 30%. Along with this parameter, we have zeroed in on stocks that have received Strong Buy ratings from analysts.
Here are this week’s stocks:
Live Nation Entertainment (LYV) – Live Nation is an entertainment company that manages ticket sales for live events globally. Its average price target of $150.43 implies a 4.42% upside potential from the current levels. The company’s pre-tax earnings has grown at a CAGR of about 37%.
Insulet (PODD) – Insulet provides insulin delivery systems for people with diabetes. The stock’s average price target of $299.15 implies an upside potential of 6.83%. Its pre-tax income increased at a CAGR of 71.4% in the past five years.
ServiceNow (NOW) – ServiceNow provides cloud computing solutions that automate enterprise IT operations. NOW stock has a price forecast of $1,196.59, which implies a 18.2% upside potential. NOW’s pre-tax earnings have witnessed an 71.2% five-year CAGR.
