Growth stocks are expected to outperform the market by demonstrating strong revenue or earnings growth. Furthermore, improving economic conditions and the possibility of rate cuts this year have improved the prospects of these stocks. Though growth stocks can offer substantial returns, they are associated with higher volatility and risk compared to other stocks. Nevertheless, to help investors choose the best growth stocks, TipRanks offers a stock screener tool.
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Using this tool, we have shortlisted five growth stocks that have received Strong Buy ratings from analysts and whose price targets reflect an upside potential of more than 15%. Lastly, these companies’ revenues have witnessed a compound annual growth rate of over 7% in the past three years.
Let’s take a look at the stocks with the potential to grow that are analysts’ favorites.
- UnitedHealth (NYSE:UNH) – The diversified healthcare device company has a price forecast of $593.13, which implies a 16.3% upside potential. UNH’s revenues have witnessed an 8.2% three-year CAGR.
- Vita Coco Company (NASDAQ:COCO) – Vita Coco is a beverage company known for its coconut water products. Its price forecast of $29 implies a 45.4% upside potential from the current levels. The company’s revenue has grown at a CAGR of about 10.1%.
- Block (NYSE:SQ) – Block operates as a financial services and digital payments company. The stock’s average price target implies an upside potential of 22.5%. Its revenues increased at a CAGR of 18.5% in the past three years. SQ stock has received three Buy ratings in the past week.
- AstraZeneca (NASDAQ:AZN) – AZN is a multinational pharmaceutical and biotechnology company. Analysts currently see an upside potential of 22.5% in the stock. Also, its topline has grown at a CAGR of 15.6%.
- Global-e Online (NASDAQ:GLBE) – The company provides a cross-border e-commerce platform that facilitates global expansion for businesses by providing localized shopping experiences and streamlined international transactions. Analysts currently see an upside potential of 15.9% in the stock. Further, the company’s topline has grown at a CAGR of 44.2%.
