Growth stocks include companies with the potential for above-average revenue and earnings growth. While growth stocks can offer substantial returns, they are also 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 upside potential of more than 10%. These stocks also carry Outperform Smart Scores (i.e., 8, 9, or 10) on TipRanks. Lastly, these companies’ revenues have witnessed a compound annual growth rate of over 10% in the past three years.
Let’s take a look at the stocks with the potential to grow and are analysts’ favorites.
- Lululemon Athletica (NASDAQ:LULU) – The athletic apparel retailer’s price forecast of $453 implies nearly 26% upside potential from the current levels. The company’s revenue has grown at a three-year CAGR of 31.7% in the past three years. LULU stock has a Smart Score of 8 out of 10.
- Amazon (NASDAQ:AMZN) – The e-commerce giant’s price forecast of $176.02 implies 39.7% upside potential from the current levels. The company’s revenue has grown at a CAGR of over 18.7%. AMZN carries a Smart Score of 8 out of 10. Over the last 25 days, AMZN stock has consistently received Buy ratings from 16 analysts.
- Nvidia (NASDAQ:NVDA) – The chip giant’s price forecast of $644.69 implies 44.3% upside potential. NVDA’s revenues have witnessed 35.8% three-year CAGR. Four analysts rated the stock a Buy in the past 10 days, and NVDA stock has a “Perfect 10” Smart Score.
- Mercadolibre (NASDAQ:MELI) – Mercadolibre operates online marketplaces for e-commerce and online auctions. The stock’s average price target implies upside potential of 31.8%. Its revenues increased at a CAGR of 62.9% in the past three years. Also, it has a Smart Score of 8 out of 10.
- Alphabet (NASDAQ:GOOGL) – The multinational technology conglomerate is widely known for its search engine, Google. The stock has upside potential of 11.6% based on its average price target of $150.70, and its top-line numbers have grown at a CAGR of about 20.4%. Alphabet carries a Smart Score of 9 out of 10, and GOOGL stock received four Buy ratings in the past three days.
