Growth stocks have the potential to outperform the broader market in the long term. One method of identifying such stocks is by examining their revenue and earnings growth rates. Typically, growth stocks exhibit higher growth rates compared to the industry average. Using TipRanks’ Stock Screener, 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 10%.
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Also, they 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.
Here are the five key stocks that investors can consider.
- Enterprise Products Partners (NYSE:EPD) – The midstream natural gas and crude oil pipeline company’s price forecast of $32.63 implies nearly 23% upside potential from the current levels. The company’s revenue has grown at a three-year CAGR of 21.4%.
- Nvidia (NASDAQ:NVDA) – The chip giant’s price forecast of $636.62 implies nearly 29% upside potential. NVDA’s revenues have witnessed 35.8% three-year CAGR. Following Nvidia’s second-quarter results on August 23, more than 30 analysts rated the stock a Buy.
- Mercadolibre (NASDAQ:MELI) – Mercadolibre operates online marketplaces for e-commerce and online auctions. The stock’s average price target implies upside potential of 16.2%. Its revenues increased at a CAGR of 62.9%.
- Amazon (NASDAQ:AMZN) – The e-commerce giant’s price forecast of $175.63 implies 27.3% upside potential from the current levels. The company’s revenue has grown at a CAGR of 18.7%.
- Alphabet (NASDAQ:GOOGL) – The multinational technology conglomerate is widely known for its search engine, Google. The stock has upside potential of 10.7% based on its average price target of $150.67, and its top-line numbers have grown at a CAGR of about 20.4%. GOOGL stock received five Buy ratings in the past two days after Alphabet announced an AI-related partnership with Nvidia.
