Growth investing attracts many, drawing in those looking for companies with potential earnings and revenue growth above the norm. This trend often translates into strong stock performance.
It’s crucial for investors to recognize the heightened volatility that can challenge these stocks, as unexpected events may darken their bright prospects.
Unveiling Potential Picks
For those delving into the realm of robust growth stocks, it might be wise to consider Nvidia NVDA, e.l.f. Beauty ELF, and Wingstop WING among your options.
Nvidia
Nvidia once again astounded the market with stellar quarterly results, fueled by soaring demand for AI chips. Its earnings and revenue surged by 460% and 260%, respectively. Data Center sales escalated by an impressive 430% compared to the previous year.
The company witnessed a surge in share prices post-release, enjoying a wave of positivity throughout 2024. With a 10-for-1 split and a substantial 150% boost to its quarterly dividend, Nvidia showcases a commitment to its shareholders.
Projections for Nvidia remain optimistic, with the stock boasting a coveted Zacks Rank #1 (Strong Buy). It stands out as a prime choice for investors seeking exposure to AI, amid expectations of sustained high demand.
Image Source: Zacks Investment Research
e.l.f. Beauty
e.l.f. Beauty’s stock soared post-earnings, breaking free from a downward trend. With nearly a 30% increase in 2024, the stock outperformed the S&P 500, building on a history of substantial gains. The company’s consistent quarterly outperformance, beating earnings and revenue estimates for 10 straight quarters, underlines its growth.
The company’s remarkable growth trajectory is evident, with consistent double-digit year-over-year sales increases. In its latest report, earnings rose by 15% alongside a significant 71% surge in sales.
The company maintains its allure for growth-oriented investors, supported by a Growth Style Score of ‘B’.
Image Source: Zacks Investment Research
Wingstop
In 2024, Wingstop shares displayed notable strength following better-than-expected results, climbing almost 44% and outshining the S&P 500. Boasting a Zacks Rank #1 (Strong Buy), the stock witnessed a rise in earnings expectations across the board.
Image Source: Zacks Investment Research
Growth momentum is anticipated to persist, with consensus projections for the current fiscal year suggesting a 37% increase in earnings on 27% higher sales. Forecasts extend to FY25, painting a picture of 22% and 17% growth in earnings and revenue, respectively.
The Verdict
Investors gravitating towards growth endeavors have been handsomely rewarded over the past year amid the market’s notable upturn, reaping substantial profits.
For those pondering a foray into this venture, the trio of stocks – Nvidia NVDA, e.l.f. Beauty ELF, and Wingstop WING – demand serious consideration.
In addition to promising growth prospects, all three offerings boast a favorable Zacks Rank, indicative of analyst optimism.
