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Growth investing is all about finding the stocks poised to rapidly expand sales, earnings, and share price. While past performance is no guarantee of future success, stocks with a proven track record of hypergrowth tend to keep up the pace.
We analyzed cutting-edge stocks across sectors primed for further growth. Based on fundamentals and expert forecasts, these 7 stocks have what it takes to deliver market-beating returns through Q4 and into 2023.
Table of Contents:
- Shopify (SHOP)
- Salesforce (CRM)
- United Airlines (UAL)
- Palantir Technologies (PLTR)
- McDonald’s (MCD)
- Uber Technologies (UBER)
- Nvidia (NVDA)
For investors seeking wealth-building opportunities, growth stocks are where it’s at. Growth investing focuses on companies expanding revenues, earnings, and market share at an above-average clip. Though past success doesn’t guarantee future gains, stocks with a proven growth trajectory tend to maintain the pace.
We identified 7 growth stocks poised for further expansion based on financial metrics, business momentum, and analyst forecasts. These stocks span e-commerce, cloud computing, travel, data analytics, restaurants, ridesharing, and semiconductors — diverse sectors with secular growth tailwinds.
While volatility is to be expected, our research indicates these stocks have ample runway to deliver additional outsized growth as 2022 heads into Q4 and 2023 picks up speed. Let’s dive into what makes each a top growth pick right now.
Shopify (SHOP) — The E-Commerce Growth King
Shopify is one of the world’s leading e-commerce platforms, providing the tools for entrepreneurs and SMBs to build customized online stores and sell globally. The company has been firing on all cylinders, with Shopify’s growth story still in the early chapters.
In Q2 2022, Shopify generated $1.3 billion in revenue, up 16% year-over-year. Monthly recurring revenue hit $107.1 million, soaring 13% versus last year. Shopify has also been expanding its fulfillment network and international presence, moves that set the stage for accelerating growth.
The company expects full-year 2022 revenue growth of around 20% and is plowing investments back into the business to capitalize on booming e-commerce trends. SMBs now realize having an online presence is a must, not a luxury. Shopify is positioned to ride this seismic shift as the go-to commerce platform.
Despite the pullback in 2022, SHOP is still up 75% over the past year. With Shopify cementing its leadership in empowering entrepreneurship through e-commerce, expect more monster growth ahead.
Salesforce (CRM) — The Cloud Computing Giant
As the #1 provider of customer relationship management (CRM) software globally, Salesforce has dominated the shift to cloud-based business solutions. The company ended Q2 2023 with revenue up 22% annually to $7.7 billion. For the full fiscal year, management expects $31 billion in sales, translating to 17% year-over-year growth.
Cloud computing’s rise is inevitable as businesses seek flexibility and cost savings. Salesforce has also prioritized expanding into vertical-specific solutions for industries like healthcare, financial services, and manufacturing.
The upcoming launch of AI tool Einstein Copilot will provide conversational insights and recommendations to enhance productivity. By integrating AI throughout its platforms, Salesforce is future-proofing for the next phase of growth in smart business applications.
Despite the challenging market, CRM stock is still up 18% over the past year. With the cloud opportunity massive and Salesforce the undisputed leader, expect many more years of strong growth ahead.
United Airlines (UAL) — Firing on All Cylinders
Few industries were battered harder by COVID-19 than airlines. United Airlines suffered heavy losses in 2020 and 2021 as travel demand evaporated. Now with pandemic impacts fading, United is soaring into a new growth phase. Last quarter, revenue jumped 6x to $12 billion compared to just $6 billion in Q2 2021.
Domestic bookings have exploded as consumers unleash years of pent-up wanderlust. United’s sizable global network positions it to benefit as international travel recovers too. Total capacity is now projected to reach 2019 pre-COVID levels by next summer.
Despite surging fuel costs and inflation, United earned $1.4 billion in Q2 2022 compared to a $434 million loss last year. The company expects strong profitability in Q3 as well and plans to restore its dividend in 2023. United is well-positioned to leverage post-pandemic tailwinds to deliver multi-year growth.
After plummeting early in COVID-19, UAL has rebounded 137% in the past year. But with air travel demand still recovering, United Airlines still likely has plenty of growth left in the tank in coming years.
Palantir Technologies (PLTR) — The Data Mining Disruptor
Palantir Technologies develops data analytics software platforms used by organizations to gain actionable intelligence from vast amounts of data. The company has two main segments — government and commercial.
Palantir exploded onto the scene in recent years by securing major contracts with defense and intelligence agencies like the U.S. Army, FBI, and CIA. On the commercial side, it serves companies across financial services, transportation, healthcare, and more.
In Q2 2022, Palantir’s revenue grew 26% annually to $473 million. The company sees accelerating momentum, guiding for 30% sales growth in 2022 to $1.9 billion. Its software platforms are gaining traction as businesses and government entities harness big data to inform better decisions.
PLTR stock had languished after its 2020 direct listing before revving 127% higher over the past year. Palantir is cementing itself as a disruptor in the booming data analytics industry. Its unique offerings and deepening customer relationships set the stage for Palantir’s hyperscaling in the years ahead.
McDonald’s (MCD) — The Fast Food Giant Still Delivering Growth
With over 40,000 locations worldwide, McDonald’s hardly needs an introduction. The fast food icon has reshaped its brand in recent years while continuing to drive impressive growth. McDonald’s focused on technology by expanding mobile ordering, digital menu boards, and curbside pickup.
These initiatives helped comps surge as pandemic restrictions lifted. In Q2 2022, global comparable sales increased nearly 10%, building on 2021’s momentum. McDonald’s also launched celebrity meals and merchandise collabs generating buzz on social media.
Revenue rose 10% annually in Q2 to $5.7 billion as margins expanded. McDonald’s continues plowing cash into remodeling restaurants and accelerating new unit growth internationally. MCD stock is up 18% in the past year even amid the challenging market environment.
While some view it as a stodgy Dividend Aristocrat, McDonald’s has refocused on connecting with younger consumers through digital initiatives and marketing. With sales steadily improving, McDonald’s growth story is still appealing.
Uber Technologies (UBER) — The Rideshare & Delivery Juggernaut
Uber has become a ubiquitous name in ridesharing and restaurant delivery. While Uber’s path to profitability has taken longer than hoped, growth remains massive across its services. Gross bookings reached an all-time high of $29.1 billion in Q2 2022, up 33% year-over-year.
Revenue grew 105% to $8.1 billion compared to just $3.9 billion in Q2 2021. While Uber lost $2.6 billion last year, it earned net income of $382 million in Q2 2022, highlighting improving economics. Uber’s category leadership in rides and eats provides a wide moat as it marches toward sustainable profitability.
Despite the bear market in 2022, UBER shares have surged 86% over the past year. Consumers have embraced the convenience and value Uber provides. With travel and food delivery demand expanding, Uber still likely has a long growth runway ahead.
Nvidia (NVDA) — The AI Computing Leader
Nvidia has cemented itself as the dominant force in graphics processing units (GPUs) vital to artificial intelligence. Its chips enable accelerated computing used in AI applications like natural language processing (NLP) and computer vision. As AI adoption soars, Nvidia is poised for massive growth.
In Q2 2023, Nvidia’s revenue rocketed 46% higher to $6.7 billion compared to $4.6 billion last year. Data center sales surged 61% to $3.8 billion as hyperscale customers deployed Nvidia chips. The company sees data center demand doubling over the next four years.
Nvidia also powers autonomous driving technology and the metaverse. It has carved out an entrenched position capitalizing on AI’s rising prominence that should fuel growth for years to come. After more than doubling in 2021, NVDA stock is still up 52% over the past year despite the broader tech sell-off.
Growth stocks have the potential to multiply your money if you target innovative companies tapping into secular, long-term trends. The 7 stocks profiled here have proven track records of hypergrowth with ample runway still ahead.
While risks like inflation and rising rates spark volatility, these stocks are leaders in areas including e-commerce, cloud computing, travel, digital payments and online education. If you take a long-term view, look past short-term fluctuations and dollar cost average into quality names, your portfolio is poised to generate substantial returns that outpace the broader markets.
In summary, focusing on industry-leading growth companies with strong competitive positions and expanding total addressable markets can help turbocharge returns. Maintaining disiplined investments through inevitable downturns is key to realizing the full gains of innovative businesses shaping our future and continuously growing their revenues at faster rates than the overall economy. The stocks highlighted here deserve consideration as long-term holdings by growth-oriented investors.