Growth investing, a beloved strategy among investors, focuses on companies set to expand their earnings and revenues at an above-average pace, often leading to stock outperformance.
However, the volatile nature of these stocks should not be underestimated, as unexpected events can easily disrupt their growth trajectory.
Nvidia – Riding High on AI Boom
Nvidia continues to impress with remarkable quarterly results, fueled by soaring demand for AI chips. The company reported a staggering 460% increase in earnings and a solid 260% growth in revenue. Particularly, Data Center sales surged by an impressive 430% over the previous year.
Following this performance, Nvidia shares skyrocketed, maintaining a positive trend throughout 2024. The company even announced a 10-for-1 stock split and a significant 150% increase in its quarterly dividend payout, signaling strong shareholder value.
With a rosy earnings forecast and a coveted Zacks Rank #1 (Strong Buy), Nvidia remains a top choice for investors eyeing AI exposure, given the projected robust demand in this sector.
e.l.f. Beauty – Defying Odds with Steady Performance
e.l.f. Beauty witnessed a remarkable surge in share price post-earnings, breaking free from a downward trend. The stock soared nearly 30% in 2024, outperforming the S&P 500 and building on its consistent track record of delivering above-consensus earnings and revenue figures in the last ten releases.
The company’s exceptional growth trajectory is evidenced by its consistent double-digit year-over-year sales growth. In its latest release, e.l.f. Beauty saw a notable 15% increase in earnings paired with a substantial 71% rise in sales.
Supported by a ‘B’ Growth Style Score and a strong revenue chart, e.l.f. Beauty remains a solid pick for growth-focused investors.
Wingstop – Soaring on Strong Performance
Wingstop shares have been a standout performer in 2024, climbing nearly 44% thanks to robust results that surpassed expectations. The stock boasts a Zacks Rank #1 (Strong Buy), with earnings projections on the rise.
Anticipated growth in the current fiscal year points to a 37% jump in earnings and a 27% increase in sales. Beyond that, expectations for FY25 suggest a further 22% earnings growth and a 17% rise in revenue, underlining a promising future.
Embracing Growth Opportunities
Investors who bet on growth have reaped significant rewards amid the market’s recent surge, enjoying considerable gains.
For those looking to jump on the growth wagon, Nvidia, e.l.f. Beauty, and Wingstop present enticing prospects, each supported by a favorable Zacks Rank indicating positive sentiment among analysts.