Investing in Growth
Investors seeking substantial returns often turn to growth investing, focusing on companies poised for above-average earnings and revenue expansion. Such growth typically translates into stellar stock performance.
However, it is crucial to note that these stocks can be subject to heightened volatility, as unforeseen events can derail their growth trajectory.
Nvidia: The AI Champion
Nvidia has once again exceeded market expectations in its latest quarterly report, riding high on the persistent demand for AI chips. The company witnessed a staggering 460% surge in earnings and 260% in revenue, with Data Center sales skyrocketing by 430% compared to last year.
Following the earnings release, Nvidia’s shares soared, sustaining a positive trend well into 2024. Accompanying a 10-for-1 split, the company also announced a remarkable 150% increase in its quarterly dividend, indicative of its shareholder-friendly approach.
With a glowing earnings forecast, Nvidia retains its prestigious Zacks Rank #1 (Strong Buy) status. The stock offers a lucrative prospect for investors seeking exposure to the AI sector, with a promising outlook for sustained demand.
e.l.f. Beauty: Riding the Growth Wave
The shares of e.l.f. Beauty experienced a significant uptick post-earnings, marking a turnaround from a previous downtrend. Progressing nearly 30% in 2024, the stock has outperformed the S&P 500, continuing a trend of substantial gains.
The company’s consistent quarterly performance is commendable, consistently surpassing earnings and revenue estimates in ten consecutive releases. Boasting impressive double-digit year-over-year sales growth, the latest earnings report showcased a 15% uptick in earnings alongside a substantial 71% surge in sales.
e.l.f. Beauty remains a solid choice for investors focused on growth, supported by its ‘B’ Growth Style Score.
Wingstop: Soaring to New Heights
The shares of Wingstop have demonstrated remarkable strength in 2024, fueled by better-than-expected results, surging nearly 44% and outperforming the S&P 500. Sporting a Zacks Rank #1 (Strong Buy), the stock is backed by rising earnings projections across the board.
Anticipated growth for the current fiscal year indicates a 37% rise in earnings on a 27% uptick in sales. The growth trajectory extends to FY25, with projections suggesting a 22% increase in earnings and a 17% rise in revenue.
Wrapping It Up
The past year has been rewarding for growth-focused investors amid the market’s impressive rally, offering substantial returns.
For those intrigued by the growth strategy, the trio of Nvidia, e.l.f. Beauty, and Wingstop present compelling options worth exploring.
In addition to robust growth potential, all three stocks boast a favorable Zacks Rank, indicating optimistic sentiments among analysts.