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There are many types of investing styles deployed within the market. Some investors prefer to target income, some prefer value, and some prefer to target growth.
Of course, growth stocks can carry a higher level of volatility, an aspect investors should be fully aware of. They staged a notable comeback in 2023, helping to bring positive sentiment back after a forgettable 2022.
Three stocks – DocuSign (DOCU - Free Report) , Stride (LRN - Free Report) , and Ollie’s Bargain Outlet (OLLI - Free Report) – are all expected to witness solid top and bottom-line growth. In addition, all three have enjoyed positive earnings estimate revisions, landing them into a favorable Zacks Rank.
Let’s take a closer look at each one.
DocuSign
DocuSign is the undisputed global leader in the eSignature category. The company’s earnings are forecasted to climb 40% in its current year paired with a 10% revenue climb.
The stock is currently a Zacks Rank #1 (Strong Buy), with earnings expectations increasing across the board.
Image Source: Zacks Investment Research
Concerning its latest quarterly release, DocuSign posted a 30% beat relative to the Zacks Consensus EPS Estimate and reported revenue modestly ahead of expectations. Earnings improved 38% year-over-year, whereas sales saw 8% growth from the comparable period last year.
Still, the real highlight of the quarterly print was that DocuSign lifted its FY24 guidance across several metrics, including full-year sales, Subscriptions, and Billings. Shares soared following the release, with buyers stepping up significantly.
Image Source: Zacks Investment Research
Shares are expensive but cheap on a historical basis, with the current 4.1X forward price-to-sales ratio (F1) well beneath the 10.6X five-year median and highs of 37.5X in 2020.
Image Source: Zacks Investment Research
Stride
Stride is an education services company that provides virtual and blended learning. Its technology-based products and services enable its clients to attract, enroll, educate, track progress, and support students. Consensus expectations for its current year presently reflect 35% earnings growth on 9% higher sales.
The stock is a Zacks Rank #1 (Strong Buy), with the revisions trend for its current fiscal year particularly strong, up 40% over the last year.
Image Source: Zacks Investment Research
Stride posted solid results in its latest quarterly release, exceeding our consensus EPS Estimate by more than 120% and posting a 5% sales beat. Earnings jumped from the year-ago loss of -$0.54 per share, with revenue seeing a 13% boost year-over-year and reflecting a quarterly record thanks to continued enrollment strength.
The company’s revenue saw a notable boost post-pandemic, as we can see below.
Image Source: Zacks Investment Research
Ollie’s Bargain Outlet
Ollie’s Bargain Outlet, a current Zacks Rank #2 (Buy), is a unique, fast-growing, extreme-value discount retailer of brand-name merchandise. The company is currently forecasted to enjoy 75% earnings growth on 15% improved sales in its current fiscal year.
Analysts have raised expectations across all timeframes.
Image Source: Zacks Investment Research
Ollie’s profitability picture improved throughout its latest period, leading it to raise its current year sales and earnings outlook. A nicely expanding footprint and continued strength within comparable store sales have provided meaningful tailwinds for the company.
Shares are hovering near the 200-day moving average, a level at which shares previously saw buyers step up. Investors would like to see shares hold and continue trading above this level to further establish bullishness.
Image Source: Zacks Investment Research
Bottom Line
Investors have their preferences within the market and for understandable reasons. While some reap a steady income stream, others are rewarded with explosive growth.
And for those interested in companies growing their top and bottom lines at rapid paces, all three above – DocuSign (DOCU - Free Report) , Stride (LRN - Free Report) , and Ollie’s Bargain Outlet (OLLI - Free Report) – are forecasted to do precisely that.
In addition, all three sport a favorable Zacks Rank, indicating that their near-term business outlooks have shifted positively.
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3 Top-Ranked Stocks to Buy for High-Growth
There are many types of investing styles deployed within the market. Some investors prefer to target income, some prefer value, and some prefer to target growth.
Of course, growth stocks can carry a higher level of volatility, an aspect investors should be fully aware of. They staged a notable comeback in 2023, helping to bring positive sentiment back after a forgettable 2022.
Three stocks – DocuSign (DOCU - Free Report) , Stride (LRN - Free Report) , and Ollie’s Bargain Outlet (OLLI - Free Report) – are all expected to witness solid top and bottom-line growth. In addition, all three have enjoyed positive earnings estimate revisions, landing them into a favorable Zacks Rank.
Let’s take a closer look at each one.
DocuSign
DocuSign is the undisputed global leader in the eSignature category. The company’s earnings are forecasted to climb 40% in its current year paired with a 10% revenue climb.
The stock is currently a Zacks Rank #1 (Strong Buy), with earnings expectations increasing across the board.
Image Source: Zacks Investment Research
Concerning its latest quarterly release, DocuSign posted a 30% beat relative to the Zacks Consensus EPS Estimate and reported revenue modestly ahead of expectations. Earnings improved 38% year-over-year, whereas sales saw 8% growth from the comparable period last year.
Still, the real highlight of the quarterly print was that DocuSign lifted its FY24 guidance across several metrics, including full-year sales, Subscriptions, and Billings. Shares soared following the release, with buyers stepping up significantly.
Image Source: Zacks Investment Research
Shares are expensive but cheap on a historical basis, with the current 4.1X forward price-to-sales ratio (F1) well beneath the 10.6X five-year median and highs of 37.5X in 2020.
Image Source: Zacks Investment Research
Stride
Stride is an education services company that provides virtual and blended learning. Its technology-based products and services enable its clients to attract, enroll, educate, track progress, and support students. Consensus expectations for its current year presently reflect 35% earnings growth on 9% higher sales.
The stock is a Zacks Rank #1 (Strong Buy), with the revisions trend for its current fiscal year particularly strong, up 40% over the last year.
Image Source: Zacks Investment Research
Stride posted solid results in its latest quarterly release, exceeding our consensus EPS Estimate by more than 120% and posting a 5% sales beat. Earnings jumped from the year-ago loss of -$0.54 per share, with revenue seeing a 13% boost year-over-year and reflecting a quarterly record thanks to continued enrollment strength.
The company’s revenue saw a notable boost post-pandemic, as we can see below.
Image Source: Zacks Investment Research
Ollie’s Bargain Outlet
Ollie’s Bargain Outlet, a current Zacks Rank #2 (Buy), is a unique, fast-growing, extreme-value discount retailer of brand-name merchandise. The company is currently forecasted to enjoy 75% earnings growth on 15% improved sales in its current fiscal year.
Analysts have raised expectations across all timeframes.
Image Source: Zacks Investment Research
Ollie’s profitability picture improved throughout its latest period, leading it to raise its current year sales and earnings outlook. A nicely expanding footprint and continued strength within comparable store sales have provided meaningful tailwinds for the company.
Shares are hovering near the 200-day moving average, a level at which shares previously saw buyers step up. Investors would like to see shares hold and continue trading above this level to further establish bullishness.
Image Source: Zacks Investment Research
Bottom Line
Investors have their preferences within the market and for understandable reasons. While some reap a steady income stream, others are rewarded with explosive growth.
And for those interested in companies growing their top and bottom lines at rapid paces, all three above – DocuSign (DOCU - Free Report) , Stride (LRN - Free Report) , and Ollie’s Bargain Outlet (OLLI - Free Report) – are forecasted to do precisely that.
In addition, all three sport a favorable Zacks Rank, indicating that their near-term business outlooks have shifted positively.