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3 Buy-Rated Stocks Suited Nicely for Growth Investors
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Consistent sales growth is key, as it’s the foundation of generating profits. Strong revenue generation allows companies to achieve scaling efficiencies, generate continuous shareholder value, and many other clear benefits.
And when it comes to top line strength, three companies – MercadoLibre (MELI - Free Report) , Amazon (AMZN - Free Report) , and OneSpaWorld (OSW - Free Report) – have all grown their sales considerably over the recent years.
In addition, all three currently sport a favorable Zacks Rank, reflecting optimism among analysts. For those seeking top line compounders, let’s take a closer look at each.
MercadoLibre
MercadoLibre, a current Zacks Rank #1 (Strong Buy), is Latin America's leading e-commerce and technology company. Shares got a nice boost following its latest quarterly release at the beginning of last November, up 33% since the print.
Image Source: Zacks Investment Research
The company’s strong share performance has been underpinned by its revenue-generating abilities, with MELI posting double-digit percentage year-over-year sales growth in each of its last 15 releases. The e-commerce titan posted revenue of $3.8 billion in its latest release, up 40% from the same period last year.
Revenue is forecasted to climb 36% in its current fiscal year (FY23), with the FY24 Zacks Consensus estimate alluding to an additional 22% boost.
Image Source: Zacks Investment Research
Shares trade at elevated multiples, typical of those with high-growth characteristics. The current forward price-to-sales (F1) ratio works out to be 5.0X, beneath the five-year median of 10.3X and five-year highs of 22.2X. While shares trade expensively, they’ve become notably cheaper off their highs.
Amazon
Enjoying a spot in the elite ‘Mag 7’, Amazon shares have been notably strong performers over the last year, up 70% and seeing positivity post-earnings in back-to-back releases. The stock is a Zacks Rank #1 (Strong Buy), with earnings expectations higher across the board.
Image Source: Zacks Investment Research
The stock remains a prime consideration for growth-focused investors, further reinforced by its Style Score of ‘A’ for Growth. Consensus expectations for its current fiscal year (FY24) suggest 40% earnings growth on 11% higher sales, with estimates for FY25 alluding to an additional 30% of earnings growth on a 12% sales boost.
Investors were pleased with the market titan’s latest set of quarterly results, with AWS net sales growing 13% year-over-year and reflecting an acceleration relative to other recent periods. The profitability picture overall improved nicely, with Q4 operating income totaling $13.2 billion vs. $2.7 billion previously.
Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
OneSpaWorld
OneSpaWorld is a provider and innovator in the fields of wellness, beauty, rejuvenation, and transformation on cruise ships and land. The stock is a Zacks Rank #2 (Buy), with the revisions trend for its current fiscal year particularly bullish, up 40% to $0.67 per share over the last year.
Image Source: Zacks Investment Research
No different than those above, OSW’s revenue growth has been remarkable over the recent years, with quarterly revenue of $216 million throughout its latest period growing 33% year-over-year and boosted by continued business momentum. Concerning its current year (FY23), sales are forecasted to grow a sizable 46% from FY22.
Keep an eye out for the company’s next quarterly release expected on February 28th, as consensus estimates presently suggest 21% earnings growth on 18% higher sales. Its latest set of quarterly results sparked a strong rally, up 42% since the report.
Image Source: Zacks Investment Research
Bottom Line
Strong revenue generation leads to many positives, such as scaling efficiencies and meaningful earnings growth.
And when it comes to strong revenue trends, all three companies above – MercadoLibre (MELI - Free Report) , Amazon (AMZN - Free Report) , and OneSpaWorld (OSW - Free Report) – precisely fit the criteria.
In addition to inspiring revenue growth, all three have enjoyed favorable earnings estimate revisions, indicating bullishness among analysts.
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3 Buy-Rated Stocks Suited Nicely for Growth Investors
Consistent sales growth is key, as it’s the foundation of generating profits. Strong revenue generation allows companies to achieve scaling efficiencies, generate continuous shareholder value, and many other clear benefits.
And when it comes to top line strength, three companies – MercadoLibre (MELI - Free Report) , Amazon (AMZN - Free Report) , and OneSpaWorld (OSW - Free Report) – have all grown their sales considerably over the recent years.
In addition, all three currently sport a favorable Zacks Rank, reflecting optimism among analysts. For those seeking top line compounders, let’s take a closer look at each.
MercadoLibre
MercadoLibre, a current Zacks Rank #1 (Strong Buy), is Latin America's leading e-commerce and technology company. Shares got a nice boost following its latest quarterly release at the beginning of last November, up 33% since the print.
Image Source: Zacks Investment Research
The company’s strong share performance has been underpinned by its revenue-generating abilities, with MELI posting double-digit percentage year-over-year sales growth in each of its last 15 releases. The e-commerce titan posted revenue of $3.8 billion in its latest release, up 40% from the same period last year.
Revenue is forecasted to climb 36% in its current fiscal year (FY23), with the FY24 Zacks Consensus estimate alluding to an additional 22% boost.
Image Source: Zacks Investment Research
Shares trade at elevated multiples, typical of those with high-growth characteristics. The current forward price-to-sales (F1) ratio works out to be 5.0X, beneath the five-year median of 10.3X and five-year highs of 22.2X. While shares trade expensively, they’ve become notably cheaper off their highs.
Amazon
Enjoying a spot in the elite ‘Mag 7’, Amazon shares have been notably strong performers over the last year, up 70% and seeing positivity post-earnings in back-to-back releases. The stock is a Zacks Rank #1 (Strong Buy), with earnings expectations higher across the board.
Image Source: Zacks Investment Research
The stock remains a prime consideration for growth-focused investors, further reinforced by its Style Score of ‘A’ for Growth. Consensus expectations for its current fiscal year (FY24) suggest 40% earnings growth on 11% higher sales, with estimates for FY25 alluding to an additional 30% of earnings growth on a 12% sales boost.
Investors were pleased with the market titan’s latest set of quarterly results, with AWS net sales growing 13% year-over-year and reflecting an acceleration relative to other recent periods. The profitability picture overall improved nicely, with Q4 operating income totaling $13.2 billion vs. $2.7 billion previously.
Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
OneSpaWorld
OneSpaWorld is a provider and innovator in the fields of wellness, beauty, rejuvenation, and transformation on cruise ships and land. The stock is a Zacks Rank #2 (Buy), with the revisions trend for its current fiscal year particularly bullish, up 40% to $0.67 per share over the last year.
Image Source: Zacks Investment Research
No different than those above, OSW’s revenue growth has been remarkable over the recent years, with quarterly revenue of $216 million throughout its latest period growing 33% year-over-year and boosted by continued business momentum. Concerning its current year (FY23), sales are forecasted to grow a sizable 46% from FY22.
Keep an eye out for the company’s next quarterly release expected on February 28th, as consensus estimates presently suggest 21% earnings growth on 18% higher sales. Its latest set of quarterly results sparked a strong rally, up 42% since the report.
Image Source: Zacks Investment Research
Bottom Line
Strong revenue generation leads to many positives, such as scaling efficiencies and meaningful earnings growth.
And when it comes to strong revenue trends, all three companies above – MercadoLibre (MELI - Free Report) , Amazon (AMZN - Free Report) , and OneSpaWorld (OSW - Free Report) – precisely fit the criteria.
In addition to inspiring revenue growth, all three have enjoyed favorable earnings estimate revisions, indicating bullishness among analysts.