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3 Buy-Rated Companies Enjoying Stellar Sales Growth

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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.

When it comes to top line strength, three companies – Uber Technologies (UBER - Free Report) , Dream Finders Home (DFH - Free Report) , and NVIDIA (NVDA - Free Report) – have all grown their sales considerably over 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.

NVIDIA

We have all grown familiar with NVIDIA’s growth story, fueled by unrelenting demand for AI chips. The stock continues to hold the highly-coveted Zacks Rank #1 (Strong Buy), with earnings expectations continuing to move higher.

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Data Center results have been the real highlight of NVIDIA’s quarterly releases, which include sales of its AI chips. NVIDIA’s Data Center raked in $18.4 billion (another quarterly record) throughout its latest period, up an astonishing 410% on a year-over-year stack.

The results have regularly blown away our consensus expectations, with the most recent beat totaling a sizable $1.4 billion.

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Sales have melted higher as of late, with consensus estimates for its current fiscal year suggesting 70% growth. The stock remains a prime selection for those seeking exposure to AI, further underpinned by its Style Score of ‘A’ for Growth.

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Uber Technologies

Uber provides a platform for users to access transportation and food ordering services. Strong share performance over the last year has been aided by robust quarterly results, with the company posting double-digit percentage year-over-year sales growth in each of its previous ten releases.

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The company’s earnings outlook has shifted bullish across all timeframes, landing the stock into a favorable Zacks Rank #2 (Buy). Notably, the $0.21 Zacks Consensus EPS estimate for its upcoming quarterly release expected in early May suggests a 360% improvement from the year-ago period.

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Uber's continued business momentum has been shown through its quarterly releases, exceeding our consensus Trips expectations in each of its last five releases. Consensus expectations for its current year (FY24) suggest 38% earnings growth on 16% improved sales, with FY25 expectations alluding to an additional 68% growth in earnings paired with a 17% sales climb.

Dream Finders Home

Dream Finders Homes is a homebuilder operating in many different states. Like those above, analysts have become bullish on its earnings outlook, pushing it into a Zacks Rank #1 (Strong Buy).

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The company’s latest quarterly release pleased investors, with shares popping post-earnings. DFH posted record homebuilding revenue of $1.1 billion and net income 18% higher than the year-ago period. Notably, homebuilding gross margin increased to 20.5% compared to 17.1% previously.

Please note that the chart below is on a trailing twelve-month basis.

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Image Source: Zacks Investment Research

DFH’s growth profile remains bright for its current fiscal year (FY24), with consensus expectations alluding to a 23% pop in earnings on 15% higher sales. Like those above, the stock carries a Style Score of ‘A’ for Growth.

Bottom Line

Above-average sales and earnings growth commonly leads to share outperformance, undoubtedly a welcomed development among investors.

And for those seeking companies with bright outlooks, all three above – Uber Technologies (UBER - Free Report) , Dream Finders Home (DFH - Free Report) , and NVIDIA (NVDA - Free Report) – fit the criteria nicely.

In addition to rock-solid growth, all three sport a favorable Zacks Rank, providing bullish fuel.


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