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Growth investing is a highly common strategy deployed, with investors targeting companies expected to grow their earnings and revenues at an above-average level. It’s a development that commonly follows through to share outperformance.
And with renewed positive sentiment concerning the market overall, the strategy has been lucrative over the last year, with many stocks delivering double-digit percentage gains.
For those interested in stocks that fit the criteria – Palo Alto Networks (PANW - Free Report) , PDD Holdings (PDD - Free Report) , and StoneCo (STNE - Free Report) – could all be considered.
Let’s take a closer look at each.
PDD Holdings
PDD Holdings is a multinational commerce group that owns and operates a portfolio of businesses, including Temu. Estimates have moved higher across the board in a big way, landing the stock into a Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
The company’s growth expectations are impossible to ignore, with consensus estimates for its current year suggesting 41% earnings growth on 77% higher sales. Looking a bit ahead, expectations for FY24 currently suggest an additional 22% earnings growth paired with a 40% sales bump.
PDD’s sales have shot higher as of late.
Image Source: Zacks Investment Research
Shares aren’t overly expensive given the forecasted growth, currently trading at a 19.7X forward earnings multiple.
StoneCo
StoneCo, a current Zacks Rank #1 (Strong Buy), offers an end-to-end cloud-based technology platform to conduct electronic commerce across in-store, online, and mobile channels. Analysts have taken their earnings expectations higher across nearly all timeframes.
Image Source: Zacks Investment Research
The company’s growth expectations are mighty impressive, with earnings forecasted to climb 170% in its current year on 10% higher sales. Peeking ahead to FY24, consensus expectations suggest an additional 35% of earnings growth paired with a 13% revenue increase.
StoneCo has been a stellar earnings performer, exceeding our consensus EPS expectations by an average of 16% across its last four releases. Just in its latest print, STNE posted a solid 18% beat relative to the Zacks Consensus EPS Estimate, with shares moving well higher post-earnings and sparking a bullish rally.
Image Source: Zacks Investment Research
Palo Alto Networks
Palo Alto Networks, a current Zacks Rank #1 (Strong Buy), is a big-time cybersecurity player, offering network security solutions to enterprises, service providers, and government entities worldwide.
Analysts have been notably bullish for its current fiscal year, with the $5.49 Zacks Consensus EPS Estimate up 37% over the last year.
Image Source: Zacks Investment Research
Like those above, the company’s growth picture is strong, with consensus expectations for its current fiscal year suggesting 24% earnings growth paired with a nearly 20% sales climb. Looking ahead to FY25, expectations allude to an additional 18% bottom line growth on 18% higher sales.
Shares remain on the expensive side, currently trading at a 13.3X forward price-to-sales ratio. Investors have had little issue forking up the premium given the company’s forecasted growth, with PANW shares up more than 120% over the last year.
Image Source: Zacks Investment Research
Bottom Line
Above-average sales and earnings growth commonly leads to share outperformance, undoubtedly a welcomed development among investors.
And for those seeking companies forecasted to grow considerably, all three above – Palo Alto Networks (PANW - Free Report) , PDD Holdings (PDD - Free Report) , and StoneCo (STNE - Free Report) – fit the criteria nicely.
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3 Buy-Rated High-Growth Stocks Worth a Look
Growth investing is a highly common strategy deployed, with investors targeting companies expected to grow their earnings and revenues at an above-average level. It’s a development that commonly follows through to share outperformance.
And with renewed positive sentiment concerning the market overall, the strategy has been lucrative over the last year, with many stocks delivering double-digit percentage gains.
For those interested in stocks that fit the criteria – Palo Alto Networks (PANW - Free Report) , PDD Holdings (PDD - Free Report) , and StoneCo (STNE - Free Report) – could all be considered.
Let’s take a closer look at each.
PDD Holdings
PDD Holdings is a multinational commerce group that owns and operates a portfolio of businesses, including Temu. Estimates have moved higher across the board in a big way, landing the stock into a Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
The company’s growth expectations are impossible to ignore, with consensus estimates for its current year suggesting 41% earnings growth on 77% higher sales. Looking a bit ahead, expectations for FY24 currently suggest an additional 22% earnings growth paired with a 40% sales bump.
PDD’s sales have shot higher as of late.
Image Source: Zacks Investment Research
Shares aren’t overly expensive given the forecasted growth, currently trading at a 19.7X forward earnings multiple.
StoneCo
StoneCo, a current Zacks Rank #1 (Strong Buy), offers an end-to-end cloud-based technology platform to conduct electronic commerce across in-store, online, and mobile channels. Analysts have taken their earnings expectations higher across nearly all timeframes.
Image Source: Zacks Investment Research
The company’s growth expectations are mighty impressive, with earnings forecasted to climb 170% in its current year on 10% higher sales. Peeking ahead to FY24, consensus expectations suggest an additional 35% of earnings growth paired with a 13% revenue increase.
StoneCo has been a stellar earnings performer, exceeding our consensus EPS expectations by an average of 16% across its last four releases. Just in its latest print, STNE posted a solid 18% beat relative to the Zacks Consensus EPS Estimate, with shares moving well higher post-earnings and sparking a bullish rally.
Image Source: Zacks Investment Research
Palo Alto Networks
Palo Alto Networks, a current Zacks Rank #1 (Strong Buy), is a big-time cybersecurity player, offering network security solutions to enterprises, service providers, and government entities worldwide.
Analysts have been notably bullish for its current fiscal year, with the $5.49 Zacks Consensus EPS Estimate up 37% over the last year.
Image Source: Zacks Investment Research
Like those above, the company’s growth picture is strong, with consensus expectations for its current fiscal year suggesting 24% earnings growth paired with a nearly 20% sales climb. Looking ahead to FY25, expectations allude to an additional 18% bottom line growth on 18% higher sales.
Shares remain on the expensive side, currently trading at a 13.3X forward price-to-sales ratio. Investors have had little issue forking up the premium given the company’s forecasted growth, with PANW shares up more than 120% over the last year.
Image Source: Zacks Investment Research
Bottom Line
Above-average sales and earnings growth commonly leads to share outperformance, undoubtedly a welcomed development among investors.
And for those seeking companies forecasted to grow considerably, all three above – Palo Alto Networks (PANW - Free Report) , PDD Holdings (PDD - Free Report) , and StoneCo (STNE - Free Report) – fit the criteria nicely.