For many investors, financial data alone is not enough. However, it can be a great place to start. This report shares updated data on over 50 top growth stocks with at least 20% expected revenue growth (for this year and next) and that have a “Strong Buy” rating from Wall Street analysts. We highlight six specific names from the list that are particularly interesting and worth considering.
50+ Top Growth Stocks
For starters, here is updated data on over 50 top growth stocks. As you can see, they all have very strong ratings from Wall Street (1.0 = Strong Buy, 5.0 = Strong Sell). And many of them have significant price appreciation potential versus consensus price targets. You likely recognize at least a few names from the list (it’s sorted by market cap).
(data as of Friday 1/19/24, source: StockRover)
So with that data backdrop in mind, let’s get into some specific companies.
1. Celsius (CELH)
If you follow growth stocks, you’ve likely heard of Celsius by now, and it is still absolutely worth investing. The company makes functional energy drinks that are differentiated from, but compete with, Monster Beverages and Red Bull. And what’s more, Celsius continues to grow rapidly while it displaces competitors.
Beverage Insights is an interesting source for timely information on product volumes, and as you can see in the image below, Celsius’ growth remains impressive.
Also, as you can see in our earlier table, Celsius has an incredible sales growth trajectory (thanks in large part to it distribution deal with Pepsi) and Wall Street believes the shares have nearly 100% upside from here (see earlier table). We’ve owned Celsius in our Disciplined Growth Portfolio for multiple years, since it traded in the $20’s (split adjusted) and you can read our previous detailed report on this one here. Long Celsius.
2. CrowdStrike (CRWD)
When you think of corporate cybersecurity, it’s not a “nice-to-have.” It’s an absolute necessity, especially as the digital revolution and migration to the cloud marches on. CrowdStrike is a leader in this space, and the shares are up 171% over the last year. But despite the strong gains, the valuation (on a price-to-sales basis) is still far below its pandemic highs (encouraging).
Wall Street analysts love CrowdStrike too, giving it an aggregate rating of 1.1 (i.e. strong buy), but they haven’t been able to upgrade their price targets as quickly as the price has climbed (in aggregate, Wall Street believes the shares are 10% over-priced). Also noteworthy, CrowdStrike president Michael Sentonas just sold $6.3 million worth of shares, an indication (in some people’s minds) that the shares may be overheating).
We have no position in CrowdStrike, but we do believe it is an extremely impressive business, and if the share price were to fall significantly we’d consider buying. Although to be fair, the best businesses are never going to be “cheap.”
3. Indie Semiconductor (INDI)
Indie Semiconductor is an impressive small cap company that is highly rated by Wall Street, and the shares have sold off hard so far this year (a potential “buy lower” opportunity in some investors’ minds).
Indie specializes in providing semiconductor and software solutions for Advanced Driver Assistance Systems (ADAS), including light detection and ranging (LiDAR), connected cars, user experience, and electrification applications. The company's technologies serve as the foundational elements for both electric and autonomous vehicles, with a focus on enhancing in-cabin experiences and seamless connectivity to mobile platforms.
This one has a truly incredible growth rate (see earlier table) and a large total addressable market opportunity. We recently wrote up Indie in great detail, and you can access that report here (no position, yet).
4. Zeta Global (ZETA)
Zeta is an AI-powered marketing software company with an impressive revenue growth trajectory, a large total addressable market opportunity and it is highly rated (“strong buy”) by Wall Street analysts (they believe the shares have ~50% upside from here). The company’s omnichannel solution enables its clients to engage consumers across various channels like email, social media, web, chat, Connected TV, and video.
Although not yet profitable, Zeta’s valuation is quite reasonable relative to its growth rate (it trades at 2.1x sales). We just wrote up Zeta in great detail, and you can access that report here.
5. Aspen Aerogels (ASPN)
Aspen Aerogels’ stock price has gotten crushed so far in 2024, yet the business remains on a high-growth trend of secular disruption (as it continues to secure deals with automakers). Specifically, Aspen Aerogels is a specialty chemicals company that optimizes the performance and safety of electric vehicles and energy infrastructure assets through its proprietary Aerogel Technology Platform (it basically keeps EV batteries from overheating).
Trading at only 3.7x sales, Wall Street loves this company’s 59% expected sales growth next year, and rates the shares a strong buy with 62% upside relative to the current share price. We wrote this one up in detail here. We currently have a small position in this company and may soon purchase more.
6. Applied Digital (APLD)
Applied Digital an a speculative stock with explosive upside. The company designs, develops and operates high-performance data centers, and should benefit dramatically from demand related to AI.
The shares are down sharply this year, but Wall Street expects triple-digit sales growth and believes the shares currently have 194% upside. We have a tiny position in Applied Digital and may soon add more shares. You can read our previous write up on this company here.
The Bottom Line
The market is currently offering many attractive long-term growth stock opportunities. However, one of the big challenges for individual growth stock investors is that individual growth stocks can be much more volatile than an overall index. And while this creates risks (especially the risk of behavioral/ psychological mistakes), it also creates opportunities. Having the discipline to hold on to attractive businesses through significant short-term price volatility can be a super power. And it can also be much easier when you realize, within the constructs of a prudently concentrated portfolio, the overall volatility is less than any individual stock. Disciplined long-term investing continues to be a winning strategy.