雅虎香港財經 15 Most Profitable Growth Stocks Now
In this article, we will discuss the 15 Most Profitable Growth Stocks Now. You can skip our industry overview and go directly to the 5 Most Profitable Growth Stocks Now.
Growth stocks refer to listed companies that are growing their profits, revenue, or cash flow at a rate that exceeds their competitors and beats the overall market. Generally, these stocks are associated with new companies that are disrupting their industries and own intellectual property that gives them a competitive advantage. Companies like Tesla (NASDAQ:TSLA) and Shopify (NYSE:SHOP) are good examples of growth stocks.
Growth stocks have their unique attributes, while they rarely pay dividends or generate high profits, they are able to grow their business at a high rate. In Tesla (NASDAQ:TSLA)'s case, the company only managed to become profitable in 2020, and despite experiencing significant profit growth since then, it hasn’t distributed dividends to its shareholders. The company’s website clearly states that it does not anticipate ever issuing such a dividend because it “[intends] on retaining all future earnings to finance future growth.”
However, growth investors are not really invested in the stocks for dividends. The primary investment purpose of investing in growth stocks is benefiting from the rise in the stock price as the company continues on its growth trajectory. An investment of $1,000 in Tesla five years ago would now be worth about $5,000, representing a remarkable gain of 400%.
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Growth stocks tend to have longer-term cash flow horizons and are, therefore, more sensitive to long-term interest rates. When interest rates rise, growth stocks lose value because the discount rate used for the valuation of these stocks increases, leaving investors with a smaller present value. Hence in a rising rate environment like today, growth stocks tend to suffer the most, in contrast, value stocks become more appealing during these times due to the nature of their businesses. However, an economic downturn provides a good opportunity for investors to hand-pick good growth stocks for the future because, rest assured, as the economic cycle takes a turn for the better, growth stocks tend to lead the market rallies and provide investors with substantial gains.
In January 2022, Apple (NASDAQ:AAPL) briefly hit a $3 trillion valuation. But then, as the interest rate hikes were introduced, prices declined to erode $1 trillion from its valuation by the end of the year. Similarly, Microsoft (NASDAQ:MSFT) saw its share price decline by 30%. In 2022, while the S&P 500 was down by about 18%, the S&P 500 growth index fell by 30.1%, reflecting the effect of higher interest rates on growth stocks.
In 2023, the interest rate is expected to increase up to 5.25% or even 5.5%. But analysts expect tech firms or at least FAANG stocks to bounce back. For example, analysts predict the share price of Meta (NASDAQ:META) to rise by 8%, given that now the company has announced cost-cutting measures. If these forecasts are correct, then anyone buying the tech stock at the current prices could hope to make a good gain later in the year.
Our Methodology
To come up with 15 most profitable growth stocks now, we have used stock screeners to identify high growth profitable stocks. We filtered the stocks with at least $500 million in market capitalization and revenue growth of at least 30% YoY. The year-over-year growth metric used to screen companies calculates the percentage change from the trailing twelve months’ revenues compared to the twelve months prior. We then proceeded to rank the companies in ascending order of their Net Profit (TTM).
15 Most Profitable Growth Stocks Now
15. Super Micro Computer, Inc. (NASDAQ:SMCI)
Net Income (TTM) as of March 17, 2023: $578.38 million
Headquartered in California, United States, Super Micro Computer, Inc. (NASDAQ:SMCI) is an information technology company that provides storage and high-performance server solutions. The company’s product line includes servers, storage, workstations, gaming, networking, and building blocks. Furthermore, the company offers solutions for data management, hyper-scale infrastructure, cloud, and virtualization, etc. Super Micro Computer, Inc. (NASDAQ:SMCI) has operations in more than 100 countries.
On February 1, 2023, Nehal Chokshi, an analyst at Northland, increased the price target on Super Micro Computer, Inc. (NASDAQ:SMCI) to $175 from $165 while keeping an Outperform rating on the company’s shares. According to the analyst, the company’s March quarter guidance shows that Super Micro Computer, Inc. (NASDAQ:SMCI) will continue to generate record margins and free cash flow.
14. Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC)
Net Income (TTM) as of March 17, 2023: $590.81 million
Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) is a mobile phone operator based in Turkey. The company provides mobile communication and digital business services, which includes cyber security, internet of things (IoT), data center, cloud solutions, and managed services. Further, Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) offers home entertainment allowing subscribers to consume TV shows and other related media content.
On March 9, 2023, the company announced its fourth-quarter 2022 results. The company reported a revenue of $846.44 million, exceeding market expectations by $1.29 million. The Normalized EPS for the quarter stood at $0.11, falling short of market estimates by $0.05.
13. Adyen N.V. (OTC:ADYEY)
Net Income (TTM) as of March 17, 2023: $604.07 million
Adyen N.V. (OTC:ADYEY) is a Dutch company that provides payment solutions. The company offers online and in-person payment, risk management, revenue optimization, and financial products. Adyen N.V. (OTC:ADYEY) serves digital businesses, mobility, subscription, retail, platforms, and marketplaces. The company’s clientele comprises Uber Technologies, Inc. (NYSE:UBER), Spotify Technology S.A. (NYSE:SPOT), eBay Inc. (NASDAQ:EBAY), etc.
On January 11, 2023, Lisa Ellis, an analyst at Moffett Nathanson, started covering Adyen N.V. (OTC:ADYEY) with an Outperform rating on the stock. According to the analyst, the company stands out from an investment standpoint because its net revenues, volumes, and net income have increased at compound annual growth rates (CAGR) of 47%, 59%, and 55%, respectively, over the previous past five years.
12. Amadeus IT Group, S.A. (OTC:AMADY)
Net Income (TTM) as of March 17, 2023: $711.75 million
Headquartered in Madrid, Spain, Amadeus IT Group, S.A. (OTC:AMADY) is an information technology company that processes transactions for the tourism and travel industry globally. Its operating segments comprise hospitality and other solutions, air IT solutions, and air distributions. The company offers transaction processing solutions, pricing, booking, real-time-search, ticketing services, etc. In addition, Amadeus IT Group, S.A. (OTC:AMADY) provides a range of technological solutions for automating crucial business processes.
On February 24, 2023, the company reported its fourth quarter 2022 results. The revenue stood at $1.23 billion, missing market estimates by $20.04 million. The Normalized EPS was reported to be $0.41, falling short of market expectations by $0.07.
11. United Airlines Holdings, Inc. (NASDAQ:UAL)
Net Income (TTM) as of March 17, 2023: $737.00 million
United Airlines Holdings, Inc. (NASDAQ:UAL) is an airline holding company that offers passenger and freight air transportation services. The company also provides training and maintenance, ground handling, and catering services for third parties. United Airlines Holdings, Inc. (NASDAQ:UAL) has a fleet of over 800 aircraft.
On March 10, 2023, Brandon Oglenski, an analyst at Barclays, upgraded the rating on United Airlines Holdings, Inc. (NASDAQ:UAL) to Overweight from Equal Weight and increased the price target to $80 from $52. The analyst believes that the robust demands this spring will be advantageous for airlines.
10. Genmab A/S (NASDAQ:GMAB)
Net Income (TTM) as of March 17, 2023: $795.01 million
Genmab A/S (NASDAQ:GMAB) is a Danish biotechnology corporation that specializes in antibody therapeutics for cancer and other diseases. The company has developed tivdak, which is a prescription medicine for adults with cervical cancer. The product pipeline of Genmab A/S (NASDAQ:GMAB) includes Inclacumab for the treatment of vaso-occlusive crises in sickle cell disease, Mim8 for haemophilia A, and Camidanlumab tesirine for relapsed or refractory Hodgkin lymphoma.
On February 23, 2023, Thomas Bowers, an analyst at Danske Bank, upgraded his rating on Genmab A/S (NASDAQ:GMAB) to Buy from Hold with a price target of DKK 3,200.
9. Fortinet, Inc. (NASDAQ:FTNT)
Net Income (TTM) as of March 17, 2023: $857.30 million
Headquartered in California, United States, Fortinet, Inc. (NASDAQ:FTNT) is a software company that offers networking and cybersecurity services. The company provides both hardware and software licenses for various networking and security functions. The company’s product categories include network security, enterprise networking, cloud security, and cybersecurity services.
On February 7, 2023, the company reported its fourth-quarter 2022 results. The company reported a revenue of $1.28 billion, missing wall street estimates by $12.32 million. The Normalized EPS stood at $0.44, surpassing market estimates by $0.05.
8. Carlisle Companies Incorporated (NYSE:CSL)
Net Income (TTM) as of March 17, 2023: $924.00 million
Carlisle Companies Incorporated (NYSE:CSL) is an American manufacturing company that provides transportation products, construction materials, and general industrial products. The company offers single-ply roofing products, building envelope solutions, and high-performance wire and cable. Carlisle Companies Incorporated (NYSE:CSL) also provides solutions for the supply, application, control, and curing of a wide variety of paints, sealants, adhesives, and other application materials. The company operates in four segments, including carlisle construction materials (CCM), carlisle weatherproofing technologies (CWT), carlisle interconnect technologies (CIT), and carlisle fluid technologies (CFT).
On February 7, 2023, the company announced its fourth-quarter 2022 results. The company reported a revenue of $1.45 billion, exceeding market expectations by $10.42 million. The Normalized EPS stood at $3.92, surpassing market estimates by $0.29.
7. Delta Air Lines, Inc. (NYSE:DAL)
Net Income (TTM) as of March 17, 2023: $1.32 billion
Delta Air Lines, Inc. (NYSE:DAL) is an American airline that provides air transportation services for passengers and freight. The company provides maintenance, overhaul, repair, support, aircraft charters, and engineering services. Delta Air Lines, Inc. (NYSE:DAL) has a fleet of more than 900 aircraft.
On January 17, 2023, the company reported its fourth-quarter 2022 results. The company reported a revenue of $12.40 billion, exceeding market expectations by $171.13 million. The Normalized EPS stood at $ 2.46, surpassing market estimates by $0.32.
6. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Net Income (TTM) as of March 17, 2023: $1.32 billion
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor company based in the United States. The company offers a variety of products, including graphics, chipsets, video, and multimedia products. Further, Advanced Micro Devices, Inc. (NASDAQ:AMD) provides technological solutions for data center and cloud, gaming, and other industries. Advanced Micro Devices, Inc. (NASDAQ:AMD) has operations in Europe, the Middle East, Africa, Asia Pacific, and the Americas.
On March 1, 2023, Srini Pajjuri, an analyst at Raymond James, commenced coverage of Advanced Micro Devices, Inc. (NASDAQ:AMD) with a price target of $100 and a Strong Buy rating on the company’s shares. According to the analyst, the company is well-positioned for the artificial intelligence and machine learning market based on its combination of GPU, CPU, FPGA, and semi-custom expertise.
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Disclosure: None. 15 Most Profitable Growth Stocks Now is originally published on Insider Monkey.
