While financial advisors mostly direct their clients to established ideas, their high predictability prevents outright performance, which subsequently makes high-growth stocks so compelling. In exchange for greater risk, market participants may benefit from enhanced rewards.
Fundamentally, that’s because enterprises that focus on expanding the top line lack the same magnitude of predictability of the blue chips or other well-recognized entities. It’s an educated guess that growth plays will meet raised expectations. But at the end of the day, a shot in the dark is still a shot in the dark.
Unfortunately, that’s the game you have to play. If you want the comfort of a sure thing, then dividend-paying blue chips may be your best avenue. For the intrepid, we have these high-growth stocks to consider.
Planet Labs (PL)
Based in San Francisco, California, Planet Labs (NYSE:PL) technically falls under the aerospace and defense category. It designs, constructs and launches constellations of satellites, providing high-quality geospatial data used for a variety of purposes. Analysts rate PL stock as a consensus strong buy with a $4.51 average price target. The most optimistic forecast calls for a price of $7 per share.
Part of the reason for the big endorsement centers on consistency. Throughout fiscal 2023, Planet Labs’ average quarterly surprise came out to 25%. In the trailing 12 months (TTM), the company incurred a net loss of $140.51 million. However, sales landed at $220.7 million during the same period.
For fiscal 2024, covering experts anticipate the top line to expand to $256.46 million. If so, that would represent a gain of 16.2% from last year’s haul of $220.7 million. Looking out to fiscal 2025, revenue could hit $308.21 million, implying 20.2% expansion from projected 2024 sales. Assuming these targets hold true, PL could easily rank among the high-growth stocks to buy.
Matador Resources (MTDR)
Headquartered in Dallas, Texas, Matador Resources (NYSE:MTDR) falls under the hydrocarbon exploration and production (upstream) category. Per its public profile, Matador is an independent energy firm, focused on the exploration, development, production and acquisition of oil and natural gas resources in the U.S. Analysts peg MTDR stock as a strong buy with a $78.11 average price target.
As with Planet Labs above, a key element for the robust endorsement could be financial consistency. Between the second quarter of 2023 to Q1 of 2024, Matador’s average positive earnings surprise landed at 11.53%. In the TTM period, it posted a net income of $876.67 million on sales of $2.83 billion. Its quarterly revenue growth (year-over-year) rate stands at 39.7%.
For fiscal 2024, analysts anticipate earnings per share to expand by 12.9% to $7.64. On the top line, sales could rise 20.4% to hit $3.38 billion. In fiscal 2025, the print could improve again to $3.75 billion, with a blue-sky target of $4.41 billion. If the estimates hold true, MTDR may be one of the high-growth stocks to consider.
Chord Energy (CHRD)
Hailing from Houston, Texas, Chord Energy (NASDAQ:CHRD) also falls under the upstream label. Per its corporate profile, Chord operates as an independent energy firm, acquiring, exploring, developing and producing crude oil, natural gas and natural gas liquids. Analysts rate CHRD stock a unanimous strong buy with a $224.50 average price target. The high-side target runs up to $262.
To be fair, Chord doesn’t quite have the same level of consistency as Matador Resources. In Q2 2023, it slightly missed earnings expectations. Still, even with the miss, the average earnings surprise came out to 2.6% in the past four quarters since Q1. In the TTM period, net income landed at $922.66 million on revenue of $3.82 billion. Presently, the quarterly sales growth rate clocks in at 22.2%.
For fiscal 2024, analysts are looking for EPS to expand 18.15% to hit $21.81. As for the subject of this article, revenue could rise by 22.2% to reach $4.76 billion. Looking out to fiscal 2025, the top line could improve once more to $5.37 billion, with an optimistic view of $6.08 billion. It’s one of the high-growth stocks to keep on your radar.
Duolingo (DUOL)
Based in Pittsburgh, Pennsylvania, Duolingo (NASDAQ:DUOL) operates in the application software arena. According to the public profile, Duolingo is best known as a mobile learning platform focusing on foreign languages. Although sentiment is relatively mixed, the overall view comes in as a moderate buy. The average price target is $261.13, with a high-side forecast of $282 per share.
It’s a compelling picture because Duolingo is a powerful performer. At the same time, critics may wonder about its sustainability. In the past four quarters since Q1 2024, the company’s average positive earnings surprise hit 115.15%. During the TTM period, Duolingo posted a net income of $45.6 million on sales of $583 million. Its quarterly revenue growth rate stands at 44.9%.
For the current fiscal year, covering experts believe EPS could rise by 354% to reach $1.59. On the top line, revenue may expand by 38% to hit $732.91 million. Moreover, fiscal 2025 could see revenue flying up to $933.08 million, with a blue-sky target of $977.5 million. DUOL is one of the high-growth stocks to buy if you believe in the projections.
Concentrix (CNXC)
Headquartered in Newark, California, Concentrix (NASDAQ:CNXC) operates in the information technology (IT) sector. According to the corporate profile, Concentrix engages in the provision of tech-infused customer experience (CX) solutions worldwide. Again, expert assessment is somewhat mixed for CNXC stock. However, the overall view is moderate buy with a consensus price target of $88.50. The high side goes up to $125.
Financially, Concentrix walks on rather shaky ground. In the past four quarters, the company’s average positive earnings surprise lands at barely under half a percent. Still, the positive is that in the TTM period, Concentrix posted a net income of $271.63 million on sales of $7.88 billion. Presently, its quarterly revenue growth rate stands at a whopping 46.8%.
For fiscal 2024, analysts believe that EPS could improve by 4% to reach $11.91. On the top line, sales could expand by 34.9% to hit $9.65 billion. For fiscal 2025, revenue could be $9.92 billion, with a high-side target of $10 billion.
Right now, shares trade at only 0.45X trailing-year sales. Considering that the average sales multiple last fiscal year was nearly 0.8X, Concentrix has a lot of room to run. Thus, it’s one of the high-growth stocks to consider.
Shift4Payments (FOUR)
Hailing from Center Valley, Pennsylvania, Shift4Payments (NYSE:FOUR) falls under the infrastructure software space. Per the company’s public profile, it provides software and payment-processing solutions in the U.S. and other international markets. It has the support of Wall Street experts, with FOUR stock achieving a strong buy consensus view. Also, the average price target lands at $86.50, with a high-side target of $104.
Frankly, Shift4Payments has been hit or miss with its recent earnings performances. Yes, in the past four quarters, the company’s average positive earnings surprise landed at 10.23%. However, it missed in Q4 2023 and Q1 2024, producing a negative surprise of 10.1%. Over the TTM period, net income reached $92 million on sales of $2.73 billion. The company’s quarterly revenue growth stands at 29.3%.
For fiscal 2024, analysts are looking for EPS growth of 30% to reach $3.68. On the top line, revenue could hit $3.61 billion, implying an expansion of 40.8%. Moreover, in fiscal 2025, sales could run up to $4.65 billion, implying almost 29% expansion. If you can handle the choppiness, FOUR could be one of the top high-growth stocks to buy.
Civitas Resources (CIVI)
Based in Denver, Colorado, Civitas Resources (NYSE:CIVI) is yet another player in the upstream component of the hydrocarbon value chain. Per its corporate profile, Civitas focuses on the acquisition, development and production of oil and natural gas in the Rocky Mountain region. What’s notable about CIVI stock is that it enjoys a unanimous strong buy rating among Wall Street analysts. The average price target hits $98.33, with a high-side view of $106.
As with some other ideas for high-growth stocks, Civitas is hit or miss with its earnings. In the past four quarters, the company’s average positive earnings surprise reached 5.03%. However, the company missed in Q2 and Q4 last year – and the Q4 miss was sizable. Still, let’s look at the bright side. TTM net income landed at $757.65 million on sales of $4.15 billion. Quarterly revenue growth currently stands at 102.6%.
That’s not sustainable. However, experts believe that by the end of this fiscal year, the top line could reach $5.51 billion. If so, that would represent a 58.5% leap from last year’s tally of $3.48 billion. Therefore, if you like to speculate on high-growth stocks, keep close tabs on CIVI.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.