Which stocks should you have on your wish list? I have scoured the data to pinpoint these ten monster growth stocks. They are names that all offer exciting growth opportunities, not just for 2019, but also for the longer term.
These names are at the top of my list of stocks to buy. And what’s more, the Street agrees. By using TipRanks market data, you can see both analysts’ consensus estimates and the upside potential from the current share price to the average analyst price target. I took into account both these factors when selecting the following stocks.
With that in mind, let’s dive in now:
Concho Resources (CXO)
Oil and gas giant Concho Resources (NYSE:CXO) deserves a hefty dose of support. Concho’s operations are centered on the Permian Basin — one of the most prolific oil and gas regions in the U.S. Its core operating areas include the Delaware Basin and the Midland Basin and span nearly one million gross acres.
Now, the big news here is that not one but two analysts have upgraded their CXO ratings from hold to buy.
“Management has been an early adopter of growing within cash flow since mid-2015 and should continue to deliver superior growth, now targeting 30% crude growth through 2020 within cash flow as they capitalize on the recent RSP acquisition.”
Also in the stock’s favor: CXO initiated a quarterly dividend starting in Q1, sooner than the expected early 2020. The quarterly dividend of 12.5 cents per share equates to a 0.5% yield. Want to learn more about Concho Resources?
Here is a killer stock I highly recommend for 2019 and beyond. Nutanix (NASDAQ:NTNX) sells hyper-converged infrastructure appliances and software-defined storage.
“We view Nutanix as disruptive, as the hyper-converged market leader, and as the thought leader in hybrid cloud management,” says Ruykhaver. “The company is quickly transitioning to a software-only model and continues to show large deal traction in large enterprise.”
Five-star Needham analyst Jack Andrews has reiterated his buy rating on the stock. Citing new opportunities following NTNX’s Frame acquisition, he had a very bullish price target of $63 as of March.
E-commerce giant Amazon (NASDAQ:AMZN) may already by one of the world’s biggest companies, but its potential among growth stocks is still unparalleled.
The company reported a clean across-the-board beat in its Q4 results. They earned $6.04 per share versus the $5.55 consensus, meaning we are now looking at a six-quarter winning streak. That’s with very consistent revenue growth (at 23% year over year) and stronger than expected growth for its AWS cloud unit (48% YOY).
“We view the AMZN Long Thesis as Very Well Intact… We recommend investors focus on AMZN’s Bend The Growth Curve (BTGC) opportunities — AWS, AMS, International (India?, Australia, Turkey, Brazil), Physical Stores & Alexa” commented RBC Capital’s Mark Mahaney post-earnings.
Prepare yourself for still-significant secular growth for online retail says the analyst. “We anticipate that Online will continue to rise by ~100 bps per year from the present 11% U.S. Online Penetration level.”
Revance Therapeutics (RVNC)
Revance Therapeutics (NASDAQ:RVNC) is primed to outperform. The company is currently advancing investigational product candidate RT002. This is another frown-freezing injectable set to compete with the likes of Botox and Xeomin.
RT-002 has the potential to become the first long-lasting injectable formulation of botulinum toxin type A. Bear in mind, use of botulinum toxin products for aesthetic and therapeutic indications represents an estimated $3.4 billion market globally.
Stifel analyst Annabel Samimy initiated Revance with a “buy” rating and $50 price target. She says RT002 represents “one of the first truly novel neurotoxin formulations” and potentially offers six-month duration of effect compared to the current 3-4 months for Allergan’s (NYSE:AGN) Botox.
Meanwhile, Piper Jaffray’s David Amsellem says the RT002 data suggests the drug can gain a ‘significant foothold’ over Allergan. He is modelling for peak sales of well in excess of $1 billion.
For the bear camp, Dropbox (NASDAQ:DBX) doesn’t stand out enough from companies like Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) that offer storage for free via e.g. Microsoft 365 and G Suite.
But Dropbox believes it creates an equally valuable third-party service, and its co-opetition dynamic has evolved into a partnership. G Suite & Microsoft are now two of their largest partners.
RBC Capital’s Mark Mahaney agrees. “Each quarter, we have become increasingly impressed with DBX’s business and financial model. Best of breed FCF margins (33% in Q3) coupled with robust, consistent revenue growth” he writes.
According to the analyst, DBX’s freemium model enables highly cost-efficient customer acquisition, very high customer retention levels and substantial revenue visibility with plenty of upsell opportunities.
For example, the company announced it acquired HelloSign for $230 million. HelloSign is an eSignature and document workflow platform with over 80,000 customers. This savvy acquisition provides DBX with a potential opportunity to further expand enterprise sales and win more share of the customer wallet.
Boingo Wireless (WIFI)
This stock’s ticker kind of gives the game away. Boingo Wireless (NASDAQ:WIFI) provides high-speed wifi services. Airports, hotels and military barracks and bases are just some of the types of customers Boingo is working with.
Timothy Horan from Oppenheimer is one of the Street’s best-performing analysts. Out of 5,162 analysts tracked by TipRanks, Horan comes in at No. 50. So he clearly knows a thing or two about stock picking.
Horan has picked WIFI as his No. 1 stock. Oppenheimer asked each analyst to contribute the one idea set to outperform over the next 12 months, based on the company’s fundamentals and current market conditions.
So why is the analyst rooting for Boingo? “The rapid growth in wireless data usage provides Boingo the unique opportunity to offer LTE and Wi-Fi roaming to wireless and cable operators” he explains.
Plus WIFI can leverage its experience with major venues to accelerate small cell (DAS) deployments and expand its addressable market in population-dense locations. Horan has a $39 price target on the stock, suggesting shares can surge by over 63%!
Salesforce.com (NYSE:CRM) is a proven market-share taker. It possesses disruptive products and a powerful corporate culture, and is led by a visionary CEO.
For example, Einstein, Salesforce’s AI platform, is already demonstrating rapid expansion. The most recent update, Einstein Visual Search, allows users to snap a photo on their mobile phone and easily search for similar products.
On top of this, business fundamentals are robust and could get even better as adoption of SaaS and data analytics technologies expands.
Oppenheimer’s Brian Schwartz chimes in “We consider CRM one of the healthiest long-term growth stories in our SaaS/applications software universe.”
That’s thanks to “dominant market positioning, rapid innovation, strong execution, fast organic growth, and the ability to enter new markets, which likely set the stage for steady, ongoing upward revisions beyond the current consensus.”
Diamondback Energy (FANG)
Diamondback Energy (NASDAQ:FANG) is a growth-oriented, pure-play Permian Basin oil producer. Following the Energen acquisition in 2018, FANG is now one of three large-cap Permian pure-plays, with over 200 mboe/day of production.
What caught my eye is the extremely bullish Street sentiment. We are talking 16 back-to-back buy ratings in just three months.
Most excitingly, the company has several bold transactions underway that lay the runway for a high-growth, FCF generation machine. Plus it boasts a formidable cost advantage due to its ownership of mineral interests.
“We reaffirm our Buy rating and FANG remains a Top Pick for its attractive valuation, significant free cash flow visibility and numerous value enhancing options” writes Williams Capital’s Gabriele Sorbara.
Aerie Pharma (AERI)
Biopharma Aerie Pharmaceuticals (NASDAQ:AERI) could be on the cusp of something massive, making it a star among these monster growth stocks.
The company is focused on developing treatments for glaucoma and eye diseases. To date, AERI has developed two glaucoma drugs with the first new mechanism of action (MoA) in nearly 20 years.
We have Rhopressa (launched in 2018) and Roclatan which was approved by the FDA in March, 2019.
“Limited competition in the glaucoma space, a solid first product launch, strong management execution, coupled with an attractive valuation make Aerie one of our top picks in 2019” cheers Mizuho Securities’ Difei Yang.
Excitingly, she now sees “blockbuster potential” ahead for Roclatan. This sets up AERI for strong commercial execution over the next several years.
Yext (NYSE:YEXT) definitely fits the bill of a stock with a lot more upside potential.
They are riding the leading edge of the digital marketing frontier — what is called a cloud based knowledge engine platform so that brands can put out messages on every conceivable digital media outlet.
From an investment point of view, we are talking about a tech growth stock that is a leader in its field. Not surprisingly, analysts are quite positive on shares.
“We believe that Yext remains early in its growth cycle with an appealing overall opportunity, given a sizable/expanding TAM and lack of meaningful competition” Khan tells investors.
Management’s recent move to increase focus on the mid-size category is positive, says Khan, as it better positions the business for strong, sustainable growth and higher profitability past the transitory hiccups.