Three growth stocks that can bring interesting appreciation in the long term
Investing in growth stocks can be one way to ensure long-term capital appreciation. Analysts often cite cases where investors have enjoyed huge returns - for example, with Nvidia, whose shares have risen roughly 245 times over the past decade. In this article, therefore, we will focus on three interesting companies that experts believe have the potential to generate significant profits in the future.
Growth stocks are stocks of companies that are expected to have above-average revenue and earnings growth compared to other companies in the market. These companies often reinvest their profits in expansion, new product development or technology rather than paying dividends to shareholders. For this reason, investors in these stocks expect the value of the company to grow significantly in the future, and thus their share price.
Which 3 stocks are currently getting the most attention? 👇
Uber $UBER
The potential leader in the robo-taxi market: The first stock that analysts recommend watching is Uber, a well-known ride-sharing and food delivery company. While this company has established itself in the global market in recent years, its growth potential may just be beginning. One key factor is the future use of robotic taxis. Uber could become the main platform on which these technologies will operate, which would mean a major increase in revenue in the coming decades.
Of course, there are risks, especially regulatory ones, as this is a highly innovative and disruptive industry. On the other hand, if Uber manages to fully leverage its position and expand into new markets, it could be a company with high long-term growth potential. Experts note that Uber shares are currently trading at a relatively favorable price-to-earnings ratio (P/E of around 30).
Shopify $SHOP
The other stock with growth potential is Shopify, which provides a platform for easy e-commerce store setup. Shopify helps entrepreneurs and established brands quickly enter the world of online sales. Some of the well-known brands that use Shopify include GymShark, Red Bull and Nescafé.
Shopify has gone through significant fluctuations over the past few years. Its stock rose rapidly during the pandemic, but then saw a correction due to rising interest rates. However, the company has not stopped growing. Last year, for example, its revenue grew 26%. Despite the volatility, analysts see long-term potential in this stock. If the company can continue to grow at the pace the market expects, the stock could prove to be a profitable investment over the next few years.
Novo Nordisk $NVO
Healthcare Revolution: The latest stock that analysts consider promising is Danish pharmaceutical company Novo Nordisk. The company excels at developing drugs to treat diabetes and obesity, with its flagship drugs Wegova and Ozempic. Novo Nordisk shares have risen 450% in the last five years, mainly due to the growing demand for these drugs.
Future growth could be driven primarily by the expected expansion of the market for weight-loss drugs, which some analysts believe could grow up to 15 times by 2030. At the same time, however, competitors such as Eli Lilly and AstraZeneca are gaining ground in the market. However, Novo Nordisk is investing heavily in research and development, which may help it to maintain its market leadership.
Conclusion
Growth stocks may be risky, but they also offer the possibility of significant capital appreciation. Companies such as Uber, Shopify and Novo Nordisk have a promising future according to analysts, although the risks associated with their industries cannot be overlooked. Long-term investments in these stocks may be an attractive way to participate in the growth of innovative markets that have the potential to impact the global economy in the years ahead.
Disclaimer: You will find a lot of inspiration on Bulios, but stock selection and portfolio construction is up to you, so always conduct a thorough analysis of your own.
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