Is timing the market not your forte? Are you in need of a shortlist of growth stocks to consider? Well, look no further.
Let’s face it: growth stocks offer some of the highest returns in the market. Last year’s “Magnificent 7”, including Google, Meta, and Amazon, catapulted the S&P500 to all-time highs. But here’s the catch—some investors may not be too keen on hopping aboard the bandwagon of overcrowded, potentially overvalued stocks. Lucky for us, the world of growth stocks is not restricted to mega-caps; there are numerous smaller companies teeming with growth potential—perhaps even more. This article will examine three growth stocks that consistently demonstrate stellar growth and outperform their earnings.
Blue Bird Corporation (BLBD)
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When it comes to seeking growth stocks, market and sector leaders are prime hunting grounds. Look no further than Blue Bird Corporation (NASDAQ: BLBD), a leader in electric and low-emission school bus manufacturing. The company operates in two segments: the bus segment focuses on manufacturing and assembling buses for U.S., Canada, and international clients, while the parts segment handles the sale of third-party parts to its network and large fleet customers.
With over 20,000 propane, electric-powered, and natural gas buses under its belt, Blue Bird recently revealed record orders of 180 electric school buses, underscoring the surging demand for their products. The company’s recent financials headline a staggering 35% year-over-year growth in net sales and an even more impressive 332% surge in net income, leaping from an $11.30 million loss to a $26.20 million profit. Adjusted EBITDA skyrocketed to record highs of $47.60 million, a massive $51.1 million increase from the previous year. The company sold 2,129 buses, marking a 9% rise. Encouraged by these remarkable results, management upped the 2024 full-year EBITDA guidance to $130 million. Positioned to grow alongside global supply chain recoveries and an escalating demand for eco-friendly transportation, Blue Bird Corporation is at the cusp of remarkable growth.
The AZEK Company Inc. (AZEK)
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For growth stocks tinged with environmental, social, and governance criteria, consider The AZEK Company Inc. (NYSE: AZEK). The company specializes in designing and manufacturing outdoor products under its two main segments: the residential segment encompasses decking, rail, trim, and accessories, while the commercial segment focuses on resin-based extruded sheeting products used by original equipment manufacturers. Its portfolio includes prominent brands such as AZEK, ULTRALOX, VERSATEX, and TimberTech.
AZEK’s latest reported consolidated net sales soared 11% year-over-year, reaching $240.40 million. This surge was primarily driven by a notable 24% increase in residential segment net sales. With this growth and a striking decrease in the cost of sales, the company reversed its fortunes from a $27.63 million comprehensive loss to a $22.62 million profit year-over-year. Furthermore, the company initiated a $100 million accelerated share repurchase program, affirming its commitment to providing shareholder value. Looking ahead, the company revised its fiscal 2024 outlook, projecting net sales in the range of $1.385 to $1.425 billion and adjusted EBITDA between $353 to $372 million—a strong show of confidence backed by exceptional financial growth.
MongoDB (MDB)
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Lastly, we have MongoDB, Inc. (NASDAQ: MDB), an up-and-coming force in cloud computing, thanks to its innovative database solution, MongoDB Atlas—of which I, too, am a user. This product allows customers to automate database provisioning and offers 360-degree monitoring software, as well as enterprise-level backups, among other features.
MongoDB recently announced its membership as a founding U.S. Artificial Intelligence Safety Institute Consortium member. Moreover, it bolstered its competitive edge with the release of Atlas Vector Search, enabling semantic searches with structured and unstructured data, along with generative AI capabilities.
In their latest quarterly financial report, MongoDB revealed a 30% year-over-year increase in total revenue, with MongoDB Atlas contributing a majority share of 66%. Notably, Atlas revenue also surged 36%, cementing its pivotal role in future growth. President and CEO Dev Ittycheria expressed satisfaction with the company’s ability to secure new workloads across diverse sectors and geographies. With an optimistic guidance for the fourth quarter and full-year fiscal 2024, particularly in revenue and non-GAAP income, MongoDB’s robust momentum and expansive market positioning make it a top draw for growth stock investors.
On the date of publication, Rick Orford 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.
