Key Growth Stocks to Watch as Market Rebounds
Stocks are beginning to recover, presenting an opportune moment to consider growth stocks poised to capitalize on the market’s recent positive shift. Here, we examine three potential standouts: Amazon (NASDAQ: AMZN), Roku (NASDAQ: ROKU), and Celsius Holdings (NASDAQ: CELH). Let’s delve into what makes these companies worth your attention.
1. Amazon
Amazon has consistently demonstrated robust growth as a leading online retailer. The company has maintained at least 9% top-line growth for its first 28 years in business. Since its IPO in May 1997, Amazon’s stock has appreciated nearly 2,000-fold.
Recent figures indicate a 9% increase in net sales, amounting to $155.7 billion for the latest quarter—a performance that surpasses its earlier target range of 5% to 8%.
The more significant narrative is reflected in net income, which surged 64% to $17.1 billion. While sales growth has fluctuated, Amazon achieved its first double-digit net margin in the holiday quarter of 2024, a trend that seems to be strengthening.
In its past four quarterly updates, Amazon has consistently exceeded earnings expectations. Looking ahead, it projects net sales growth of 7% to 11% for the current quarter, indicating a more optimistic outlook than its earlier assessments.
Challenges such as tariff concerns may actually present an opportunity. Increasing prices on imported goods are affecting discount competitors like Shein and Temu, which previously eroded Amazon’s market share. Furthermore, Amazon’s AWS cloud computing platform has gained significant market share, now accounting for nearly a third of the global market and showing faster growth than its core e-commerce division.
Though the stock may not seem inexpensive—trading at 31 times projected earnings for this year and 26 times next year—its profit multiple is close to historic lows, prompting considerations for investors.
2. Roku
Roku’s potential might be underestimated in the current market environment. Even as shares fell 9% last Friday, overall market conditions were positive. In its first quarter, Roku reported a healthy 16% year-over-year revenue increase, marking its eighth consecutive quarter of double-digit growth.
The company’s loss was less severe than expected, yet guidance for the upcoming quarter has raised concerns. Roku anticipates a mere 11% revenue growth—its slowest pacing in two years—and has lowered its full-year projections, citing tariff impacts on hardware.
On the upside, Roku expects to return to profitability in the latter half of the year, with streaming engagement increasing by 16% over the past year. Although the guidance reflects challenges, it may still stretch Roku’s record of double-digit revenue growth to nine quarters.
3. Celsius Holdings
Celsius faces scrutiny regarding its growth sustainability; after three years of doubling revenues, it only advanced by 3% last year. Additionally, the top line declined during the second half of 2024, leading to a significant drop in stock value over the past year, though a recovery is underway in 2025.
The company continues to make strides with its functional energy drinks and has recently announced plans to acquire the firm behind Alani Nu, potentially broadening its market appeal. With expectations of growth returning in the second quarter and its stock priced under 30 times projected earnings, Celsius might be positioned for robust performance this year.
Investors won’t have to wait long for updates, as Celsius will report its first-quarter results on Tuesday morning.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
