Consistent sales growth is paramount for a company’s success, forming the foundation for generating profits. It enables companies to achieve scaling efficiencies, generate continuous shareholder value, and enjoy various other benefits. In the finance industry, three standout companies – Lululemon Athletica (LULU), Palo Alto Networks (PANW), and Celsius Holdings (CELH) – have exhibited significant revenue growth and received positive earnings estimate revisions.
If you are seeking companies with impressive top-line growth, let’s take a closer look at each one:
1. Lululemon Athletica (LULU)
Lululemon Athletica designs, manufactures, and distributes athletic apparel and accessories for women, men, and female youth. The stock currently holds a Zacks Rank #2 (Buy), with earnings expectations consistently trending upward across the board.
The company is in full growth mode, with projected earnings for the current year indicating a 20% increase, accompanied by an 18% boost in revenue. Looking ahead to FY25, estimates hint at a further 15% expansion in earnings on a 13% increase in sales.
Quarterly results have been robust, with LULU consistently surpassing the Zacks Consensus EPS Estimate by an average of 6.8% across its last four releases. Furthermore, post-earnings, the stock has experienced consistent buying pressure in 2023, as illustrated below:
2. Palo Alto Networks (PANW)
Palo Alto Networks has witnessed favorable price action in 2023, with a 70% year-to-date increase, driven by the artificial intelligence excitement. PANW operates Cortex XSIAM, an integrated suite of AI-driven, intelligent products for Security Operations Centers (SOCs).
The stock currently holds a Zacks Rank #2 (Buy), with a notable positive trend in revisions for the current fiscal year.
Forecasted growth for the company is solid, with projected earnings set to climb 20% in the current year, accompanied by a 19% increase in revenue. Looking ahead to FY25, estimates suggest a further 20% earnings growth paired with an 18% rise in sales.
PANW shares have been long-term outperformers, delivering a remarkable 1600% cumulative gain over the last decade, surpassing the S&P 500’s 200% gain, as shown below:
3. Celsius Holdings (CELH)
Celsius Holdings specializes in commercializing healthier, nutritional, functional foods, beverages, and dietary supplements. The stock currently holds a Zacks Rank #2 (Buy). Similar to PANW, there has been a bullish trend in revisions for its current fiscal year.
The company has demonstrated robust top-line growth, with estimates projecting a staggering 170% earnings growth and almost 90% higher sales for the current year. Consensus expectations indicate potential for continued growth.
Keep an eye out for the upcoming quarterly release on November 8th, as the Zacks Consensus EPS Estimate of $0.51 suggests a substantial 170% climb compared to the same period last year. The consensus revenue estimate sits at $346.3 million, reflecting 83% growth.
When it comes to sustaining a prosperous business, consistent sales growth is crucial. LULU, PANW, and CELH have showcased their strength in this area, with each maintaining a favorable Zacks Rank, reflecting optimism among analysts.
Don’t Miss Out on Profit Opportunities in the Oil Sector
In addition to the companies mentioned above, the global demand for oil is skyrocketing. Oil producers are struggling to keep up, and despite the recent decline in oil prices, significant profits can still be made from “black gold” suppliers.
Zacks Investment Research has released a special report, “Oil Market on Fire”, unveiling four unexpected oil and gas stocks positioned for substantial gains in the coming weeks and months. Download this free report now to explore these opportunities.
If you’re interested in more stock recommendations, you can download the free report “7 Best Stocks for the Next 30 Days” from Zacks Investment Research by clicking here.
To read the original article on Zacks.com, click here.
Disclaimer: The views and opinions expressed herein are those of the author and do not necessarily reflect the views and opinions of Nasdaq, Inc.