Growth stocks have gotten a bad rap, but it’s not all doom and gloom out there.
Despite some ongoing issues, all the major U.S. stock indices rose in this year’s first quarter after enduring terrible selloffs in 2022. Some companies have been killing it lately, announcing strong earnings for the final quarter of 2022 and providing bullish forward guidance.
Although inflation remains high, interest rates continue to rise, and an economic recession remains possible, some companies are rolling out aggressive growth plans that could see their revenue double in 2023.
While success isn’t assured, it is an encouraging sign that many companies remain in growth mode despite a difficult operating environment. Spotting these high growth companies could pay off for investors. Here are three growth stocks that could double their revenue in 2023.
Dutch Bros. (BROS)
Coffee chain Dutch Bros (NYSE:BROS) may not be familiar to every reader. The Oregon-based company operates mainly in the western U.S., where its drive-through only locations are becoming as familiar to coffee drinkers as Starbucks (NASDAQ:SBUX) and Dunkin’ Donuts shops.
However, make no mistake, Dutch Bros. is a fast-growing company that is on a mission. Despite persistently high inflation and a slowing economy, Dutch Bros. has forecast that it will open 150 new locations this year en route to 1,000 drive-throughs by mid-2025. The company has also forecast that its revenue will hit $1 billion this year.
The revenue forecast is impressive, considering that Dutch Bros. reported fourth-quarter 2022 sales of $201.8 million. However, the Q4 revenue was up 44% from a year earlier, a sign of the company’s blistering growth trajectory.
Dutch Bros. currently has a little more than 650 coffee drive-through locations in 14 U.S. states, giving it plenty of runway to expand. While Dutch Bros. has been in business since 1992, it has only been public since September 2021.
However, analysts and investors seem to like the strong quarterly prints from the company. Year-to-date, BROS stock has gained 17% and the consensus view among analysts is for more growth ahead.
Online video game maker Roblox (NYSE:RBLX) continues to be popular among kids and teens, and that is driving its revenue higher.
The company’s stock jumped 26% in mid-February after it reported Q4 2022 earnings that trounced Wall Street expectations. For the final three months of last year, Roblox reported revenue of $899.4 million, which was 17% higher than the $770 million recorded a year earlier.
Roblox remains unprofitable, but its Q4 2022 loss of 48 cents a share was better than the consensus view of a 52 cents per share loss expected by analysts who cover the company.
Perhaps most impressive was that Roblox reported having 58.8 million daily active users on its online video game platform in Q4, up 19% from a year earlier. Users spent more than 12.8 billion hours playing Roblox video games during the fourth quarter, up 18% from a year ago.
The company has managed to continue growing coming out of the pandemic, defying the expectations of many people who expected a sharp drop-off once people emerged from Covid-19 hibernation. Due to the strong growth, RBLX stock has been a top performer this year, having risen 65% since the first trading day in January.
American energy giant Chevron (NYSE:CVX) is coming off a banner year in 2022. With crude oil prices touching $120 a barrel last June, Chevron’s 2022 revenue amounted to $246.25 billion, a 52% increase from the previous year.
More impressive, the oil company’s annual profit doubled and reached a record $36.5 billion last year. Can Chevron do it again in 2023? A few weeks ago, it looked doubtful. But that was before global oil cartel OPEC+ announced that it is cutting its production output by 1.16 million barrels per day beginning in May.
That news has sent crude oil prices back above $80 a barrel and has many analysts again forecasting $100 oil in the coming months.
While higher oil prices could hurt consumers at the gas pumps, they should once again prove to be a windfall for companies such as Chevron. Should supply lag demand, oil prices will continue trending upwards along with Chevron’s revenue.
The recent bump in crude prices has sent the share prices of all the major oil producers higher, including CVX stock. While Chevron’s share price is down 2% on the year, it has risen 5% since the start of April as investors digest news of the OPEC+ production cut and what it means for oil prices moving forward.
On the date of publication, Joel Baglole 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.