Recently, the nation’s gross domestic product report came out and resulted in the United States economy surging 2.4% in the second quarter. Comerica Bank reveals that California, which represents roughly 15% of total output, Texas, and Florida account for 29% of the economic growth for 2023 so far. Comerica’s California Economic Activity Index has also revealed that employment and housing data have risen 3.8% in the three months ending in April, and GDP grew at a rate of 1.2% in the first quarter of 2023. These positive news are proving to staple how strong our economy currently is, supported by robust job markets and a thriving housing sector. As we move forward, it will be crucial to sustain this momentum, and these three stocks are at the forefront of high growth in the coming years.
Ryanair Holdings (RYAAY)
Ryanair Holdings (NASDAQ:RYAAY) is one of Europe’s largest airline groups, providing international airline services with roughly 560 planes. RYAAY stock is up 35% year-to-date, and 20 analysts have predicted a 12-month low price of $132.77 to a high of $180.49 or a 31% to 79% upside.
The global passenger airline industry was valued at $573 billion in 2022 and is forecasted to grow at 6.0% CAGR to $1053 billion in 2027. Economic growth and consumers will always maintain and support a constant demand for air travel in the foreseeable future.
Ryanair has exceptional financial performance. Annual revenue reached €10.7 billion, representing a 124.43% YoY increase from €4.8 billion in 2022. Ryanair is able to use its capital efficiently from a 604.86% ROE YoY growth beating its sector average of -0.41%, and a levered FCF margin of 16.03% beating its sector average of 5.28%.
Despite facing inflation and rising costs, Ryanair has many growth prospects. Ryanair has successfully increased its competitive advantage over European rivals even during the pandemic and high operating costs. The company acquired 300 Boeing MAX 10 aircraft, and these planes are known for fuel efficiency and reduced noise levels. Unlike its competitors, Ryanair also plans to raise air ticket prices slowly to attract travelers who seek lower prices.
Given Ryanair’s strong financial growth, strategic investments in new planes, and innovative pricing strategies, RYAAY stock emerges as an appealing choice for growth-oriented investors. The stock already has high predicted upsides for the next year from analysts, and it is time to add this stock to your portfolio.
Synopsys (SNPS)
Synopsys (NASDAQ:SNPS) is the global industry leader in electronic design automation (EDA) and has a variety of internet protocol (IP) solutions. Synopsys has reported solid financials, with EPS of $2.54 and revenue of $1.39 billion, both surpassing expectations.
The global semiconductor industry is expected to grow at a 12.2% CAGR through 2031 due to the demand for artificial intelligence (AI). Synopsys is poised to take advantage of this development since it has created value for itself within the semiconductor industry.
Synopsys is a leader in AI design software, which started with its launch of DSO.ai in 2020. DSO.ai is pivotal in optimizing the power, performance, and area of a chip, addressing the acute constraints of manpower and optimization. Recently, the company has launched its new TSO.ai and VSO.ai to cover every step of the design process. Another competitive advantage Synopsys holds is its extensive IP portfolio, encompassing all standard interfaces. This allows the company to be embedded directly in a client’s design framework, offering significant opportunities for continued collaboration.
Yahoo Finance has reported 4 analysts rating SNPS stock as a “strong buy,” with a mean 12-month price target of $465.99 or a 3.14% upside. Synposys is in a great position for growth ahead and offers value in your portfolio as its reliable products make it stand out in its industry.
Workday Incorporated (WDAY)
Workday Incorporated (NASDAQ:WDAY) is an American SaaS company that offers human capital management and financial management services.
Workday demonstrates healthy financials. For Q2 2023, $1.68 billion in revenue has beaten analyst expectations by $16.3 million and is growing at a 19.3% CAGR. WDAY stock shows signs of being undervalued with a normalized EPS of $1.31 and a projected 17.2% forward growth rate. Workday further demonstrates great profitability and management of operational expenditures through a 73.2% gross profit margin and a 21.3% levered FCF margin.
Workday has a series of new products and services that will support future growth. Workday is able to better meet customer needs through its financial management and human capital consultants. With the demand for Workday’s financial management consulting expected to grow at a 13% CAGR until 2030, this division within Workday would increase revenue for the foreseeable future. Workday also unveiled a new Vendor Management Service (VMS) software to assist HR. With the VMS industry valued at $226 billion and typically managed by HR, the company will be able to capitalize on this industry with its newest SaaS product.
Workday had developments in partnerships by becoming the new financial managers through a multi-year contract with the Mclaren F1 team, as well as expanding Human Capital Management services with its first-ever partner, Samsung. Workday’s ability to continuously develop new partnerships in different industries and to build upon old partnerships drives the company’s innovation.
With WDAY stock up 40.4% YTD, “strong buy” ratings from analysts, and an average predicted 12-month upside of 2.3%, the stock is worth buying because of its healthy financials, specialized consulting services, development of a new product to take advantage of a growing industry, and more mentioned above.
On the date of publication, Michael Que 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.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
