The stock market has been off to a great start so far. The S&P 500 is up by 10% to start the year and many stocks have reached all-time highs. Some dark clouds hang over the stock market, such as the Federal Reserve not rushing to reverse course.
However, some corporations look ready to deliver revenue and earnings growth throughout the challenges. It’s also possible that the stock market shrugs off the Federal Reserve’s cautious stance.
In good times and bad times, some stocks perform better than others. These three corporations have the potential to deliver sizzling returns for patient investors.
Celsius Holdings (CELH)
Celsius Holdings (NASDAQ:CELH) is penetrating international markets and can achieve higher growth rates within those areas. The sports beverage drink is already attracting many returning customers. The company reported 95% year-over-year revenue growth in the fourth quarter of 2023. Full-year revenue increased by 102% year-over-year.
Celsius Holdings is delivering impressive sales growth while expanding its profit margins. The company reported $50.1 million in net income compared to a net loss in the same period last year. The company’s net profit margin stood at 14.4% in the quarter.
The stock’s only weakness is its 109 P/E ratio. However, the company is gobbling up market share and is growing its earnings at an exceptional rate. The stock is up 42% year-to-date but recently entered a healthy correction. Celsius stock should take off in a market rally due to the company’s enticing and sustainable growth rates. The stock is up by roughly 6,000% over the past five years.
Chipotle (CMG)
People will travel more often during the summer, meaning plenty of stops at fast-food restaurants. Chipotle (NYSE:CMG) is an established fast-food restaurant chain with respectable growth rates. The company’s fourth-quarter earnings report offered several good signs.
Revenue increased by 15.4% year-over-year to reach $2.5 billion. Net income also improved and was up by 26.1% year-over-year. Chipotle’s double-digit net profit margins have helped it outperform the stock market. Shares are up 29% year-to-date and have gained more than 300% over the past five years.
A recently announced stock split has brought more attention to the stock. The 50:1 stock split goes into effect on June 18th and will get the price of a Chipotle share below $60 at current levels. This lower price point can attract more retail investors and options traders, increasing the stock price.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) has led the artificial intelligence rally. The stock is up 83% year-to-date and has soared by 1,753% over the past five years. Despite these impressive gains, many analysts believe the GPU chip maker has more room to run.
Based on the current price, the stock is rated as a “Strong Buy” and has an expected 12% upside. The highest price target of $1,400 per share suggests the stock can gain an additional 59% from current levels. Most of the recent price targets have exceeded $1,000 per share.
Nvidia’s fourth-quarter earnings report highlights why the stock has been in a league of its own. The corporation reported a 265% year-over-year increase in revenue. GAAP net income was 769% higher than last year’s. Nvidia isn’t only growing, but it is also expanding its profit margins. That key distinction has resulted in a more reasonable valuation and gives the stock more room for summer gains.
On this date of publication, Marc Guberti held long positions in CELH and NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
