Companies focused on rapidly growing their business model can be a solid addition to any investor’s portfolio. Growth stocks typically offer strong earnings potential and impressive share price appreciation.
Purchasing shares in a company that has garnered a strong buy rating is also a great option when discovering which company will work best as an investment.
When these two significant drivers of investment potential are combined, being stocks with solid growth potential, especially in the near term, and strong buy ratings, it’s a no-brainer for investors seeking a solid rate of return.
Here are a few options for growth stocks that meet the above mentioned criteria and offer the potential for share price appreciation and also have a strong buy rating.
SkyWest (SKYW)
SkyWest (NASDAQ:SKYW) is a regional airline with a fleet of around 500 aircraft. It offers passenger and cargo services, leases aircraft, and offers charter flights.
On Feb. 1, SkyWest announced its earnings for the fourth quarter full year 2023, and it stated that total revenue increased by 10% year-over-year. It reported a net loss for Q4 2022 of $47 million, and for Q4 2023, it became a net income of $18 million.
SkyWest repurchased 1 million shares for approximately $45 million in the fourth quarter. The total share buyback program approved by its board of directors in May 2023 allows for another $91 million in repurchases.
It has a deal with multiple major airlines, including Alaska Air Group (NYSE:ALK), United Airlines (NASDAQ:UAL), and Delta Air Lines (NYSE:DAL), to deliver its E175 aircraft by the end of 2026.
SkyWest has performed remarkably well compared to its peers, such as Jet Blue Airways (NASDAQ:JBLU) and Frontier Group (NASDAQ:ULCC). Its share price has more than tripled within the last year and still offers investors a decent value buy opportunity.
SKYW is an airline company that has been rewarding its investors. With strong earnings potential and the growing demand for travel, this may just be the start for SkyWest, which is the reason it has a strong buy rating.
Vital Farms (VITL)
Vital Farms (NASDAQ:VITL) is a company that produces pastured-raised eggs and other related products.
On Mar. 7, Vital Farms reported earnings for the fourth quarter full year 2023, stating that total revenue increased by approximately 23% when compared to the previous year. Earnings per share for Q4 2022 were four cents, and in Q4 2023, it increased by over fourfold to seventeen cents. Cash and cash equivalents for Vital Farms were $116 million at the end of 2023, and it also mentioned that it had no outstanding debt.
The fiscal year 2024 Vital Farms outlook reports that total revenue is anticipated to increase by at least 17% over the full year 2023 results.
Its share price has risen by 68% within the last year, most notably due to increased revenue and growth in its customer base.
Vital Farms is definitely a strong buy stock due to its recent earnings growth. With its latest earnings report exceeding analyst expectations and a renewed view on the outlook of 2024, VITL could be a great pick-up for any investor.
Modine Manufacturing (MOD)
Modine Manufacturing (NYSE:MOD) is a company that primarily produces heat transfer systems for a wide range of vehicles. It also supplies various HVAC and refrigeration products for industrial applications.
Over this past year, its share price has more than quadrupled due to increased earnings growth and the rollout of a new product.
On Jan. 30, Modine reported earnings for the third quarter of fiscal year 2023, in which it stated that total sales remained practically unchanged and net income rose by 83%. Modine also revised its sales guidance for fiscal year 2024, which set the expected range for total sales to increase by 4-7%.
On Feb. 26, Modine announced that it had acquired Scott Springfield Manufacturing, a Canadian manufacturer of air handling units. With this acquisition, Modine seeks to improve its indoor air quality product line.
Oppenheimer’s recent increase in its price target to $105 shows that Modine still may see an overall increase in its share price, which may offer investors potential upside to a company that has had an incredible year.
As of this writing, Noah Bolton held a LONG position in MOD. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
