If You Can Only Buy One Growth Stock in May, It Better Be One of These 3 Names

  • These are stocks that have given investors huge returns over this past year.
  • Applovin (APP): Improving its AI capabilities and exciting investors.
  • Blue Bird (BLBD): A recent earnings beat has caused its share price to surge.
  • GigaCloud Technology (GCT): A recent short-seller report has led to share price volatility.
Growth stocks to buy - If You Can Only Buy One Growth Stock in May, It Better Be One of These 3 Names

Source: shutterstock.com/Lemonsoup14

Growth companies are great for investors due to their impressive rate of return. Growth can provide investors with a rare opportunity to experience a stock share price surge, especially following a stellar earnings report. These stocks tend to be very popular with investors, particularly those who can deal with a fair amount of inherent risk.

The companies mentioned below offer investors impressive growth metrics such as revenue and net income that have increased by double digits compared to the previous year. These stocks have also seen a massive surge in their share price due to their earnings growth and future potential. 

Applovin (APP)

AppLovin (APP) logo and page displayed on phone and computer screen
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Applovin (NASDAQ:APP) operates an online software platform for advertising among small and independent businesses to improve monetization. Its products include AppDiscovery, a marketing software; MAX, an online auctioning platform; and Adjust, an analytic software.

Applovin’s share price has more than tripled in the last year, due primarily to its new Axon Engine and impressive revenue growth.

On May 8, APP released its earnings for the first quarter of 2024, in which it stated that total revenue increased by 48% year-over-year. A net loss of $5 million was reported for Q1 2023, and for Q1 2024, it increased to a net income of $236 million.

Applovin beat analyst expectations regarding its most recent earnings results. It also provided investors with guidance for the full year 2024, with predicted revenue of $1,060 million to $1,080 million.

Investors are heavily interested in its new generative AI engine, Axon 2.0, which improves its overall mobile app capabilities.

Applovin is a strong buy tech stock with impressive revenue growth and greater upside potential regarding its Axon Engine platform. With company management expecting positive guidance, it could be a solid long-term choice as well.

Blue Bird (BLBD)

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Blue Bird (NASDAQ:BLBD) designs, manufactures and sells school buses for state governments and individual service centers. It produces diesel-powered buses as well as buses with alternative power options, including electric, compressed natural gas, and propane.

On May 8, BLBD reported earnings for the second quarter of fiscal year 2024, stating that total sales increased by 15% and net income more than tripled compared to the previous year. Blue Bird raised its full-year guidance for total revenue to between $1.275 billion and $1.325 billion.

Expansive growth amongst its fleet of alternative buses, especially electric buses, has investors interested in BLBD’s future capabilities. Electric bus sales have risen by 56% since this time last year, and when Q2 FY 2024 earnings were reported, the company had a backlog of approximately 500 electric buses.

It beat analysts’ predictions for Q2 FY 2024 results by a wide margin, which has caused its share price to skyrocket recently. Since May 8, its stock price has increased by 45% and doubled this past year.

BLBD is a great pick for investors due to its impressive earnings results and a strong backlog of electric buses. Investors are very high on this stock at the moment, and it could be a great addition to any investment portfolio.

GigaCloud Technology (GCT)

e-commerce stocks, Image of small shopping bags sitting in a shopping cart on a computer. Strong Buy E-Commerce Stocks
Source: Shutterstock

GigaCloud Technology (NASDAQ:GCT) provides B2B eCommerce capabilities and shipping and logistics services for large parcels such as furniture, fitness equipment, and appliances.

Its share price has been relatively volatile over the past year, but it has more than quadrupled overall.

A recent short report made by Grizzly Research has caused some fluctuation within GCT’s overall share price. The initial release caused the stock price to fall, stating that GCT’s website traffic doesn’t align with the company’s recent growth. With low website traffic, GCT is perpetuating undisclosed transactions among related parties. After the claims were refuted with a company press release, investors felt confident in GCT’s response, which led to an increase in its share price.

On May 9, GCT released its earnings for the first quarter of 2024, stating that total revenue increased by 97% and net income rose by 71% compared to the previous year. Its active buyers and active spend per buyer also drastically increased within the same time period by 29% and 27%, respectively.

GCT beat analyst expectations regarding earnings for the first quarter of 2024 and anticipates a strong second quarter, with revenue expected to be between $265 million and $280 million.

Despite recent news regarding a short report, GCT stated it was misleading and false. GCT has provided investors with impressive growth metrics, such as a substantial revenue surge and net income surge.

As of this writing, Noah Bolton did not hold (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.

Noah has about a year of freelance writing experience. He’s worked with Investopedia dealing with topics such as the stock market and financial news.

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