Growth stocks are a solid choice for investors seeking to experience a rapid rate of return. Many of these stocks still offer potential upside, but it is best to do your due diligence. Stocks that increased dramatically in share price recently may not continue that trend; it’s best to be conscious of that when picking a new company to invest in.
A company’s overall profitability is one of many driving forces that interest investors and get them to buy into a stock. It is vital to pay close attention to a company’s overall profitability in the past and future projections to determine if it is a solid investment opportunity.
These three growth stocks beat analyst expectations regarding their most recent earnings results. They offer double-digit revenue growth along with remarkable share price appreciation.
Costamare (CMRE)
Costamare (NYSE:CMRE) is a marine transportation company that operates dry bulk vessels and containerships.
Within the past six months, CMRE’s stock price has increased by 68%, primarily due to its strong earnings report and new ship leasing program, which enabled CMRE to access more shipping assets.
On May 10, CMRE released its earnings for the first quarter of 2024, stating that total revenue increased by 89% and adjusted net income rose by 62% to $75 million compared to the previous year. CMRE now has a significant liquidity position of $1.1 billion.
Its new leasing program has interested investors and funded 24 new shipping assets totaling $258 million.
CMRE also provides a dividend yield of 3% on an annual basis. Its most recent quarterly distribution to investors was May 6.
Customer beat analysts’ predictions for earnings for the first quarter, and impressive revenue growth and share price appreciation firmly put it in the growth stock category.
Blue Bird (BLBD)
Blue Bird (NASDAQ:BLBD) manufactures and sells school buses, mainly to service centers and state governments. It supplies diesel-powered buses as well as buses with alternative power options, including electric, gasoline, compressed natural gas and propane.
On May 8, BLBD reported earnings for the second fiscal quarter of 2024, stating that total revenue increased by 15% from a year ago. Net income grew from $7 million to $26 million.
Since this impressive earnings press release and a substantial analyst prediction beat, BLBD has risen by 50%.
Electric bus sales also greatly influenced investor excitement surrounding Blue Bird. The federal Clean School Bus Program initiative approved in 2021 aims to replace diesel-powered buses with alternative power solutions. It has assisted in sales of electric buses increasing by 56% year over year and supplies a backlog of 500 buses for Q2 2024.
Blue Bird is a growth stock due to its recent solid revenue and share price growth.
GigaCloud Technology (GCT)
GigaCloud Technology (NASDAQ:GCT) is a B2B e-commerce platform that offers mostly large parcel merchandise such as fitness equipment, appliances, and furniture. It operates approximately 21 warehouses in Europe, North America and Asia.
Over the past year, its stock price more than quadrupled, primarily due to its impressive earnings growth and an increase in its overall customer base.
On May 9, GCT reported earnings for the first quarter of 2024, in which it stated that total revenue increased by 97% and net income rose by 71% year-over-year. It also has a decent cash position of $196 million.
Active buyers and active spend per buyer increased by 29% and 27%, respectively, for the 12 months ended March 31, 2024, compared to the 12 months ended March 31, 2023.
GCT beat analyst expectations on earnings for the first quarter of 2024 and anticipates that total revenue for the second quarter of 2024 will be between $265 million and $280 million.
GigaCloud Technology reported impressive revenue growth alongside substantial share price appreciation.
As of this writing, Noah Bolton held a LONG position in BLBD. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
