7 High-Growth Stocks for the Speculating Investor

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  • Broadcom (AVGO): Broadcom’s tech relevance is currently on a discount.
  • ASML (ASML): ASML is easily one of the most important companies in the world.
  • Disney (DIS): Disney brings relevant content to an emerging generation of consumers.
  • Place the spotlight on these other high-growth stocks.
High-Growth Stocks - 7 High-Growth Stocks for the Speculating Investor

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While the slow-and-steady approach to market success is arguably the most sensible, investors must realize that the y-axis (the percentage gains and losses) is not the only plane of reality to consider. Instead, they should also monitor the x-axis or how much time it takes to extract positive returns. The shorter the x-axis, the better for you, which is why high-growth stocks are so relevant.

With these entities, we’re not just focused on the growth itself. If the x-axis was of no consideration, then it would be best to consider only the biggest of blue chips. Over the past 50 years or more, these entities have witnessed remarkable y-axis growth. But man oh man did it consume a bunch of x-axis metrics; that is time.

Guess what? You’re human. You really don’t have that much time – at least, not much quality time.

Of course, I’m not here to rush you. However, a balanced portfolio will take into account enterprises that are geared for upside in the quickest time possible. With that, below are high-growth stocks for speculators to consider.

Broadcom (AVGO)

Person holding cellphone with logo of US semiconductor company Broadcom Inc. (AVGO) on screen in front of business webpage. Focus on phone display. Unmodified photo. Broadcom stock
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Broadcom (NASDAQ:AVGO) is a global technology giant that manufactures a range of semiconductor and infrastructure software solutions. It’s enticing because of its recent downfall. On Friday, AVGO stock suffered a loss of nearly 2%. In the trailing month, it’s off the pace by more than 9%. In other words, it’s time for a relative discount.

Right now, AVGO stock trades at 16.6X trailing-year sales. Without question, that’s a blisteringly hot multiple. Even compared to the prior year (between the first quarter of 2023 to Q1 2024), the metric sat at 11.44X. Still, investors may want to consider nibbling at Broadcom while it’s relatively deflated.

Looking ahead to the end of the year, analysts project the top line to land at $51.46 billion. That’s up a staggering 43.7% from the prior year’s print of $35.82 billion. What’s more, the high-side estimate calls for $52.39 billion. And in the following year, the metric could soar to just over $60 billion. With that in mind, AVGO makes a compelling case for high-growth stocks.

ASML (ASML)

Closeup of mobile phone screen with ASML logo on computer keyboard
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ASML (NASDAQ:ASML) is one of the world’s most important enterprises, which is a good-enough argument for high-growth stocks. It provides photolithography equipment which is used to print intricate designs on silicon wafers. To say that it’s a vital component of the technology ecosystem would be an understatement.

However, ASML stock got beat down by the recent tech sector rout. On Friday, shares lost more than 3% of equity value. In the past five sessions, they’re down almost 18%. For many speculators, that type of loss would be too difficult to ignore. It’s not as if fundamentally the company has become irrelevant. Right now, shares trade for 12.67X trailing sales. That’s a modest premium over the prior year’s print of 11.34X.

Enticingly, analysts see upside over the next two years. Initially, for fiscal 2024, they’re targeting a modest bump up to $30.48 billion. That’s an increase of 3.7%. However, by the following year, sales could soar to $40.29 billion. If so, that would imply growth of 32.2%. It’s one of the high-growth stocks to consider.

Disney (DIS)

Legendary Disney castle of sleeping beauty in Disneyland
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Disney (NYSE:DIS) might seem a risky case for high-growth stocks because the entertainment giant has courted significant controversy. Basically, conservative thought leaders blame the Magic Kingdom for shoving liberal talking points down the audience’s throat. However, “woke” content – such as movies that meaningfully and authentically celebrate diversity – tends to perform well.

If so, that bodes well for Disney. Look, no matter where you fall under the political and ideological spectrum, you can understand that such a massive international brand will not back away from forwarding diversity. And also, business is business: if it works, it will keep doing it. That makes the relative discount of DIS stock so attractive.

Right now, shares trade hands at 1.97X revenue. In the past year, the metric landed at 2.02X. Further, in Q1 of this year, the metric was as high as 2.52X. The idea here is that Disney can grow into its prior valuation.

Analysts are looking for fiscal 2024 and 2025 revenue to hit $91.34 billion and $96.05 billion. That’s up 2.7% and 5.2%, respectively.

ConocoPhillips (COP)

a sign in front of the Conoco Philips office building
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ConocoPhillips (NYSE:COP) arguably makes an excellent case for high-growth stocks to buy. A multinational energy firm, ConocoPhillips is engaged in the exploration, production and marketing of crude oil, natural gas and natural gas liquids. Basically, it’s tied to the upstream component of the hydrocarbon value chain. Due to fears of global supply chain disruptions, upstream players could see increased demand over the next few years.

Despite the compelling backdrop, COP stock is trading for a relatively modest premium to sales at 2.48X. Now, that’s a bit higher than the sector average 2.12X. But here’s the thing: in the past year, the metric averaged around 2.13X. So, the upswing isn’t that dramatic considering the relevancy boost of the underlying business.

Now, it must be said that analyst projections may need to catch up to current geopolitical realities. For fiscal 2024, experts believe that sales may land at $58.14 billion, down 0.7% from last year. However, the high-side estimate calls for $68.56 billion. That seems more reasonable again due to the fears of disruption.

Uber (UBER)

Uber sign on its headquarters building in San Francisco, California, USA - June 6, 2023. Uber Technologies is a transportation conglomerate.
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Uber (NYSE:UBER) really needs no introduction. As a pioneer of the ride-sharing industry (and the concept of the sharing economy), Uber has become an everyday reality. Even better, the company has expanded to disrupt other components of the sharing space. For example, Uber Eats offers food deliveries. And it’s also moving into the freight and logistics ecosystem.

Another factor to consider about UBER stock is that analysts love the idea. However, the application software firm is technically undervalued. Right now, shares trade hands at 3.68X trailing-year sales. The average for the application software sector is 4.12X. So, given the tremendous footprint of the business, UBER can easily grow into the average valuation of the industry.

If that wasn’t enough, analysts are targeting sales of $39.46 billion for fiscal 2024. If so, that would be up 13.3% from the prior year’s haul of $34.83 billion. And in the following year, revenue could jump to $45.6 billion. That’s up another 15.6%.

With UBER stock down more than 6% in the trailing week, it may be time to consider picking shares on the dip.

Grab (GRAB)

Motorcycle helmet with Grab logo on a motorcycle parked at the road side
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A Southeast Asian technology firm, Grab (NASDAQ:GRAB) offers a wide range of services. These include ride sharing, food delivery, digital payments and financial services. It’s almost like the Uber of Southeast Asia but with even more utility. Based on the underlying fundamentals, investors should be all over this opportunity.

Still, GRAB stock was shaky during Friday’s session. In the past week, it lost more than 6% of market value. Also, the technical trend appears decisively negative since the May 20 session. Nevertheless, for speculators, this framework could spell opportunity. Right now, shares trade hands at 5.32X trailing-year sales. While that’s elevated compared to other application software firms, in the past year, the metric stood at 6.73X.

For the current fiscal year, covering experts project that sales may hit $2.77 billion. If so, that would imply a growth rate of 17.5%. Further, the high-side estimate calls for revenue of $2.94 billion. In the following year, the top line may rise to $3.24 billion, up another 16.9%. It’s one of the high-growth stocks to keep on your radar.

PDD Holdings (PDD)

A smartphone displays the Pinduoduo (PDD) website.
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If you really want to dial up your risk-reward profile, take a look at PDD Holdings (NASDAQ:PDD). A Chinese e-commerce platform, PDD combines social networking and online shopping under one umbrella. Basically, the aim here is to facilitate collective retail bargains. While a relevant offering, the issue centers on the viability of China’s consumer economy.

It’s going to be a speculative idea, that’s for sure. Since the beginning of the year, PDD stock incurred a loss of almost 9%. A lot of that red ink came from the trailing month, when the equity incurred a nearly 8% dip. Still, for those who believe in the resilience of the world’s second-largest economy, PDD is very compelling.

For one thing, shares trade at 4.76X trailing-year revenue. In the past year, however, this metric clocked in at 5.95X. Thus, PDD stock can grow into its prior valuation. What’s more, analysts believe that sales may reach $57.56 billion. If so, that would be a meteoric growth rate of 65.2%. And in the following year, revenue could rise to $75.64 billion.

On the date of publication, Josh Enomoto 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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.


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