Funding high-growth stocks is a critical strategy to achieve significant returns in a recovering market. Here, the focus is on three high-growth stocks positioned to double investment within the next two years. Learning the fundamentals behind these companies is essential for making sharp investments. The first one is a major player in China’s express delivery market. This stands out with its solid increase in parcel volume and strategic focus on profitability. Despite a slight market share contraction, its operational efficiency and competitive pricing reflect its ability to adapt and thrive in a growing e-commerce landscape.

Meanwhile, the second company is a leading manufacturer of school buses. It has shown remarkable growth in its electric vehicle sales and a significant increase in its order backlog. This positions the company as a key player in the transition to sustainable transportation, with robust revenue prospects. Finally, the third company has achieved its first positive net income and improved its medical loss ratio, demonstrating robust financial health and operational effectiveness. Its innovative healthcare and cost management approach makes it a solid addition to the high-growth stocks.

ZTO Express (ZTO)

ZTO Express (NYSE:ZTO) is an express delivery company in China. In Q1 2024, ZTO achieved a parcel volume of 7.17 billion, marking a 14% annual increase. Although slightly below the overall industry increase of 25.2%, this growth rate demonstrates ZTO’s fundamental ability to scale its operations while maintaining a strategic focus on profitability. ZTO reported an adjusted net profit of $2.22 billion for Q1 2024, reflecting a 16% annual increase. Despite a marginal contraction in market share by 1.9 percentage points, this considerable growth in profitability underscores ZTO’s efficiency in cost management and strategic resource allocation. 

Moreover, ZTO’s combined sorting and transportation costs per parcel decreased by 6 cents compared to the previous year. This reduction is attributed to enhanced resource utilization, improved route planning and continued standardization in sortation procedures. Specifically, line-haul transportation costs per parcel decreased by 7% to 47 cents, and unit sorting costs decreased by 5.4% to 30 cents. These improvements highlight ZTO’s operational edge and commitment to cost management.

Overall, ZTO Express’s decision to prioritize high-value customers and considerable parcel volume growth and profitability make it a top mark on the high-growth stocks list.

Blue Bird (BLBD)

Blue Bird (NASDAQ:BLBD) has a growing line of electric and alternative-powered vehicles—the company’s nearly 30% increase in order backlog and solid growth in electric vehicle sales. At the end of Q2 fiscal 2024, Blue Bird’s firm order backlog stood at 5,900 units, reflecting a nearly 30% increase from Q2 fiscal 2024. This backlog is worth approximately $850 million in revenue. The significant growth in the order backlog indicates strong market demand for Blue Bird’s products. This suggests revenue stability and confirms the strength of its market position.

Moreover, the ratio of incoming orders to units sold in Q2 2024 was 60%. This is against 20% in the same quarter last year. This dramatic increase signals a robust and growing order pipeline, boosting the company’s revenue visibility and growth potential. The high order-to-sales ratio reflects strong demand and suggests Blue Bird may hit solid growth. Blue Bird achieved a record number of EV sales in Q2 2024, with 210 electric school buses sold, a 55% increase annually.

These factors, combined with a robust order pipeline and revenue visibility, make Blue Bird a high mark among high-growth stocks.

Oscar Health (OSCR)

Oscar Health (NYSE:OSCR) is a technology-driven health insurance company focused on providing innovative healthcare solutions. The company gained its first positive net income and improved its Medical Loss Ratio (MLR) by 2.1% to 74.2%. This improvement in MLR signifies better control over medical costs relative to premiums collected. Oscar Health achieved a milestone by reporting positive net income for the first time. The net income for the quarter was $178 million. This represents a substantial $217 million improvement annually. Indeed, attaining positive net income indicates that the company has reached an operational edge where its revenue significantly exceeds its costs.

Further, Oscar Health had a total company-adjusted EBITDA of $219 million, marking a $168 million improvement YoY. This substantial improvement underscores the company’s growing bottom line. Similarly, the improvement in adjusted EBITDA reflects the company’s ability to scale its operations efficiently, leveraging fixed costs and achieving variable cost efficiencies. The strong adjusted EBITDA performance demonstrates the underlying earnings power of Oscar’s business model, driven by growing membership and improved operational metrics.

To summarize, sharp cost management, a sharp pricing strategy and an uplifted bottom line solidify its potential among high-growth stocks.

On the date of publication, Yiannis Zourmpanos 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.

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