Although recent headwinds like stubbornly high inflation and the banking sector crisis knocked the wind out of several publicly traded enterprises, a select number of hardened survivors potentially represent growth stocks to buy now. Using Gurufocus, all the companies below feature (on a per-share basis) five-year and ten-year growth rates of 20% and 15%, respectively.
However, companies that rank among the growth stocks to own may have already run their course; that is to say, there might not be enough gas in the tank. To remedy this obvious challenge, I also filtered out within these growth machines enterprises that are also undervalued. Usually, this attribute means trailing-12-month earnings but they can also include other calculations. If you’re willing to accept the risk involved in seeking maximum returns, these are the growth stocks to buy now.
AMN | AMN Healthcare Services | $95.60 |
PATK | Patrick Industries | $68.24 |
REGN | Regeneron | $747.25 |
WGO | Winnebago | $57.21 |
NXST | Nexstar Media | $163.94 |
DOOO | BRP. Inc. | $74.90 |
GLOB | Globant | $149.86 |
AMN Healthcare Services (AMN)
Founded in 1985, AMN Healthcare Services (NYSE:AMN) provides innovative staffing and total talent solutions for the underlying industry. Leveraging a market capitalization of $3.78 billion, it’s among the modestly sized middle-cap enterprises. Despite its relevance, AMN slipped 10% since the start of this year. However, in the past 365 days, it’s up nearly 7%.
As one of the candidates for growth stocks to buy now, AMN immediately stands out for its operational stats. In particular, its three-year revenue growth rate comes in at 35.8%, ranked above 87.12% of sector rivals. Also, its EBITDA growth rate during the same period clocks in at 52.3%, above 90.41%.
Just as enticingly, AMN trades at a forward multiple of 13.17. As a discount to projected earnings, AMN ranks better than 86.84% of companies listed in the healthcare providers and services industry. Finally, Wall Street analysts peg AMN as a consensus strong buy. Overall, their average price target hits $109.17, implying over 14% upside potential.
Patrick Industries (PATK)
Founded in 1959, Patrick Industries (NASDAQ:PATK) is home to many of the most well-respected brands in recreational vehicles, marine, manufactured housing, and industrial categories, according to its website. Although eclectic enterprises can sometimes trip over themselves, that’s not the case for Patrick. Since the beginning of this year, PATK returned nearly 8% of equity value. In the past year, it’s up almost 2%.
Again, as one of the growth stocks to buy now, Patrick stands out for the target theme. Per Gurufocus, its three-year revenue growth rate pings at 25.7%, ranked above 93.57% of its peers. As well, its EBITDA growth rate during the same period comes out to 40%, outflanking 88.66% of rivals. Also, it’s a profitable enterprise, featuring a trailing-year net margin of 5.53% (above 60.3%).
Regarding value, the market prices PATK at a trailing multiple of 6.41. As a discount to earnings, Patrick ranks better than 88.89% of the competition. Thus, it makes a solid case for growth stocks to own. Lastly, analysts peg PATK as a moderate buy. Their average price target lands at $78, implying nearly 19% upside potential.
Regeneron Pharmaceuticals (REGN)
Quickly generating news during the worst of the Covid-19 crisis, Regeneron Pharmaceuticals (NASDAQ:REGN) developed therapeutics to address the SARS-CoV-2 virus. However, with fears of Covid infection fading, investors should use the calm to assess other products under Regeneron’s pipeline. Enticingly, since the start of the year, REGN gained over 4%. In the past 365 days, it’s up almost 15% of equity value.
As one of the well-established growth stocks to buy now, Regeneron enjoys a balanced profile. For operations, it commands a three-year revenue growth rate of 23.3%, ranked above 71.72% of sector rivals. In addition, it’s a highly stable enterprise, as evidenced by its blisteringly high Altman Z-Score of 10.13.
Attractively, the market prices REGN at a forward multiple of 17.73. As a discount to projected earnings, Regeneron ranks better than 70.37% of companies listed in the biotechnology space. To close out, analysts peg REGN as a consensus strong buy. Overall, their average price target stands at $893.18, implying 19% upside potential. Thus, it’s another solid case for growth stocks to own.
Winnebago Industries (WGO)
On the surface, Winnebago Industries (NYSE:WGO) doesn’t seem a viable idea for growth stocks to buy now. With incredible pressures on the consumer economy, Winnebago’s RVs seem out of touch with reality. However, because the expanding wealth gap favored the ultra-rich during the new normal, Winnebago may be surprisingly relevant. Interestingly, since the Jan. opener, WGO returned almost 8% of equity value.
Financially, the RV manufacturer makes a strong case for growth stocks to own. In particular, its three-year revenue growth rate clocks in at 33.9%, ranked better than nearly 94% of its peers. Moreover, its EBITDA growth rate during the same frame comes in at 48.2%< outpacing 91.4%.
On the valuation front, the market prices WGO at a forward multiple of 7.22. As a discount to projected earnings, Winnebago ranks better than 74% of companies in the vehicles and parts sector. Turning to Wall Street, analysts peg WGO as a consensus moderate buy. In addition, their average price target comes out to $71.80, implying over 27% upside potential.
Nexstar Media Group (NXST)
Headquartered in Irving, Texas, Nexstar Media Group (NASDAQ:NXST) admittedly ranks among the riskiest growth stocks. Billed as the largest television station owner in the U.S., Nexstar obviously commands a massive footprint. However, with the cord-cutting phenomenon accelerating over the years, Nexstar’s relevancy may suffer significant headwinds. Since the beginning of this year, NXST gave up more than 7% of its equity value.
Nevertheless, if you’re willing to overlook the fundamental viability issue, on paper, NSXT does appear intriguing. For example, its three-year revenue growth rate pings at 26.9%, ranked above 90.7% of its peers in the diversified media industry. Also, its EBITDA growth rate comes in at 34.5% during the same period.
For value, the market prices NXST at a trailing multiple of 6.69. As a discount to earnings, Nexstar ranks better than 85.07% of the competition. Looking to the Street, analysts peg NXST as a consensus strong buy. Their average price target lands at $212, implying over 31% upside potential. Thus, it could be one of the growth stocks to own for speculators.
BRP Inc. (DOOO)
A manufacturer of snowmobiles, all-terrain vehicles, and other recreational craft, BRP Inc. (NASDAQ:DOOO) again doesn’t immediately strike investors as one of the growth stocks to buy now. With pressures mounting on average households, buying snowmobiles doesn’t seem very prudent. On the other hand, the households that can afford such luxuries can do so quite easily. Since the start of this year, DOOO slipped a few basis points below parity.
Focusing strictly on the financials, BRP appears quite attractive regarding the main theme. For instance, its three-year revenue growth rate clocks in at 24.3%, above 90.4% of sector rivals. During the same period, its EBITDA growth rate printed 30.8%, above 84.72% of competitors.
For value, the market prices DOOO at a forward multiple of 7.5. As a discount to projected earnings, BRP ranks better than 72.88% of the competition. Lastly, analysts peg DOOO as a consensus strong buy. Their average price target hits $103.48, implying almost 40% upside potential.
Globant (GLOB)
Founded in 2003, Globant (NYSE:GLOB) is an information technology and software development firm operating in various countries, including the U.S., U.K., and several nations in Central and South America and Europe. However, it’s one of the riskiest growth stocks. Since the Jan. opener, GLOB slipped almost 16%. In the trailing one-year period, it’s down more than 19%.
Still, for some speculators, Globant makes up for the red ink with robust operational performances. Notably, the company’s three-year revenue growth rate hits 33.4%, above 87.69% of firms listed in the software industry. Also, its EBITDA growth rate during the same period is 34.8%, above 81.87% of sector players.
For value, GLOB’s price-earnings-growth (PEG) ratio lands at 1.21. In contrast, the sector median stat is a loftier 1.59 times. As well, Globant enjoys consistent profitability, along with a trailing-year net margin of 8.35%. To be fair, Gurufocus does warn that Globant might be a value trap. That said, analysts peg GLOB as a unanimous strong buy. Their average price target stands at $207, implying over 45% upside potential.
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.