For over a decade, growth stocks have been in demand on Wall Street. Historically low interest rates, dovish monetary policies, and a spend-happy Capitol Hill have allowed rapidly growing companies to do well.
Usually, it’s the smaller companies that give the fastest growth, while large-cap companies grow at a much slower pace. Larger companies usually have more time-tested business models, making it less common that they create an eye-popping revenue boost.
However, the following two large stocks did not get that message. Both of them is on track to, at least, quintuple their total sales over a time frame of four years, according to investors’ consensus revenue predictions for 2024.
According to some analysts, Singapore-founded Sea Limited is anticipated to have its full-year sales go from $4.39 billion last year to around $21.9 billion in 2024. That calculates out to a quintupling in revenue in four years.
Sea’s secret is that it has three quickly growing sectors. For the moment, it has been anchored by its digital gaming sector. The company closed March with 649 million users, 12.3% of which are paying money to play. That’s well higher than the industry average, and it is notably higher than the 8.9% of quarterly users who were paying just one year ago.
However, the best part of this company is the e-commerce sector, Shopee. It’s the top app downloaded in SE Asia, and it is becoming especially popular in the nation of Brazil. In the first quarter of this year, Shopee had $12.6 billion in gross merchandise value (GMV). For context, they did $10.3 billion for 2018. Both the pandemic and the rise of the middle class through Southeastern Asia is boosting online purchases.
Companies centered on renewable energy products should be the fastest growing in the coming years. Over the upcoming four years investors will have to work hard to find green-energy stocks expanding faster than fuel-cell solutions maker Plug Power. After giving $337 million in sales in 2020, Plug has guided for $1.7 billion in total revenue for 2024. That is a whopping 404% increase, if it ends up happening.
For right now, climate change is the company’s best friend. Biden winning the White House last year, combined with Democrats control of the Senate, gives the possibility for a clean energy bill. A bill that companies like Plug Power will benefit from.
Also, the company got two joint venture deals only days apart in Jan.. First, SK Group bought a 10% stake, with the two seeking to introduce hydrogen fuel-cell cars and hydrogen refilling locations in South Korea. Then, Plug also got a deal with French carmaker Renault that will lead to them going for the EU’s light commercial vehicle market. Both of these partnerships should give Plug Power a better future.
Author: Scott Dowdy