Growth stocks are companies that have seen a significant increase in overall share price, total revenue, and market capitalization within a relatively short time period. Growth companies are magnets for investors due to the fact that they are always looking for stocks that beat the market.
But there is always a risk when investing, and growth stocks are no different. It’s essential to pay attention to the company press releases and investor sentiment. The worst thing is to invest in a growth company looking for a decent return, and then for whatever reason, the company starts becoming less profitable, and its share price falls, making it no longer an attractive growth company.
Below, I discuss three different growth companies that have seen substantial increases in their share price, especially within the last year. They all have seen positive earning results and have a vital placement within their respective industries. Investors should study these three companies if they are looking to beat the market in 2024.
Uber Technologies (UBER)
Uber Technologies (NYSE:UBER), based in San Fransisco, California, operates primarily as a passenger transport company. It also has a delivery segment that offers restaurant pick-up orders and other retail and convenience store deliveries. In addition, Uber provides logistics services for small businesses.
Over the past year, Uber has seen their share price grow by 61%. On Aug. 1, Uber released their second-quarter earnings results for 2023, which stated an increase in total revenue of 14% compared to the year before. For the second quarter of 2022, it reported a net loss of $2.6 billion, and for the second quarter of 2023, it reported a net income of $394 million. Uber’s mobility business segment saw approximately 25% growth year-over-year.
Uber Technologies is a significant growth company due to its continued upward trend in its stock price, and the mobility segment of its business is consistently seeing increases in overall bookings.
Modine Manufacturing (MOD)
Modine Manufacturing (NYSE:MOD) is an automotive parts provider in Racine, Wisconsin. It produces heat transfer components for the original equipment manufacturing (OEM) used for the automotive, industrial and construction industries. Its products include unit ventilators, hybrid fan condensers, fan shrouds, oil coolers, radiators and precision air conditioning units.
In their most recent earnings report for the quarter ended June 30, Modine Manufacturing stated that net income more than tripled and total sales grew by 15% compared to the previous year. The increase in revenue can be attributed to the increase in sales for their climate and performance technologies business segments as well as the overall rise in their pricing model.
Their stock price has grown within this last year by approximately 120%, and just year-to-date, their share price has nearly doubled. This makes it a growth company to watch. MOD’s next earnings report is set to release on Nov. 1 after the market closes.
Super Micro Computers (SMCI)
Super Micro Computers (NASDAQ:SMCI) is a technology hardware business headquartered in San Jose, California. They develop, manufacture and sell server and storage solutions with products such as server management software, rack mount, blade and GPU servers, motherboards, chassis, adapters and transceivers. Their products are used for generative AI and data center applications.
Year-to-date Super Micro Computers share price is up by 182%. Their most recent earnings report showed an increase in net income of 37%, and total revenue grew by 34% from the previous year. For the next quarter, MOD expects total revenue between $1.90 and $2.20 billion.
Super Micro Computers still has room to grow even after a great year due to their presence within the data center market and continued interest in generative AI capabilities.
As of this writing, Noah Bolton 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.
