If timing entries are not your forte, having a shortlist of growth stocks to buy may be for you.
Growth stocks offer some of the best returns in the market. For example, last year’s “Magnificent 7”, including Google, Meta, and Amazon, pushed the S&P500 to all-time highs. While that’s impressive, some investors might not want to buy into overcrowded—and potentially overvalued—stocks. The great thing is that we’re not limited to mega-cap growth stocks, as there are dozens of smaller companies with just as much growth potential—maybe even more. This article will examine three growth stocks that are consistently growing and beating their earnings.
Blue Bird Corporation (BLBD)
Market and sector leaders are excellent places to start when looking for growth stocks. For example, Blue Bird Corporation (NASDAQ:BLBD) is a leader in electric and low-emission school bus manufacturing. The company operates in two segments: the bus segment for its manufacturing and assembly of buses for its U.S., Canada, and international clients, and the parts segment for its parts sale of third-party parts to its network and large fleet customers.
Blue Bird owns over 20,000 propane, electric-powered, and natural gas buses. The company also recently announced receiving record orders of 180 electric school buses, highlighting their growing demand.
Headlining BLBD’s recent financials are a 35% YoY growth in net sales and a massive 332% increase in net income, from an $11.30 million loss to a $26.20 million profit. Meanwhile, adjusted EBITDA reached record highs of $47.60 million, a significant increase of $51.1 million compared to last year. Sold buses reached 2,129, representing a 9% rise.
Due to these impressive results, management increased 2024’s full-year EBITDA guidance to $130 million. Blue Bird is poised to grow alongside massive global supply chain recoveries and an accelerating demand for eco-friendly transportation.
The AZEK Company Inc. (AZEK)
Investors seeking growth stocks with shades of ESG should look at The AZEK Company Inc. (NYSE:AZEK). The company designs and manufactures outdoor products under its two main segments: the residential segment for its decking, rail, trim, and accessories, and the commercial segment for its resin-based extruded sheeting products that are used for a variety of applications for its original equipment manufacturers. Its brands include AZEK, ULTRALOX, VERSATEX, and TimberTech.
AZEK’s latest reported consolidated net sales rose 11% YoY, reaching $240.40 million. This was primarily driven by a notable 24% increase in residential segment net sales. This growth and a noteworthy decrease in the cost of sales resulted in a YoY reversal from a $27.63 million comprehensive loss to a $22.62 million profit.
The company also initiated a $100 million accelerated share repurchase program, affirming its positive stance on providing shareholder value. In terms of forecast, the company raised its fiscal 2024 outlook for net sales to be between $1.385 and $1.425 billion and adjusted EBITDA in the range of $353 to $372 million. This strong show of confidence and excellent financial growth to back it up makes AZEK one of the more attractive growth stocks to keep tabs on.
MongoDB (MDB)
Last but not least on our list of growth stocks to buy is MongoDB, Inc. (NASDAQ:MDB). Mongo is an emerging name in cloud computing thanks to its innovative database product. Its main product is MongoDB Atlas, a product I’ve used myself. It enables customers to automate the provisioning of databases and offers 360-degree monitoring software along with enterprise-level backups, among other features.
MongoDB recently announced its membership as a founding U.S. Artificial Intelligence Safety Institute Consortium member. It also doubled down on its competitive advantage thanks to its release of the Atlas Vector Search, which allows semantic searches with structured and unstructured data and generative AI capabilities.
MDB reported their latest quarterly financials on December 5, 2023. Total revenue was up 30% YoY, with MongoDB Atlas making up the majority with a 66% share. Atlas revenue was also up 36%, making it a key area for future growth. President and CEO Dev Ittycheria expressed satisfaction with its ability to secure new workloads across various sectors and geographies, solidifying its pivotal role in organizations’ tech stacks.
Company guidance for the fourth quarter and full-year fiscal 2024 is optimistic, particularly with revenue and non-GAAP income. MDB’s strong momentum and expansive market positioning make it one of the top growth stocks to buy right now.
On the date of publication, Rick Orford 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.
