Growth stocks are perfect for individuals who accept the greater inherent risk involved in stocks compared to the average investor. However, choosing what growth stocks to invest in can be tricky. Just because a stock has performed remarkably well over an extended period doesn’t mean it will continue. Investing in aggressive growth stocks can be very rewarding but can also be costly.
When seeking out aggressive growth candidates to invest in, it’s important to find companies that have reported large increases in revenue and earnings per share. This may most likely cause new investors to flock to the stock, sending its share price higher.
Below, I discuss three aggressive growth stocks that have experienced massive share price appreciation alongside double-digit revenue growth.
Abercrombie & Fitch (ANF)
Abercrombie & Fitch (NYSE:ANF) is an apparel retailer that provides clothing products, personal care items, and other accessories under the brand of Abercrombie & Fitch, Hollister, and Gilly Hicks, It also operates an e-commerce platform.
Over the past year, its share price has more than quadrupled due to steady earnings growth and the overall popularity of its products.
On May 29, Abercrombie & Fitch reported earnings for the first quarter of 2024, in which it stated that total revenue increased by 22% year-over-year. Net income rose from $18 million in Q1 2023 to $115 million in Q1 2024, a more than sixfold increase. It also raised its outlook for the remainder of 2024, stating that 10% sales growth is anticipated for 2024.
ANF beat analysts’ estimates for earnings, with its Hollister and Abercrombie & Fitch brand revenue growth over the last year being 12% and 31%, respectively. ANF is a retail stock that has shown sharp share price appreciation. With its share price increasing by nearly 20% following its last earnings report, Abercrombie & Fitch still has room to grow.
GigaCloud Technology (GCT)
GigaCloud Technology (NASDAQ:GCT) operates a B2B e-commerce platform that sells large-package items such as furniture, appliances, and fitness equipment.
Over the past year, its share price has increased nearly fourfold due to an increased number of active customers and overall impressive revenue growth. On May 9, GCT reported earnings for the first quarter of 2024, in which it stated that total revenue increased by 97% and net income rose by 71% compared to the previous year.
Active buyers and spending per buyer increased year-over-year by 29% and 27%, respectively. GigaCloud Technology expects that total revenue for the second quarter of 2024 will be between $265 million and $280 million.
GigaCloud Technology beat analyst estimates regarding its most recent earning results. With strong share price appreciation over this past year, it could continue to grow, especially if it continues to report impressive revenue growth alongside an increasing active user base.
Applovin (APP)
Applovin (NASDAQ:APP) is an application software company that engages in the production of apps such as AppDiscovery, MAX, and Adjust, all of which assist in providing monetization and marketing services.
Over the past year, its share price has risen more than threefold due to the rollout of new products and increasing earnings growth.
Earnings for the first quarter of 2024 were released on May 8, and total revenue increased by 48% year-over-year. A net loss of $5 million was reported for Q1 2023; in Q1 2024, it shifted to a net income of $236 million. Applovin beat analysts’ estimates for first-quarter earnings.
Applovin’s new AI-powered engine, Axon 2.0, has greatly improved its software and mobile app marketing capabilities. Applovin is stock on the cutting edge of AI technology that could continue to experience share price appreciation and overall revenue and net income growth.
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.
