Yahoo Finance 4 US Growth Stocks That Can Lift Your Portfolio to Greater Heights
The US stock market has been on a tear this year.
The NASDAQ Composite Index (INDEXNASDAQ: ^IXIC) has hit its all-time high recently, powered by the stocks of large technology companies riding high on the artificial intelligence trend.
Likewise, the Dow Jones Industrial Average (INDEXDJX: ^DJI) has notched up a new record when it surpassed the 40,000 mark recently.
There is no lack of good growth stocks to buy but the important thing is to ensure that this growth is sustainable.
If you are looking for attractive US growth stocks to invest in, here are four that you may wish to include in your buy watchlist.
Samsara (NYSE: IOT)
Samsara offers a connected operations cloud service that enables organisations with physical operations to harness the Internet of Things (IoT) data to gain insights and improve their operations.
The company reported encouraging growth for its fiscal 2024 (FY2024) ending 3 February 2024.
Revenue jumped 43.7% year on year to US$937.4 million while gross profit climbed nearly 47% year on year to US$690.4 million.
Samsara also booked an annual recurring revenue (ARR) of US$1,102 for the fourth quarter of FY2024 (4Q FY2024), up 39% year on year.
The business also enjoyed healthy customer momentum.
Customers with US$100,000 or more of ARR rose 49% year on year to 1,848 while those with US1 million or more of ARR leapt 61% year on year to 82.
The software-as-a-service company uses a “land and expand” strategy to capture higher annual contract value from both new and repeat customers.
Management projects a revenue growth rate of between 27% to 28% year on year for FY2025.
Match Group (NASDAQ: MTCH)
Match Group owns a portfolio of dating apps to help people to make meaningful connections.
Some brands under the company’s global portfolio include Tinder, Hinge, Match, Meetic, and OKCupid.
The company reported a robust set of earnings for the first quarter of 2024 (1Q 2024).
Revenue increased by 9.2% year on year to US$859.6 million while net profit inched up 2% year on year to US$123.2 million.
Match Group generated healthy positive free cash flow of US$266.9 million for the quarter, more than double the US$100.5 million churned out a year ago.
Although the number of paying members dipped by 6% year on year to 14.9 million, the revenue per payer (RPP) jumped by 16% year on year to US$18.87.
Looking ahead, management intends to deploy new technologies, including artificial intelligence, into its Tinder app to improve onboarding, recommendations, and post-match experience.
Its Hinge app has also grown into a sizable business with more than 10 million monthly active users, putting it on track to become a US$1 billion business.
Elsewhere, Match Group is also nurturing other growth vectors that are gaining good traction.
Some of these niche brands include Stir, which targets single parents, and BLK, which focuses on black singles.
Roku (NASDAQ: ROKU)
Roku connects viewers to streaming content that they like, thus helping content publishers to build and monetise more easily.
The company also allows advertisers to target and engage the audiences that they would like to serve.
For 1Q 2024, Roku saw total revenue rise 19% year on year to US$881.5 million.
The business saw the number of streaming households increase by 14% year on year to 81.6 million with streaming hours jumping 23% year on year to 30.8 billion.
Although the company incurred an operating loss for the quarter, it generated a positive free cash flow of US$426.8 million, reversing the prior year’s free cash outflow of US$448.1 million.
Management is confident of its ability to grow the company’s platform revenue with a focus on increasing free cash flow in 2025 and beyond.
The focus will be on the monetisation of the Roku Home Screen while boosting programmatic ad capabilities.
Roku will also deepen its relationship with third-party platforms and retail media networks to increase the variety of content it can display on its products.
Mercadolibre (NASDAQ: MELI)
Mercadolibre is the largest e-commerce player in Latin America.
The company also provides payment services via its Mercado Pago platform and offers logistics services via Mercado Envios.
The e-commerce outfit reported a sparkling set of results for 2023.
Revenue jumped 37.4% year on year to US$14.5 billion while operating profit surged by 76.3% year on year to US$1.8 billion.
Net profit came in at US$987 million, more than double that of 2022’s US$482 million.
The company also generated a positive free cash flow of US$4.6 billion, 86% higher than the prior year.
This momentum has carried over into 1Q 2024 with revenue climbing 36% year on year to US$4.3 billion.
Operating and net profit increased by 26.3% and 71.1% year on year, respectively, to US$528 million and US$344 million.
Mercadolibre also generated a positive free cash flow of US$1.4 billion for 1Q 2024, up 77% from the year before.
The company’s operating metrics also showed continuous improvement.
The number of fintech monthly active users grew from 36 million in 1Q 2023 to 49 million in 1Q 2024.
Gross merchandise value rose 20.5% year on year to US$11.4 billion while total payment volume on its platform leapt 34.5% year on year to US$40.7 billion.
Management is also targeting acquisitions across different geographies to further boost the company’s capabilities and grow its revenue base.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
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