NVDA
NVIDIA
-- 139.050 TSLA
Tesla
-- 391.180 RGTI
Rigetti Computing
-- 9.6650 PLTR
Palantir
-- 67.350 AMD
Advanced Micro Devices
-- 120.770 How can you determine promising growth stocks in the future?!
In the USA, there are many dynamic stocks like Tesla that skyrocket in the growth stage. How can you find stocks that have the potential for leapfrog growth in the future? We have summarized the points to evaluate the growth potential of companies.
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Revenue (sales) growth
Revenue (sales) growth is also the growth of a company, and it is essential.
Absolute value of revenue growth rate
→ Compared to the previous year,20% or moreCompanies that have shown revenue growth and continue to steadily increase their revenue are attractive.
Change in revenue growth rate
Ideal to see the growth rate increase over time.
Comparison with competitors in the same industry
Companies with the potential for significant future growth tend to have higher revenue growth rates compared to competitors in the same industry.
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Growth of net profit
The growth of net profit is an important factor that influences the performance of a company.
Absolute value of net profit growth rate
→ Compared to the previous year20% or highershowing a net profit growth of 20% or more compared to the previous year, companies that continue to steadily increase net profit are attractive.
Changes in net profit growth rate
→ It is ideal for net profit to increase over time.
These two are similar to points to consider when evaluating revenue growth.
However,When looking at the growth rate of net profit, it is important to compare it with the growth rate of revenue.
→It is good if the growth rate of net profit is higher than the growth rate of revenue.。
Because companies that are growing along with profitability improvements are considered to be taking high-quality growth steps that are not just limited to temporary expansion of revenue.
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Sustainability of growth
Sustainable growth can enhance competitiveness and potentially increase stock prices.
Companies that have consistently grown revenue and net profit for over five years.
It can be considered that there is sustainability in the growth.
In cases where the industry has high growth potential.
There is a high potential for companies in that industry to have high potential growth rates.
Companies that meet these conditions may have the potential to grow dramatically and become promising in the future.
Especially in terms of net profit growth, the timing when long-standing deficit companies transform into profit-making companies is worth paying attention to from a stock price perspective.At times when companies that were in deficit for a long time transform into profit-making companies.It may be worth paying attention to from a stock price perspective, such as the timing when companies that were in deficit for a long time transform into profit-making companies.
If you are an investor expecting significant capital gains, it may be a good idea to challenge yourself to invest in promising growth stocks in the future.
However, be careful about the difference in stance between value investing and growth investing, and make your own investment decisions.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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dsrjjneepomupomu : When it comes to deciding whether to buy stocks, there's no point in breaking it down to a quantitative stage