Investing in the right stocks can leapfrog the progress you make toward your long-term financial goals. But what should you look for before you decide on the right group of stocks to own?
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High revenue growth, rising profit margins and competitive advantages are three key catalysts that can multiply your money. Stocks that exhibit those characteristics can become viable long-term opportunities that outpace the S&P 500 over the long run. Looking for some promising opportunities? These are some of the top under-the-radar stocks that can perform well during Trump’s term and beyond.
Sezzle (SEZL)
Sezzle is a fintech company that offers a Buy Now Pay Later service. Despite being one of the top performing stocks this year, Sezzle only has a $2 billion market cap and a 41 P/E ratio. The valuation looks promising given the company’s 71% year-over-year revenue growth and roughly 1,100% year-over-year net income growth.
Management raised full-year guidance from $55 million in net income to $71.5 million. Year-over-year revenue growth is projected to be at 55% in 2024, compared to the previous guidance of 35%-40% year-over-year growth.
Sezzle is also expanding into banking through its recently announced partnership with WebBank. More fintech companies are gaining ground on traditional financial institutions, and Sezzle looks like one of the top beneficiaries of this trend.
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Duolingo (DUOL)
Duolingo is an educational tech company that helps people learn new languages. Members go through several learning exercises to master the basics of any language and expand their knowledge over time.
The company reported strong revenue growth and excellent profit margin expansion from a rapidly growing user base. Duolingo has 113.1 million monthly active users, which is a 36% year-over-year improvement. Daily active users and paid subscribers achieved higher growth rates in the third quarter. Revenue jumped by 40% year-over-year, while net income soared by 732% year-over-year.
As people travel more often, there’s a stronger need to learn multiple languages. More people are also picking up new languages as a hobby, even if they don’t plan to travel internationally. Those catalysts are part of the reason why the online language learning market is projected to maintain a compounded annual growth rate of 18.5% from now until 2030.
Commvault Systems (CVLT)
Commvault Systems is a cybersecurity firm that specializes in data protection, backup, recovery, management and compliance in any environment. The stock doesn’t have as much fanfare as CrowdStrike, but it has a better valuation and accelerating financial growth.
Shares have more than doubled over the past year as the company focuses on a recurring revenue model. Subscriptions have been making up a higher percentage of total revenue with each passing quarter, and that trend has significantly contributed to the company’s accelerating revenue growth.
CommVault’s total revenue grew by 16% year-over-year, reaching $233.3 million in the process. However, it’s more important that subscription revenue jumped by 37% year-over-year to reach $134.0 million. Subscription revenue made up 57% of Commvault System’s total revenue. As subscription revenue becomes a larger slice of the pie, the cybersecurity firm’s overall revenue growth should continue to accelerate.
Wingstop (WING)
Wingstop is a fast food restaurant chain that specializes in chicken wings. The company has logged impressive long-term gains for investors, but currently finds itself in a correction. The recent dip presents a long-term opportunity for investors.
Revenue increased by 38.8% year-over-year in the fiscal third quarter, while net income was up by 31.9% year-over-year. Digital sales soared by 69% year-over-year, as same-store sales jumped by 20.9% year-over-year.
Elevated same-store sales imply that Wingstop locations are becoming fixtures within communities. People are regularly returning to their closest Wingstop and making additional purchases. The company also opened 106 additional restaurants and now has 2,458 system-wide restaurants. It’s also tapping into global markets and has 338 international restaurants, representing a 29% year-over-year increase.
Talkspace (TALK)
Talkspace has been reporting good growth rates, just like the other stocks on this list. However, it can benefit directly from a Trump presidency. Talkspace is a leading behavioral health platform that offers online therapy sessions. More than one million people currently use the platform, and some insurance policies cover the cost.
Not everyone is happy about the upcoming Trump presidency, and that can be a boon for Talkspace’s business model. It wouldn’t be the first time, as Talkspace grew 70% to 80% faster than projected in the first few months of Trump’s first presidency.
The online therapy platform can see a quick boost thanks to Trump’s re-election. However, it’s already delivering respectable growth rates. The company reported 23% year-over-year revenue growth in the third quarter. Talkspace also generated $1.9 million in net income, compared to a $4.4 million net loss in the same period last year.
Talkspace has maintained its momentum after the first Trump presidency. It’s possible for the company to achieve substantial growth in 2025 and maintain it in the years ahead.
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This article originally appeared on GOBankingRates.com: If You Invest $10K in These 5 Companies Before January, You Could Be a Millionaire in 10 Years
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