Since the end of the Great Recession, all systems favor growth stocks. Historically low lending rates and the country’s central bank’s ongoing quantitative easing have made capital plentiful for fast-paced companies looking to borrow.
But for some companies, the sales growth is only stepping into high gear. The following five well-known large-cap stocks (that is, market caps of $ 10 billion or more) are expected to increase their sales by 303% to 1337% d, according to consensus Wall Street sales estimates. ‘by 2025.
CrowdStrike Holdings: 344% implied sales growth by 2025
As the first name in cybersecurity, CrowdStrike Holdings‘ (NASDAQ: CRWD) sales growth is exploding. The company made about $ 874 million in full-year sales in fiscal 2021, and Wall Street expects the company to generate nearly $ 3.89 billion in sales in five years.
The beauty of CrowdStrike’s operating model is that cybersecurity has become a basic service. No matter how good or bad the economy or the US stock market is, hackers and bots don’t take a day off. As more and more data moves into the cloud, CrowdStrike is increasingly used to protect that information.
What makes this company so special is its cloud native platform known as Falcon. Built in the cloud and powered by artificial intelligence, Falcon oversees an estimated 6 trillion events every week and becomes more efficient at recognizing and responding to threats over time. In many ways, this is a more cost effective solution for onsite security.
Plus, the growth story speaks for itself. In less than five years, the number of CrowdStrike subscribers has grown from 450 to over 13,000. Additionally, the number of customers who purchased four or more cloud subscriptions has grown from 9% to 66% in one. little more than four years. These additional purchases are one of the main reasons for CrowdStrike’s rapid margin growth.
Robinhood Markets: 377% growth in implicit sales by 2025
Online investment app focused on retail investors Robinhood Markets (NASDAQ: HOOD), which went public less than two months ago, is also expected to see jaw-dropping sales growth over the next five years. After the company reported $ 959 million in revenue last year, Wall Street estimates the company will reach around $ 4.58 billion in full-year revenue from 2025.
There are a number of reasons Robinhood speaks to retail investors. On the one hand, the platform is built commission-free, at least when buying companies listed on the New York Stock Exchange and Nasdaq. Robinhood also offers free shares to new members who deposit money and invest on the platform and allows investment in fractional shares. This allows investors who may not have hundreds or thousands of dollars to buy fractions of a full share of shares at a high price.
However, there are also serious growth issues. For example, Robinhood generates a significant portion of its revenue through payment for order flows from a small handful of market makers. While these market makers are unlikely to stop paying Robinhood for this information, the exit of any one of these parties would be felt quickly.
The other issue is sort of a PR nightmare for Robinhood. Due to insufficient liquidity at the start of the year, the company was forced to scale back its trading activity on highly volatile memes stocks and heavily shorted companies. This has not appealed to some retail investors and could hurt the company’s long-term growth potential.
Airbnb: 303% growth in implicit sales by 2025
Another well-known large-cap stock that is expected to generate significant increases in sales over the next five years is the hospitality market. Airbnb (NASDAQ: ABNB). Airbnb is expected to increase its sales from $ 3.38 billion in 2020 to a consensus of $ 13.61 billion by the middle of the decade. This is a little more than the quadrupling of income in five years.
Airbnb might seem like a huge company, considering its market cap of $ 107 billion, but it has just over 4 million hosts globally. There are over 130 million homes in the United States and approximately 1 billion worldwide. The hosting platform is still in its infancy with plenty of room to develop.
Speaking of accommodation, the fastest growing segment of the business has always been long term stays (28 days or more). The idea of ââstaying mobile and not being tied down to one place has become even more popular in the wake of the pandemic and the increase in the remote workforce. This trend shows that Airbnb’s operating model is not a fad.
Perhaps the most exciting aspect for Airbnb is its push towards travel. The Company’s Experiences segment works with local experts to set up adventures and activities for travelers. This is one of the many ways Airbnb can partner with local businesses or hosts to control more of the travel / vacation experience.
Novavax: 1.337% implicit growth in sales by 2025
While most 2019 coronavirus disease (COVID-19) vaccine developers are expected to see sales decline by the middle of the decade, the stock of clinical-stage biotechnology Novavax (NASDAQ: NVAX) looks like it will be the exception. After just under $ 476 million in sales in 2020, Novavax is expected to generate around $ 6.84 billion in sales by 2025. This big leap is based on the expectation that the experimental COVID-19 vaccine NVX-CoV2373 will soon be used in an emergency. authorization in the US, UK, Europe and potentially a number of other key markets.
Novavax’s COVID-19 vaccine was effective in two large-scale studies. In March, the company reported a vaccine efficacy (VE) of 89.7% from a study conducted in the UK. Three months later, he reported a 90.4% EV in a trial in the United States and Mexico. This initial EV is expected to be more than enough to make Novavax the No. 3 worldwide in administering the COVID-19 vaccine.
What could really separate Novavax from its competition is the potential to create combination vaccines. Novavax has the ability to beat its peers in the market with a combined COVID-19 / influenza vaccine. Its drug development platform is also designed to rapidly develop clinical candidates to combat COVID-19 variants.
In short, Novavax sales are about to take off.
Pinterest: 328% growth in implicit sales by 2025
Finally, the newcomer on social networks Pinterest (NYSE: PIN) is projected by Wall Street to more than quadruple its sales by the middle of the decade. After the company’s $ 1.69 billion in sales in 2020, analysts are forecasting $ 7.24 billion in sales by 2025.
Many on Wall Street were not very happy after Pinterest’s second quarter results showed a drop of 24 million monthly active users (MAUs) from the sequential first quarter. However, this slowdown in the short-term growth of MAU was inevitable with increasing COVID-19 vaccination rates allowing people to leave their homes more frequently. Looking back three years, Pinterest’s MAU growth is still well within historical standards.
What really stands out is the monetization potential of Pinterest. Even with a significant slowdown in MAU growth in the quarter ended June, average revenue per user (ARPU) grew 89% globally and 163% internationally, compared to the period of the previous year. The fact that the global ARPU has increased by 89% is a clear indication that merchants value access to Pinterest’s 454 million MAU database.
Equally important, there is no guessing about Pinterest users. The whole premise of the platform is to share the things, places, and services that people care about. This allows small businesses to effectively target users and may well make Pinterest a key ecommerce destination for years to come.
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