The “growth” investment style consists of investing in companies offering significant potential to increase their turnover and profits. Discovery of four companies with strong historical growth estimated for the coming years.
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In previous articles, we mentioned the impressive growth of companies For a doctor, Datadog, On Holding, Fortnight, Draftkings, InPost, Dino Poland, WiseTech, PDD Holdings, Adyen, E.l.f. Beauty, Monday.com or even SentinelOne.
Duolingo
Duolingolisted on Nasdaq under the ticker DUOL, is a technology company specializing in online language learning. It offers a mobile platform and a digital language skills assessment exam. Its freemium model allows free access to the application, with paid premium options. Products include the Duolingo app, Super Duolingo, Duolingo Max, and the Duolingo English Test. The app offers courses in over 40 languages, attracting a large user base. Duolingo stands out for its strong growth. In 2023, the company reported revenue of $531 million, up from $369 million in 2022. Forecasts for 2024 and 2025 indicate continued growth, with revenue estimates reaching $736 million and $950 million. million USD respectively. The company also improved its profitability, posting an EBITDA of USD 93.7 million in 2023, compared to USD 15.5 million in 2022. Duolingo’s strategy is based on continuous innovation, notably with the introduction of features based on artificial intelligence. These innovations aim to enrich the user experience and increase engagement. The company recently announced AI-powered language learning tools, including video calls and immersive adventures. Duolingo has strong fundamentals, with a robust financial position and significant investment capacity. However, the company’s valuation is high, with an expected P/E of 154 for the current financial year. Duolingo displays rapid growth and a leading position in the online language learning market.
Rocket Lab USA
Rocket Lab USA (NASDAQ: RKLB) is a launch services and space systems company, positioning itself as a key player in the aerospace and defense industry. The company designs and manufactures rockets, spacecraft and related components, providing complete solutions for access to space. With a significant market share in the United States (75.53% of sales), Rocket Lab stands out for its ability to achieve rapid and reliable launches, as evidenced by its recent mission “Changes In Latitudes, Changes In Attitudes”. Rocket Lab reports impressive revenue growth from $62.2 million in 2021 to $245 million in 2023, with forecasts reaching $886.6 million by 2026. This growth is supported by a strategic of continued expansion, illustrated by recent contracts with NASA for studies on the return of Martian samples, and collaborations with Varda Space Industries for manufacturing missions in space. However, the company faces financial challenges, including low profitability and high debt relative to its EBITDA. Margins remain fragile, and the current valuation is considered high relative to its size. Despite these challenges, analysts remain optimistic about the company’s future growth, mostly recommending Buy or Overweight the stock. The American firm offers significant growth potential in the space sector, supported by technological innovations and strategic partnerships.
Argenx
Argenxlisted on Euronext Brussels under the ticker ARGX, is an international company specializing in the field of immunology. Its main goal is to improve the quality of life of people with serious autoimmune diseases and cancer. The company leverages its Immunology Innovation Program (IIP) to collaborate with leading academic researchers, enabling it to develop a portfolio of innovative antibody medicines. Argenx’s business model is based on the research and development of biotherapeutic drugs. Among its flagship products are efgartigimod, tested for various serious autoimmune diseases, and cusatuzumab, developed in partnership with Janssen for the treatment of blood cancer. Argenx is also involved in the development of several early-stage investigational drugs through its therapeutic franchises. The customer base is mainly concentrated in the United States, which accounts for 87.79% of its revenue. Other markets include EMEA (Europe, Middle East and Africa) with 5.94%, Japan with 4.6%, and China with 1.67%. This geographic distribution highlights the importance of the American market, while indicating a growing presence in other strategic regions. With a workforce of 1,148 employees, the company has offices in Belgium, the United States and Japan, allowing it to maintain a global presence and meet the needs of its customers in different regions. The company stands out for its ability to innovate and adapt to market developments, which gives it a leading position in the biotechnology sector. The Belgian company positions itself as a key player in the field of immunology, with a solid business model focused on innovation and a strategic geographic presence. Its ability to develop innovative treatments for serious diseases allows it to stand out in a highly competitive sector.
Grab Holdings
Grab Holdingslisted on NASDAQ under the symbol GRAB, is a technology company operating as a superapp in Southeast Asia. It offers services in the food delivery, mobility and digital financial services sectors. Operating in more than 700 cities across eight countries, Grab offers an integrated platform allowing users to order food, hail a taxi, make digital payments, and access financial services such as loans and insurance. Grab’s sales are mainly generated by deliveries (50.61%) and mobility (36.84%), with a notable presence in Malaysia, Indonesia and Singapore. The company showed significant growth in revenue, from $675 million in 2021 to $2,359 million in 2023. Forecasts for 2024 and beyond indicate a continuation of this trend, with revenue expectations between 2.7 and 2.75 billion USD for the year. Grab’s strategy is based on the expansion of its ecosystem and technological innovation, notably through the integration of artificial intelligence to improve efficiency and user experience. The company has also strengthened its financial services offering, with notable growth in deposits and loans through its digital banks. Despite still low profitability, Grab benefits from a solid financial position, allowing it to invest in new initiatives. However, high valuation and low profitability remain challenges to overcome. Recent initiatives, such as improved delivery and mobility services, as well as the expansion of financial services, position Grab for continued growth. Investors may find interest in investing in Grab due to its growth potential in an economically booming region and its ability to innovate and adapt to market needs.
