Today, the conditions are ripe for the next generation of growth stocks. The job market is robust and supporting a resilient consumer. Also, business-to-business spending is booming due to fiscal spending incentives and the artificial intelligence (AI) revolution. Furthermore, the Federal Reserve has hit pause, with a high probability of a cut as the next move.
These positive macro conditions and the technical momentum of this bull market set the stage for the following life-changing growth stocks. Due to their growth runway, they can grow revenues for decades. Buy them today to compound your returns for years.
Shopify (SHOP)
The bullish case for Shopify (NYSE:SHOP) is simple: it will ride the e-commerce wave for decades. Indeed, after the recent pullback, it’s one of the life-changing growth stocks to buy.
Shopify enables merchants to start and scale their businesses and has become the de facto platform for small businesses to sell their products globally. Indeed, it has enjoyed tremendous success, growing revenues from $105 million in 2014 to $7.4 billion in the trailing twelve months. Yet despite the 70x revenue growth, Shopify is just getting started.
Taking the long-term view, Shopify has a gigantic opportunity. Today, global e-commerce penetration is under 25% of total sales. Statista estimates that e-commerce revenues will grow at approximately 9.49% annually between 2024 and 2029, hitting $6.4 trillion by the end of the period.
As a key player in e-commerce, SHOP will benefit tremendously from increased e-commerce penetration. Furthermore, its aggressive pursuit of the enterprise market will accelerate growth. Brands like Kylie Cosmetics, Coach, Overstock, Heinz, SKIMS and Supreme have launched on the platform due to its capabilities and value.
Lastly, Shopify sees a significant opportunity in the global B2B e-commerce market. In Q1 of 2024, gross merchandise volume in this segment grew 130% year-over-year (YOY). In summation, enterprise, B2B e-commerce and new growth vectors like payments mean SHOP stock will be a multibagger.
BellRing Brands (BRBR)
BellRing Brands (NYSE:BRBR) is one of the fastest-growing consumer staples stocks. In the most recent quarter, it posted 28% YOY revenue growth. This growth shows that the company is capitalizing on the expansion of the convenient nutrition category, which grew 5% in the quarter.
Cowen analyst Robert Moskow thinks that BellRing Brands is well-positioned to benefit from the adoption of ready-to-drink shakes. Particularly, he sees massive growth potential due to the use of RTD shakes in weight management. Notably, shakes are taking share from bars and household penetration has grown from 38% in 2019 to 45% in 2023.
Also, Moskow points out that shake adoption is higher among younger demographics. Therefore, this creates a long growth runway for BellRing Brands, making it one of the best life-changing growth stocks. He projects that the company will achieve a 13% revenue CAGR over the next three years.
Overall, the business is accelerating due to rising shake demand and new shake capacity. With the capacity expansion, RTD shake production will increase by 20%. This will drive the introduction of new flavors that will grow BellRing’s customer base.
Management’s fiscal 2024 guidance estimates net sales in the $1.93 billion to $1.99 billion range, representing at least 15% growth. That’s one of the highest growth rates in consumer staples, highlighting why BRBR stock will be a winner.
Nextracker (NXT)
One of the top secular trends is the shift from fossil fuels to renewable energy necessitated by global warming. Wood Mackenzie estimates that installed global solar power capacity will triple by 2033. This expansion bodes well for Nextracker (NASDAQ:NXT), a leader in solar tracker technology.
This solar solutions provider is integral to utility-scale solar deployments, providing solar tracker technologies. Its solutions, which include software, enable solar panels to move with the sun’s direction, enabling increased energy production. Notably, utilities and power generation projects have adopted these solutions due to optimized energy production that delivers a significant return on investment.
Nextracker is seeing significant demand and revenues are surging. In the recent quarter, Q4 fiscal year 2024, sales increased by 42% to $737 million. This revenue growth rate accelerated from the 38% achieved in Q3 of 2024, highlighting the incredible momentum.
Moreover, management provided upbeat guidance for fiscal year 2025. Management issued revenue guidance in the range of $2.8 billion to $2.9 billion, at least 12% growth. Even better, they expect adjusted EBITDA to increase from $521 million to between $600 million to $650 million. Considering these growth numbers, Nextracker is one of the best life-changing growth stocks to buy.
On the date of publication, Charles Munyi had long positions in SHOP and NXT and did not hold (either directly or indirectly) any positions in other securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Charles Munyi has extensive writing experience in various industries, including personal finance, insurance, technology, wealth management and stock investing. He has written for a wide variety of financial websites including Benzinga, The Balance and Investopedia.