Finding the best high-flying growth stocks suitable for long-term investing can be challenging. With market fluctuations and investor focus shifting almost weekly, it’s easy to find yourself chasing after any stock that shows significant movement. While this approach may work at times, it can lead to overtrading and increased stress due to the fast-paced nature of the market.
Therefore, it’s less stressful and more effective, in my opinion, to have a clear strategy for identifying stocks with solid growth prospects rather than just following the latest market favorites. In this article, we will take a broader approach by screening the entire market for stocks with growth potential using the following criteria:
- Earnings growth: 150% or more in the latest fiscal year and 100 to 150% in the prior year,
- Analyst coverage: Four or more analysts,
- Analyst rating: “Buy” or higher,
- Stock movement based on technical analysis: Uptrend,
- Stock price movement direction as per technical analysis: Strengthening.
I will then sort the list based on the highest earnings growth and select the top three companies. Here are the results:
TransAlta Corporation (TAC)
TransAlta Corporation (NYSE:TAC) is an electricity generator and wholesaler that owns and operates various electricity-generating assets, including solar, wind, hydro, thermal coal, and natural gas. The company operates in six main segments:
- Energy Transition
- Energy Marketing
- Corporate
- Wind & Solar
- Hydro
- Gas
These assets have a combined capacity of generating 6.7 gigawatts (GW) of electricity. TransAlta is well-positioned to meet the growing demand for renewable energy sources. It recently announced the commercial operation of its 200 MW Horizon Hill Wind Project, surpassing 1 GW in its renewable energy portfolio.
The company has been on a solid growth trajectory for several years, with FY2023 being a record-breaking year, showing a staggering 23,200% year-over-year earnings growth from $0.01 to $2.33 per share.
While the company experienced a slight slowdown in revenue and earnings in the second quarter, it remains committed to enhancing shareholder value through share repurchases and expanding its renewable energy portfolio. It’s no surprise that Wall Street continues to rate TAC as a strong buy, making it one of the best high-flying growth stocks to buy right now.
Box Inc. (NYSE:BOX), formerly Box.net, is a cloud content management platform enabling customers to manage their cloud content securely and seamlessly from any device, anywhere. The company’s offerings include Box Sign, Box Shield, Box Zones, Box KeySafe, Box Governance, Box Notes, and more. Recently, Box acquired Alphamoon Technology, which owns intelligent document processing (IDP) technology that will enhance Box’s AI capabilities for automating document-related tasks.
Box’s FY2024 performance justifies its moderate buy rating. Revenue increased by 5% year-over-year from $990.87 million to $1.04 billion, while earnings grew by an impressive 1,050% YOY from $0.06 to $0.69 per share.
Although such significant earnings growth may not be repeated, the company’s Q1 2025 results indicate its growth trajectory is intact, with a 5% YOY revenue increase and a 167% YOY earnings improvement from $0.03 to $0.08 per share. With innovative product offerings like Box Hubs and Box AI, the company is poised for an exciting FY2025. Now might be a good time to consider adding BOX to your portfolio.
Paysign (PAYS)
Based in Henderson, Nevada, Paysign (NASDAQ:PAYS) is a fintech company offering innovative financial technology solutions to businesses, consumers, and government clients. The company’s product portfolio includes prepaid cards, payment solutions, and digital banking services. It provides a diversified revenue stream across various markets and opens the door to significant growth opportunities.
Paysign’s FY2023 report reinforces its strong buy rating from analysts. The company reported a 24% year-over-year revenue increase and a record-breaking 528% earnings growth.
In Q2 2024, revenue grew by 29.8% year over year. Last year’s Q2 loss also turned around a profit of $0.01 per share. Paysign raised its full-year guidance, projecting continued growth in both revenue and profitability. Expectations are a 20-24% revenue increase and earnings of $0.04 to $0.06 per diluted share. With its solid growth trajectory and potential, PAYS is one of the high-flying stocks you won’t want to miss.
On the date of publication, Rick Orford did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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