Uncovering growth stocks to buy and hold is essential for long-term financial success in the fast-paced investing world. Shares in companies predicted to develop faster than other businesses are known as growth stocks. These companies appeal for substantial long-term returns since they frequently have good foundations, creative business concepts, and strong financial performance. Here, the best three growth stocks to keep till 2028 are examined, along with fundamentals and advantageous market positioning.
Investing in and understanding growth companies is crucial since they usually have the potential to increase in value significantly. These businesses have strong operational and financial results. These are reflected in their growing member base, increased operational effectiveness, and expanded market reach. Similarly, increasing shipments and efficient inventory control highlight robust supply chain capabilities. Their core competencies, such as expansion in digital out-of-home (DOOH) advertising and retail media solutions, demonstrate their ability to penetrate markets and innovate in advertising technology effectively.
SoFi (SOFI)
SoFi (NASDAQ:SOFI) is a financial services platform with a broad portfolio of loans, investment services, and banking solutions. In Q1 2024, SoFi had an adjusted EBITDA of $144 million, a 91% increase from the previous year. With this considerable boost, the margin improved from 16% in Q1 2024 to 25% in the prior year.
Indeed, scalability and operational edge are reflected in the capacity to almost double EBITDA in a single year. With 622K new members joining throughout Q1, SoFi’s membership base increased to 8.1 million in Q1 2024, a 44% increase over Q1 2023. This increase in membership signifies SoFi’s growing customer base and broader market penetration.
Moreover, in the first quarter of 2024, SoFi added 989K new products, with the financial services segment accounting for 93% of these additions. This suggests that SoFi’s approach to broadening its range of products is positively affecting its clientele and cultivating more meaningful and lucrative member connections.
Overall, SoFi’s solid membership growth highlights its increasing market adoption and expanding service reach. This underscores why it’s among the fastest-growing stocks to buy and hold.
ACM Research (ACMR)
ACM Research (NASDAQ:ACMR) leads in wafer processing solutions for semiconductors. In Q1 2024, its product shipments were $245 million, a massive 175% rise over the same period last year. The delivery of finished goods not delivered during the fourth quarter of the previous year partly led to this boom. However, the major reason for this shipment spike was actually the high production levels attained over the Lunar New Year vacation period. Effective shipping management and ramp-up demonstrate ACM Research’s strong supply chain and manufacturing capabilities.
Further, a considerable rise is reflected in the company’s inventory. This increased to $581.1 million at the end of the previous quarter from $545.4 million. This growth in inventory shows that ACM Research may satisfy future demand and has a robust pipeline of products ready for the market. ACM Research can continue its shipping growth and take advantage of market possibilities. In short, it is experiencing major supply chain bottlenecks thanks to effective inventory management.
To sum up, the company’s solid shipment increase demonstrates its robust supply chain and production capabilities, making it a solid pick among growth stocks to buy and hold.
Perion (PERI)
Perion (NASDAQ:PERI) is a digital advertising tech-company. Retail media solutions are one of Perion’s key growth drivers. In Q1 2024, they reached $14.9 million, reporting a remarkable 134% annual increase. Compared to last year’s period, this segment now generates 20% of Perion’s income from advertising solutions, up from 8%. Moreover, Perion’s solutions are successful and appealing to big retailers and brands, as seen by the almost $0.5 million in extra in-store sales that they were able to create for a top U.S. beer brand using sophisticated AI-driven dynamic mapping and high-impact advertising units.
Additionally, in Q1 2024, Perion’s DOOH advertising division had a pro forma growth of 25% year-over-year to $9.7 million. The industry trend toward programmatic DOOH, expected to account for 30% of DOOH transactions by 2025 from 3% in 2019, supports this expansion. Thus, with their 969% increase over six years, Perion’s DOOH advertising solutions have enormous upside potential.
To conclude, Perion’s massive growth in its retail media solutions revenue signifies its effective market penetration, which supports its presence on the growth stocks to buy and hold list.
As of this writing, Yiannis Zourmpanos held long positions in SOFI and ACMR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.