24/7 Wall St. Insights

• Here are some candidates to be the best-performing growth stock over the next five years.
• A biotech stock tops the list but is not an overly speculative pick.
• Also: 2 Dividend Legends to Hold Forever.

Interest rates have finally come down and are expected to continue to fall for the next year or so. So, many investors are turning their attention to growth stocks.

Below are some prime candidates to be the best growth stock for the next five years. Some of them have had strong growth in the past five years, and analysts expect further strong growth from them all going forward. However, none of them are wildly speculative, even though two of them are biotech stocks. Each company has shown strong revenue growth in the past five years and is expected to post strong earnings growth in the next five to support the anticipated share price momentum.

Let’s have a quick look at them, arranged from least to most anticipated upside.

Guardant Health

Stock: Guardant Health Inc. (NASDAQ: GH)
Share price growth past 5 years: −64.0%
Revenue growth past 5 years: 49.3%
Est. EPS growth next 5 years: 29.2%
Est. share price growth next year: 95.9%

This projection puts this health care diagnostics company on a path to a $605 share price in five years, up from a recent price near $21. The stock has underperformed the S&P 500 since the start of the year. The analysts’ mean price target is up at $41.16, meaning they see plenty of room for shares to run.

This oncology-focused company is based in Silicon Valley. It has forecast that its revenue will triple by 2028. Renowned investor Cathie Wood sees the stock as a bargain and recently has been picking up shares. Analysts on average recommend buying shares as well.

Braze

Stock: Braze Inc. (NASDAQ: BRZE)
Share price growth past 5 years: −67.8%
Revenue growth past 5 years: 49.1%
Est. EPS growth next 5 years: 30.0%
Est. share price growth next year: 96.3%

This projection puts this software company on a path to an $874 share price in five years, up from a recent price near $30. The stock has underperformed the broader markets since the spring and is trading near a 52-week low. The $58.94 consensus price target indicates analysts anticipate lots of upside in the next 52 weeks.

This customer engagement software provider is headquartered in New York City, and it recently announced a partnership with BET+. Braze exceeded Wall Street’s expectations in its most recently reported quarter. All 18 analysts following the stock recommend buying shares, four of them with Strong Buy ratings.

BioCryst Pharmaceuticals

Stock: BioCryst Pharmaceuticals Inc. (NASDAQ: BCRX)
Share price growth past 5 years: 204.9%
Revenue growth past 5 years: 190.0%
Est. EPS growth next 5 years: 44.8%
Est. share price growth next year: 96.6%

This projection puts this biotech company on a path to a $235 share price in five years, up from a recent price near $7.50. The stock has handily outperformed the broader markets in the past six months. Wall Street expects it to almost double in the next 12 months to $14.45.

The North Carolina-based biotechnology company recently appointed a new chief medical officer, and it just secured a major influenza treatment deal. The company topped revenue estimates in the past two quarters. Seven of 10 analysts who cover the stock recommend buying shares.

New Fortress Energy

Stock: New Fortress Energy Inc. (NASDAQ: NFE)
Share price growth past 5 years: −41.9%
Revenue growth past 5 years: 96.2%
Est. EPS growth next 5 years: 78.8%
Est. share price growth next year: 106.4%

This projection puts this energy infrastructure company on a path to a $375 share price in five years, up from a recent price near $10. That is up a bit from a recent multiyear low, and the stock is about 75% lower than at the beginning of the year. However, analysts see the share price climbing to $19.07 in the next year.

The natural gas-focused company is based in New York City. It is expected to receive a boost if Donald Trump wins a second term. Last month, the company received approval to export liquified natural gas to certain countries. The consensus recommendation is to buy shares. And the CEO just bought $50 million worth of shares.

Apellis Pharmaceuticals

Stock: Apellis Pharmaceuticals Inc. (NASDAQ: APLS)
Share price growth past 5 years: 25.9%
Revenue growth past 5 years: 73.1%
Est. EPS growth next 5 years: 33.3%
Est. share price growth next year: 156.0%

This projection puts this biotech company on a path to a $2,969 share price in five years, up from a recent price near $27. That is near the 52-week low, as the stock has retreated over 54% year to date. Analysts remain optimistic, given their mean price target of $68.56. That would be a gain of almost 154% in the coming year.

This is a Boston area-based biopharmaceutical firm that has had robust revenue in recent quarters. An officer and a director sold some shares recently, but Apellis is a favorite biotech pick among some hedge funds. The consensus recommendation of analysts is to buy shares.

Why Invest in Growth Stocks?

Public companies that are expected to grow their sales and earnings at a faster rate than the market average have growth stocks. Such stocks often appear more expensive than value stocks, but investors are paying a higher price for greater potential for future return. However, these stocks can decline sharply if expectations are not met, plus they often do not come with dividends. Conventional wisdom suggests that the best time to buy growth stocks is when interest rates are falling and expected to remain low. So now might be the time to consider Apellis Pharmaceuticals, our pick for the best-performing stock for the next five years, or one or more of these other candidates.

Prediction: This Will Be the Best-Performing Stock in 2030

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