Written by Norman Isaac Mwambazi

30 stocks that shined in the pandemic are still poised for huge growth through 2024 – Analysts

If you are the kind of investor that is planning to sell some of the assets in your portfolio that …

If you are the kind of investor that is planning to sell some of the assets in your portfolio that have registered tremendous returns during the pandemic thinking that they have reached their peak now that we are slowly going back to the old normal, you might want to think again, especially after looking at the lists in this article.

As some companies were scrapping for cash and laying off employees in a desperate effort to stay afloat in the desperate time of the coronavirus pandemic, numerous companies were smiling all the way to the bank due to “favourable” opportunities that the pandemic presented them, and saw their performance boosted in the last 20 months or so.

Most of these companies have been nicknamed “stay home stocks” due to the fact as governments introduced lockdowns and other restrictions to curb the spread of coronavirus, millions of people were confined in their homes and ended up sing products and services provided by these companies even more.

Talk about Zoom’s video conference software that almost every company run to, Microsoft’s Teams and Azure cloud enterprise, Amazon’s Amazon Web Services (AWS), Salesforce’s Slack, among others that had employers collaborate with their employees and clients on the “Cloud” in the comfort of their homes. And after work or on day-offs, streaming services like Netflix (ticker: NFLX) and Disney+ were the go-to services. Those that wanted to work out but gyms were closed were drawn to exercise equipment from companies like Peloton (ticker: PTON) among others. Companies that brought services closer to home have hugely benefited from the pandemic.

As the economy opens up and people are now moving out of their houses and socialising more, some of these stay-home stocks have seen a significant drop in their growth, although they keep registering profitable quarters. The drop in their rate of growth has had some investors thinking about dropping their stock and look elsewhere thinking that these companies will soon embark on a downward movement for their shares.

However, that might not entirely be the case, if analysts’ reports are to go by. Using market data provided by FactSet and results from the analysts that were surveyed, investment analyst Philip van Doorn has compiled a list of 30 stocks that registered high during the pandemic but will keep growing up to at least 2024.

Criteria

Of the components of the Russell 1000 Index, 141 stocks have registered more than double their share prices since December 31, 2021. This is a fair measure of performance since a lot of companies saw their stock plummeting at the onset of the pandemic towards the end of February last year.

Among those 141 companies, FactSet has compiled consensus sales estimates for 85 companies through the calendar year 2024, and calendar years have been used because some companies on this list have fiscal years that either end in June, or September.

Of the 85 companies, 30 companies with the highest Compound Annual Growth (CAGR) for sales through the 2024 calendar year have been put on this list.

CompanyExpected three-year sales CAGREstimated revenue – 2021 ($m)Estimated revenue – 2022 ($m)Estimated revenue – 2023 ($m)Estimated revenue – 2024 ($m)
Virgin Galactic Holdings Inc. SPCE410.3%$2$14$65$265
Acceleron Pharma Inc. XLRN62.7%$133$203$318$571
ChargePoint Holdings Inc. Class A CHPT62.0%$202$336$555$860
Plug Power Inc. PLUG50.0%$499$756$1,149$1,687
Zillow Group Inc. Class C Z42.6%$6,595$9,910$14,461$19,130
Carvana Co. Class A CVNA37.2%$11,857$15,523$20,839$30,607
DraftKings Inc. Class A DKNG34.7%$1,278$1,762$2,398$3,121
Roku Inc. Class A ROKU33.9%$2,843$3,876$5,068$6,829
Okta Inc. Class A OKTA33.7%$1,189$1,633$2,154$2,843
CrowdStrike Holdings Inc. Class A CRWD32.2%$1,321$1,809$2,389$3,052
Pinterest Inc. Class A PINS31.2%$2,616$3,430$4,635$5,906
Freshpet Inc. FRPT31.1%$446$580$756$1,005
10x Genomics Inc. Class A TXG30.4%$498$687$903$1,105
Trade Desk Inc. Class A TTD30.3%$1,170$1,510$1,930$2,587
Zscaler Inc. ZS29.8%$762$1,017$1,317$1,668
Globant S.A. GLOB29.0%$1,235$1,568$1,944$2,654
Ultragenyx Pharmaceutical Inc. RARE28.5%$356$407$508$755
Atlassian Corp. PLC Class A TEAM26.8%$2,315$2,836$3,598$4,714
EPAM Systems Inc. EPAM26.4%$3,665$4,627$5,731$7,394
Tesla Inc. TSLA26.2%$50,185$67,838$82,652$100,867
Elastic N.V. ESTC25.9%$746$953$1,206$1,489
Peloton Interactive Inc. Class A PTON25.7%$4,697$6,141$7,785$9,327
Enphase Energy Inc. ENPH24.6%$1,336$1,793$2,232$2,584
ServiceNow Inc. NOW22.8%$5,841$7,310$9,121$10,818
Etsy Inc. ETSY22.4%$2,280$2,747$3,351$4,179
Floor & Decor Holdings Inc. Class A FND22.3%$3,339$4,007$4,874$6,106
Novavax Inc. NVAX22.0%$1,984$5,493$3,048$3,607
Zoom Video Communications Inc. Class A ZM21.7%$3,894$4,667$5,489$7,027
DexCom Inc. DXCM21.5%$2,398$2,915$3,527$4,306
PayPal Holdings Inc. PYPL20.9%$25,753$31,558$38,229$45,484
Source: FactSet

It is worth noting that the list above is showing estimates above are not conclusive, and are just estimates. Some companies like Virgin Galactic Holdings Inc. (ticker: SPCE) are expected to show revenue of only $2 million for calendar 2021 and only 36% of analysts surveyed by FactSet gave it a “buy” rating. It is advised to make your own research that includes fundamental and technical analysis before you make an investment decision. However, this doesn’t take away the fact that analysts are most times close to making accurate predictions due to their in-depth knowledge of these company’s performance that is backed by market data.

Below is a summary of analysts’ opinions on these stocks.

CompanyShare “buy” ratingsClosing price – Aug. 30Consensus price targetImplied 12-month upside potentialTotal return – Dec. 31, 2019, through Aug. 31, 2021
Virgin Galactic Holdings Inc. SPCE36%24.88$34.8240%115%
Acceleron Pharma Inc. XLRN79%132.76$154.5016%150%
ChargePoint Holdings Inc. Class A CHPT88%20.89$36.0072%112%
Plug Power Inc. PLUG65%26.13$40.6856%727%
Zillow Group Inc. Class C Z65%96.10$162.4269%109%
Carvana Co. Class A CVNA59%337.76$380.2313%267%
DraftKings Inc. Class A DKNG67%59.25$69.9318%454%
Roku Inc. Class A ROKU75%355.90$483.0936%166%
Okta Inc. Class A OKTA65%264.98$276.774%130%
CrowdStrike Holdings Inc. Class A CRWD92%286.37$288.781%474%
Pinterest Inc. Class A PINS50%56.49$71.4326%203%
Freshpet Inc. FRPT71%127.10$177.0039%115%
10x Genomics Inc. Class A TXG90%173.75$203.2517%128%
Trade Desk Inc. Class A TTD65%80.71$88.239%211%
Zscaler Inc. ZS67%278.17$256.24-8%498%
Globant S.A. GLOB92%322.60$304.78-6%204%
Ultragenyx Pharmaceutical Inc. RARE63%95.79$143.6750%124%
Atlassian Corp. PLC Class A TEAM64%366.03$343.53-6%204%
EPAM Systems Inc. EPAM71%636.30$661.504%200%
Tesla Inc. TSLA44%730.91$701.14-4%774%
Elastic N.V. ESTC83%159.03$184.0616%147%
Peloton Interactive Inc. Class A PTON77%101.48$130.4229%257%
Enphase Energy Inc. ENPH63%177.78$199.5212%580%
ServiceNow Inc. NOW88%641.65$665.964%127%
Etsy Inc. ETSY76%217.71$215.93-1%391%
Floor & Decor Holdings Inc. Class A FND87%122.02$136.3612%140%
Novavax Inc. NVAX67%233.23$264.2013%5,760%
Zoom Video Communications Inc. Class A ZM50%347.50$376.658%411%
DexCom Inc. DXCM79%521.54$517.55-1%138%
PayPal Holdings Inc. PYPL87%288.47$332.8315%167%
Source: FactSet