The world of growth stocks is large and there are bountiful opportunities for investors to latch on to such growth to build long-term wealth.
The key is to look for companies that command a sizable market share and possess catalysts for further growth.
The US market is filled with attractive businesses that qualify them as long-term buy-and-hold candidates to grow your money for retirement.
Here are four interesting US growth stocks that could dish up sizzling returns for your investment portfolio.
BlackRock (NYSE: BLK)
BlackRock is the largest asset manager in the world with US$9.1 trillion of global assets under management (AUM) as of 31 March 2023 and has offices in 35 countries.
The company has reported steady growth for the first quarter of 2024 (1Q 2024) along with net inflows of US$57.2 billion.
Revenue came in at US$4.7 billion, up 11% year on year, because of favourable market conditions combined with organic base fee increases.
Operating profit grew by 18% year on year to US$1.7 billion with the business registering an improved operating margin of 35.8% for 1Q 2024 compared with 33.9% in the previous corresponding period.
Net profit stood at US$1.6 billion, up 36% year on year.
BlackRock’s average AUM grew by 14% year on year to US$10.2 trillion.
The business is also a steady dividend payer with the quarterly dividend rising 2% year on year from US$5 in 1Q 2023 to US$5.10 in 1Q 2024.
CEO Laurence Fink is seeing significant growth potential in infrastructure, technology, retirement, and whole portfolio solutions.
More clients are turning to the world’s leading asset manager for their investment needs, as evidenced by the total net inflows of US$236 billion over the last 12 months.
Coupang (NYSE: CPNG)
Coupang is the largest e-commerce player in South Korea and provides retail, restaurant delivery, video streaming, and financial technology services to customers.
The e-commerce outfit reported a respectable set of earnings for 1Q 2024.
Net revenue rose 23% year on year to US$7.1 billion, aided by higher volumes on its platform and a 16% year-on-year increase in product commerce active customers to 21.5 million.
Net profit, however, plunged by 95% year on year to US$5 million because of the inclusion of the results of Farfetch.
Farfetch was acquired by Coupang in January this year and 1Q 2024 is the first quarter that the online luxury goods retailer’s financials were consolidated into the group.
Excluding Farfetch, net profit would have been US$98 million, a slight increase from the US$91 million reported a year ago.
Free cash flow totalled US$1.5 billion for the trailing 12-month period, triple the US$0.5 billion in the prior 12-month period.
CFO Gaurav Anand sees a US$560 billion commerce opportunity in South Korea with Coupang occupying just a single-digit percentage market share.
He anticipates that Farfetch should deliver close to positive adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) by the end of this year.
Dutch Bros (NYSE: BROS)
Dutch Bros is an owner, operator and franchisor of a chain of drive-thru coffee shops that serve high-quality, hand-crafted beverages.
As of 31 March, the company has 876 locations across 17 states in the US.
For 1Q 2024, Dutch Bros saw its revenue jump 39.5% year on year to US$275.1 million.
Operating profit came in at US$25.6 million while net profit stood at US$7.1 million.
This performance was much better than the prior year’s quarter when the business incurred both an operating and net loss.
Dutch Bros opened 45 new stores during the quarter, of which 40 were company-operated, across 14 states.
The business saw better financial numbers because of the successful launch of two new products with nearly two-thirds of all transactions belonging to Dutch Rewards members, the company’s loyalty programme.
Dutch Bros provided an upbeat outlook with total store openings expected to be between 150 to 165 for 2024 and same-store sales projected to be in the low single-digit range.
Cintas (NASDAQ: CTAS)
Cintas offers products and services that keep their customers’ facilities and employees clean and safe.
The company sells a variety of products such as uniforms, mops, restroom supplies, mats, and first aid products.
For the first nine months of fiscal 2024 (9M FY2024) ending 29 February 2024, Cintas saw total revenue rise 9.1% year on year to US$7.1 billion.
Operating profit increased by 14.2% year on year to US$1.5 billion.
Net profit improved by 15.5% year on year to US$1.1 billion.
The business also generated a positive free cash flow of US$1.1 billion for 9M FY2024.
CEP Todd Schneider has increased the company’s full fiscal year guidance as sales remain upbeat.
Annual revenue is expected to come in between US$9.57 billion to US$9.6 billion, up from the previous range of US$9.48 billion to US$9.56 billion.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
