Growth stocks are what you need to help to grow your portfolio’s value over time.
These companies reinvest all or the bulk of their earnings back into the business to grow both their top and bottom lines.
As they see their earnings rise over time, their share prices should also increase in tandem, netting the investor valuable capital gains.
Here are five interesting US growth stocks that can deliver good long-term returns to your investment portfolio.
Hawkins (NASDAQ: HWKN)
Hawkins was founded in 1938 and is a speciality chemicals and ingredients company that formulates, distributes, and manufactures products for Industrial, Water Treatment, and Health & Nutrition customers.
The company has 58 facilities in 26 states in the US and employs around 950 employees.
For the first nine months of fiscal 2024 (9M FY2024) ending 31 December 2023, Hawkins delivered a mixed set of results.
Revenue dipped by 1.5% year on year to US$696.1 million but operating profit jumped 20.5% year on year to US$84 million.
Net profit climbed 27.1% year on year to US$61.5 million.
Free cash flow for 9M FY2024 soared by more than sevenfold year on year from US$12.2 million to US$89.4 million.
A quarterly cash dividend of US$0.16 was declared, capping off 38 consecutive years of cash dividends.
Since FY2011 till the present, Hawkins has a strong track record of conducting accretive acquisitions.
The company intends to improve its extensive supplier base and continue to add new water treatment facilities annually to continue growing.
Sprinklr (NYSE: CXM)
Sprinklr is an enterprise software company offering a customer experience management platform to help clients maximise their customer experience across any channel.
The business is growing steadily as evidenced by its recent 9M FY2024 results ending 31 October 2023.
Revenue grew 18.8% year on year to US$538.2 million and the company generated an operating profit of US$15.5 million, reversing the operating loss of US$49.4 million a year ago.
Net profit came in at US$30.3 million, also a reversal from the loss of US$55.1 million back in 9M FY2023.
Positive free cash flow of US$38.9 million was generated for 9M FY2024.
Spinklr saw healthy customer momentum with a 15% year-on-year rise in the number of customers paying US$1 million or more to 123 for its latest quarter.
It prides itself on providing proprietary and customised artificial intelligence (AI) models that help its customers increase revenue and decrease costs all while mitigating risks.
Braze (NASDAQ: BRZE)
Braze provides a customer engagement platform that connects consumers with the brands they use and love.
The company allows marketers to collect information from any source and use it to effectively connect with their customer base in real-time and by using any channel.
Braze has 2,011 customers with six billion monthly active users as of 31 October 2023.
The company saw revenue climb 32.8% year on year to US$340.8 million for 9M FY2024 but was still in the red.
Nevertheless, Braze generated a positive operating cash flow for the period, reversing the negative operating cash flow in the prior year.
The company sees opportunities to expand across multiple vectors and intends to grow its international footprint.
Braze also harnesses AI innovation for new offerings and counts fintech Endowus and cosmetics company Sephora as its clients.
Match Group (NASDAQ: MTCH)
Match Group offers a wide range of dating apps for its customers with popular brands such as Tinder, Hinge, OKCupid, and Meetic.
The company reported an impressive set of earnings for 2023.
Revenue inched up 5.5% year on year to US$3.4 billion but operating profit surged by 78% year on year to US$916.9 million.
Net profit soared 81% year on year to US$651.5 million.
The dating app specialist also generated a positive free cash flow of US$829.4 million for 2023, 74% higher than the US$476.6 million churned out a year ago.
Although the number of paying customers dipped from 16,065 to 15,186 in 2023, the revenue per customer increased from US$16 to US$18.67 over the same period.
Like Braze and Sprinklr, Match is also using AI to enhance its customers’ experience.
AI will be harnessed to enhance the pre-match experience and inspire more authentic biographies, thereby improving user outcomes.
Match will also upgrade its matching ability to enable its users to obtain more genuine connections, thus further improving user outcomes and experience.
Crocs (NASDAQ: CROX)
Crocs manufactures and sells innovative casual footwear and its brands Crocs and HEYDUDE are sold across more than 80 countries.
For 2023, the footwear company reported a commendable set of earnings with revenue rising 11.5% year on year to US$4 billion.
Operating profit improved by nearly 22% year on year to US$1 billion while net profit climbed 46.7% year on year to US$792.6 million, aided by a tax benefit in the fourth quarter.
Free cash flow came in at US$814.8 million, 63.3% higher than the US$499 million generated in 2022.
Crocs sees accelerating traction in its international expansion with Australia and China displaying triple-digit year on year growth.
The company’s recently acquired brand, HEYDUDE, intends to expand its outlet retail strategy with the opening of around 30 stores this year.
Looking ahead, Crocs intends to grow through the introduction of new products this year while prioritising the pay down of debt and returning cash to shareholders through share buybacks.
It’s hard to ignore the incredible progress that AI technology has made in recent years. And it could change how we work and invest in the near future, just like how the internet and iPhone did in the early 2000s. Download our Special Free Report and prepare for what could be the biggest game-changing tech for many companies. Click here to download.
Follow us on Facebook and Telegram for the latest investing news and analyses!
Disclosure: Royston Yang does not own shares in any of the companies mentioned.
