Since the end of the Great Recession, it's been all systems go for growth stocks. Historically low lending rates and ongoing quantitative easing from the nation's central bank has made capital abundant for fast-paced companies looking to borrow.
But for some companies, sales growth is just now kicking into high gear. According to consensus sales estimates from Wall Street, the following five well-known large-cap stocks (i.e., market caps of $10 billion or higher) are expected to grow their sales 303% to as much as 1,337% by 2025.
CrowdStrike Holdings: 344% implied sales growth by 2025
As the premier name in cybersecurity, CrowdStrike Holdings' (NASDAQ:CRWD) sales growth is going through the roof. The company delivered about $874 million in full-year sales in fiscal 2021, and Wall Street is counting on the company to produce nearly $3.89 billion in sales in five years.
The beauty of CrowdStrike's operating model is that cybersecurity has evolved into a basic-need service. It doesn't matter how well or poorly the U.S. economy or stock market are performing, hackers and robots don't take a day off. As more data moves into the cloud, CrowdStrike is increasingly being relied on to safeguard that information.
What makes this company so special is its cloud-native platform known as Falcon. Being built in the cloud and reliant on artificial intelligence, Falcon oversees approximately 6 trillion events each week and is becoming more efficient at recognizing and responding to threats over time. In many ways, it's a more cost-effective solution to on-premises security.
Plus, the growth story speaks for itself. In less than five years, CrowdStrike's subscriber count has catapulted from 450 to more than 13,000. Further, the number of clients that have purchased four or more cloud-module subscriptions has jumped from 9% to 66% in a little over four years. These add-on purchases are a big reason for CrowdStrike's rapid margin growth.
Robinhood Markets: 377% implied sales growth by 2025
Retail investor-focused online-investing app Robinhood Markets (NASDAQ:HOOD), which became a publicly traded company less than two months ago, should also deliver jaw-dropping sales growth over the next five years. After the company reported $959 million in sales last year, Wall Street has the company pegged for about $4.58 billion in full-year revenue come 2025.
There are a number of reasons Robinhood speaks to retail investors. For one, the platform is built without commissions, at least when purchasing companies listed on the New York Stock Exchange and Nasdaq. Robinhood also gifts free shares of stock to new members who deposit money and invest on the platform and allows for fractional-share investing. This lets investors who might not have hundreds or thousands of dollars purchase fractions of a full share of high-priced stocks.
However, there are serious growth concerns, too. For instance, Robinhood generates a significant portion of its revenue via payment for order flow from a small handful of market makers. While it's unlikely these market makers will stop paying Robinhood for this information, the exit of even one of these parties would quickly be felt.
The other issue is something of a public relations nightmare for Robinhood. Due to inadequate liquidity earlier this year, the company was forced to pare back trading activity in highly volatile meme stocks and heavily short-sold companies. This didn't sit well with some retail investors and could hurt the company's long-term growth potential.
Airbnb: 303% implied sales growth by 2025
Another well-known large-cap stock expected to deliver significant sales increases over the next five years is stay-and-hosting marketplace Airbnb (NASDAQ:ABNB). The expectation is for Airbnb to grow sales from a reported $3.38 billion in 2020 to a consensus of $13.61 billion by mid-decade. That's a little over a quadrupling in revenue in five years.
Airbnb might seem like a huge company, given its $107 billion market cap, but it only has a little over 4 million hosts worldwide. There are more than 130 million households in the U.S. and around 1 billion globally. The hosting platform is still in its infancy with plenty of room to grow.
Speaking of hosting, the company's fastest-growing segment has consistently been long-term stays (28 days or more). The idea of remaining mobile and not tethered to a single location has become even more popular in the wake of the pandemic and the rise of remote workforces. This trend shows that Airbnb's operating model isn't a fad.
Maybe the most exciting aspect for Airbnb is its push into travel. The company's Experiences segment works with local experts to set up adventures and activities for travelers. This represents one of the many ways Airbnb can partner with businesses or local hosts to control a larger portion of the travel/vacation experience.
Novavax: 1,337% implied sales growth by 2025
Whereas most coronavirus disease 2019 (COVID-19) vaccine developers are forecast to see sales decline by mid-decade, clinical-stage biotech stock Novavax (NASDAQ:NVAX) looks like it will be the exception. Following just shy of $476 million in sales in 2020, Novavax is expected by Wall Street to deliver about $6.84 billion in sales by 2025. This big jump is based on the expectation that experimental COVID-19 vaccine NVX-CoV2373 will soon gain emergency-use authorization in the U.S., U.K., Europe, and potentially a number of other key markets.
Novavax's COVID-19 vaccine was effective in two large-scale studies. In March, the company reported a vaccine efficacy (VE) of 89.7% from a study in the United Kingdom. Three months later, it reported a 90.4% VE in a trial from the U.S. and Mexico. This initial VE should be more than enough to make Novavax the global No. 3 in COVID-19 vaccine administration.
What could really separate Novavax from its competition is the potential to create combination vaccines. Novavax has the ability to beat its peers to market with a combination COVID-19/influenza vaccine. Its drug-development platform is also designed to quickly develop clinical candidates to combat variants of COVID-19.
Long story short, Novavax's sales are about to take off.
Pinterest: 328% implied sales growth by 2025
Lastly, social media up-and-comer Pinterest (NYSE:PINS) is projected by Wall Street to more than quadruple its sales by mid-decade. Following the company's $1.69 billion in 2020 sales, analysts are counting on $7.24 billion in sales by 2025.
Many on Wall Street were none too pleased after Pinterest's second-quarter results showed a decline of 24 million monthly active users (MAUs) from the sequential first quarter. However, this short-term MAU growth slowdown was inevitable with rising COVID-19 vaccination rates allowing people to leave their homes more frequently. Looking back three years, Pinterest's MAU growth is still well within historic norms.
What really stands out is the monetization potential for Pinterest. Even with MAU growth slowing considerably in the June-ended quarter, average revenue per user (ARPU) grew 89% globally and 163% internationally, relative to the prior-year period. The fact that worldwide ARPU rose by 89% plainly shows that merchants value access to Pinterest's base of 454 million MAUs.
Equally important, there's no guessing when it comes to Pinterest's users. The entire premise of the platform is to share the things, places, and services that interest people. This allows small businesses to effectively target users and could well turn Pinterest into a key e-commerce destination in the years that lie ahead.