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These rapidly expanding companies can turbocharge your investment portfolio.
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Well-chosen growth stocks can reshape your financial situation. To help you in your search for the best wealth creators, here are three businesses with particularly attractive expansion prospects to consider buying today.
A select few stocks have delivered life-changing gains to their investors in recent years. Celsius Holdings (CELH +0.00%) is one of them. The energy drink maker's shares are up more than 3,000% over the past half-decade.
Celsius' drinks are made from high-quality ingredients, full of vitamins, and clinically proven to help burn calories and body fat. They also contain no sugar or artificial flavors. It's a formula that's proven popular during the pandemic, as people opt for beverages with potential health benefits. With health concerns now top of mind for many people, these growth trends are likely to persist. Sales of energy and sports drinks will exceed $240 billion by 2027, up from $171 billion in 2022, according to Statista.
Image source: Statista.
Despite years of explosive growth, Celsius accounts for just a small fraction of this massive market. The company's revenue soared 108% to $654 million in 2022.
That leaves a lot of room for Celsius to expand further. With approximately 95% of its revenue derived from North America, international expansion is a particularly attractive opportunity. Celsius' new deal with Pepsi should help. The food and drink titan is connecting Celsius with valuable shelf space at retail stores. Pepsi also took a $550 million stake in Celsius, giving it a vested interest in the young company's success.
Restaurant chains in the early stages of their national expansion plans can deliver fortune-building returns to their shareowners. Chipotle Mexican Grill's over 4,000% gains since its initial public offering (IPO) in 2006 show what's possible.
To be fair, not many companies will replicate Chipotle's success. But Cava Group (CAVA +0.01%) just might have what it takes.
Cava offers tasty Mediterranean-inspired cuisine served in a Chipotle-esque, made-to-order format. The fast-casual chain's relatively healthy fare and affordable prices are proving popular. Its same-store sales jumped 14.2% in fiscal 2022.
Additionally, like Chipotle, Cava's restaurant-level economics are impressive, with its stores earning revenue of $2.4 million and profit margins of more than 20% on average.
Better still, experienced leaders are overseeing Cava's expansion strategy. Panera Bread founder and former CEO Ron Shaich joined Cava's board of directors as chairman as part of its acquisition of Zoe's Kitchen in 2018. Shaich is regarded as a visionary in the restaurant industry. He brings decades of experience and a track record of success as he teams with Cava's CEO Brett Schulman to guide the company's growth.
And that growth is just getting started. Cava reported only 263 locations as of April 16. Management is targeting more than 1,000 stores in the U.S. alone by 2032. Moreover, some Wall Street analysts believe Cava could ultimately operate as many as 7,000 restaurants just in North America. That would roughly match the number of locations Chipotle operates in the region today.
The shift to digital banking is another powerful trend that's creating enormous profit opportunities for investors. Online personal finance upstart SoFi Technologies (SOFI +0.04%) is benefiting from this shift -- and it's poised to claim a far larger share of the massive banking industry.
SoFi's high-interest checking and savings accounts -- with their annual percentage yields of 4.5% and up to $2 million in FDIC insurance -- are attracting swarms of new customers. SoFi gained more than 584,000 new members in the second quarter alone. It ended the quarter with over 6.2 million total members. That's up 44% compared to the prior-year period.
These strong customer gains drove a 26% increase in SoFi's deposit base to $12.7 billion. These deposits are reducing SoFi's funding costs for its fast-growing loan book and boosting its profit margins. The company's Q2 adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) surged 278% year over year to $77 million.
With its popular online bank accounts, swelling deposit base, and rapidly improving profitability, SoFi is set to claim a sizable portion of the multi-trillion-dollar financial services market. Consider buying shares today to position yourself to profit alongside this digital banking leader.