We're 10 months into a wild year for investors. Volatility can be your friend if you're looking for attractive entry points for compelling growth stocks.
You don't need a lot of money for this: Just $1,000 put to work on the right names can make a difference. What are some of the stocks that might make you a fortune given today's starting lines? I like Cava Group (CAVA 10.50%), Celsius Holdings (CELH 2.12%) and Rover Group (ROVR). Let's take a closer look.
Cava Group
Cava has only been public for a few months, but since its initial public offering (IPO) it's made a strong first impression. The fast-growing chain of Mediterranean fast-casual restaurants turned heads with its first quarterly report as a publicly traded company this summer. Revenue soared 62%, fueled largely by a 43% year-over-year increase in locations. An even more impressive 18.2% surge in comparable sales -- the result of a 10.3% uptick in foot traffic enhanced by a 7.9% boost in revenue per customer -- helped drive the balance of Cava's robust top-line growth.
The welcome surprises don't end there. Cava also posted a quarterly profit on expanding margins. Analysts were bracing for a small deficit by the debutant.
Guidance points to decelerating growth and near-term challenges on the bottom line. Cava's heady pace will be slowed by rising gasoline prices and utility bills along with the restart of student loan repayment obligations, but the future is bright.
Image source: Cava Group.
Cava currently has 279 locations, and it's just getting started. It expects to top 1,000 restaurants by 2032 -- that's a lot of real estate to cover. It's not even in Chicago yet (where it expects to roll out next year).
There are other catalysts in the hopper. Cava expects to reintroduce its customer loyalty program by the end of next year. It's testing steak as a new protein; steak isn't commonly associated with healthy Mediterranean cuisine, but it's a smart hook to bring new people into the explosive culinary category that it champions.
In a year with so many new offerings stumbling out of the gate, Cava is not a broken IPO. It's comfortably above its original price tag of $22 a share, but also trading at a sharp discount to its summertime highs. If you're hungry for a tasty stock, this is a good one to sink your teeth into.
Celsius Holdings
Another stock delivering blowout growth is Celsius Holdings. Its cans of fruit-flavored energy drinks are everywhere these days, and that's showing in the numbers. Revenue is more than doubling for the third year in a row at Celsius. It also recently turned profitable, retiring another former red flag.
It's true that beverage stocks can be fickle, and Celsius' monster growth isn't sustainable in the long term. But this is still a good time to build out a stake. With just 5% of its current sales mix being generated outside of its home market, there's an opportunity for Celsius to take its functional drinks overseas.
Rover Group
Cava is a smart play because Mediterranean cuisine is booming in popularity, and it's the leading chain. Celsius is winning converts for its tasty carbonated beverages that it claims help burn fat and calories by boosting your metabolism. Let's close with the furry members of your family.
Rover's portal pairs dog and cat owners with pet sitters and dog walkers. Revenue soared 35% in its latest quarter, growing faster than it was before the pandemic. We're pampering our pets more than ever, and with travel restrictions easing and offices calling employees back to in-office work, demand should only continue to grow for Rover's offerings.
Rover stock has nearly doubled this year, but it's still trading at prices in the single digits. The company is still early in its growth story.
