I like big growth and I cannot lie. Stocks coming through with heady top-line gains are impressive. They’re growing in reach and relevance. As long as we’re not talking about recent acquisitions that are juicing the revenue surge, you need to respect the market’s highest growth stocks.
Carvana (NYSE:CVNA), Zoom Video (NASDAQ:ZM), and Beyond Meat (NASDAQ:BYND) are three market darlings that grew revenue by at least 75% in their most recent financial reports. Let’s take a closer look at the used-car retailer, videoconferencing overnight sensation, and plant-based diet champ that are probably growing faster than most of your own stocks.
You’ll probably never forget the first time you see a Carvana vending machine. The prominent fixture at many of its locations, these nine-story tall glass-enclosed structured look more like something out an eccentric billionaire’s lair than a used car showroom.
The eye candy is just the beginning. Carvana is redefining the experience of buying used cars, offering an online experience with delivery, trade-in pick up, and a seven-day return policy — that is if you don’t want to go for the automotive vending machine experience.
Revenue rose 89% in Carvana’s latest quarter, and that was actually a weak showing. The revved-up auto retailer had posted triple-digit revenue growth for 23 straight quarters before its latest showing. The auto industry itself is struggling for many different reasons, but Carvana’s doing just fine as it breaks into the new markets and grows its presence in existing territories.
There’s probably a lot more Zoom in your room these days. Zoom Video has become a phenomenon in the shelter-in-place world we live in these days. The videoconferencing platform that was setting up meetings for 10 million mostly enterprise customers a day in December is now up to 300 million largely consumer-oriented users.
Classrooms across the country have gone virtual through Zoom, and it’s probably not a surprise that the last time that you got together with your family it was through a group Zoom call. Revenue soared 78% in its fiscal quarter that ended in January, and analysts see that pace accelerating for the quarter that ends next week. There may be some growing pains given the platform’s meteoric rise — and tech giants are trying to catch up — but Zoom will get over its security hiccups and it’s not as vulnerable to the competition as you probably think.
There’s beefy growth taking place at Beyond Meat. The maker of meatless burgers and other plant-based products saw its revenue more than triple in every quarter last year, and that includes a 212% top-line surge in its latest report.
The interest in plant-based diets is helping, but so is the growing number of partnerships that Beyond Meat has brokered to get its brand out there in retail restaurant establishments. Beyond Meat surprised investors with a profit in the third quarter of last year, and followed that up with a modest loss. The red ink is fine for now. Beyond Meat is investing in expanding its capacity as well as shelling out more money on marketing, international expansion, and product development. .
Carvana, Zoom Video, and Beyond Meat are growing quickly, and that makes them strong contenders to be among the market’s top stocks. Even with growth likely to decelerate for all three at this point, they should continue to post market-thumping revenue bursts.