3 Forgotten Growth Stocks to Buy Before They Shine Again

Core Viewpoint - Sector and stock rotation is a common phenomenon in investing, with current hot stocks likely to become forgotten in the future, suggesting a good time to sell overhyped stocks and consider quality growth stocks that have been overlooked [1] Group 1: Growth Stocks Overview - After a period of correction, certain growth stocks appear attractive from a valuation perspective, with expectations of robust revenue growth and potential for significant cash flow generation in the coming years [2] - Pinterest (PINS) has seen a 73% increase in stock price over the last 12 months, with a forward P/E of 28.6, indicating further upside potential [3] - For Q1 2024, Pinterest reported a 23% year-on-year revenue growth to $740 million and a 12% increase in monthly active users to 518 million [4] - Pinterest's global average revenue per user (ARPU) was $1.46 in Q1, with significant growth potential in emerging markets, particularly as ARPU in the U.S. and Canada was $6.05 compared to $0.86 in Europe and $0.11 in the rest of the world [5] Group 2: First Solar (FSLR) - First Solar has surged by 57% year-to-date, with a forward P/E of 20 suggesting sustained upside momentum [6] - The company reported an order backlog of 78.3 GW extending through 2030, with additional booking opportunities of 72.8 GW, indicating strong revenue growth prospects [7] - By the end of 2026, First Solar's global annual nameplate capacity is expected to reach 25 GW, enhancing production capabilities to meet increasing demand [8] Group 3: Cronos Group (CRON) - Cronos Group has strong fundamentals despite being overlooked in the cannabis sector, with potential for 20x to 30x returns if regulatory challenges diminish [9] - As of Q1 2024, Cronos reported a cash buffer of $855 million, positioning the company well for growth amid regulatory changes, particularly with Germany legalizing cannabis [10] - The company has entered new markets in Germany, Australia, and the United Kingdom, which will support growth acceleration and margin improvement through potential operating leverage [11]