Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a growth stock that can live up to its true potential can be a tough task.That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.However, the Zacks Growth Style Score (part of th ...

Investment Thesis - Dominion Energy is positioned as a growth stock due to its role in supplying electricity to data centers, particularly in Lowden County, Virginia, which handles 70% of global internet traffic [2][8][10] - The company's traditional shareholder base, attracted by its dividend payments, is now joined by investors recognizing the increasing electricity demand driven by AI and data center buildout [9] - The stock is potentially breaking out above historical resistance at around $60-$61, supported by a moving average crossover (golden cross) [6] Growth Drivers - Amazon has invested $52 billion between 2011 and 2021 in the region and committed to spending another $35 billion between now and 2040, with plans to add 42 million square feet of data center space [3] - Dominion Energy experienced nine of its top 10 all-time peak electricity demand days in Virginia this year [4] - Hyperscaler capex is reaccelerating, leading to increased data center and energy needs, indicating a secular trend for utility companies [10] - Natural gas is expected to fill the void in power generation for data center demand, further benefiting utility companies [11] Financials and Catalysts - Dominion Energy affirmed its dividend and earnings outlook for the year, maintaining its creditworthiness [5] - The company has a 45% yield [7] - A rate case decision is expected in September, which could act as a catalyst if regulators approve increased rates for serving data centers [6][7] Risk Management - A break below $50 would be a signal to re-evaluate the investment [7]

Core Viewpoint - Growth investors are increasingly focused on stocks with above-average financial growth, but identifying such stocks can be challenging due to inherent risks and volatility [1] Group 1: AppFolio's Growth Potential - AppFolio (APPF) is currently recommended as a cutting-edge growth stock by the Zacks Growth Style Score system, which evaluates a company's real growth prospects beyond traditional metrics [2] - The stock has a favorable Growth Score and a top Zacks Rank, indicating strong potential for growth investors [2][11] Group 2: Earnings Growth - AppFolio has a historical EPS growth rate of 15%, with projected EPS growth of 17.9% this year, surpassing the industry average of 17.6% [5] - Double-digit earnings growth is preferred by growth investors as it signals strong future prospects [4] Group 3: Cash Flow Growth - AppFolio's year-over-year cash flow growth stands at an impressive 170.5%, significantly higher than the industry average of -18% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 16.5%, compared to the industry average of 15% [7] Group 4: Earnings Estimate Revisions - The current-year earnings estimates for AppFolio have been revised upward, with the Zacks Consensus Estimate increasing by 0.3% over the past month [9] - Positive trends in earnings estimate revisions are correlated with near-term stock price movements, further validating AppFolio's growth potential [8] Group 5: Overall Assessment - AppFolio has achieved a Zacks Rank of 2 (Buy) and a Growth Score of B, indicating it is a solid choice for growth investors [11]

Core Viewpoint - Apple is experiencing a leadership change with the retirement of longtime COO Jeff Williams, to be replaced by Sabih Khan, which raises questions about the company's ability to turn around its disappointing stock performance this year [1][2]. Group 1: Leadership Change - Jeff Williams, Apple's COO, is retiring and will be succeeded by Sabih Khan, who has been with the company for 30 years and has served as senior vice president of operations since 2019 [1][4]. - Khan's responsibilities will include managing the supply chain and expanding Apple's customer base, while the design team will report directly to CEO Tim Cook [5]. Group 2: Current Performance - Apple's growth has stagnated over the past two years, with the stock down 16% in 2023, and it has been surpassed by Microsoft and Nvidia in market rankings [2]. - Despite solid revenue and profits, Apple's earnings have been relatively stagnant since 2022, lacking the growth narrative it had in previous years [10]. Group 3: Innovation and Product Development - Historically, Apple was known for its innovative products, such as the iPhone, iPad, and Apple Watch, which drove significant sales [6][7]. - Currently, while new models like the iPhone 16 are being released, groundbreaking innovations are less frequent, leading consumers to hold onto older devices longer [8]. Group 4: Future Outlook - The promotion of Khan may indicate a desire to maintain the status quo rather than pursue aggressive expansion, with concerns about the lack of new ideas in the design team [11]. - Apple is now viewed as a reliable value stock with a forward price-to-earnings ratio of 26.3 and a price-to-sales ratio of 8, along with a growing dividend yield of 0.5%, but its days as a dynamic growth company seem to be over for the time being [12].

Core Viewpoint - Dutch Bros is a rapidly growing handcrafted beverage chain with a unique culture and strong customer loyalty, making it an attractive investment opportunity despite its significant share price increase over the past year [1][2]. Company Culture and Customer Loyalty - Dutch Bros emphasizes speed, quality, and service, with a focus on customizable drinks, primarily served through drive-thru locations [3]. - The company differentiates itself from traditional coffee chains, with 87% of its drinks being iced or blended, and a diverse product mix including coffee, energy drinks, smoothies, teas, and lemonades [4]. - A significant 72% of sales come from Dutch Rewards members, indicating strong customer loyalty and engagement [5]. - The Dutch Rewards program facilitates direct communication with loyal customers, influencing product offerings and service improvements [6]. - Dutch Bros has received numerous customer service awards and ranks highly as an employer, attracting a large number of job applications [7]. Growth Potential - Dutch Bros currently operates around 1,000 locations, with plans to expand to 2,029 by 2029 and a long-term goal of over 7,000 stores [9]. - The majority of its stores are concentrated in five states, highlighting significant growth opportunities in other regions of the U.S. [10]. - The brand's appeal is resonating in new markets, as evidenced by strong store openings and a pipeline of experienced operator candidates [11]. - Existing locations are expected to become more profitable over time, supported by a 15-year streak of same-store sales growth [12]. Financial Health and Self-Funding - Dutch Bros is generating improving cash from operations (CFO), which is crucial for funding its growth without diluting shareholder value [13][14]. - The company has reached breakeven free cash flow (FCF), allowing it to fund expansion plans internally [16]. - For instance, Dutch Bros plans to invest $250 million in capital expenditures for 160 new stores in 2025, primarily funded by its CFO of $242 million generated over the last year [17]. - Despite a high valuation of 53 times CFO, the company's growth potential may justify this premium [18]. Summary of Strengths - Loyal customer base [19] - Top-tier culture and brand [19] - Potential to double store count by 2029 [19] - Opportunity for sevenfold growth in locations over the long term [19] - Track record of consistent same-store sales growth [19] - Improving cash from operations generation [19] - Potential to reduce shareholder dilution [19]

Core Viewpoint - Nu Holdings has shown impressive market performance, rising nearly 30% this year, while the S&P 500 remains relatively unchanged, indicating a shift in investor sentiment towards its international status as a safer investment amid ongoing tariff discussions [1] Company Performance - In Q1 2025, Nu Holdings reported a 40% year-over-year revenue increase to $3.1 billion (currency neutral) and a 74% rise in net income to $557.2 million, driven by new customer acquisitions and cross-selling of products [5] - The company added 4.3 million customers, totaling 118.6 million, marking a 19% year-over-year increase [5] - Deposits surged by 48% to $31.6 billion, while the interest-earning portfolio grew by 62% to $13.8 billion [5] Customer Engagement - Most customers utilize Nu as their primary banking service, allowing the company to leverage data for expansion and product development [6] - The cost to serve has decreased, and the average revenue per active customer (ARPAC) has increased, particularly as customer tenure on the platform grows, leading to better monetization [6] Market Expansion - In Brazil, Nu has captured 59% of the adult population, with a 14% year-over-year increase in membership, indicating ongoing growth potential [8] - In Mexico, membership rose by 70% year-over-year to 11 million, with deposits more than doubling to over $5 billion, and revenue nearly doubling to $245 million, although it currently serves only 12% of the adult population [9] - The company has a small presence in Colombia, reaching 3 million members, or 8% of its target market [10] Valuation and Investment Potential - Nu Holdings is considered a growth stock with a forward one-year price-to-earnings (P/E) ratio of 17, which is viewed as attractive for a growth company, suggesting potential for price expansion as it continues to grow and enter new markets [12]

Tesla's (TSLA -0.48%) stock is undoubtedly risky, but then again, so are many other stocks on the market, and there's no such thing as a reward without risk. The question is whether the risk/reward calculation makes sense for Tesla stock. Here's one view on matters.Tesla looks and walks like a growth stockIt's easy to point at the stock's current valuation based on earnings, cash flow, and sales and quickly conclude that the stock is ridiculously overvalued. For example, here's a look at Tesla's enterprise ...