3 Growth Stocks That Should Be on Every Investor’s Radar This Fall

Stocks to buy

The recent launch of a $13 million advertising campaign by Biden supporters, highlights the President’s economic achievements such as: $1.2 trillion infrastructure and climate bill, substantial investments in domestic microchip production, and green energy solutions. It carries significant implications for economic growth and in the stock market.

These initiatives have been predicted to create 1.5 million jobs per year for the next decade, which would boost overall growth and productivity in the economy. Additionally, the steady improvement in the gross domestic product (GDP) over recent quarters, with a 2.1% annualized growth rate in the last quarter, provides a stable economic backdrop that strengthens investor confidence.

These economic advancements have a positive outlook for both the stock market and the broader economy, leaving these three top growth stocks set to expand on their innovations and product offerings.

Roblox (RBLX)

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Roblox (NYSE:RBLX) is a video game company differentiated by its platform approach. Its business model revolves around selling virtual in-game currency and has cheap research and development (R&D) costs compared to traditional gaming companies. 

RBLX stock is down -0.86% YTD. The video game market is still poised for growth as the latest figures from Grand View Research show a 13.4% CAGR from 2023 to 2030. 

In its latest earnings, Roblox reported $680.77 million and 65.5 million DAUS (Daily Average Users), rising by 15.15% and 25% respectively. Roblox has been developing innovative products, as seen through the $551.91 million increase by 24.38% YoY. This is further evident in expensing finances, such as operating income to -$313.99 million decreasing by 84.41%

Nonetheless, there are compelling reasons to remain optimistic about Roblox’s growth potential. One major factor contributing to its recent challenges has been the substantial investment in R&D, as the company sought to harness the meta-verse trend. However, Roblox’s management has shifted its focus toward enhancing profitability, prioritizing this over rapid expansion. This strategic pivot aligns with the company’s intrinsically high-margin business model, offering promising prospects for Roblox to swiftly improve its financial performance in the foreseeable future. 

With an average price target of $37.53 (a 36% upside) and 5 recent maintains of buy ratings, Wall Street thinks the sell-off has been too much. Roblox is a unique player in the video game industry that has the potential to be very profitable, and the current sell-off has made RBLX stock an attractive long-term buying opportunity. 

Delta Air Lines Incorporated (DAL) 

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Delta Air Lines Incorporated (NYSE:DAL) is an American air transportation service focusing on taking passengers worldwide. Delta’s main target audience is business class passengers who seek the aesthetic of a more comfortable, luxurious, and professional experience compared to its competitors.

DA stock increased by 22.36% YTD. Yahoo! Finance reported 16 analysts having a 12-month price target of $60.06, with the range spanning from as low as $38.89 to as high as $77.00.

Post-pandemic, the air travel market has been slowly growing back to its pre-pandemic state due to travel restrictions. Globally, the industry is valued at $762.8 billion, with Delta holding a 3.45% market share, and is projected to grow at a 25.5% CAGR in the time period of 2022 to 2027.

Delta’s financials are faring well. In Q2 2023, revenue increased 12.69% YoY to $15.6 billion, net income increased 148.6% YoY to $1.83 billion, and diluted EPS increased 146.96% YoY to $2.84. Furthermore, a 142.7% decrease in cash flow is evident through Delta’s commitment to paying off previous loans. All of Delta’s metrics bested consensus estimates as well, with EPS and revenue beating projections by 11.6% and 1.85% respectively. 

Delta’s strong buy rating primarily stems from its impressive earnings momentum demonstrated in recent financial reports. This remarkable financial performance, exemplified by substantial revenue growth and impressive EPS figures, can be attributed to the company’s innovative programs such as Comfort+ and strategic partnerships with renowned brands such as Starbucks. These initiatives not only attract new customers, but also foster brand loyalty among existing ones. This robust combination of financial excellence and customer engagement strategies positions Delta for sustained long-term growth, making it an invaluable asset for the company’s long-term success.

Ultimately, the well-balanced metrics for Delta Air Lines should only further convince investors to invest in DAL stock. A combination of beneficial tailwinds and fantastic financials sets the stock up for great success, and investors should not want to miss out on this buying opportunity. 

MercadoLibre Incorpoated (MELI)

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MercadoLibre Incorporated (NASDAQ:MELI) is an online marketplace specializing in e-commerce and online auctions in product-selling platforms, credit lines, and payment platforms. Mercado Libre’s marketplace is currently the most used platform for e-commerce in the Latin American region. 

MELI stock is up 67.5% YTD. Analysts are bullish about MercadoLibre, estimating 134% growth this quarter, and rated the stock as a buy. The average 12-month price target predicted is from $1,383.73 to $1,637.15.

MercadoLibre competes in the e-commerce market, which was valued at $15.7 trillion in 2022 and is forecasted to grow at a 15.3% CAGR to $63.8 trillion by 2032. The pandemic allowed the industry to boom as shopping in person became less favorable in comparison to the safety and convenience of buying products online. As mobile phones and social media are more prevalent in society, the e-commerce industry is given more opportunities to grow because of the increased consumer reliance on internet usage.

The company has experienced consistent growth over the past three years, with revenue growing from $7,069 million to $10,537 million for a sales growth rate of 49.05% in 2022. EPS has grown tremendously, increasing by 11879.58% in 2021 and 472.36% in 2022. MercadoLibre is proving to be profitable, as last year the company’s EBITDA grew from 594 mil to 1,364 mil for an EBITDA growth rate of 129.52%. All of these financials are indicative of healthy growth and profit for MELI.

As MercadoLibre has already established itself as a dominant player in its region and sector, increased internet usage will only fuel growth for the company. The surge in AI development presents opportunities for smarter advertising and a better platform for the company to increase user engagement. Online shopping is more favorable than ever due to the convenience and ease of ordering an item to be delivered rather than browsing through a store in person. MercadoLibre is one of the largest online marketplaces in the world and the rising demand for easy shopping will allow the company to grow for years to come. 

On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article. 

Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.

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