Investing in growth stocks under $25 can be a strategic move for investors looking to capitalize on high-potential companies without breaking the bank. These stocks can belong to companies in the early stages of expansion or have tremendous revenue and profit potential.
While established large-cap companies offer a certain level of security, their potential for explosive growth is often limited. Additionally, cyclical and industry-specific tailwinds can increase these stocks’ appeal to deliver outsized returns. Industries such as fintech, cloud computing and travel and tourism are well-positioned to grow rapidly over the next decade. For investors with a higher risk tolerance and longer time horizon, growth stocks under $25 present an exciting opportunity to reap significant rewards.
Now, here are the top three growth stocks under $25 that could 3X or more by 2028!
Hewlett Packard Enterprises (HPE)
Hewlett Packard Enterprises (NYSE:HPE) is a global technology company providing a suite of IT solutions, including servers, storage, networking and cloud services. Trading under $25 per share, HPE offers a compelling opportunity for growth-oriented investors.
One of the primary drivers behind HPE’s growth is its strategic shift towards edge computing and hybrid cloud solutions. The company has invested heavily in its GreenLake platform, which offers cloud and as-a-service solutions for businesses. Moreover, the company is embracing the AI revolution with its suite of AI solutions. That includes services like HPE supercomputing to accelerate AI workloads, as well as an AI-powered private cloud and analytics. In FY23, revenue increased 2% year-over-year (YOY) to $29.13 billion. Net earnings skyrocketed 133% to $1.54 per share. HPE retired $1.6 billion in long-term debt in the 2023 fiscal year, further strengthening its liquidity. Furthermore, management guided diluted EPS in the $1.81 to $2.01 range. With free cash flow forecasted to rise significantly to $2 billion at the midpoint, HPE stock is among the best growth stocks under $25 to buy in 2024.
Nu Holdings (NU)
Nu Holdings (NYSE:NU), the parent company of Nubank, is a leading digital banking platform in Latin America. With a stock price under $25, Nu Holdings presents an existing opportunity for investors looking to capitalize on the burgeoning fintech sector.
Nubank has disrupted the traditional banking sector by offering its customers a user-friendly mobile app, lower fees and a unique customer experience. The company has grown rapidly since its founding in 2013, and it is now the largest digital bank in Latin America. Its platform is multifaceted, offering a range of financial products including credit cards, personal loans and digital payments. Moreover, its no-fee approach has resonated well with customers, leading to a rapidly expanding customer base of more than 100 million. In its latest quarterly financial results, revenue rose an astonishing 69% YOY to $2.7 billion. Net earnings increased 167% YOY to $379 million while adding 5.5 million new customers in the quarter. As the fintech industry grows, NU stock is undoubtedly one of the best growth stocks under $25 to triple your money by 2028.
Carnival (CCL)
Carnival (NYSE:CCL), the world’s largest cruise company, operates a portfolio of well-known brands such as Carnival Cruise Line, Princess Cruises and Holland America Line. The cruise industry was hit hard by the COVID-19 pandemic, but Carnival has shown resilience and is well-positioned for a strong recovery through 2028.
Carnival’s stock remains one of the top growth stocks under $25 to buy in 2024. The pandemic severely impacted the cruise industry, leading to extended suspensions of operations and substantial financial losses. However, with the global economy now open, pent-up demand will work wonders for Carnival’s growth prospects over the next few years. Cruise demand is rebounding significantly, and its financial performance saw significant improvements in FY23.
Furthermore, Carnival’s strong brand recognition, extensive global network and loyal customer base give it a competitive advantage. In Q2 FY24, revenue increased 18% YOY to $5.78 billion. Net earnings swelled 123% YOY to $92 million, or 7 cents per share. Additionally, management raised its guidance for FY24, forecasting adjusted net income of approximately $1.55 billion.
On the date of publication, Terel Miles 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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.