What does it mean when companies prioritize sales growth over profitability?

This strategy means companies choose to heavily reinvest their revenue into expansion rather than showing immediate profits. They spend aggressively on customer acquisition, market penetration, and scaling operations. The goal is to capture significant market share quickly, believing that once they achieve scale and market dominance, profitability will follow. Think of Amazon during its early years – they operated at a loss for years while building the infrastructure that eventually made them incredibly profitable.

Are high-growth stocks with negative profits too risky for beginner investors?

These stocks typically come with higher volatility and uncertainty, which can mean more risk. However, they don't have to be off-limits for beginners. The key is proper portfolio diversification – only allocate a portion of your investments to high-growth stocks, balancing them with more stable investments. Also, consider your time horizon: if you're investing for the long-term and can ride out short-term volatility, growth stocks may align well with your goals. Just be sure you understand the company's path to eventual profitability.

What are projected sales and why are they important?

Projected sales represent analysts' forecasts of a company's expected future revenue. For high-growth companies, this metric is particularly important because it indicates the company's anticipated expansion pace. Strong projected sales growth suggests the company is successfully executing its market capture strategy. Investors often value these companies based on sales multiples (like price-to-sales ratio) rather than profit-based metrics, making future sales projections a critical indicator of potential stock performance.

What is digital transformation and why does it benefit these companies?

Digital transformation refers to the integration of digital technology into all areas of a business, fundamentally changing how companies operate and deliver value to customers. This global trend is creating massive demand for the tools, platforms, and services that enable businesses to modernize their operations. The companies in this collection often provide these essential digital solutions – from cloud software to e-commerce platforms to marketing automation. As more businesses worldwide accelerate their digital initiatives, these companies benefit from expanding markets and increasing customer adoption.

How do I evaluate a company that isn't profitable yet?

When traditional profit metrics aren't available, look at alternative indicators: revenue growth rate (is it accelerating?), gross margin (is it improving?), customer acquisition costs relative to customer lifetime value, and cash burn rate compared to available cash. Also examine the total addressable market (TAM) to understand growth potential, and assess the company's competitive advantages that could lead to future profitability. Finally, listen to management's explanations of their path to profitability and timeline – a clear, reasonable plan is essential.

14 handpicked stocks

Sales Superstars

These companies are all-in on explosive revenue growth rather than immediate profits. Carefully selected by our analysts, this collection features businesses strategically positioned to dominate their markets through aggressive expansion and customer acquisition.

Han Tan | Market Analyst

Published on June 17

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

Salesforce Inc

CRM

Current price

$238.88

As a dominant force in CRM technology, the company consistently drives sales growth by expanding its AI-powered platform to capture more enterprise cu...

As a dominant force in CRM technology, the company consistently drives sales growth by expanding its AI-powered platform to capture more enterprise customers.

Coupang, LLC

CPNG

Current price

$32.42

This e-commerce giant is rapidly growing sales by solidifying its market leadership in Korea and expanding its delivery and streaming services into ne...

This e-commerce giant is rapidly growing sales by solidifying its market leadership in Korea and expanding its delivery and streaming services into new regions.

HubSpot, Inc.

HUBS

Current price

$445.16

Its all-in-one marketing, sales, and service platform is capturing significant market share as businesses of all sizes accelerate their digital transf...

Its all-in-one marketing, sales, and service platform is capturing significant market share as businesses of all sizes accelerate their digital transformation efforts.

KLAVIYO, INC.

KVYO

Current price

$25.90

CarGurus, Inc.

CARG

Current price

$38.21

GDS Holdings Ltd

GDS

Current price

$40.97

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12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

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In 12 months it might be worth:

$1,000.00

+105.63%

≈

About This Group of Stocks

Our Expert Thinking

These companies prioritize rapid revenue growth over short-term profits. They're playing the long game – investing heavily in expansion today to secure market dominance and substantial earnings power tomorrow. This strategy often creates excellent growth potential for investors willing to look beyond current profitability.

What You Need to Know

Companies in this collection typically show exceptional projected sales growth while possibly operating at a loss. They leverage scalable technologies like AI, cloud platforms, and digital commerce to quickly acquire customers. These stocks can provide high-octane growth to a diversified portfolio, but come with higher volatility.

Why These Stocks

Our analysts specifically selected companies with outstanding forward revenue projections and proven ability to rapidly grow customer bases. The ongoing global acceleration of digital transformation provides powerful tailwinds for these businesses, creating vast opportunities for them to scale and solidify leadership positions.

Group Performance Snapshot

105.75%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 105.75% over the next year.

13 of 14

Stocks Rated Buy by Analysts

13 of 14 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🚀

Explosive Growth Potential

These companies are growing sales at rates that far outpace industry averages. Their rapid expansion strategies could translate into significant share price appreciation as they capture market dominance.

🔮

Tomorrow's Market Leaders

By sacrificing today's profits for aggressive expansion, these companies are positioning themselves to become the dominant players in their industries. Getting in early could mean substantial long-term returns.

🌊

Riding the Digital Wave

These firms are capitalizing on the massive global shift toward digital-first business operations. As this transformation accelerates, they're perfectly positioned to benefit from expanding demand for their innovative solutions.

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