What does "projected sales" and "projected profit" mean?

Projected sales and projected profit are forward-looking estimates of how much revenue a company is expected to generate and how much money it will make after expenses in future periods. Unlike historical data, these projections help investors identify companies that may experience significant growth, even if their current financials aren't impressive. Analysts create these projections based on industry trends, company guidance, and market research.

What are "high-growth sectors" and why are they important?

High-growth sectors are industries experiencing rapid expansion, such as artificial intelligence, biotechnology, and financial technology. These sectors are important to growth investors because companies within them often have greater potential for significant revenue and profit increases compared to businesses in mature industries. They typically benefit from technological innovation, changing consumer behaviors, or new market creation, which can drive exceptional returns for early investors.

What is "digital transformation" and how does it affect these companies?

Digital transformation is the process of integrating digital technology into all areas of a business, fundamentally changing how it operates and delivers value to customers. For the companies in this collection, digital transformation acts as a powerful catalyst for growth. As more businesses and consumers adopt digital solutions, companies providing the underlying technologies, platforms, or services experience accelerated demand. This trend creates opportunities for innovative businesses to disrupt traditional industries or establish leadership in emerging ones.

What does it mean when a company is "creating new markets"?

When a company creates a new market, it develops products or services that fulfill needs customers didn't know they had or solves problems in ways never before available. Rather than competing in existing industries, these innovative companies essentially pioneer entirely new categories of business. For example, ridesharing apps created a new market that didn't exist before smartphones. Creating new markets can lead to explosive growth since these companies face little direct competition initially and can establish themselves as leaders in their self-created categories.

What is "alpha" in investment terms?

Alpha is a term used to describe an investment's performance relative to a benchmark index, like the S&P 500. When a portfolio or investment generates "alpha," it means it has delivered returns above what would be expected based on its risk level. In simpler terms, it's the extra return an investor receives beyond what the overall market provides. The Future Growth Leaders collection aims to generate alpha by identifying companies with exceptional growth potential before the broader market fully recognizes their value.

15 handpicked stocks

Future Growth Leaders

Get ahead of the curve with this carefully selected collection of companies positioned for exceptional growth. Our professional analysts have identified these potential market titans operating in dynamic, high-growth sectors before their explosive potential is fully recognized by the masses.

Han Tan | Market Analyst

Updated 2 days ago | Published at juin 18