The investment world is split up into two main camps – growth investors and income investors.
Income investors seek the stability of companies that pay out a consistent dividend.
Growth investors, on the other hand, look for capital gains arising from an increasing share price.
Growth stocks deserve a place in every investor’s portfolio as they can help you grow your money to better prepare yourself for retirement.
Here are four US growth stocks that can lift your investment portfolio’s value over time.
Veeva Systems (NYSE: VEEV)
Veeva Systems provides a cloud-based platform for the life sciences industry.
The company serves more than 1,000 customers ranging from the world’s largest pharmaceutical companies to smaller biotechnology firms.
For its fiscal 2024 (FY2024) ending 31 January 2024, Veeva saw its revenue rise 9.7% year on year to US$2.4 billion.
Gross profit increased by 9.1% year on year to US$1.7 billion while net profit climbed 7.8% year on year to US$525.7 million.
The business also generated a positive free cash flow of US$885.1 million, 15.4% higher than the prior year’s US$767 million.
For FY2025, Veeva expects revenue to come in at around US$2.73 billion, representing a year-on-year increase of around 15.6%.
The life sciences platform provider finished FY2024 with 1,432 customers, 44 more than the previous year.
Back in January, Veeva announced the availability of the complete Compass Suite of commercial data products to help replace its legacy data products.
Celsius Holdings (NASDAQ: CELH)
Celsius is a beverage company that produces premium energy drinks under its trademark brand name CELSIUS.
The company has four product categories and sells its products in 10 countries.
Revenue for 2023 doubled year on year from US$653.6 million to US$1.3 billion.
The business generated an operating profit of US$266.4 million for 2023 versus an operating loss of US$157.8 million in 2022.
Net profit came in at US$226.8 million.
Celsius also generated a positive free cash flow of US$123.8 million for 2023, 24% higher year on year.
The company’s beverages have emerged as the fastest-growing category in the beverage industry.
Its customers are seeking alternative beverages to help themselves maintain their health and wellness objectives.
Celsius is well-distributed across various channels such as big-box retail, convenience stores, fitness outlets, grocery chains and drug stores.
Management also inked a distribution agreement with PepsiCo (NASDAQ: PEP) to help with new international expansion opportunities.
Fastly (NYSE: FSLY)
Fastly runs an edge cloud platform that helps its clients improve their site performance while enhancing security.
The company’s modern platform architecture helps to deliver secure websites and apps and improves time-to-market.
Revenue for the first quarter of 2024 (1Q 2024) increased by 13.6% year on year to US$133.5 million while gross profit jumped 21.5% year on year to US$73.2 million.
The company also generated a positive free cash flow of US$2.7 million for the quarter, reversing the negative free cash flow of US$16.6 million in the prior year.
Fastly’s total customer count came in at 3,290 for 1Q 2024, up by 47 from the previous quarter, of which 577 were enterprise customers.
Its 12-month net retention rate improved to 114% from 113% over the same period.
The company released Fastly Bot Management Solution to help businesses combat automated bot attacks on the edge and minimise the impact of fraud or other internet attacks.
Meanwhile, the business also simplified its product bundles and expanded its Compute platform to enable organisations to run more of their services entirely on the edge.
Okta (NASDAQ: OKTA)
Okta is an identity management company that helps organisations manage their staff’s access privileges and logins/passwords.
For its FY2024 ending 31 January 2024, Okta’s revenue rose 21.8% year on year to US$2.3 billion.
Gross profit increased by 28.2% year on year to US$1.7 billion as gross margin improved from 70.6% to 74.3%.
The identity management firm also saw free cash flow leap to US$488 million in FY2024 from just US$63 million a year ago.
Okta’s total customers rose 7.7% year on year to end FY2024 at 18,950 while customers with annual contract value greater than US$100,000 increased by 14.1% year on year to 4,485.
Management has identified a total addressable market of US$80 billion of which Okta has just a small slice.
This figure implies that there is a significant opportunity for the company to continue growing its revenue and market share.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
