2 Stocks With Amazing Growth Potential You Can Buy Now

If you’re looking to add a strong growth component to your investment portfolio, you’ve come to the right place. The following two companies are expected to grow their sales and profits at a tremendous pace over the next few years. Buying those stocks today could put you in a position to profit with them.

1. DraftKings

The sports betting market is expected to grow from $84 billion in 2022 to more than $180 billion by 2030, according to Grand View Research. As a leader in this fast-growing industry, DraftKings (D.K.N.G. -3.26%) We expect to benefit greatly from this megatrend.

As more governments legalize sports betting, DraftKings has access to new markets. The company’s sportsbook operations operate in 24 U.S. states. There’s a lot of room for DraftKings to expand further within the U.S. as higher tax revenues will likely eventually lead to the remaining state legislatures legalizing sports betting. International markets such as Canada, where DraftKings has a beachhead in Ontario, are also fertile ground for long-term growth.

DraftKings is also growing rapidly in its existing markets. Driven by customer growth and strong user engagement, third quarter revenue increased 57% year-over-year to $790 million. Overall, the number of monthly unique payers on the DraftKings platform increased 40% to 2.3 million. Those people also bet more money. DraftKings’ average revenue per payer increased 14% to $114.

Even better, sports betting champions are becoming more profitable as they expand their revenue base. Management expects DraftKings to generate up to $450 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in fiscal 2024, compared to an expected loss of approximately $105 million in 2023. I expect it.

With plenty of growth still expected and profitability improving quickly, consider betting on DraftKings’ continued success by buying some shares today.

2. Rivian Automobiles

The electric vehicle (EV) market is another fast-growing industry that can create wealth for enterprising investors. But the first thing most people think of is tesla When considering EV investments, it’s startups rushing hard rivian cars (RIVN -1.25%) This presents a more interesting way to benefit from the current transition to battery-powered cars and trucks.

Rivian’s R1T pickup truck and R1S SUV are proving popular among consumers. The EV maker’s third-quarter revenue rose 149% year over year to $1.3 billion. Rivian delivered 15,564 vehicles during the quarter, a 136% increase over the year-ago period.

Even better, Rivian’s profitability is improving as it scales its operations. The automaker’s gross profit per vehicle increased by nearly $2,000 compared to the second quarter and by a whopping $108,000 compared to the third quarter of 2022. Management expects that additional production growth will enable Rivian to generate positive company-wide gross profit in 2024.

Rivian’s cash holdings and investments, totaling more than $9 billion as of September 30, and its rapidly improving gross margins will allow it to achieve sustained operating profitability without significantly disrupting shareholder dilution. Although some additional debt or equity sales may be necessary, future financing transactions will likely offer more attractive terms as Rivian’s operating and financial performance continues to improve.

Management expects Rivian to produce 54,000 vehicles in 2023. This number will increase rapidly as manufacturing capabilities strengthen in the future. Notably, Rivian’s annual production rate increased to more than 65,000 EVs by the end of the third quarter.

But these figures represent only a small fraction of the more than 14 million electric vehicles expected to be sold in 2023, according to research firm Canalys. Additionally, investment banking Goldman Sachs predicts that industry sales will surge to 73 million EVs per year by 2040. Suffice it to say that Rivian has plenty of highways for exponential growth ahead.