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Top Growth Stocks for April 2022

Growth investing is one of two main fundamental investment strategies,the other being value investing. Investors employing a growth investing strategy will typically place the majority of their portfolio in growth stocks, which are shares of companies with earnings or sales expected to grow at a significantly faster rate than the rest of the market. They generally don’t pay dividends at this stage, since all earnings are usually reinvested back into the business to generate even more earnings or revenue in the future.

The primary way that investors expect to earn profits from growth investing is through capital gains. Classic examples of growth stocks in recent years have included Apple Inc., Amazon.com Inc., and Netflix Inc.

Growth stocks, as represented by the Russell 1000 Growth Index, have outperformed the broader market over the past year. The Growth Index has provided a total return of 17.1% over the past 12 months, above the benchmark Russell 1000 index’s 15.5% total return, as of March 24, 2022. All statistics in the tables below are also as of March 24, 2022.

Here are the top three stocks with the fastest earnings per share (EPS) growth, the top three stocks with the fastest sales growth, and the top three stocks ranked according to a 50/50 weighting of their combined EPS and sales growth.

Top Growth Stocks by EPS Growth

These are the stocks with the highest year-over-year (YOY) EPS growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders. Companies with quarterly EPS of more than 2,500% were excluded as outliers.

Top Growth Stocks by EPS Growth
 
Price ($)
Market Cap ($B)
EPS Growth (%)
Boston Properties Inc. (BXP)
126.12
19.8
2,260
Digital Realty Trust Inc. (DLR)
137.65
39.2
2,220
EQT Corp. (EQT)
30.74
11.6
1,940

Source: YCharts

Boston Properties Inc.: Boston Properties is a developer, owner, and manager of Class A office properties in Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. The company reported on March 21 that it would pay a quarterly cash dividend of $0.98 per share of common stock on April 29 to shareholders of record as of March 31, 2022.
Digital Realty Trust Inc.: Digital Realty Trust is a real estate investment trust (REIT) which owns and manages technology-related properties. The company focuses on data center, colocation and interconnection-related properties.
EQT Corp.: EQT is an integrated energy company focused on natural gas production in the Appalachian area in Pennsylvania, West Virginia, and Ohio. The company explores for and produces natural gas and natural gas liquids (NGLs).

Top Growth Stocks by Sales Growth

These are the stocks with the highest YOY sales growth for the most recent quarter. Rising sales can help investors identify companies that are able to grow revenue through organic or new ways, as well as find growing companies that have not yet reached profitability. In addition, EPS can be significantly influenced by accounting factors that may not reflect the overall strength of the business. However, sales growth can also be potentially misleading about the strength of a business because growing sales on money-losing businesses can be harmful if the company has no plan to reach profitability. Companies with quarterly revenue growth of more than 2,500% were excluded as outliers.

Top Growth Stocks by Revenue Growth
 
 Price ($)
Market Cap ($B) 
Revenue Growth (%) 
Liberty Broadband Corp. (LBRDA)
134.77
22.6
545.6
Coterra Energy Inc. (CTRA
27.03
22.0
387.6
Copa Holdings SA (CPA)
77.00
3.2
262.5

Source: YCharts

Liberty Broadband Corp.: Liberty Broadband is a company that invests in communications companies. It holds or has held interests in Charter Communications Inc., Skyhook Holding Inc., and other related companies. On Feb. 25, the company reported narrowing operating losses for Q4 2021, ended Dec. 31. Revenue surged dramatically year-over-year (YOY) during the quarter, bolstered by proceeds from the sale of 1.9 million Charter shares to Charter between Nov. 1, 2021 and Jan. 31, 2022. The company did not make clear how much of that revenue was applicable to Q4 2021 in its earnings release.Coterra Energy Inc.: Coterra Energy Inc. is the product of the October 2021 merger of Cabot Oil & Gas Corp. and Cimarex Energy Co. The merged entity is a diversified energy company that develops oil and gas properties in Texas, New Mexico, and other areas throughout the U.S. On Feb. 23, Coterra Energy announced results for Q4 2021, ended Dec. 31, 2021. Net income surged more than seven-fold as revenue rose more than four-fold YOY during the quarter, reflecting the merger on Oct. 1, the first day of the fourth quarter.Copa Holdings SA: Copa Holdings is a Panama-based provider of airline passenger and cargo service. The Company provides scheduled flights to countries in North, Central and South America and the Caribbean.

Top Growth Stocks by EPS and Revenue

These are the top growth stocks in the Russell 1000 Index as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly YOY percentage revenue growth and most recent quarterly YOY EPS growth. Both sales and earnings are critical factors in the success of a company. Moreover, ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one or the other figure unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of more than 2,500% were excluded as outliers.

Top Growth Stocks by EPS and Revenue
 
 Price ($)
Market Cap ($B) 
Revenue Growth (%) 
EPS Growth (%)
EQT Corp. (EQT)
30.74
11.6
235.7
1,940
Upstart Holdings Inc. (UPST)
115.45
9.7
252.0
1,440
Boston Properties Inc. (BXP)
126.12
19.8
9.9
2,260

Source: YCharts

EQT Corp.: See company description above.Upstart Holdings Inc.: Upstart Holdings is a holding company whose subsidiaries offer a cloud-based artificial intelligence lending platform to make credit more available. The platform also helps bank partners to reduce lending risks. Upstart announced in early March the launch of its mobile-first Upstart Auto Retail online platform. The platform provides customers with access to dealer inventory on mobile devices and includes an in-store platform and AI-powered financing solution. Adoption by dealers of Upstart’s Auto Retail has already grown nearly four-fold in 2021 before the latest launch of the new mobile-first platform.Boston Properties Inc.: See company description above.

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YCharts. “Financial Data.”

Boston Properties Inc. “Boston Properties Declares Regular Quarterly Dividend.”

Liberty Broadband Corp. “Liberty Broadband Reports Fourth Quarter and Year End 2021 Financial Results.”

Coterra Energy Inc. “Coterra Energy Reports Fourth-Quarter and Full-Year 2021 Results, Provides 2022 Outlook and Updates Shareholder Return Strategy.”

Upstart Holdings Inc. “Upstart Launches New Mobile-First Auto Retail Online Platform.”

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