The 7 Best Fast Growing Stocks for New Investors to Buy

Femsa (FMX)

Mexican multinational beverage and retail company Femsa is operated by the largest independent Coca-Cola bottling group in the world. In addition, he owns the largest chain of convenience stores in his country. The stock has already accelerated returns to over 42% since early January. However, for patient investors in high-growth stocks, FMX can be very tempting.

Of course, we won't talk about stocks for young investors without discussing the underlying revenue growth. According to Gurufocus, Femsa posted a three-year revenue growth rate (per share) of 53.7%, which exceeds almost 96% of the market. In addition, the EBITDA growth rate for the same period is 50.3%, which is higher than 95.53% of competitors.

Practically as a bonus, FMX market prices have a sales ratio of 1.17, below the sector median of 1.75. To be fair, analysts see FMX reaching $113.40, which means upside potential of 2.4%. However, the underlying expansion and relevance to a key growth market make it one of the growth stocks for millennials.

Avis Budget (CAR)

Just a quick look at Avis Budget shows that it is one of the fastest growing stocks for young investors. Since opening in January, CAR has received more than 36% of its capital value. Over the past 365 days, it has grown by almost 45%. In fact, the phenomenon of revenge journey continues to be relevant this year. It's also possible that people are enjoying their last hurray before the recession.

Whatever the case, the salon fever and backlog structure was an absolute beauty for Avis. Notably, the car rental agency reported a three-year revenue growth of 30%, higher than nearly 92% of its peers. In addition, EBITDA grew by 42.7% over the same period, outperforming peers by 86.55%. Interestingly, AVIS is not only one of the long-term investment opportunities, but also highly undervalued. Right now, the stock's market prices are at a multiple of 7.26, which is below 93.88% of the competition.

While analysts are only looking for the stock to rise to $238.25 (implying 6% upside), a good travel season could make AVIS a great growth investment.

 Wesco (WCC)

While Wesco (WCC) is not a direct argument in favor of high-growth stocks for young investors, it deserves additional attention. According to its corporate profile, Wesco is a leading provider of distribution services, logistics services and supply chain management solutions. To be honest, it's pretty boring. However, the WCC has also skyrocketed just over 39% since opening in January.

Over the past year, the WCC has added over 57%, which is an excellent result. In terms of finances, the hits keep coming. According to Gurufocus, Wesco's three-year revenue growth rate is 28.6%, outperforming competitors by 91.1%. In addition, during the same period, EBITDA growth reached 48.7%, exceeding 90.84%.

Despite these staggering statistics, the market price of WCC is only a multiple of 10. In terms of discount to forecast earnings, Wesco ranks better than 77.78% of competitors. Also big: Analysts unanimously view WCC as a strong buy. With a high price target implying more than 21% upside potential, WCC is among the millennial stocks.

Brookfield Renewable (BEPC)

Among the fast-growing stocks for young investors who are truly selling themselves, Brookfield Renewable operates one of the world's largest publicly traded platforms for renewable energy and decarbonization solutions. According to the website, Brookfield's diversified portfolio consists of distributed hydro, wind, solar and sustainable solutions across five continents.

With a broader political commitment to green innovation, BEPC is among the most relevant ideas for investing in growth. Additionally, financials show that Brookfield is in expansion mode. Its three-year revenue growth rate is 29%, above just over 80% of its peers. Over the same period, EBITDA grew by 57.6%, over almost 90%.

Notably, BEPC trades with 3.37 times operating cash flow, which is higher than 73.9% of sector players. It also trades at a low profit multiple of 3.89. Turning to Wall Street, analysts see BEPC as a moderate buy. Their average price target is $39, which implies more than 22% upside potential.

Marathon Petroleum (MPC)

While I have just finished stating that the political winds are favoring renewable energy solutions, I don't believe for a second that hydrocarbons will simply disappear. Therefore, I believe that Marathon Petroleum deserves to be considered as one of the fastest growing stocks for young investors. In fact, the energy density of fossil fuels is simply too high for the industry to ignore.

To be sure, MPC is not that impressive compared to last year. However, over the past 365 days, the stock has gained almost 29% of the cost of capital. In terms of financial performance, Marathon posted a three-year revenue growth of 27.1%, outperforming the competition by 80.3%. During the same period, Marathon's EBITDA growth rate reached 60.9%, exceeding 88.21%.

Notably, the consistently profitable marathon also represents an undervalued proposition. In particular, the market prices of shares have a forward coefficient of 6.09, which is 7.51 times lower than the sector's median. Looking at the market, analysts see MPC as a moderate buy with an average target price of $140.13 (implying 23% upside potential). Thus, it is a sound idea for a long-term investment.

 JOYY (YY)

Global social media platform JOYY (YY) is both an enticing high-growth stock idea for young investors and a terribly risky proposition. Let's get the bad news out of the way first: the social media space is crowded. So it's not surprising that YY has fallen more than 12% since opening in January. In the past year, he has not gone anywhere.

On the other hand, Joyy allows users to interact with each other in real time through online media, and offers users unique fun and exciting entertainment in line with the corporate profile. This may be enough to set you apart from your competitors. One thing is certain. With a three-year revenue growth rate of 36%, it outperforms almost 84% of competitors.

In addition, despite the expansion in revenue, YY is trading at a sales ratio of 1.03. Compared to revenue, Joyy is ranked better than 74% of interactive media companies. Finally, analysts view YY as a moderate buy with a target price of $41.67 (implying more than 35% upside potential).

 Harmony Biosciences (HRMY)

Since the beginning of this year, HRMY has lost over 34% of its capital value. Over the past year, it has decreased by 31%. I appreciate a science that is focused on research, drug development, and the treatment of neurological disorders of sleep-wake instability.

However, I want to emphasize the speculative nature of HRMY; it's just not for the faint of heart. Nevertheless, Harmony is rightfully one of the fastest growing stocks for young investors. For example, in the first quarter of 2023, the biotech company posted $119.1 million in sales, up nearly 40% from the year-ago quarter. Also, since 2019, Harmony has been posting amazing expansion statistics.

Compared to projected earnings, Harmony ranks higher than 74.55% of competitors. Finally, analysts see HRMY as a good buy. Their average price target is $61.43, which implies over 76% upside potential.