Stocks to buy

The earnings season is coming to an end, and companies have delivered rather impressive performances. Of course, the highlight was Nvidia (NASDAQ:NVDA), which provided another outstanding quarter. Still, other companies proved themselves as unstoppable stocks to buy.

These companies might not be featured in daily news coverage like the Magnificent Seven stocks. However, their most recent quarterly earnings proved they should be part of the conversation. They are executing flawlessly and crushing the competition. Moreover, management outlined a bullish view for the calendar year 2024.

Based on revenue growth alone, these unstoppable stocks to buy sit in their own league. In the latest quarter, each delivered over 30% year over year (YOY) revenue growth. And looking at the prospects going forward, plenty of reasons exist to remain bullish.

Below, we examine these companies and their special earnings. Furthermore, we highlight their outlooks and explain the reasons these companies will continue outperforming.

Duolingo (DUOL)

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Duolingo (NASDAQ:DUOL) was among the winners this earnings season, surging 20% on exceeding analyst expectations. The company reported Q4 revenues of $151 million, exceeding analyst expectations by $2.62 million. Additionally, the online language learning platform swung to a net income profit of $12.1 million from a loss of $13.9 million in the prior year quarter.

There are few comparisons for the company’s impressive results. Remarkably, Duolingo has now achieved over 42% revenue growth over the past four quarters. What’s more, revenue growth accelerated from 43% in Q3 2023 to 45% in Q4 2023.

The user growth that Duolingo has seen means it’s one of the unstoppable stocks to buy. The company has accelerated daily active user growth for ten consecutive quarters from Q3 2021 through Q4 2023. In the quarter, daily active users (DAUs) were 26.9 million, growing 65% YOY, and monthly active users (MAUs) were 88.4 million, growing 46% YOY.

For full fiscal year 2023, revenues grew 44% to $531 million. The company saw a 13-point EBITDA margin improvement from 4.2% in 2022 to 17.6% at the close of 2023. As a result, adjusted EBITDA soared from $15.5 million in 2022 to $93.7 million.

For 2024, the company expects to capitalize on several growth opportunities. For instance, it will focus on growing the Family plan. Despite growing over 100% in 2023, the plan only accounts for 18% of paid subscribers. The plan has a higher retention rate, so there is an opportunity to capitalize on the momentum.

Considering these growth opportunities, management expects 35% – 37% revenue growth and an improvement in EBITDA margins to 21.5%. With over 2 billion people across the globe learning languages, Duolingo has a massive addressable market. DUOL stock isn’t done yet and has more upside.

Celsius (CELH)

Source: Shutterstock

The third-largest energy drink maker by market share just delivered another outstanding quarter. Of note were the significant market share gains Celsius (NASDAQ:CELH) saw. Revenues for Q4 2023 were $347 million, representing 95% YOY growth. North America’s growth was even higher, at 97%, driven by higher store-keeping units per location and an increase in distribution points.

CELH is seeing massive share gains. Notably, it became the first energy drink maker in more than 10 years to surpass a 10% market share. As of January, the company had surpassed a 15% market share in over a dozen U.S. markets. Furthermore, it’s now the number one energy drink on Amazon.

Given that the growth story is in its early innings, Celsius is one of the top unstoppable stocks to buy. The company is focused on growth through new products and international expansion. In terms of new products, it continues to delight customers with new launches like the Fizz Free Blue Raspberry Lemonade and Sparkling Raspberry Peach.

On the international front, the company launched in Canada in mid-January through its distribution partner Pepsi (NASDAQ:PEP). Also, it plans to launch sales in the United Kingdom in the second quarter. For this purpose, it has announced a distribution agreement with Suntory Beverage & Food Great Britain and Ireland (OTCMKTS:STBFY).

Celsius growth momentum will continue in 2024. The company expects further international expansion in 2024. Also, management sees incremental growth in non-tracked outlets, such as corporate cafeterias, vending, college campuses and hospitals.

CrowdStrike (CRWD)

Source: T. Schneider / Shutterstock.com

On March 5, CrowdStrike (NASDAQ:CRWD) delivered an outstanding earnings report, sending the stock 10% higher on the next trading day. Management dispelled fears about a slowdown in cyber spending by delivering a beat and raise quarter. In particular, the earnings were a rebuttal to Palo Alto’s (NASDAQ:PANW) CEO Nikesh Arora comments about spending fatigue.

CrowdStrike is seeing impressive growth as rogue actors emboldened by AI wreak havoc on companies. Furthermore, companies are getting weary of disparate and disjointed cybersecurity solutions. Instead, they are looking for easily deployable single platforms such as CrowdStrike’s Falcon.

This cybersecurity giant has become the consolidator of choice. As a result, net new annual recurring revenue growth accelerated to 27% YOY, hitting $282 million. ARR at the end of the fiscal year grew 34% to $3.44 billion.

Besides the impressive growth, the company demonstrated best-in-class profitability. GAAP subscription gross margins increased from 76% in 2023 to 78% in 2024. Non-GAAP income from operations was $660.3 million, growing 85.6% YOY. Free cash flow for the year was $938.2 million.

Lastly, the company topped these results with impressive guidance. The company expects 2025 revenues of $3.92- $3.98 billion, representing at least 28% growth. CrowdStrike is one of the few unstoppable stocks to buy in cybersecurity. According to Morgan Stanley, cybersecurity is a megatrend. Buy CRWD stock to take advantage of this long-term opportunity.

On the date of publication, Charles Munyi did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Charles Munyi has extensive writing experience in various industries, including personal finance, insurance, technology, wealth management and stock investing. He has written for a wide variety of financial websites including Benzinga, The Balance and Investopedia.

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