Well-chosen growth stocks can create fortunes for patient shareholders. Here are two companies with particularly impressive expansion potential. Consider buying their shares today so you can make a nice profit for years to come.
Growth Stocks to Buy #1: Archer Aviation
Your next trip to the airport might be by flying taxi. Sagittarius Aviation (NYSE: ACHR) wants to make this sci-fi-esque vision a reality – and it’s more advanced than you might think.
Archer’s Midnight electric vertical take-off and landing vehicle (eVTOL) features advanced tilt propeller technology. That means it can take off like a helicopter and fly like an airplane. Called Midnight, its all-electric design is quiet and produces no operational emissions, making it a more sustainable form of transportation than jet-fueled aircraft.
At speeds of up to 150 miles per hour, Midnight can replace the 50-mile commute by car, which takes more than an hour in traffic, with air taxi flights that take just 15 to 20 minutes.
The time, convenience and environmental benefits offered by eVTOL aircraft are expected to trigger a boom in high-speed travel in the city. In turn, the urban air mobility market will grow to a staggering $1 trillion by 2040, according to Morgan Stanley.
With so much growth on the horizon, transportation industry leaders are embracing the opportunity to partner with Archer. Boeing, United Airlines, Stellantisand other notable backers have invested a total of more than $1 billion in the eVTOL pioneer.
In addition, Stellantis is helping Archer expand its production capabilities. At the same time, United Airlines is partnering with Archer to launch commercial air taxi routes in the US. United has also placed an order for up to $1.5 billion worth of vehicles from the EV maker.
With these partnerships in place, Archer plans to launch electric air taxi services by the end of 2025. The EV startup’s revenue could grow rapidly in the coming years as it scales up its operations in the US and international markets such as the United Arab Emirates.
But despite these tantalizing growth prospects, Archer’s shares are currently on sell-off. With the previously high-flying stock now down about 55% from their 52-week high, Archer’s market cap is currently in small-cap territory around $1 billion. Invest today and you could enjoy multi-bagger returns if this flying EV leader can jump-start a trillion-dollar air mobility industry in the coming years.
Growth Stocks to Buy #2: CrowdStrike
Cybersecurity is another huge growth market. Grand View Research estimates that the digital defense market will grow by more than 12% annually to more than $500 billion by 2023. CrowdStrike (NASDAQ: CRWD) is a leader in this thriving sector and is well positioned to continue to reward its shareholders.
CrowdStrike’s bread and butter is endpoint security. It is the best in the industry at protecting devices such as smartphones, laptops and Internet of Things (IoT) systems. The cloud guardian is thus a major beneficiary of several key trends, including the rise of remote workforces and the shift to edge computing.
The ever-growing mountains of data flowing through CrowdStrike’s Falcon platform give it a powerful competitive advantage. Machine learning technology is becoming more intelligent every day as it scans more than 2 trillion cyber events from around the world. And when CrowdStrike’s advanced artificial intelligence (AI) identifies a new threat, it upgrades protections in real time.
These benefits are clearly reflected in CrowdStrike’s financial results. Revenue rose 33% year over year to $921 million in the quarter ended April 30. Free cash flow rose an even more impressive 42% to $322 million.
Partnerships with cloud computing giants should help fuel CrowdStrike’s expansion. On May 7, Microsoft agreed to use CrowdStrike’s AI-powered threat hunting services to strengthen its Defender cybersecurity platform. Days later, CrowdStrike announced a strategic partnership with Alphabet. Google Cloud will leverage Cyber ​​Protector’s endpoint security and identity threat detection technology to prevent breaches.
These partnerships should enable CrowdStrike to make progress toward its goal of generating more than $10 billion in annual recurring revenue, up from approximately $3.7 billion today. Still, that target will likely prove conservative. CrowdStrike sees its total market opportunity growing to as much as $225 billion by 2028.
Should you invest $1,000 in CrowdStrike now?
Consider the following before purchasing shares in CrowdStrike:
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Suzanne Frey, a director at Alphabet, is a member of The Motley Fool’s board of directors. Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool holds positions in and recommends Alphabet, CrowdStrike, and Microsoft. The Motley Fool recommends Stellantis and recommends the following options: long January 2026 $395 calls at Microsoft and short January 2026 $405 calls at Microsoft. The Motley Fool has a disclosure policy.
2 Notable Growth Stocks to Buy Now and Hold for the Next Decade was originally published by The Motley Fool
