No one can deny that investing in growth stocks has been one of the most profitable strategies in 2024. Buying and holding certain companies (think those involved in AI) have provided investors with fabulous returns that easily outperform the broader market.

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While not all growth stocks are the same, finding the right one can transform a "would-be" down year into one of one that outperforms the index.

So the question is, how do you screen for stocks that could double? To come up with my list, I screened the market for potential companies using the following criteria:

• Number of Analysts: 8 or more
• Analyst Rating: Strong buy rating (Nothing less will do)
• Prior fiscal year revenue growth: 0-50%
• Current fiscal year revenue growth: Above 50%
• Current and prior fiscal year earnings growth: Positive
• Most recent earnings surprise: 20% or more

These filters allow me to focus on stocks that have consistently grown their top and bottom lines, have a strong analyst following (because we don't want companies with only one analyst following them), and consistently beat expectations.

For this screen, I received exactly three companies for my list of high-growth stocks that could double by 2025. Then, I sorted the list based on the highest earnings growth.

Voyager Therapeutics (VYGR)

Voyager Therapeutics is a biotech company at the forefront of neurogenic medicine. The company owns a portfolio of medicines specializing in Alzheimer’s disease, Parkinson’s disease, amyotrophic lateral sclerosis, and other neurological disorders.

Voyager has been on a strong growth trajectory over the years and has a robust pipeline of candidates that could potentially revolutionize the treatment of CNS disorders. The company recently announced the completion of its pre-investigation with the FDA and GLP for VY9323, one of its portfolio drugs addressing amyotrophic lateral sclerosis.

The company’s latest Q2 2024 numbers support Wall Street’s strong buy rating. The quarter ended with revenue growth exceeding 500% year-over-year, a significant improvement in earnings by more than 50%, and an earnings beat of 52.63%.

While profitability may not be immediate, with a market cap of just $375 million, one must remember that Voyager is still a microcap company, making it a riskier company to own than, say, a more mature company. That being said, we can't discount the company’s impressive growth over the last two fiscal years, highlighting the strength of its cost-saving plans and operational efficiency. Putting it all together, I wouldn't be surprised if the stock doubled in value by next year.

E.L.F. Beauty (ELF)

E.L.F. Beauty is famous for releasing its products on social media, using TikTok videos for its new product launches. Gen Z'ers love that E.L.F.'s average price point is only $6.50 per item. 

While this cosmetics company started as an online-only multi-brand beauty business, today, it's a leader in cosmetics with its well-known vegan and cruelty-free brands:

• Keys Soulcare
• Naturium
• e.l.f. Cosmetics
• e.l.f. SKIN

Recently, E.L.F. Beauty announced an industry-first collaboration with Amazon’s Alexa to promote its holistic philosophy of caring for the whole self.

The company has experienced strong growth in recent years, with FY 2024 earnings growing over 100% YoY and nearly doubling its revenue. The latest quarter was also impressive, with net sales—driven by its e-commerce channels and retailers—growing 50% year over year, a reported market share increase of 260 basis points, and an earnings surprise of 29.85%.

This strong performance prompted the company to raise its FY 2025 outlook, expecting net sales to grow 25-27% year-over-year and adjusted EBITDA to reach $297-301 million. As reflected in ELF's strong buy consensus rating, Wall Street remains optimistic about its growth. With a solid first quarter and a promising FY 2025 outlook, ELF stock has the potential to double in the next 12 months.

PDD Holdings (PDD)

PDD Holdings led by its founder and CEO Colin Huang, who was recently recognized as China’s richest man, is gaining buzz after the success of its entry into the U.S. with its e-commerce website Temu, alongside its domestic site Pinduoduo.

The company’s continued efforts to expand its market presence have pushed its market cap higher than Alibaba, previously considered China’s most valuable e-commerce company. PDD Holdings’ introduction of a consignment model is helping to solidify its value-for-money strategy.

Looking at its recent performance over the past few fiscal years, PDD has consistently grown its revenue and earnings. For example, in Q1 2024, revenue grew 131% year-over-year, and earnings beat analyst expectations by 82.64%. If you’re looking to beat the market, PDD is worth considering.

The company is set to release its Q2 2024 earnings on August 26th, 2024, and investors eagerly anticipate positive results. Wall Street shares this bullish sentiment, reflected in its strong buy consensus rating.

Final Thoughts on These 3 Stocks That Could Double

Investing shouldn't be about "betting on the fastest horse." Rather, it's more about finding the turtle that continues chugging along, no matter what. Consistency is key, and one thing that's consistent about the three companies listed in this article is that they are all in growth mode. Also, because they aren't as large as some of the "Magnificent 7" companies, this plays to their advantage, as it leaves more room for the companies to grow. 

Last, I can't stress how important it is in any investor's journey to always do their own due diligence and never stop learning. Reading articles like mine or watching videos is great, but it's important to also make up your own mind based on your own experiences.

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