Which investment strategy has proven itself? Growth investments. Wall Street pros argue that stocks with oversized growth prospects reflect some of the most compelling games out there. That growth potential extends in the short term, and these names will generate attractive returns through 2020 and beyond. That said, finding stocks that fall into this category can be challenging to say the least. One strategy, according to the analysts, is to take a step back and look at the bigger picture, with an emphasis on the names, which in addition to their impressive year-to-date gains, have seen long-term growth. With that in mind, we used TipRanks’ database to identify three growth stocks that have received high praise from analysts. All three tickers have seen serious growth as early as 2020 and are poised to continue to rise. Penn National Gaming (PENN) First, we have Penn National Gaming, which owns and operates gaming and racing facilities and operates video game terminals in the United States. That name is up 146% since the start of the year, but some Wall Street analysts believe there’s still a lot of fuel in the tank. PENN recently announced Q3 results that blew estimates out of the water. For the quarter, the company expects margins to increase over 900 basis points and Adjusted EBITDAR to increase 5% year over year, even though revenue is down 10% year over year. Five-star analyst Joseph Greff, the J.P. Morgan said, “The regional game recovery in May / June continued into the third quarter, with revenues coming in better than feared. We had previously assumed a slower ramp after the pent-up demand had normalized and the increases in efficiency after COVID had hardly changed or not at all. “Nonetheless, Greff admits that some other analysts“ threw in the towel with downgrades ”in view of the excellent share price development. However, he still sees “value and catalysts”. The analyst commented, “… there is a tug-of-war over investor sentiment – which we believe is healthy for the stock and almost necessary for the stock to continue rising. In our view, traditional gaming stock investors are not completely pimped up, and we believe that PENN’s ability to compete with DraftKings, Fanduel, Caesars Entertainment, MGM / GVC, and others is very skeptical of PENN’s relative balance sheet size for funding the customer acquisition costs for sports betting in the early stages. However, we believe that to the extent that it makes sense to compete, that risk is reduced by $ 950 million in light of the recent capital increase. “In addition, PENN recently launched the Barstool Sports betting app in Pennsylvania. Greff calls the early launch “encouraging from both a volume and marketing spend perspective,” arguing that it shows “the potential of his unique approach to sharing.” In addition, the momentum for Barstool Sportsbook is increasing. In addition, Greff believes that the current environment for sports betting and iGaming resembles the emergence of regional markets in the 1990s, when budget deficit states used new sources of income, such as riverboat games, to fund budget deficits. The analyst said, “We believe that the States will look at USSB and iGaming in a similar way and PENN will be one of the winners. We like the land based gaming / sports betting / iGaming landscape in the US and are seeing an upward trend. “So it’s no wonder Greff stayed with the cops. In addition to being overweight, he left a target price of $ 83 on the stock. Investors could pocket a 32% gain if that goal is met in the next twelve months. (To see Greff’s track record, click here.) What does the rest of the street have to say? There have been 9 buys, 3 holds and 1 sell in the past three months. Therefore, PENN receives a consensus rating for moderate buy. Based on the average target price of $ 76.77, stocks could rise 22% over the next year. (See Penn National Gaming stock analysis on TipRanks.) Redfin (RDFN) Starting with the map-based search section, Redfin expanded its product offering to simplify the home tour and list debut and fiduciary processes faster and easier. On Wall Street, some believe the name is seeing more than just a surge in COVID demand, up 113% year-to-date just beginning. While RDFN expects a strong third quarter announcement, investors have been somewhat disappointed with the results. BTIG’s Jake Fuller points out that stocks likely compromised because “expectations were high and sales rose slightly ~ 2%” and “momentum investors tend to reward volume-driven beats and RDFN actually fell short of expectations.” remains “. It doesn’t help that RDFN isn’t a focal point name for many, suggesting that, according to Fuller, investors may not have looked beyond revenue disclosure. However, he argues that the road may be missing important pieces of the puzzle. The five-star analyst noted, “What may be overlooked here is that RDFN has increased commission rates with no apparent impact on the switch. That should translate into a significantly better gross profit outlook for RDFN. ”To that end, he increased his gross profit estimate for 2021 by 47%. Looking at the details of the quarter, RDFN saw robust demand. Revenue from Real Estate Services increased by 36% over the previous year. Site traffic and transactions were also up quarter over quarter. However, it should be noted that the upward trend has been driven by revenue per transaction. “That’s important because it suggests the expected commission increases are finally helping,” Fuller said. “According to our balance sheet, real estate services revenue rose from 1.68% of the GTV in the third quarter of 2019 and 1.78% in the second quarter of 2020 to an estimated 1.85% in the third quarter of 2020. A four-point increase in the gross margin indicates a high flow. While it is difficult to gauge the durability of demand, price gains and a better margin profile should be sustainable, ”commented Fuller. In line with his bullish approach, Fuller is on the bulls’ side, reiterating a buy recommendation and a target price of $ 65. That goal gives him confidence in RDFN’s ability to grow 45% over the next year. (To see Fuller’s track record, click here.) If you turn to the rest of the road, opinions differ. With 6 buys, 5 holds, and 1 sell in the past three months, the word on the street is that RDFN is a moderate buy. At USD 50, the average price target implies an upside of 11%. (See Redfin stock analysis on TipRanks) Vertiv Holdings (VRT) As one of the world’s leading providers of hardware, software and services, Vertiv Holdings is helping to create a networked marketplace for digital systems in which large amounts of essential data are transmitted, analyzed and need to be analyzed. processed and stored. With year-to-date gains of 71%, more gains could be in sight, Wall Street said. Despite the strong appreciation of the share price, Wolfe Research Analyst Nigel Coe sees a favorable risk / reward profile. “We believe that Vertiv is a rare breed that can appeal to a broad cross-section of investors: a mid-cap growth company that can achieve attractive margin expansion at a reduced price and is led by a high-profile executive team,” he said. When it comes to VRT’s growth platform, data centers and telecommunications are the top customer end markets. These areas are areas where Coe expects growth in 2020 and 2021, as well as long-term mundane tailwinds from increasing data intensity and 5G upgrades. In addition, management has shown a path to 500 point margin expansion based on efforts to keep fixed costs constant through a variety of operational upgrades and a reduction in organizational complexity. “This is the game book that CEO David Cote used so successfully during his tenure at Honeywell, and it gives us the belief that a similar game book can be used at Vertiv,” said Coe. It should be noted that VRT ended Q2 2020 with a net debt of around $ 2.1 billion and a net debt / EBITDA landing of 4.2x. While this is on the high end of the range, Coe argues that the balance sheet could quickly reduce leverage. To do this, he calculates a capital surplus of $ 1 billion by 2023 assuming a net debt to EBITDA ratio of 2x. “We don’t currently see Vertiv as a clear history of capital employed, but this could show up in 2022/23. We could certainly see acquisitions that strengthen its power distribution capability and possibly at the DCIM level. Other potential options include the settlement of warrants for cash (these are currently reflected in our diluted share calculation) and the introduction of a dividend that would expand the potential for institutional ownership. We also cannot ignore the scope for strategic partnerships with many larger electrical equipment market players who are not major players in the data center, ”commented Coe. Everything VRT has to offer convinced Coe to repeat an outperform rating. Along with the call, he set a target price of $ 23, indicating upside potential of 22%. (To view Coe’s track record, click here.) Do other analysts agree? You are. Only buy reviews have been published in the last three months, to be precise 4. So the message is clear: VRT is a strong buy. Given the average price target of $ 20.75, stocks could rise 10% over the next year. (See Vertiv Holdings stock analysis on TipRanks.) Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important that you do your own analysis before making any investment.