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Highlights
- Growth stocks demonstrate a high growth potential but can be risky at the same time.
- Briscoe Group reported strong third-quarter results after a post-lockdown recovery in the retail sector.
- PGG expects an operating EBITDA of $53 million for FY22.
Growth stocks are those stocks that are likely to grow at a rate considerably above the average market growth. These stocks are issued by the firms that show high growth potential. These stocks can lead to large-scale capital gains if the company continues to grow rapidly, which will, in turn, propel its share price higher.
However, they can also prove to be risky investments as they are still in their growth phase. Another reason is that these firms use hard-line business approaches to produce profits and are heavily influenced by market fluctuations.
Let’s skim through the performance of these 3 growth stocks. 
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Rakon Limited (NZX:RAK)
Advanced frequency control and timing solutions provider, Rakon, expects its earnings to be in the range of $39 million-$44 million in FY22, up from its previous range of $27 million-$32 million.
GOOD READ: 5 NZX penny stocks that can be followed in 2022
RAK expects its TCXO demand to return to normal levels and its core business to continue on its growth path in FY23. The Group has also appointed Mr. Steven Tucker to the Board.
On 9 November, at the time of writing, RAK was trading at $1.54, up 0.65%.
PGG Wrightson Limited (NZX:PGW)
PGG Wrightson witnessed a strong trading performance in Q1 as it is seeing positive early signs demonstrated through confidence and strong demand from farmers and growers due to their production requirements.
DO READ: Would these 5 NZX stocks keep growing in 2022?
PGW expects its operating EBITDA to be near $53 million in FY22 with the livestock business trading in H2 of FY22. The Group will conduct its AGM virtually on 6 December 2021 and will release its half-year results in February 2022.
On 9 November, at the time of writing, PGW was trading at $4.36, down 0.91%.
Briscoe Group Limited (NZX:BGP; ASX:BGP)
Retailer Briscoe Group released its Q3 (2 August to 31 October 2021) results on 5 November. The Group announced a 9.52% rise in total group sales to $496.9 million with near 10% growth in homeware sales and sporting goods sales, respectively.
RELATED READ: How did Briscoe (NZX:BGP) perform in third-quarter 2021?
Online sales produced 98% growth in Q3. BGP expects its NPAT to be above $73.2 million and up to $85 million in FY21.
On 9 November, at the time of writing, BGP was trading at $6.9, up 2.22%.
Bottom Line
Investors can benefit from investing in growth stocks if they are well aware of the stocks to invest in.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)