Two giant growth titles may reach new highs, says JPMorgan

Investing in growth stocks is very popular among investors and it makes sense. Companies that show steady share price growth are usually on solid footing, have a successful business model and their products are profitable. While past performance is no guarantee of future results, it is important to follow expert analysis.

JPMorgan has identified two stocks with huge growth potential that could reach new highs in the next year. These companies have already seen triple-digit growth and JPMorgan analysts believe this trend should continue. Let's take a closer look at their arguments.

Celestica $CLS: The technology that's moving the industry forward

The first stock is Celestica, a Toronto-based technology company. Its focus is broad - from design and engineering solutions to manufacturing services and precision engineering to supply chain management. Its clients include businesses in communications, aerospace, defence, healthcare and smart energy.

Celestica is an important partner to companies such as Amazon, Google and Meta, and its solutions help streamline the adoption of new technologies in manufacturing. That's reflected in the stock - up 165% over the past year. The company beat analysts' expectations in Q4 2024 with revenue of $2.55 billion (up 19% year-over-year) and earnings per share of $1.11.

According to JPMorgan analyst Samik Chatterjee, it's important that Celestica is partnering with the largest technology companies and investing more in R&D than its competitors. This, he believes, will lead to further growth. Chatterjee gave the stock an "Overweight" rating (buy recommendation) with a target price of $166, representing a potential upside of 50%.

Carpenter Technology $CRS: Alloy Specialists in Rising Demand

The second pick is Carpenter Technology, a company focused on producing high-quality specialty alloys used in aerospace, defense, energy and transportation. Since its founding in 1889, Carpenter has become a key innovator in metallic materials, and its products have been used, for example, in the reconstruction of the Statue of Liberty or in the manufacture of robotic rovers for Mars.

Over the past year, Carpenter's stock is up 214%. Despite recent financial results being mixed (revenue of $676.9 million, up 8.4% year-over-year, but below market expectations), analysts expect continued growth. The company expects its operating profit to grow from $500-520 million in 2025 to $765-800 million in 2027.

JPMorgan analyst Bennett Moore expects Carpenter to benefit from a lack of supply in the market and effective cost management. He gave the stock an "Overweight" rating with a target price of $240, implying a potential upside of 20%.

Disclaimer: There is a lot of inspiration to be found on Bulios, but stock selection and portfolio construction is up to you, so always do a thorough analysis of your own.

Source: Yahoo Finance