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These 3 Growth Stocks Could Double Their Sales This Year

Looking for growth stocks generating revenue increases over 100% this year? You've come to the right place.

fuboTV (NYSE: FUBO), DraftKings (NASDAQ: DKNG), and DoorDash (NYSE: DASH) are each telling investors that sales could double this year. Surprisingly, all of these businesses benefited tremendously at the pandemic's onset because of their digital nature but have maintained the momentum even as economies begin to reopen.

Let's look closer at the businesses underlying these three growth stocks and see what's leading to impressive revenue growth.

Image source: Getty Images.

1. fuboTV is estimating revenue growth of 116%

fuboTV is a sports-centric streaming alternative to cable TV. If a consumer wants a similar content package to traditional cable, but through a streaming service instead, fuboTV is one place they can go. In that sense, fuboTV is gaining momentum because fewer folks want to deal with a cable TV company. Several reasons are causing the change in consumer taste: Namely, streaming subscriptions can be held on a month-to-month basis, while cable TV usually requires long-term contracts.

Nevertheless, the company increased revenue by 196% year over year in its second quarter and estimates it will grow revenue by 116% for the year.

Investors will have to wait longer for the company to be profitable as it generated an operating loss of $81 million on revenue of $130 million in the second quarter.

2. DraftKings is estimating revenue growth of 94%

DraftKings gives its customers a chance to compete in daily fantasy sports contests against each other, make wagers on sporting events, and place real money bets in casino-style games like blackjack and roulette. DraftKings is also benefiting from the convenience factor over its substitutes in the land-based gaming industry. Some folks live several hours away from the nearest casino, so logging on to the DraftKings app provides an alternative to the drive.

DraftKings is also gaining momentum with state regulators as it goes state-by-state to get approval to operate in each jurisdiction. The company's daily fantasy sports segment is the furthest along, live with operations in 43 states. Next is its mobile sportsbook, live in 14 states. Finally, there's iGaming, which is live in just four states.

New markets and enthusiasm from sports fans have management estimating revenue could grow 94% year over year at the midpoint this year.

Note, however, that the company spends on marketing to acquire players and raise brand awareness with each new state it enters. For those reasons, the company is not yet profitable either.

3. DoorDash grew revenue by 123% in the first half of this year

DoorDash was originally a food delivery business that offered convenient deliveries of restaurant meals to people's homes. The company gained massive traction during the pandemic when restaurants were forced to close their businesses to in-person dining. DoorDash is carrying the momentum through even as economies have been reopening. It has signed several agreements with non-restaurant enterprises like grocers, convenience stores, and pet supply retailers.

The company makes money by taking a percentage of the total order value (GOV). And in the first two quarters of fiscal 2021, the company has increased revenue by 123% year over year. The company does not provide annual revenue guidance, but it looks on its way to double sales this year.

Like the others, DoorDash is not yet profitable on the bottom line. However, it is estimating it will earn adjusted EBITDA between $150 million and $300 million for the year.

Stocks worth adding to the watchlist

Investors looking for three growth stocks that are in an excellent position to double sales this year can add fuboTV, DraftKings, and DoorDash to their lists of stocks to watch.

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Parkev Tatevosian has no position in any of the stocks mentioned. The Motley Fool recommends fuboTV, Inc. The Motley Fool has a disclosure policy.


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