Growth stocks are usually companies that are growing sales and earnings faster than the market or industry. Some are taking advantage of a growing trend and others may be taking market share from existing businesses. In either case, they can deliver fantastic gains for investors.

Chegg (NYSE: CHGG), DraftKings (NASDAQ: DKNG), and Pinterest (NYSE: PINS) are three growth stocks that have a long runway ahead of them. Each is only beginning to tap the market opportunity in front of them.

Chegg is positioning itself to benefit from what it says is the inevitable shift to online learning. DraftKings is a leading player in an expanding daily fantasy sports market and is expanding its products as states become friendlier toward online sports wagering. And Pinterest is benefiting from the increasing advertising that is allocated to digital formats. Here is why these three growth stocks can continue increasing revenue and customers for several years.

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Chegg

Chegg is a leading online student learning platform that helps students study for college courses. It generates revenue mostly by selling its Chegg Study subscription, which for $14.95 per month gives students access to step-by-step solutions to problems found in over 35,000 textbooks. That's a substantial increase from the roughly 400 titles that were available 10 years ago. As you can imagine, the more titles available, the better the value for students.

Indeed, an increasing share of students are finding Chegg's services helpful in their pursuit of education. At the end of 2020, Chegg had 6.6 million paying subscribers, which was 67% higher than the amount it had a year ago. Still, management thinks it has a long way to go as it estimates the market opportunity is 102 million students that can benefit from Chegg's services.

Already, the rapid growth in customers is leading to an acceleration in revenue growth from 25.9% in 2018 to 56.8% in 2020. Moreover, Chegg is investing in technology to reduce account sharing (multiple students that use the same account) and encourage international growth, where it expects to surpass 1 million subscribers in 2021. Both could be catalysts that sustain growth even longer.

DraftKings

DraftKings is a platform that offers online sports betting, iGaming, and daily fantasy sports. The company is benefiting from a wave of regulations across several states that make more of its services available to consumers. Still, the company's online sports betting service is only available to 20% of the U.S. population. That creates the potential for DraftKings to grow further as more states allow it to offer services to its constituents.

Sentiment toward the legalization of online gambling activities is becoming more favorable as states are searching for ways to increase tax revenue. That trend is further fueled by the fact that the coronavirus pandemic, and ensuing business closures, are leading to decreasing revenue in some states. Politicians find that the public would react more favorably to the expansion of online gaming activities than increasing personal income taxes.

Since the U.S. Supreme Court struck down the Professional and Amateur Sports Protection Act of 1992, 21 states representing roughly 40% of the U.S. population have legalized sports betting. It takes time between when a state legalizes the activity and when an entity can offer it to the public. DraftKings now offers online sports betting in 10 of the 21 states where it's legal.

In the most recent quarter, revenue and monthly unique players increased by 42% and 62%, respectively, from the previous year. Those figures are poised to grow as it expands to additional localities.

Image source: Getty Images.

Pinterest

Pinterest has only been a public company for a few short years and has a $54 billion market cap. Compare that to Facebook's market cap of $764 billion, add in all the catalysts that can help Pinterest realize its potential, and it's not too hard to see a profitable future for the up-and-coming social media platform.

Pinterest's visual search engine increased monthly active users (MAUs) to 459 million, which was 37% higher than in the previous year. It's a long way away from Facebook, which has 3.3 billion MAUs across its family of apps. The vast difference could be an opportunity for Pinterest in the coming years.

Moreover, Pinterest generates an average revenue per user of $1.57, which is significantly lower than Facebook's ARPU of $8.62. Pinterest is investing in its monetizing capabilities, and as it builds those out, it could narrow the gap.

In addition to taking market share, Pinterest can benefit from the digital advertising industry's growth. One estimate says that in the U.S., it will grow from $132 billion in 2019 to $243 billion in 2024.

Overall, these three growth stocks have the potential to continue increasing revenue and customers for multiple years. Investors looking for high-growth stocks with a favorable outlook can add Chegg, DraftKings, and Pinterest to their lists.

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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Parkev Tatevosian owns shares of Facebook and Pinterest. The Motley Fool owns shares of and recommends Facebook and Pinterest. The Motley Fool recommends Chegg. The Motley Fool has a disclosure policy.