Growth stocks in emerging industries such as technology, biotechnology, energy, and cannabis have the potential to generate massive returns if the underlying business succeeds.
Here are two such growth stocks priced under $50 that are poised to grow your portfolio if held for the long haul.
Growth Stock #1: UiPath
UiPath (PATH) has emerged as a key player in the enterprise automation and artificial intelligence (AI) software industries. While the stock had a brutal year in 2024, falling 46.6%, its significant investments in AI could pay off in the long run. Valued at $7 billion, UiPath stock is down 1.3% year-to-date, compared to the S&P 500 Index ($SPX) gain of 1%.
UiPath offers a robotic process automation (RPA) platform that uses AI to help businesses automate repetitive tasks and improve operational efficiency. The increased demand for automation initially drove up demand for UiPath products. Annual recurring revenue (ARR) increased by 17% in the third quarter of fiscal 2025, while total revenue rose by 9% to $355 million.
In October 2024, the company introduced Agent Builder, a tool that allows developers to create and deploy enterprise-grade AI agents. It seeks to improve complex and variable workflows. Despite its advancements, UiPath faces challenges in the rapidly evolving AI and automation space. Consistent profitability remains a challenge despite significant investments in AI. Its net loss came in at $0.02 per share, compared to $0.06 in the year-ago quarter. At the end of the third quarter, the company held $1.6 billion in cash, cash equivalents, and marketable securities. It also produced an adjusted free cash flow of $33 million. The company maintained its fourth-quarter revenue guidance (which it plans to report next month) of $422 million to $427 million, which some investors viewed as conservative. Additionally, ARR could range from $1.669 billion to $1.674 billion.
Despite a strong quarter, the company’s decision to maintain and not raise revenue guidance indicates a cautious approach. Investors reacted negatively to this news. Analysts are similarly cautious about UiPath’s stock, rating it a “Hold.”
Out of the 21 analysts covering the stock, two rate it a “Strong Buy,” 18 rate it a “Hold,” and one suggests a “Strong Sell.” The average target price of $15.44 suggests potential upside of 21.3% from current levels. The high target price of $19 implies 49.2% upside over the next 12 months.
Growth Stock #2: Global-E Online
Global-E Online (GLBE) provides a platform for conducting cross-border e-commerce transactions. Its platform provides international shoppers with a seamless online purchasing experience, while merchants get to sell their products worldwide. The company handles all the complexities of a cross-border transaction, including localization, currency conversion, logistics, and regulatory compliance. Global E-Online is experiencing rapid growth as e-commerce and digitalization advances.
Valued at $7.18 billion, GLBE stock is down 20.6% YTD compared to the broader market gain.
Collaborations with companies such as Shopify (SHOP), FedEx (FDX), Salesforce (CRM), and Wix.com (WIX), among others, have greatly increased the platform’s capabilities and market penetration. Between 2020 and 2024, Global-E’s revenue has grown at a compounded annual growth rate of 40.7%.
For the full year 2024, Global-E reported a 32% year-over-year revenue increase to $752.8 million. Gross merchandising volume (GMV) reached $4.8 billion, a 37% increase from 2023. For the first time, the company achieved GAAP profitability of $1.5 million in the fourth quarter.
In 2024, Global-E-Online added many new merchants across various verticals around the world with the goal of increasing transaction volumes. It aims to achieve annual GAAP profitability by 2025, with a revenue run rate of more than $1 billion. Management expects revenue growth of 21% to 28% in fiscal year 2025 to land between $917 million and $967 million. Analysts’ revenue estimates for 2025 are within that range, with a 12.9% increase in earnings.
Overall, Wall Street is bullish about Global-E’s prospects. GLBE stock boasts a “Strong Buy” rating. Of the 12 analysts who cover the stock, nine rate it as a “Strong Buy,” two as a “Moderate Buy,” and one as a “Hold.” The average target price of $62.25 for GLBE indicates 45% upside over current levels. Furthermore, the stock’s Street-high estimate of $66 implies a potential gain of 53% over the next 12 months.
