Already a week into earnings season, corporate profits look strong again. But, we can't expect this growth to last for so many stocks as we continue to move past the lows of the pandemic. That's why investors need to consider stocks with very strong growth potential in the years to come. Sanderson Farms , Inc. (NASDAQ:SAFM), Ulta Beauty, Inc. (NASDAQ:ULTA), and SBA Communications Corporation (NASDAQ:SBAC) are three such stocks.As the global economy continues to rebound from the COVID-19 pandemic, we can now expect growth rates for companies to slow down. While earnings releases for the third quarter look strong overall, they are not as high as the last two quarters. That is because the first two quarters of this year were being compared to the first two quarters of last year. That was the height of the pandemic.
So, there's no wonder so many companies saw sky-high growth rates. But as we continue to move on from the pandemic, we can't expect that type of growth to continue for so many stocks. Even in the next few quarters, overall earnings growth should slow down compared to quarters where companies have already bounced back. However, some companies are still expected to see sky-high growth in the coming years.
But, how do you find them? It's easy with our POWR Ratings system. All I had to do was run a screen for Buy-rated stocks with a Growth Grade of A or B and a projected earnings rate of over 50% per year over the next five years. Three of my top favorites are Sanderson Farms, Inc. (SAFM), Ulta Beauty, Inc. (ULTA), and SBA Communications Corporation (SBAC).