3 Growth Stocks Building Momentum for 2027

Three growth stocks just delivered third-quarter reports that gave investors plenty to like. Royal Caribbean (NYSE:RCL) says its bookings for 2026 and 2027 are ahead of last year at record rates; SharkNinja (NYSE:SN) posted a 14th straight quarter of double-digit sales growth; and Duolingo (NASDAQ:DUOL) grew daily active users by 29% to 64.9 million.

Stock prices tend to follow the growth of the underlying business over time, and each of these companies is building momentum heading into 2027. Here's why they could be poised for big years ahead.

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1. Royal Caribbean

Shares of Royal Caribbean, the vacation company behind Royal Caribbean, Celebrity Cruises, and Silversea, are up about 20% this year as of Nov. 11, including a 19% gain since the day before its Oct. 27 earnings report.

Third-quarter adjusted earnings per share (EPS) rose 14% year over year to $6.57, and management raised its full-year adjusted EPS outlook to $17.85 to $17.95.

Bookings for 2027 sailings are up in the high teens since the prior earnings call, and CEO Jason Liberty said the company's "book position for both 2026 and 2027 is ahead of prior year at record rates."

That matters because 2027 is the final year of Perfecta -- the company's plan to grow adjusted EPS 20% annually from 2024 through 2027, to roughly $20 per share. Management says it remains on track based on the forward fuel price curve.

That target excludes Royal Caribbean's planned 50% stake in Sandals and Beaches Resorts, expected to close in early 2027 -- part of a push to capture a greater share of the growing global vacation market valued at $2 trillion-plus.

The stock trades at 16.5 times analysts' 2027 estimate of $20.50 per share, versus a long-term earnings growth estimate of 13.7% -- a modest valuation for a leading cruise company with strong demand heading into 2027.

2. SharkNinja

SharkNinja, maker of Shark vacuums and Ninja kitchen appliances, has more than doubled this year as of Nov. 11, including a roughly 8% bounce since before its Nov. 4 earnings report.

Third-quarter net sales rose 21% year over year to nearly $2 billion, a 14th straight double-digit quarter, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), a measure of operating profit, jumped 46%, helped by tariff refunds.

The secret to SharkNinja's steady growth is building a base of loyal customers with each new product. Once a customer buys a product, they tend to buy another.

Moreover, each repeat customer costs the company less to acquire with marketing. This should drive profit growth faster than revenue over time. At the high end of management's updated outlook, EBITDA in the second half of 2026 would grow about 25% on roughly 19% sales growth.

Artificial intelligence (AI) is another lever to grow profits. SharkNinja's biggest AI investments target media and promotional spending. Management expects these investments to pay off in 2027 and beyond, benefiting gross profit, market share gains, and margins.

Shares trade at about 28 times Wall Street's 2027 adjusted EPS estimates, with analysts expecting earnings to grow at an annualized rate of 15% over the next several years. That's a fair price for a business continuing to grow revenue and earnings at double-digit rates.

3. Duolingo

Shares of Duolingo, a popular mobile learning app, are still down about 6% this year as of Nov. 11. But shares jumped 26% the day after its Nov. 3 report and are up 28% from the pre-report close.

Daily active users grew 29% year over year to 64.9 million, a second straight quarter of faster growth, with similar growth expected in the fourth quarter.

A larger user base can drive higher revenue in 2027 and beyond, since new users can take years to convert to paying users. CEO Luis von Ahn said user growth remains a focus next year.

Falling AI costs can also help the company monetize its larger base. Lower costs will let Duolingo bring Video Call, its AI-powered conversation practice, to all Super subscribers by year-end. This will help them learn more effectively, which is key to Duolingo continuing to grow its user base over time and becoming a bigger business.

The runway is enormous. Research firm HolonIQ values the global education market at $7.6 trillion, and Duolingo aims to reach 1 billion learners.

At about 21 times analysts' 2027 earnings estimate, the stock offers a reasonable valuation for a leading learning app with a huge market to grow into. Duolingo is just starting to cash in on its biggest audience ever.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Duolingo and SharkNinja. The Motley Fool has a disclosure policy.