Prediction: 2 Growth Stocks That Will Be Worth More Than Block 2 Years From Now

Block (NYSE: XYZ), the fintech company formerly known as Square, was once a hot growth stock. It went public in 2015, and its revenue grew at a compound annual growth rate (CAGR) of 55% from 2015 to 2021. That growth was fueled by the expansion of Square's digital payment platform and the popularity of its Cash app for peer-to-peer payments, Bitcoin transactions, and commission-free stock trades.

But from 2021 to 2024, Block's revenue only rose at a CAGR of 11%. From 2024 to 2027, analysts expect its revenue to grow at a CAGR of 9%. Three headwinds are curbing its growth: competition from other digital payment platforms, inflationary headwinds for consumer spending, and elevated interest rates, which are dragging down Bitcoin, keeping investors from actively trading, and compressing its valuations. Its earnings per share (EPS) is only expected to grow at a CAGR of 1% from 2024 to 2027.

Image source: Getty Images.

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