Check Out These 5 Top Growth Stocks In The Stock Market Today
Investing in growth stocks can be a great way to make money in the stock market. For many individuals, the key objective is to construct a portfolio to at least beat inflation. But I guess it’s safe to say that most would like to beat the index, generating superior returns compared to the market’s benchmark. That way, you know you are investing right.
If you are looking for top growth stocks to buy, you should look for companies that could expand their top-line quickly. In general, a strong revenue growth trend may indicate that a company has excellent products that consumers can’t live without. But it’s also equally important to assess whether these companies can keep growing quickly. After all, being able to grow quickly today means nothing if it’s not sustainable over the longer term. With all that being said, let’s look at some of the best growth stocks to watch in the stock market today.
Best Growth Stocks To Watch Right Now
- BlackBerry Ltd. (NYSE: BB)
- Cloudflare Inc. (NYSE: NET)
- Square Inc. (NYSE: SQ)
- Zynga Inc. (NASDAQ: ZNGA)
- Teladoc Health Inc. (NYSE: TDOC)
BlackBerry
If you have been keeping up with the latest stock market news, you have likely heard of meme stocks. And when it comes to meme stocks, AMC Entertainment (NYSE: AMC) will most probably be the first to pop up in your mind. But in our article today, we are more interested in BlackBerry as it is at the forefront of two of the biggest trends today, namely IT security and autonomous driving. The meme stocks rally is sending BB stock at least 70% higher over the past week.
While a big part of the rally has to do with Redditers pushing up the stock, the company’s development is what attracts me to BB stock. The company has a string of partnerships that would propel BB stock higher in the long run. Recall that the company partnered with Amazon.com (NASDAQ: AMZN) to develop an app store for connected cars. If you believe that its auto app store, IVY, will be a big hit, any weakness in BB stock is an opportunity to scoop up the shares at a discount. Given all these points, would you consider BB stock a long-term investment?
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Cloudflare
Cloudflare is possibly one of the most exciting cloud companies to look out for if you are investing for the long term. For those unfamiliar with the business, Cloudflare’s aim is to build a better and safer internet. Some of the company’s potential growth drivers include serverless computing, internet of things (IoT), and 5G. These present massive opportunities for the company to tap into. With more businesses moving their operations to the cloud, Cloudflare could see explosive growth in this burgeoning cybersecurity industry. That’s because of its role in safeguarding and speeding up the internet.
From the company’s first-quarter earnings, revenue came in 51% higher year-over-year to $138.1 million. The network security and content delivery network (CDN) provider also sees strong large customer growth, with a record addition of roughly 120 large customers in the quarter. More importantly, large customers now represent greater than 50% of revenue. Following these earnings, NET stock has surged more than 20% over the past month. With such strong fundamentals, should investors buy NET stock right now?
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Square
Square is another growth stock to watch capitalizing on the fintech megatrend. It combines software with hardware to enable sellers to utilize mobile devices and computing devices for payments and point-of-sale solutions. It has played a vital role in the digital economy and has empowered millions to shift to its digital payment solutions.
From its first-quarter fiscal earnings, gross profit came in 79% higher year-over-year to $964 million. In detail, Square’s Seller ecosystem generated $468 million in gross profit for the quarter, a 32% increase compared to a year earlier. Also, its Cash App generated a whopping $495 million in gross profit, an increase of 171% year-over-year. Total net revenue for the quarter was $5.06 billion, up by 266% year-over-year. If anything, the company has also shown commendable resilience. Despite strict lockdowns around the world, its Seller’s gross profit continued to grow. All things considered, will you add SQ stock to your portfolio?
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Zynga
After Gamestop (NYSE: GME), Zynga is probably the most discussed gaming company among millennials. Zynga is a company behind many successful mobile games, such as Words with Friends and Zynga Poker, just to name a few. Recently, Zynga announced the acquisition of game developer Rollic, which has launched the popular games High Heels! And Blob Runner 3D. In addition, the company has also bought the Echtra game company, which is likely to strengthen Zynga’s development capabilities for future cross-platform projects.
From its first-quarter earnings, revenue came in 68% higher year-over-year to $680 million. Following strong top-line growth, Zynga went on to raise its full-year 2021 guidance for revenue to $2.7 billion, representing a growth of 37% year-over-year. Considering the strong growth in its revenue, would you say that ZNGA stock is a top growth stock to buy and hold for the long run?
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Teladoc Health
The last growth stock to watch on this list is Teladoc Health. No doubt, Teladoc did indeed benefit immensely from the pandemic. This came as no surprise seeing that the company’s plethora of telehealth services remain a vital service during the pandemic. Considering it has shed around 50% of its value since peaking in February, many investors are seeing this as an opportunity to buy TDOC stock at great discounts. Teladoc Health reported its first-quarter financials on April 28. In it, it raised full-year guidance as first-quarter revenue came in 151% higher year-over-year to a record $453.7 million.
One reason why investors are bullish is that Teladoc is slowly creating cheaper remote alternatives to the inconvenient, inefficient health care system we have today. Also, consulting firm McKinsey & Company projects that the U.S. virtual care market could approach $250 billion annually after the pandemic is over. The fact that more players are getting into telemedicine is a validation of the market potential here. Teladoc’s strategic maneuvers in the past years have cemented its position as a leader in its space. Therefore, it seems to me that TDOC stock has a potentially long growth runway ahead.
