Check Out These Growth Stocks That Are Leading The Stock Market Gains
Investing in growth stocks has created considerable wealth for many investors in the stock market. Nevertheless, buying and holding on to good stocks can be a challenging task. There are plenty of top growth stocks that are experiencing explosive growth in the current volatile stock market environment. But I think we all can agree that growth stocks that are delivering impressive results today and can continue to be great long-term investments can be quite hard to find.
The hallmark of the best growth stocks to buy may typically include improving fundamentals and a history of bullish trading activity in the shares. The COVID-19 pandemic has accelerated many trends. And these include online advertising, digital payments, and cloud computing. Hence, it makes sense for investors to start searching for these growth names that are still at their early stage of the growth cycle. That’s because some of these secular trends could continue for many years.
Take Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOGL) for example. These companies have brought massive wealth to their early investors and are among the best growth stocks of all time. Some investors might even avoid Amazon stock considering its high price tag. But it’s worth pointing out that AMZN stock has risen by over 80% since the start of 2020. Now, we are not just going to talk about any tech stocks with potentially good prospects. Instead, we are looking for top growth stocks to buy that have reported blowout quarterly results, have a strong balance sheet and strong forward guidance. 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
- Semrush Holdings Inc. (NYSE: SEMR)
- Upstart Holdings Inc. (NASDAQ: UPST)
- NVIDIA Corp. (NASDAQ: NVDA)
Semrush
Semrush is a leading online visibility management SaaS platform. Many companies are using the services from Semrush to elevate their companies’ online presence. Consumers these days are discovering products and services through online channels. As a result, demand for Semrush’s services is soaring. You can see that in the company’s huge surge in revenue during its recent quarter. Revenue came in 58% higher year over year to $45 million. And the company expects the momentum to continue even in the current quarter. But here’s the thing. Despite having risen by over 40% over the past month, SEMR stock appears not to have attracted much attention. Could this under-the-radar stock have more room to grow?
For those unfamiliar, the company helps businesses globally to run search engine optimization, content, social media, and competitive research campaigns. It also offers insights and solutions for companies to help build and manage their brands across various marketing channels.
If you’re running a new business, the services from Semrush could offer you a better relationship with your prospective customers. After all, in order to succeed in today’s digital world, you will need to master these online marketing tools to get your products and services out there. What’s impressive is that the company kept adding services that its core clients wanted. If anything, it is apparent that the company went from being a point solution to a full-fledged platform. With a fast-growing market like this, I’m excited to see where SEMR stock would go from here.
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Upstart
Personal loans have gained massive popularity in recent years, and Upstart has really started to see its operations take off this year. For those unfamiliar, Upstart is a growing online leading platform that utilizes artificial intelligence (AI) to automate the lending process. With the company’s platform, banks can provide personal loans using non-traditional variables like education and employment to predict creditworthiness. Upstart’s platform uses sophisticated machine learning models to more accurately identify risk and approve more applicants than traditional credit-score-based lending models.
When the company announced its second-quarter results last month, the numbers took many investors by surprise the best possible way. Revenue was up more than 1,000% from the prior year’s quarter. Besides delivering blockbuster results, the company increased its 2021 full-year revenue guidance, from $600 million to $700 million. What’s more, Upstart is already profitable, which is a rare attribute among high-growth tech companies.
Investors should expect young companies like Upstart to deliver stellar growth. After a series of positive upgrades from analysts, the company announced that they’ve raised $400 million in new convertible debt. And the best thing is that they’re paying 0.25% interest on it. That’s a fantastic cost of capital to grow their business. Besides, earlier this week, Upstart announced that its platform for personal loans is now available in Spanish. That is another step forward by the company in making its services more inclusive. For those who believe the current lending process is in need of a complete overhaul, UPST stock looks like an investment that you don’t want to miss.
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NVIDIA
NVIDIA continues to demonstrate broad-based strength across its data center businesses. The company’s products are used to power a wide array of products, from AI to data analytics and gaming, and even cryptocurrencies. It pioneered the graphics processing unit (GPU) industry and brought game-changing progress to the gaming and data center segments. The company that’s best known for its GPU for the gaming and professional market has been under scrutiny over its potential acquisition of Arm Holdings recently.
Recently, Nvidia posted its second-quarter earnings. As expected, it was yet another strong financial quarter for the company. It posted revenue of $6.51 billion, representing an increase of 68% year-over-year. Out of which, gaming revenue was $3.06 billion, up by a whopping 85% year-over-year. Also, its GAAP earnings per diluted share for the quarter was $0.94, representing an increase of a staggering 276% from a year ago and 24% from the previous quarter.
Furthermore, there was also the launch of the company’s NVIDIA Omniverse during the quarter. In this simulation and collaboration platform, artists can create any digital scenes they like, and engineers can go wild with their designs. These creations can then be taken into the physical world after it has been perfected in the digital world. In late August, NVIDIA announced the availability of NVIDIA AI Enterprise, a comprehensive software suite of AI tools and frameworks that enables companies running VMware vSphere to virtualize AI workloads. This allows more enterprises to benefit from the company’s powerful AI tools. Given these exciting developments, would it be too late to jump on the NVDA stock bandwagon?
