4 Growth Stocks For Your October 2021 Watchlist
Whether or not you are a fan of growth stocks, we can’t deny that these types of stocks are those that made investors very wealthy. But before you look for the best growth stocks to buy now, it’s important to identify broader trends that could create massive tailwinds for your investment. While that’s easier said than done, there are certain steps that could help you narrow down your choices.
It’s no secret that the tech space has turned out to be a good place to hunt for growth this year. To start, you might want to look at companies that use tech to help them scale their business. One prime example of a top growth stock right now would be none other than Upstart (NASDAQ: UPST). The online lending platform has all the attributes of a good growth stock to have on your portfolio. Be its constant innovations, improving fundamentals, or strong quarterly results, Upstart ticked them all. Similarly, an investment in Sea (NYSE: SE) since its initial public offering would have brought in more than 2,000% returns to its shareholders.
These are just a few examples of growth stocks that can drive the returns of your portfolio. Despite the recent weakness of the stock market, there’s no denying that growth stocks have the potential to significantly outperform the broader market. That said, even if you’re a risk-averse investor, some exposure to growth stocks could serve as a catalyst to your portfolio. With all this in mind, could these growth stocks be worth investing in the stock market today?
Best Growth Stocks To Watch Right Now
- Semrush Holdings Inc. (NYSE: SEMR)
- Nio Inc. (NYSE: NIO)
- SoFi Technologies Inc. (NASDAQ: SOFI)
- Square Inc. (NYSE: SQ)
Semrush
First up, we have a leading online visibility management Software as a Service (SaaS) platform, Semrush. Starting in 2008 as a single-point solution for search engine marketing, the company has since expanded into a wide array of marketing services. The company recently announced an integration with monday.com (NASDAQ: MNDY), a leading cloud-based work operating system. Through this integration, customers can have real-time keyword insights powered by Semrush, without leaving the monday.com interface.
For monday.com, this integration will allow their customers to achieve even more with their platform and help diversify their customization capabilities. Exciting news aside, Semrush’s strong fundamentals are another reason why investors are bullish on this company. Recall from its most recent quarter, the company’s revenue came in 58% higher year-over-year to $45 million. More importantly, the company kept adding services that its core clients wanted. Considering all these, is SEMR stock on your list of top growth stocks to buy now?
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Nio
Another name to consider is leading Chinese electric vehicle (EV) maker Nio. In brief, the company offers consumers cutting-edge EVs with premium features such as semi-autonomous driving. In the wake of China’s crackdown on a number of prominent Chinese companies, investors have been very cautious with NIO stock. Last week, China’s minister for industry and information technology said there are “too many” EV players in the country. Adding salt to the injury this week is the potential default from real estate giant China Evergrande. For these reasons, Nio’s prospects may have been heavily discounted.
However, Nio isn’t directly affected by either Beijing’s crackdown or Evergrande fallout. In other words, it appears to me that NIO stock is being punished for no concrete reason. If anything, comments by the Chinese official could suggest that Nio may face less competitive pressure going forward.
If you are bullish on the potential of this EV company, it’s worth noting that Nio is making steady progress into the European market. The company has begun exporting its flagship ES8 SUV to Norway. The company aims to launch the new ET7 luxury sedan in Norway and Germany in 2022. But the bigger catalyst for the company could be its all-new 75 kWh standard-range, hybrid-cell battery pack. The new impressive battery pack is simpler to produce and less costly but is more effective. With such news, is NIO stock a buy for you now?
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SoFi Technologies
SoFi Technologies is a member-centric, one-stop-shop for digital financial services. Essentially, the SoFi platform enables users to manage finances all in one app. After hovering around $15 since August, SOFI stock is poised for more upside after analysts at Jefferies initiated a “buy” rating. The financial firm says the cross-selling opportunity via the company’s “flywheel” is a catalyst for margin expansion.
From its latest quarterly results, the company more than doubled its number of members to 2.56 million. Total products, an aggregate number of products that members have selected, rose 123% year-over-year. Also, SoFi’s decision to acquire Golden Pacific Bancorp could accelerate the process of acquiring the national bank charter. A national bank charter will no doubt be a gamechanger for SoFi. That would allow the company to greatly boost its most valuable segment, the lending platform. With that in mind, would you be buying SOFI stock now following its recent momentum?
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Square
To sum up the list, Square stocks have been climbing steadily since the start of this week. Some are saying the recent debut of Toast (NYSE: TOST) helps increase the appeal of digital payment stocks. Others believe it is a result of its recent expansion efforts in Europe. Following a successful Early Access Programme, the company is launching its suite of products in France. For starters, these include point of sale and payments software and hardware, and various e-commerce tools.
“We are thrilled to expand Square’s solutions into France, helping merchants to run their entire business end-to-end with integrated software, hardware, and data analytics while making it easier for them to take card payments,” said Jason Lalor, European Executive Director at Square. Earlier this month, Square also launched an Early Access Programme in Spain. Besides, many would recall that Square is acquiring buy now, pay later provider Afterpay Ltd (OTCMKTS: AFTPF). With all these exciting developments, is this the time to add SQ stock to your portfolio?
