Do You Have These Top Large-Cap Growth Stocks On Your October Watchlist?
When it comes to finding the best growth stocks in the stock market, one industry that tends to stand out is tech. Therefore, it wouldn’t hurt to pay closer attention to hypergrowth names in this space. With the earnings season starting strong, growth stocks appear to be making their way back into bullish territory. Even with the gains that the sector has enjoyed recently, many are betting that the best might be yet to come. Ultimately, what many investors are looking for is a company with a strong moat and that can stay competitive over time.
Yes, the volatility we’ve seen over the past few weeks may have unnerved some investors. And quite a few growth stocks have pulled back. But for some of them, their underlying businesses are as strong as ever. The pullback of these hyper growth stocks simply presents an opportunity to buy them at a lower price. Not to mention, should one of your growth picks end up becoming a massive winner, it can more than make up for other losses in your portfolio.
Perhaps you are looking for the best growth stocks to power your portfolio during the last quarter of 2021 and beyond. If so, you might want to take a closer look at these unstoppable growth stocks that flourished not only in the stock market today but could also be potentially attractive investment opportunities for the long haul.
Top Growth Stocks To Watch Right Now
- Cloudflare Inc. (NYSE: NET)
- Upstart Holdings Inc. (NASDAQ: UPST)
- Sea Ltd. (NYSE: SE)
- Square Inc. (NYSE: SQ)
Cloudflare
Cloudflare continues to be one of the favorite growth stocks among investors. The company is best known for speeding up its customers’ applications and protecting them from hackers and attacks. With more businesses moving their operations to the cloud, Cloudflare could see explosive growth in this burgeoning cybersecurity industry. After sliding along the broader market at the end of September, NET stock has bounced back higher and has not looked back since. You could say that it is one prime example of growth stock to buy on dips. At its current valuation, NET stock has more than doubled year to date.
It’s no secret that Cloudflare has been leveraging its cloud infrastructure to provide innovative products and services. But what might have driven its recent gains was when the company turned itself into a viable alternative to Amazon’s (NASDAQ: AMZN) AWS. Without going too much into the technicals, Cloudflare claimed it could offer faster service and at a lower cost. While Cloudflare has yet to offer anywhere close to the number of features offered by AWS, the edge computing company is certainly a dark horse to watch.
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Upstart
Upstart is a leading artificial intelligence lending platform that is designed to improve access to affordable credit while reducing the risk and costs of lending for its bank partners. Its platform uses sophisticated machine learning models to accurately identify risk and approve more applicants than traditional credit-score based lending models. That’s an attractive business model, and the company has demonstrated enormous growth since it went public a year ago. Upstart stock has seen best-in-industry gains and has enjoyed gains of over 900% in the past year alone.
Earlier this month, the company announced its Upstart Auto Retail software, which includes AI-enabled financing. In essence, it is a cloud-based solution that enables a new car buying experience for both consumers and dealerships. Furthermore, it will provide access to Upstart-powered auto loans as well. This is another area where the company could post high growth for the foreseeable future. In fact, more than $1 billion worth of cars were purchased in the second quarter using the Upstart Auto Retail platform. With the company’s massive growth potential, it’s hard not to have UPST stock on your list of top growth stocks to buy.
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Sea
Sea has been a hot growth stock to watch. The company has transformed from a pure-play gaming start-up into a rising force in e-commerce. For those unfamiliar, the company operates three core businesses across digital payments/financial services, digital entertainment, and e-commerce. Many investors may be familiar with Shopee, Sea’s fast growing e-commerce platform in Southeast Asia. And SHopee has now been moving beyond Asia. But many didn’t know it was Garena, it’s gaming business, that paved the way for Sea to expand into what it is today.
Its Free Fire game is extremely popular globally, and the company has leveraged that edge to get its foot in the Latin American market. The game’s popularity helped the company launch Shopee in Brazil in 2019 and has become one of Brazil’s most popular shopping apps. And it has since expanded into a few countries within Latin America. While Garena is Sea’s core profit driver, investors are more excited about its e-commerce business. Building on its success in Southeast Asia and Brazil, investors are hoping that the company could replicate its success into other major markets like India and Europe. Should that happen, we could be looking at more room to run for SE stock.
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Square
Square is probably the only growth stock on this list that’s the least desirable. Make no mistake, though, the fintech firm has and continues to connect merchants with consumers throughout the pandemic. This would be the case as its digital payments services and comprehensive solutions are more relevant than ever. But what’s frustrating is that the stock has been trading sideways for most of the year. It’s sitting at a gain of just over 10% this year. If you are an investor in SQ stock, be patient. When in doubt, you only need to take a look at the company’s second-quarter earnings. For the quarter, Square saw massive year-over-year surges of 143% in total revenue and 1,433% in earnings per share.
Now, with the company’s upcoming earnings release being less than a month away, could SQ stock be a top growth stock to watch in the stock market now? Well, Trevor Williams from Jefferies (NYSE: JEF) seems to think so. According to William, Square is looking at a “long growth runway”, naming it a “must own” in the current market. He cited the company’s ongoing acquisition of BNPL service provider Afterpay (OTCMKTS: AFTPY) as a key factor for this update. All in all, Afterpay would serve as Square’s answer to the surging demand for BNPL services among consumers now. With BNPL continuing to be the hottest game in town, would SQ stock finally be ready to take off soon?
