Growth stocks refer to a category of stocks that offer the potential for substantial growth in earnings and revenue. These stocks typically link to young companies that have shown steady growth in earnings, revenue, and market share. Industries such as technology, biotechnology, solar, and e-commerce, which are known for high growth, often house these types of companies and their stocks.
Investors are attracted to growth stocks because of the potential for high returns. These companies are often seen as having a higher growth potential than their peers. As a result, their stock prices can increase rapidly. However, this high potential for growth also comes with higher risk, as growth stocks can be more volatile than other types of stocks. Additionally, the high growth rates may not always be sustained. This can result in a decline in the stock price.
Growth stocks are a popular investment option for those looking to invest in the stock market. Though they are not suitable for all investors, it’s important to understand the risks involved before investing. It’s also important to have a long-term investment horizon when investing in growth stocks. This is because they are typically a speculative investment that is not intended to provide steady, income-generating returns. With this in mind, let’s check out three growth stocks to potentially add to your watchlist in the stock market this week.
Growth Stocks To Watch This Week
- Enphase Energy Inc. (NASDAQ: ENPH)
- Canadian Solar Inc. (NASDAQ: CSIQ)
- Datadog Inc. (NASDAQ: DDOG)
Enphase Energy (ENPH Stock)
Enphase Energy Inc. (ENPH) is a global energy technology company that provides microinverter systems for residential and commercial solar photovoltaic systems. The company’s innovative technology helps improve the energy production and system reliability of solar panels.
Just last week, Enphase Energy announced that it has successfully demonstrated its bidirectional EV charger. The charger can be controlled from the Enphase app and will allow for integration into the Enphase home energy system. The charger is expected to be available in 2024 and will support charging an EV. As well as provide power during a power outage, share energy with the grid, and charge the EV battery with clean solar energy.
Over the last five trading days, shares of Enphase stock have started to recover by 6.67%. Meanwhile, as of Friday’s after-hours trading session close, ENPH stock closed the day at $223.20 a share.
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Canadian Solar (CSIQ Stock)
Next, Canadian Solar Inc. (CSIQ) is a global solar energy company that provides high-quality solar panels, solar systems, and energy solutions for customers in over 150 countries. The company’s innovative technology and customer-focused approach have made it a leading player in the global solar industry.
At the end of last month, Canadian Solar announced it has signed an agreement to sell 30% of the preferred units of its first Italian alternative investment fund (CSFS Fund I) to Gardant Investor SGR. CSFS Fund I is a real-estate-focused investment fund that includes a portfolio of seven solar power projects with a total capacity of 124.2 MWp. Gardant Investor SGR will also cover 30% of the project’s construction costs. Canadian Solar aims to sell an additional 30% of the preferred units to another financial investor while retaining 40% of the non-preferred units in the future.
Since the beginning of 2023, shares of CSIQ stock have rallied by 34.09% year-to-date. While, as of this past Friday’s closing bell, CSIQ stock closed the day trading at $40.63 a share.
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Datadog (DDOG Stock)
Lastly, Datadog Inc. (DDOG) is a cloud-based monitoring and analytics platform that provides real-time visibility into the performance of IT infrastructure, applications, and security systems. The company’s solution helps organizations optimize their technology stack, improve their performance, and reduce downtime.
In January, Datadog announced that it will be releasing its fourth quarter and fiscal year 2022 financial results on Thursday, February 16, 2023. To accompany this news, they will host a conference call on the same day at 8:00 a.m. Eastern Time to discuss the financial results and guidance. For a brief refresher, DDOG reported a beat for its Q3 2022 financial results. In detail, the company reported earnings of $0.18 per share, along with revenue of $436.5 million.
Year-to-date, shares of DDOG stock have rebounded by 10.22%. Looking ahead to Monday morning’s trading session, Datadog stock look set to open the trading week at around $79.46 per share based on this past Friday’s closing bell.
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