Are These The Best Growth Stocks To Buy Now?
After a tumultuous first half for the global stock market, you would expect investors to put their money into safer investments. After all, a looming recession, runaway inflation, and an energy crisis are all suggesting investors to dump stocks and look for safer investments such as bonds. But that doesn’t mean that it is all gloom and doom. After all, this could be a good time for investors to be keeping an eye on stocks that have the potential to lead the market during the eventual recovery.
Besides, when it comes to growth stocks, recessions can actually be a good thing. Of course, you don’t have to take my word for it. On June 27, Michael Burry, the esteemed hedge fund manager of The Big Short fame sent out a tweet calling for disinflation and a dovish Fed policy over the next six months. And If he’s right, growth stocks are set to soar. With that as the backdrop, do you have this list of top growth stocks to buy right now?
Growth Stocks To Buy [Or Sell] Right Now
- Upstart Holdings Inc. (NASDAQ: UPST)
- Sea Ltd. (NYSE: SE)
- Roblox Corp. (NYSE: RBLX)
- Xpeng Inc. (NYSE: XPEV)
- Etsy Inc. (NASDAQ: ETSY)
Upstart
Upstart is a leader in the fintech space specializing in lending and borrowing. Through the use of its AI-powered software, Upstart has been able to identify a larger pool of reliable borrowers with lower default rates. With this capability, the company was one of the best growth stocks to buy during the second half of 2021. After all, it’s not often that we have a fintech startup that has 1,000% revenue growth and most importantly, is profitable. As you may be aware, UPST stock surged nearly 800% at its peak since it went public. However, it has given back all its gains and is currently trading below its IPO price.
Much of the reason for Upstart’s big decline was the negative reaction from investors regarding its full-year outlook. Previously, the company anticipated revenue of $1.4 billion this year, but the company now expects it to come in at $1.25 billion. Not only that, the company recently published preliminary second-quarter results calling for a revenue of just $228 million, well below the previous guidance for sales between $295 million and $305 million. Thus, it’s not surprising why the stock has taken another beating lately. While there are still risk factors facing the business, the lower preliminary revenue still suggests a growth of 17% year-over-year. If you’re seeking undervalued growth stocks to buy today, would UPST stock fit the bill?
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Sea
Southeast Asian tech giant Sea is one of the growth names that caught many investors’ attention during the pandemic. The company has three core businesses spanning the e-commerce, digital entertainment, and digital payments markets. Shopee, its e-commerce platform, is the largest in the region. Recently, the company announced that Justin Bieber would be performing a concert and debuting a new song on Free Fire, Sea’s hit video games.
Given the popularity of the artist, such collaboration could entice more users to engage with its gaming service. What’s more, Shopee is also reported to have invested in five new distribution centers to help improve its e-commerce services in South America. With Shopee growing so quickly in this region, this development could be music to investors’ ears. Considering all this, would you add SE stock to your portfolio right now?
Roblox
Roblox, which benefited from the surge in online gaming during the pandemic, is one of the pioneers of the metaverse. Some might even argue that it is the closest thing to a mainstream social metaverse. With the mission of building a human co-experience platform that enables billions of users to come together, the company appears well-positioned for the metaverse. And if you believe the metaverse is really going to be huge, then it’s worth betting that Roblox’s best days are still ahead.
Of course, Roblox’s growth has slowed as the economic reopening has more children spending their leisure time outdoors. But that doesn’t mean the company has lost its edge and attractiveness. Its most recent update noted that it had 50.4 million daily active users in May. If anything, this shows that users continue to spend time on the platform and help the company generate revenue. With all this in mind, would RBLX stock make your list of top growth stocks to buy today?
Xpeng
Chinese electric vehicle company Xpeng is another growth name to consider. The company’s primary products are environmentally friendly vehicles, namely the G3 SUV and the P7 four-door sports sedan. Besides that, it also provides a range of services to its clients. This includes supercharging services, maintenance services, ride-hailing services, and vehicle leasing services. Not to mention, Xpeng is also ramping up its investment in robotics. Earlier today, XPeng Robotics announced that it raised $100 million as part of its aim to commercialize household robotics in the next two years.
Last month, the company announced that it has reached a milestone of 200,000 cumulative smart EV deliveries. Building on this momentum, Xpeng is showing little to no signs of slowing down. For the month of June, Xpeng recorded monthly deliveries of 15,295 Smart EVs, representing a 133% increase year-over-year, and 51% compared to May 2022. Meanwhile, the company delivered 34,422 Smart EVs in total for the second quarter of 2022. This ranks the company first among emerging auto brands in China for the fourth consecutive quarter. All things considered, would you be keeping a close tab on XPEV stock right now?
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Etsy
Etsy owns an online marketplace focused on handmade and vintage items. Its primary marketplace, Etsy.com, thrived during the pandemic as more people hopped on to the internet during the global health crisis. For sellers, the company offers a range of tools and services that address key business needs. Well, the shortage of medical masks at the start of the pandemic was a boom for Etsy as many then sought homemade masks. While the mask shortage may be over, Etsy continues to build on its momentum. From its first fiscal quarter of 2022, Etsy saw revenue of $579.3 million.
In brief, the e-commerce company enabled almost 5.5 million active sellers to deliver handmade crafts and goods to consumers in the first quarter, totaling $3.3 billion in gross merchandise sales (GMS). Separately, the International Trade Administration sees global e-commerce sales in 2024 reaching $6.4 trillion. Notably, this represents 22% of global retail sales, compared to only 18% in 2020. As such, it looks like Etsy is poised for more growth ahead. With the company trading at a more reasonable valuation today, would you consider adding ETSY stock to your portfolio?
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