3 Growth Stocks That Could Be Better Investments Than AMC Stocks Right Now
3 growth stocks to watch on the stock market this coming week
It has been rather volatile for growth stocks on the stock market this week. While the Fed is now forecasting two rate hikes in 2023, instead of the earlier forecast of zero rate hikes until 2024, the stock Exchange took a hit. Nonetheless, Powell reiterated that the Fed still believes in the transitory inflation thesis and will do nothing to change monetary policy anytime soon. I guess what he’s trying to say is that “the cheap money” is here to stay. Perhaps this is why the stock market rebounded strongly on Thursday, led by the major growth stocks in the market.
Growth stocks have been a favorite choice for investors looking to allocate their hard-earned money. This is mainly because they have provided outsized gains compared to the larger market, at least over the past two decades. We only have to look at the likes of Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) to understand the power of growing companies. Many leading growth stocks are experiencing explosive growth in today’s volatile stock market environment. But I think we can all agree that growth stocks that deliver impressive results today and can continue to be great long-term investments can be pretty hard to come by.
How do you find the best growth stocks to buy?
Investing in the stock market has not been easy since the pandemic. Whether you are new or experienced in the market, you have certainly witnessed one of the most volatile periods in the history of the stock market. That said, if you are looking for growth names to include in your portfolio, you should look for companies that could grow their bottom line quickly. The hallmark of best growth stocks to buy now can usually include improving fundamentals and a history of bullish trading activity in stocks. As the risks of inflation increase and investors’ portfolios shift to value stocks, choosing which growth stock to buy becomes increasingly difficult.
Still, to help protect your investment, looking at stocks with good growth potential and justifiable valuations might be a great way to start. Of course, looking for growth stocks that have extremely strong fundamentals is even better. It may take a lot more research and hard work. But the good news is, we’ve got a few for you. That being said, do you have the following growth stocks on your list in the scholarship today?
Top growth stocks to watch this week
Upstart is a growing online platform that uses artificial intelligence to automate the loan process. With the business platform, banks can provide personal loans using non-traditional variables such as education and employment to predict creditworthiness. At the same time, it helps banks reduce the risks and costs of loans. Upstart’s platform uses sophisticated machine learning models to more accurately identify risks and approve more applicants than traditional credit score-based lending models. Upstart has also expanded to include auto loans. In March, it acquired Prodigy Software, a provider of cloud-based automotive retail software, which some describe as Shopify (NYSE: SHOP) for automobile dealers.
Recently, Upstart announced that Customers Bank, a full-service community bank and a subsidiary of Customers Bancorp (NYSE: CUBI) has extended its banking partnership with Upstart. The extended partnership would include scaling up its personal loan program through Upstart’s referral network and Customers Bank’s own consumer banking website. Customers Bank’s partnership with Upstart has helped her grow her loan portfolio in recent years, and she expects this trend to continue.
What is more impressive is that the company has already reached profitability. Upstart reported net profit of $ 6 million in 2020, making it one of the few profitable fintech companies. That said, an investment in Upstart shares could prove to be extremely rewarding. With more predictive subscription models and lower fraud rates provided by the platform, the potential for Upstart to continue to grow is huge. Given all of this, is UPST stock a buy and hold long term growth stock?
Source: TD Ameritrade CGU
Futu is one of the leading technology-driven online brokerage and wealth management platforms in China. Impressively, the company enjoys strong support from notable shareholders like Tencent (OTCMKTS: TCEHY), Matrix Holdings and Sequoia Capital. With the backing of a company like Tencent, coupled with favorable trends, Futu’s potential to consolidate itself as a leader in mobile and online brokerage in China is truly promising. With high expectations for the company’s business performance, FUTU stock has risen over 200% since the start of the year.
According to the company’s first quarter report, revenue increased 349% year-on-year to $ 283.6 million. Its total gross profit was even more impressive, as it rose 372.6% year-on-year to $ 226.6. This handily beats Wall Street estimates. However, despite the impressive pace of earnings, FUTU stock has traded sideways in recent months.
While this may cause some investors to shy away from growth stocks like Futu, some are recovering stocks on the downside. FUTU stock might be your best bet to take advantage of the rapidly growing retail investment industry in China. After all, the rise of retail investors is pretty much a global phenomenon. Given Futu’s financial strength and the growth of the markets in which it operates, we could indeed see a long growth path. Could the FUTU stock be a multi-bagger in the making?
Source: TD Ameritrade CGU
Cloudflare is a content delivery network (CDN) provider. Its goal is to create a better and safer Internet. Some of the company’s potential growth engines include serverless computing, the Internet of Things (IoT), and 5G. These present huge opportunities for the business to exploit. With more companies moving their operations to the cloud, Cloudflare could experience explosive growth in this burgeoning cybersecurity industry. This is because of its role in protecting and speeding up the Internet.
Based on the company’s first-quarter profits, revenue increased 51% year-over-year to $ 138.1 million. The network security and CDN provider is also experiencing strong customer growth. It recorded a record addition of approximately 120 large customers during the quarter. This cloud share has rewarded shareholders with growth of over 450% since its IPO in September 2019.
Of course, the strong bullish sentiment is mainly due to the company’s dominance in the CDN market. Granted, there may be speculation that tech giants get on the CDN bandwagon and steal market share. But Cloudflare stock remains a relatively safe bet with excellent long-term growth prospects for now. With the NET stock showing some upward momentum, would you agree that this is the best growth stock to buy right now?
Source: TD Ameritrade CGU
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.