Top Growth Stocks To Consider Buying For The Long Term
Considering Dogecoin has had an absolutely extraordinary year, it’s natural that a lot of attention has been given to the cryptocurrency space. With cryptocurrencies experiencing extreme volatility even by their own standard, investors with a lower risk appetite may be better off avoiding cryptocurrencies due to their unpredictable nature. If you’re looking to invest in companies that could be potential multi-baggers, growth stocks in the stock market may be a good start.
Instead of speculating on cryptocurrencies, investors might want to bet on growth stocks with strong fundamentals. Certainly, tech is often the first sector that comes to mind when looking for the best growth stocks to buy in the stock market today. From software developers to semiconductors and e-commerce, the possibilities are endless. In essence, any company that sells a product or service infused with technology will likely belong to this sector. With so much going on in the market these days, would you say that these are the best growth stocks to buy now?
Best Growth Stocks To Buy[Or Avoid] Now
- AMC Entertainment Holdings Inc. (NYSE: AMC)
- DraftKings Inc. (NASDAQ: DKNG)
- Roblox Corp. (NYSE: RBLX)
- Teladoc Health (NYSE: TDOC)
- Skillz Inc. (NYSE: SKLZ)
AMC Entertainment Holdings
AMC is one of the largest movie theater chains in the world. It owns the largest share of the U.S. theater market and boasts over 1,000 theaters. The company’s stock shot right out of the gate this week, giving Reddit investors a reason to celebrate even as the company’s biggest shareholder, Dalian Wanda Group sold off an entire stake in the cinema operators. To top it off, investors are also looking at the successful weekend international release of the Fast and Furious franchise.
From its first quarter, the cinema chain reported $312.9 million in cash outflow for its operating activities. That’s approximately $104 million burned per month. The number may be huge, but that’s already an improvement from the September 30 figure, when the company was burning through an estimated $140 million per month. With expansive vaccination campaigns in the U.S. and blockbuster movie titles set to be released in the coming months, would you bet on business returning to pre-pandemic levels soon? Having said all that, is AMC stock worth watching right now?
DraftKings is a digital sports entertainment and gaming company. In detail, the company allows users to enter daily and weekly fantasy sports-related contests. The company is the only U.S.-based vertically integrated sports betting operator. It is also a multi-channel provider of sports betting and gaming technologies. It is the official daily fantasy partner of the NFL, MLB, NASCAR, and UFC among others. DKNG stock has shed more than 35% of its value since it’s all time high in March. Considering that the stock now trades at a more reasonable valuation, DKNG stock certainly looks more compelling now.
The company recently reported its first-quarter revenue, which showed that it is off to an outstanding start in 2021. The company reported a revenue of $312 million for the quarter. This represents a one-third market share in the US. Assuming strong growth in the sector and all else being equal, we could be looking at a company with multi-billion dollars in revenue. The bullish thesis for the company’s growth is that more states are expected to continue to legalize online gambling, bringing in more customers and revenue for the company. For these reasons, will you consider including DKNG stock on your watchlist?
Roblox is a video game developer that is based in San Mateo, California. It is ranked as one of the top online entertainment platforms for audiences under the age of 18. The company has a co-experience platform that enables shared experiences among billions of users. Its platform is powered by user-generated content that draws inspiration from gaming, entertainment, social media, and even toys. The game has maintained strong appeal during the coronavirus pandemic. As a result, RBLX stock investors have enjoyed fairly strong returns.
Earlier this month, the company released its first-quarter financials. Revenue came in 140% higher to $387 million. Its bookings also increased by 161% to a whopping $652.3 million. Roblox also reported that its average daily active users (DAU) were 42.1 million, an increase of 79% year-over-year. Seeing how the company is able to capitalize on human beings connecting with one another, it continues to invest in creating and sharing experiences for the Roblox community. With that in mind, will you consider RBLX stock a top growth stock to buy?
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When talking about the advancement of technology in the health care sector, Teladoc is a name that often comes to mind. And Cathie Wood seems to agree, judging how its Ark Investment has been snapping up TDOC stock. This comes as no surprise seeing that the company’s plethora of telehealth services remain a vital service during the pandemic. The global leader in telehealth medicine reported its first-quarter financials on April 28. In it, it raised full-year guidance as first-quarter revenue came in 151% higher year-over-year to a record $453.7 million.
One reason why investors are bullish is that Teladoc is slowly creating cheaper remote alternatives to healthcare to the inconvenient, inefficient health care system we have today. Also, consulting firm McKinsey & Company projects that the U.S. virtual care market could approach $250 billion annually after the pandemic is over. With that kind of projection, you could say that Teladoc has a lot of untapped potential indeed. Considering the recent dips, would you be picking up TDOC stock on the cheap?
Skillz is an entertainment company that provides monetization services to game developers through mobile eSports platforms. The company’s principal activity is to develop and support an online-hosted tech platform. This would enable independent game developers to host tournaments and provide competitive gaming activity to end-users. Given how mobile gaming has risen to prominence in the last few years, could Skillz be on the uptrend too?
From its first-quarter fiscal report, revenue came in 92% higher year-over-year to $84 million. Impressively, its paying monthly active users grew by 81% compared to a year ago. It also ended the quarter with $613 million in cash and had no debt. Skillz also noted that it had expanded its Android footprint, growing revenue from Android users 2x faster than iOS. For its financial outlook, the company is increasing its 2021 revenue guidance to $375 million, which implies a 63% growth year-over-year. If you ask me, the sharp correction of SKLZ stock could present a buying opportunity. Should you be greedy with SKLZ stock when others are fearful?