Growth stocks belong to companies that are expected to grow at an above-average rate compared to other businesses in the market. The main attraction of these stocks lies in their potential to deliver significant capital gains. They are often innovative firms, those disrupting traditional industries, or fast-growing companies in burgeoning sectors. These are the companies that might introduce groundbreaking technology, offer a unique service, or disrupt the way things are typically done.
These companies usually reinvest their earnings back into their business to fuel further expansion, whether it’s through research and development, human resources, or acquisitions. Therefore, growth stocks typically do not pay dividends to their shareholders. Instead, they promise potential future gains through an increase in stock price. The prospect of a high return on investment makes them attractive to investors willing to take on more risk for the possibility of larger rewards.
However, it’s important to remember that the potential for high returns comes with its fair share of risks. While growth stocks can offer considerable gains, they can also suffer significant losses if the company’s growth plans don’t materialize as expected. Investors need to consider their risk tolerance, financial goals, and market trends when investing in growth stocks. Despite the risks, if correctly selected and balanced within a diverse portfolio, growth stocks can be a rewarding investment strategy. That said, here are two trending growth stocks to watch in the stock market today.
Growth Stocks To Watch Right Now
Snowflake (SNOW Stock)
Firstly, Snowflake Inc. (SNOW) is a technology company that provides a cloud-based data warehousing platform. This platform allows businesses to manage and analyze large amounts and various types of data across public clouds. Snowflake’s unique architecture separates computing from storage, providing scalability, flexibility, and efficiency.
At the beginning of this month, Snowflake announced the date it will report its first quarter of 2024. In detail, the company said it will report Q1 2024’s earnings results on Wednesday, May 24, 2023, after the close of the U.S. stock market.
Year-to-date, shares of SNOW stock have increased by 30.38% so far. Meanwhile, during Wednesday’s afternoon trading session, SNOW stock is trading up on the day by 0.82% at $176.59 a share.
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Palantir Technologies (PLTR Stock)
Second, Palantir Technologies Inc. (PLTR) is a software company that specializes in big data analytics. Its products are used by organizations worldwide for tasks such as managing and interpreting vast amounts of information, detecting patterns and trends, and making data-driven decisions. Palantir serves various sectors, including government, finance, and healthcare, demonstrating its versatile applications.
Earlier this month, Palantir Technologies announced its first quarter 2023 financial results. In detail, the company posted Q1 2023 earnings of $0.01 per share, with revenue of $525.2 million. Additionally, revenue increased by 17.7% versus the same period the previous year. Moreover, the company said it estimates second quarter 2023 revenue in the range of $528.0 million to $532.0 million.
Since the start of 2023, shares of PLTR stock are up 90.77% year-to-date. Meanwhile, during Wednesday’s power hour trading session, Palantir stock is trading at $12.19 a share.