These Top Growth Stocks Are Trending This Month
With the first-quarter earnings season fast approaching, investors are likely looking for the best growth stocks to buy now. After all, earnings are a key metric to observe when keeping watch for growth stocks. Most seasoned investors would be familiar with the term now. But for the uninitiated, what are growth stocks?
Well, as the name suggests, these are companies that are more often than not, focused on growth. For the most part, said companies usually reinvest earnings back towards accelerating growth in the short term. By doing so, they improve their offerings which, subsequently, could lead to better earnings figures. In theory, this cycle would benefit companies and investors alike. Because of this, some of the top growth stocks often outpace the broader stock market by a substantial margin.
In particular, most would consider tech stocks to be among the top growth stocks on the market. Why? Well, tech continues to play crucial roles throughout virtually all aspects of our lives. Despite the tech selloffs earlier this year, companies such as Nvidia (NASDAQ: NVDA) and The Trade Desk (NASDAQ: TTD) remain viable. On one hand, NVDA stock continues to soar towards new heights, boosted by steady semiconductor industry tailwinds. On the other hand, TTD stock has more than tripled in value over the past year. This is likely thanks to the company’s leading data-driven digital advertising services. Given all of this, could one of these tech-based growth stocks be worth investing in right now?
Best Growth Stocks To Buy [Or Sell] In April
- FuboTV Inc. (NYSE: FUBO)
- Advanced Micro Devices Inc. (NASDAQ: AMD)
- Microsoft Corporation (NASDAQ: MSFT)
- Taiwan Semiconductor Manufacturing Company (NYSE: TSM)
Fubo is a sports-first live streaming platform that has been making headlines in the last year. The company offers subscribers access to tens of thousands of live sporting events annually. It also provides leading news and entertainment content. With over 500,000 paid subscribers, this growth stock has been picking up momentum in the streaming sector. FUBO stock currently trades at $21.48 as of 11:06 a.m. ET and has been up by over 140% in the last year. Fubo has ridden on pandemic tailwinds that had forced more people to stay at home. This had driven the masses to flock to Fubo’s services for entertainment in 2020. The question is, will they be able to keep up with this growth this year?
The company appears to be making huge plays right now as part of its long-term strategy. Last week, it announced that it had acquired exclusive streaming rights to the Qatar World Cup 2022 qualifying matches of the South American Football Confederation. Last month, the company reported its fourth-quarter and full-year 2020 financial results and provided a business update. It delivered a record fourth-quarter revenue, exceeding $100 million for the first time. Total revenue for 2020 was $268.8 million, an 83% increase year-over-year. With that in mind, do you think FUBO is a top growth stock to buy?
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Advanced Micro Devices Inc.
AMD is a multinational semiconductor company that is based in California. It develops computer processors and related technologies for business and consumer markets. For more than 50 years, the company has brought high-performance computing, graphics, and visualization technologies. It has given both Nvidia and Intel (NASDAQ: INTC) a run for their money in both the GPU and CPU space respectively. AMD stock currently trades at $79.62 as of 11:04 a.m. ET. Last week, AMD announced that its stockholders voted to approve their respective proposals in relation to the pending acquisition of Xilinx (NASDAQ: XLNX).
The acquisition will bring two industry leaders together with their complementary product portfolios and customers. It will bring its hardware technologies and software expertise together and could solidify AMD’s position in the market for the years to come. In January, the company reported a record quarter and full-year 2020 financials. In detail, AMD posted quarterly revenue of $3.24 billion, a 53% increase year-over-year. It also reported a net income of $1.78 billion and diluted earnings per share of $1.45 for the quarter.
The company also notes that its positive 2021 financial outlook highlights the strength of its product portfolio and robust demand for high-performance computing. This especially in the PC, gaming, and data center markets. Given the potential that AMD has right now, will you consider buying AMD stock?
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Microsoft is a tech company that develops, licenses, and supports a range of software products, services, and devices. The company’s segments include Productivity and Business Processes, Intelligent Cloud, and Personal Computing. The company continues to accelerate its efforts to provide industry-specific cloud offerings. This would include Microsoft Cloud for Healthcare, introduced in 2020, which aims to address the comprehensive needs of the rapidly transforming and growing healthcare industry. MSFT stock currently trades at $257.43 as of 11:04 a.m. ET.
Yesterday, it announced that it will further accelerate its industry cloud strategy for healthcare with the acquisition of Nuance Communications (NASDAQ: NUAN). Nuance is a trusted cloud and AI software leader with decades of accumulated healthcare and enterprise AI experience. The acquisition is expected to close this calendar year.
By augmenting the Microsoft Cloud for Healthcare with Nuance’s solutions, the company will be able to empower healthcare providers through its ambiance clinical intelligence and other Microsoft cloud services. Impressively, this acquisition will also double Microsoft’s total addressable market in the healthcare provider space. With such an exciting development, can MSFT stock continue its momentum?
Taiwan Semiconductor Manufacturing Company
Another top growth stock to watch now would be the Taiwan Semiconductor Manufacturing Company (TSM). Notably, TSM is the largest semiconductor manufacturer globally. Accordingly, you could argue that it would stand to benefit significantly from increasing worldwide demands for semiconductors.
Just this morning, investment group CLSA’s managing director Sebastian Hou highlighted the importance of Taiwanese contract manufacturers in this industry. In an interview with CNBC, Hou estimated that companies like TSM produce up to 90% of chips used by U.S. tech giants. This includes the likes of Apple (NASDAQ: AAPL) and Google (NASDAQ: GOOGL). Given all this, it makes sense that TSM stock is up by over 140% in the past year.
Despite its sizable gains so far, TSM does not seem to be resting on its laurels at all. Two weeks ago, the company revealed plans to invest $100 billion over the next 3 years towards its chipmaking plants. Additionally, TSM also announced its net revenue for March 2021 last week. In it, the company brought in over $4.5 billion in the month, a 21.2% month-over-month increase. With TSM set to post Q1 earnings on Thursday, could TSM stock be worth investing in now?