Do You Have These Growth Stocks On Your Watchlist Today?
If you’re looking to start your investing journey in the stock market, growth stocks can be a great place to start. Despite their pullback in recent months, they have a higher chance of rebounding strongly when the market recovers. By definition, growth stocks are stocks whose revenue and earnings are expected to increase at a faster rate than the average company. They grow by building competitive advantages that set themselves apart from the others. Over here, I’m referring to stocks like Pinterest (NYSE: PINS) and Etsy (NASDAQ: ETSY) that have solid fundamentals and a positive long-term outlook. And not companies with good stories to tell but lack fundamentals.
With many of the top growth stocks taking a breather, investors could be looking to scoop up shares at discounts. With vaccination rates climbing rapidly across the nation, the U.S. appears on track to a stronger economic recovery. For this reason, could now be a good time for investors to load up on the best growth stocks?
Perhaps, you are looking for the best stocks to buy now to power your portfolio this month. If so, you should look for companies that could achieve rapid growth. Investing in growth stocks is typically considered an “offensive” strategy. It may outperform in ascending markets, but underperform as the economy takes a dive, according to Jim Paulsen, chief investment strategist at the Leuthold Group. With that in mind, here are four great growth stocks to watch now in the stock market today.
Top Growth Stocks To Buy [Or Sell] Right Now
- Entegris (NASDAQ: ENTG)
- ChargePoint Holdings Inc. (NYSE: CHPT)
- Walt Disney Co. (NYSE: DIS)
- Upwork Inc. (NASDAQ: UPWK)
First, up the list, Entergris is an advanced material and process solutions company. The company is poised to be a huge beneficiary on the ramp-up in semiconductor chips globally. Unless you have been living under a rock, you would know that the chip shortage is a systemic issue that affects many sectors of the economy. That’s not to say that the company is not doing well at the moment. In contrast, the company is enjoying stronger demand as global chipmakers are trying to offset the shortages by optimizing their production yields and improving existing technologies. And this is where Entegris comes into the picture.
Entegris generates most of its revenue from semiconductor manufacturers. The more semiconductor manufacturers plan to increase their supply, the more Entegris stands to benefit. From its latest earnings call, the company’s management upgraded its expectations for its end markets to grow 13% to 14% in 2021 versus a previous estimate of 7% to 8%.
Despite last quarter’s disappointing results, analysts believe the company is on pace to grow revenue by nearly 17% this year, with profits improving by nearly 25%. These analysts appear very confident that ENTG stock will receive a boost when many semiconductor manufacturers are scrambling to increase their production capacity. With all that in mind, will you consider putting ENTG stock on your watchlist?
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Coming up next, we have EV charging stock, ChargePoint Holdings. ChargePoint is the largest EV charging station company in America with over 135,000 charging ports. The company is the first EV charging stock to have gone public via the SPAC route. This came after the completion of its merger with Switchback Energy Acquisition. Investors are bullish on CHPT stock because it is quite possibly one of the best pure-plays on the boom in electric vehicles.
The company’s stock price hit an all-time high near $50 before correcting to its current level of around $22. Similar to other top EV charging stocks in the market, CHPT stock today trades at a more attractive valuation than where it was a few months back. Despite the correction in share price, nothing has really changed fundamentally for the company.
With over 90 million charges delivered, the company continues to expand its vertical by providing its solution to large fleets and businesses. Along with many electric vehicle stocks benefitting from Biden’s infrastructure plan, CHPT stock likely has more room to run. In fact, the company projects nearly $200 million in revenue for this financial year. And if you believe the EV sector is just starting to warm up, would you buy CHPT stock now?
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With Disney stock prices up more than 70% over the past year, you could say that the entertainment giant bull’s run is already in full swing. With the strong uptick in vaccination rate in the U.S. and COVID-19 cases gradually declining, investors are increasingly optimistic with DIS stock as the theme parks may reopen sooner than expected. Granted, Disney is starting to relax some of the restrictions in place since reopening its Florida park last July. With the summer holiday just one month away, we could see an increase in traffic in its theme park. And that should bode well for DIS stock.
However, the recent rally in DIS Stock was partly driven by a strong performance of its streaming business, Disney+. After adapting its massive media portfolio to fit the streaming mold, Disney continues to make it big with homebound consumers.
Disney+’s ability to boast a total global subscriber count of 100 million subscribers is something worth cheering on. Management expects it to boast 230 million to 260 million subscribers by 2024. To put things in perspective, Netflix (NASDAQ: NFLX) achieved a subscriber count of 200 million after a decade of operations. With Disney+ continuing to grow at breakneck speeds and rolling out its streaming services to other parts of the globe, subscriber figures could continue to climb. With all these in mind, would you consider DIS stock a top growth stock to buy?
Last but not least, we have Upwork Inc. In brief, the California-based company operates a freelancing platform. Through this platform, Upwork connects businesses and highly skilled freelancers for projects of varying sizes. Despite the company reporting better-than-expected sales and earnings in its first-quarter 2021 financial report earlier this week, Upwork stock did not receive an immediate boost. Instead, it has been trading lower since reporting earnings.
From the earnings report, sales came in 37% higher year-over-year, with gross sales volume rising 41%. The company’s net loss shrank by about one-third to $0.06 per share, which was better than many expected. Given the upbeat earnings report, it doesn’t seem like there’s a good reason not to like the company. What’s more impressive is that the company went on to predict another beat in the second quarter.
Personally, it is very clear to me that the world is moving to digital. Working on the beach doesn’t seem like a far-fetched idea anymore. More people will be working remotely in the future, and lots of companies will use freelancers and contractors. If you believe that the freelance market will keep expanding in the coming years, would UPWK stock be a compelling investment in the stock market today?