Growth stocks are a type of equity investment that refers to stocks of companies that are projected to experience high rates of growth. Growth stocks typically have a higher price-to-earnings (P/E) ratio than the market average, as investors are willing to pay more for shares in a company with strong growth prospects.
While growth stocks can offer the potential for large returns, they also tend to be more volatile than other types of stocks and may be more vulnerable to economic downturns. As a result, investors should carefully research any growth stock before making an investment.
Growth Stocks vs Value Stocks
When it comes to stock investing, there are two main camps: growth investors and value investors. Growth investors focus on stocks that have the potential for high capital appreciation, while value investors seek out stocks that they believe are underpriced relative to their intrinsic value. Both approaches can be successful, but they tend to produce different results over time.
Growth stocks tend to outperform during bull markets, while value stocks have a tendency to fare better during periods of market uncertainty. As a result, savvy investors typically maintain a portfolio that includes both growth and value stocks in order to maximize returns and minimize risk. With this in mind, let’s dive into three top growth stocks to watch in the stock market this week.
Growth Stocks To Invest In [Or Avoid] Right Now
1. Amazon (AMZN Stock)
Leading off today, Amazon.com, Inc. (AMZN) is an American multinational technology company. In detail, the company focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. Moreover, Amazon is considered one of the Big Four tech companies, alongside Google (NASDAQ: GOOGL), Apple (NASDAQ: AAPL), and Meta Platforms (NASDAQ: META). For a sense of scale, Amazon is the world’s largest online retailer, as well as a leading provider of cloud computing services.
AMZN Recent Stock News
Last week, Amazon announced it will be releasing its third-quarter 2022 financial results on Thursday, October 27, 2022, after the close of the U.S. market. While we wait, let’s take a look back at how Amazon did in the 2nd quarter of 2022. Back in July, the company reported second-quarter 2022 earnings of $0.10 per share on revenue of $121.1 billion.
What’s more, in the news release, the company also said it expects upbeat guidance for Q3 2022. Specifically, Amazon said that it is estimating third quarter 2022 revenue to come in between $125 billion to $130 billion.
AMZN Stock Chart
So far in 2022, shares of Amazon have dropped over 33%. Meanwhile, on Tuesday early morning AMZN stock is up over 4% pre-market at $119.05 per share.
2. American Airlines (AAL Stock)
Next, American Airlines Group Inc. (AAL) is one of the largest airlines in the world, with a fleet of over 900 aircraft. For a sense of scale, the company operates an average of 6,700 flights daily to more than 350 destinations across 50 countries.
AAL Recent Stock News
Earlier this month, American Airlines Group announced it will report its 3rd quarter 2022 financial results on Thursday, October 20, 2022. In other news, just last week the company also announced it has made an equity investment in the green hydrogen company Universal Hydrogen Co.
In detail, Universal Hydrogen Co is building a green hydrogen distribution and logistics network for the aviation industry. As a result, this investment endorses American Airlines’ mission to shrink greenhouse gas (GHG) emissions by 2035 and achieve net zero GHG by 2050.
Furthermore, American’s Chief Financial Officer Derek Kerr commented, “This technology has the potential to be a game-changer on the industry’s path to zero-emission flight. As the world’s largest airline, American has a responsibility to exercise leadership in making aviation sustainable. Our investment in Universal Hydrogen represents a vote of confidence for green hydrogen as a key element of a sustainable future for our industry.“
AAL Stock Chart
Meanwhile, during Tuesday morning’s trading action, shares of AAL are up over 4% at $13.79 a share.
3. Netflix (NFLX Stock)
Last but least, we have streaming giant Netflix Inc. (NFLX). For starters, Netflix is a subscription-based streaming service that offers online streaming from a library of films and television series. This includes those produced in-house. Moreover, Netflix has over 222 million paid subscribers throughout 190 countries worldwide. Additionally, the company continues to invest heavily in original content. Also, they are now one of the largest producers of original programming.
NFLX Recent Stock News
In recent news, Netflix is set to announce its third-quarter 2022 financial results and business outlook today, Tuesday, October 18, 2022, after the close of the U.S. Market. For a refresher, in the second quarter of 2022 NFLX reported earnings of $3.20 a share, along with revenue of $7.97 billion.
NFLX Stock Chart
Continuing on, over the last 5 trading days, shares of NFLX stock have begun to rebound 14.67%. Aside from that, on Tuesday morning, Netflix stock is up another 1.21% at $248.08 per share.