4 High-Growth Stocks to Buy before 2021

Investors have rewarded stocks with above-average growth rates. The economy is expected to rebound in 2021, however, overall growth should remain weak. This is leading to increased multiples for growth stocks. This along with continued digital transformation should keep driving the growth of key technology players…

So far in 2020, growth stocks significantly outperformed the rest of the market. The SPDR Portfolio S&P 500 Growth ETF (SPYG), which can be seen as an indicator of the performance of growth stocks, has gained 23% year-to-date versus the S&P 500 6.6% return.

Among the technology players, those that are creating new ways to live and stay functional with their cutting-edge services are expected to witness a very high revenue and earnings growth.

Amazon.com, Inc. (AMZN), Zoom Video Communications, Inc. (ZM), Shopify, Inc. (SHOP), and Snap, Inc. (SNAP) already have a proven track record of strong performance and they are expected to further build on their success. These companies are innovating quickly to stay ahead of the competition. They also have a strong balance sheet to back up their growth.

Amazon.com, Inc. (AMZN)

AMZN is the world’s largest online retailer. The company develops, manufactures, and markets electronic devices such as the Fire tablet, Kindle reader, Fire TV, and more. The company also provides cloud computing services through Amazon Web Services. AMZN’s stock has gained 64.9% so far this year.

AMZN has recently launched Project Zero in seven more countries taking the total up to seventeen. Project Zero is an effort by AMZN to reduce the sale of counterfeit goods from its stores. AMZN has also signed an agreement to acquire Zoox which is working on developing autonomous vehicles for ride-hailing services. AMZN has also received approval from the FCC to launch a constellation of 3,236 satellites to provide low-cost broadband internet services in the United States and elsewhere. This move could help break AMZN into the communications space.

AMZN’s trailing-twelve-month revenue grew at a CAGR of 29.3% over the last three years. The company’s five-year average EBITDA year-over-year growth rate is 51.5%.AMZN is expected to witness revenue growth of 36.6% for the quarter ending December 2020, and 18.1% in 2021. The company’s EPS is estimated to grow 30.6% in 2021 and at a rate of 36.4% per annum over the next five years.

How does AMZN stack up for the POWR Ratings?

B for Trade Grade

B for Buy & Hold Grade

B for Peer Grade

A for Industry Rank

B for Overall POWR Rating

The stock is also ranked #4 out of 58 stocks in the Internet industry.

Zoom Video Communications, Inc. (ZM)

ZM operates a cloud-based platform that allows users to communicate through video. Users can also communicate through chat, voice, and share content. The company’s platform works on a diverse range of devices and can support thousands of people in a single meeting. ZM’s stock has gained 610% so far this year.

The company has launched end-to-end encryption that allows for far greater privacy and security during Zoom meetings. The company has also announced the…

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