For investors who want to allocate hard-earned funds, growth stocks have always been one of their favorite options. This is mainly because, for at least the last two decades, they have been providing excessive returns compared to the broader market. In today’s turbulent stock market environment, many high-growth stocks are experiencing explosive growth. But I think we can all agree that it is difficult to find growth stocks that are currently performing impressively and can remain long-term investments.
The characteristics of the best-growing stocks generally include improved fundamentals and a history of bullish stock trading activity. As inflation risks rise and investors shift their portfolios to price stocks, it becomes increasingly difficult to buy growth stocks. However, to protect your investment, looking for stocks with good growth prospects and reasonable valuations can be a good starting point. In other words, do you have the following growth stocks on your list in the stock market today?
Buy [or avoid] growing stocks immediately
- Rapid (NYSE: FSLY)
- Zscaler (Nasdaq: ZS)
- BioNTech (Nasdaq: BNTX)
- Palantir Technologies (NYSE: PLTR)
- ViacomCBS Corporation (NASDAQ: VIAC)
It’s a quick and exciting action to watch in 2020. The company is a key player in the content delivery network (CDN) field. It can be said that the real trick of Fastly is its cutting-edge computing capabilities. However, the reason many investors are paying attention to Fastly now is that for a company with double-digit growth, the FSLY share price has fallen too fast and too difficult.
According to its latest quarterly report, Fastly’s revenue increased 35% year-over-year to $ 84.9 million, just slightly below $ 85.1 million expected Americans. Although the net retention rate was slightly lower than in the prior quarter, the total number of its clients actually increased from 2,084 in the fourth quarter to 2,207.
Of course, the company may not meet the highest and lowest expectations, but the difference is only small. If you ask me, this deal seems worth it. If you think that the trend that emerged last year may be permanent, then after the sell-off, FSLY stock seems to be more and more like an opportunistic gamble.
Zscaler
Next, we also have the top stock ZscalerInc in terms of network security. Zscaler is a cloud security company that has been trending in the stock market this year. ZS stocks are other high-growth stocks that have recently received investor attention. The company’s share price rose more than 12% in trading on Wednesday.
This is after the company posted strong third-quarter financial results. In detail, the company’s revenue increased 60% year-on-year to $ 176.4 million. With more companies migrating their businesses to the cloud, the business has seen strong growth.
According to CEO Jay Chaudhry, Zscaler’s “Zero Trust Exchange” platform is helping clients achieve digital transformation goals and design architects for the new normal of cross-domain work. Even if more people start returning to their work offices, the transition to the cloud can continue. Given that the scale and complexity of cyberattacks are increasing, can ZS shares continue to grow in the coming quarters?
BioNTech
BioNTech is a next-generation immunotherapy company dedicated to new therapies for the treatment of cancer and infectious diseases. Most people learn about the company’s development of a COVID-19 vaccine through a partnership with Pfizer (NYSE: PFE). According to the first-quarter report, revenue in the first quarter was $ 2.49 billion. This result shows an increase of 7,300% compared to the same period last year. Not only that, the bottom line of the company has also improved enormously.
Your latest quarterly report has nothing to do with your BNT162b2 vaccine candidate. Currently, the company distributes its net profit equally with Pfizer from vaccine sales worldwide (except China). The company said that as of May 6, it has provided more than 450 million doses of the COVID-19 vaccine to 91 countries or regions, and has signed an agreement to exceed 1.8 billion doses by 2021.
According to the currently signed contract, the estimated revenue for the delivery of the COVID-19 vaccine is 12.4 billion euros. With this revenue growth, it is not surprising why many people think that BNTX stock has become one of the fastest-growing stocks in the stock market today.
Palantir Technologies
Palantir Technologies is a software and analysis tool developed for the defense industry and large companies. For those unfamiliar, the company’s Gotham platform enables government clients to identify hidden patterns deep in data collections, ranging from signals from intelligence sources to confidential whistleblowers’ reports. Now, you might think that this sounds more like a virtual software company. But please rest assured that Palantir has been successfully delivered.
The company reported its first-quarter earnings this week. According to the report, revenue increased by 49% year-on-year to US$341 million. In addition, cash generation capacity has also been greatly improved. More importantly, management expects revenue in the second quarter to increase by 43% to 360 million US dollars. We are looking for a company with disruptive technology and a large addressable market.
In the long term, Palantir believes it can deliver revenue growth of more than 30% this year and the next four years. Given its growth momentum, will PLTR stocks become an ideal investment for investors with a long-term vision?
Viacom
Viacom is a diversified multinational media group based in New York City. Basically, the company delivers high-quality content to viewers through both traditional and emerging platforms around the world. After the bankruptcy of Archegos Capital Management, VIAC’s stock lost more than half of its value within a few days. Now, with the rumors of an intensifying broadcast battle, ViacomCBS has once again made headlines.
Last week, Bank of America carried out a double upgrade to the company and raised its price target. Their reason: The relatively low rankings of streaming media companies and their large content libraries make them attractive acquisition targets. According to its latest tax report, revenue increased by 65% year-on-year, driven by the sharp increase in user and product profits. Total revenue for the quarter was as high as $7.41 billion, a year-on-year increase of 14%. Given its strong basic knowledge and rich content, the library can provide a strong value proposition as an acquisition target for streaming media giants. Of course, buying VIAC stock due to rumors may not be a good idea. However, if this happens, it will be very beneficial to exist shareholders.
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