Best growth stocks from the most promising sectors
Despite a worldwide economic downturn, you can still find the best growth stocks. Many companies still find a way to thrive during these trying times. We’ll show you some of the best choices from these burgeoning industries!
We’ll go straight ahead with four of the most promising options for your portfolio. Then, we’ll explain what defines a growth stock and how you can find them yourself. As you’ll see, these stocks have something to do with online services.
In response to the pandemic, we rely on the internet more than ever. People now need it to meet coworkers, order food, take classes, and other important purposes. As you’ll see, the best growth stocks are related to the latest online services.
#1. AXA
The United States has experienced a series of cyberattacks recently. One of the most notable instances was when the Colonial Pipeline got hacked.
It caused gas prices to skyrocket for a few days. It took a while to restore the supply. In response, more companies now want protection from online attacks.
As a result, cyber insurance became in demand. It covers a company’s liability for online attacks on sensitive information. Examples include customer credit card info and health records.
AXA is one of the largest insurance providers in the world. It also took notice of this recent trend. Now, it covers clients in North America and other countries.
Its low price and potential growth make it appealing. AXA stock costs around $28.89 at the time of writing. You might want to purchase some while it’s this low.
The price of AXA stock is likely to increase as more people buy cyber insurance. Almost all firms rely on digital information and devices nowadays.
AXA is entering a relatively new and lucrative market. The demand for cyber insurance is sure to rise as time passes. That’s why it’s one of the best growth stocks for 2021.
#2. Coursera
The pandemic interrupted normal life around the world. Some countries like the US are starting to reopen. Still, the rest of the world is having a hard time with the coronavirus.
This is why many countries haven’t reopened their schools yet. Since they can’t hold face-to-face classes, they provided online classes instead.
Companies that also provided such services gained more revenue because of this. Coursera is one of them. Coursera started trading on the New York Stock Exchange on March 31, 2021.
Its 2020 revenue went up 59% year-over-year to hit $293.5 million. This is almost double their 2019 revenue growth of 30%. This is all because of their customers and their degree program.
Coursera users may subscribe to the platform and its courses. Meanwhile, it helps schools provide online learning to their students. The pandemic helped Coursera grow significantly.
At the time of writing, Coursera (COUR) stock was worth $40.23. It’s likely to grow with the online learning trend. It’s one of the best growth stocks you should check out.
#3. Riot Blockchain
Cryptocurrency is the hottest craze in the world right now. Regular folks want to invest. Companies and governments want to adopt cryptos. However, some want to clamp down on it.
For example, China cracked down on bitcoin mining recently. As a result, its miners want to relocate. They see the United States as a better location. This is great news for Riot Blockchain.
It’s a US company that mines bitcoin for their clients. This is also called cloud mining. A person may pay someone else to mine the crypto for them. It may save time, effort, and money.
What’s more, it’s focused on growth. Riot Blockchain recently acquired Whinstone US. Inc. This makes Riot the largest bitcoin mining facility in the world. Even better, it saves energy too.
If the United States becomes a crypto mining hub, it’s a boon for crypto mining companies. Also, the crypto trend is growing larger every day. Together, this makes Riot stock quite appealing.
The RIOT stock price was $36.23 at the time of writing. The company’s race for growth and growing crypto adoption makes it one of the best growth stocks right now.
#4. Etsy
Many people lost their jobs due to the COVID lockdowns. In response, people looked for new ways to earn a living—some thought of selling their unused knick-knacks.
This is an advisable way to get extra income during the pandemic. Others even took a different path by selling their arts and crafts projects. You’ll find many of them on Etsy.
It’s an online platform where people may post and sell all sorts of creative goods. These recent behaviors show in the company’s growth and its stock.
On March 1, 2021, ETSY stock enjoyed a 52-week high of $251.86. What’s more, its 1st quarter data for the year proves its increasing growth.
Etsy reported an increase in GMS (gross merchandise sales) of $3.1 billion, roughly 132.3% year-over-year. Also, its marketplace earned $2.9 billion or up to 144.1% in the same period.
Etsy’s recent acquisition of Depop could further its growth. It’s a London-based fashion site intended for the younger Gen Z market. Around 90% of its active users are under 26 years.
The US company bought it for $1.625 billion. According to Etsy CFO Rachel Glaser, the company loved Depop’s growing GMS and avid customer base.
She added that Etsy aims to build a “house of brands.” This signals the company’s drive for more growth. At the time of writing, ETSY stock was worth $197.57.
ETSY is truly one of the best growth stocks worth checking. It’s lower than Etsy’s recent high of $251.86. Yet, this could be your opportunity to buy some before the price climbs up again.
What are growth stocks?
Some companies increase their earnings and revenue faster than the average rates in their industry. People refer to their shares as growth stocks.
These are often businesses that have made a unique product. This lets the companies gain shares in new or existing markets. Even better, they could create new industries.
In turn, their stock prices tend to grow quicker too. As a result, the shareholders earn significant returns. They’re often more expensive than the average stock.
Yet, the best growth stocks on our list have low prices right now. They could be an exception to this rule, especially if their prices rise dramatically in the future.
How do I find growth stocks?
Believe it or not, finding growth stocks yourself involves a few simple steps:
- Look for the long-term market trends.
- Search for the companies that are likely to profit from them.
- Select the ones that have a great chance of beating competitors.
- Leave only the companies that can earn the most from catering to a specific market.
Read the list earlier. As you’ll see, it only has a handful of recommendations. That’s because we made sure the article only included the most promising options from specific sectors.
The most profitable industries right now have something to do with online goods and services. We specifically included cryptocurrency, online retail, remote learning, and cyber insurance.
The four options on the list are connected to these industries. What’s more, they have a great chance of dominating their markets.
For example, Riot Blockchain may take over a huge chunk of the bitcoin mining industry. Coursera has been operating pre-COVID, so it has a solid customer base.
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Final thoughts
Note that you may have to wait 12 months or more to see growth in stocks. This is why you should invest in other asset classes. For example, you may want to consider mutual funds.
Even better, why not invest in cryptocurrencies? Some earn dividends that can provide you with a steady cash flow. You’ll find the best ones in certain industries.
They can provide you with quicker returns. What’s more, the world is adopting them further each day. It’s best to get into them as early as possible.
Learn more about the best growth stocks
What should a beginner invest in?
You may want to start with stocks. We have numerous smartphone apps that facilitate investing. It’s great to start with cryptos too. You don’t need much to buy your first coins.
How can I double my money fast?
You may invest in volatile stocks. Or you may buy cryptocurrencies—note of the high risk involved. You may lose all your money if you’re not careful!
How can I get rich overnight?
There’s no easy way to gain wealth. The only way is to invest in the best assets persistently. Then wait for them to grow. You might want to start a business or side hustle in the meantime.
