4 Top Growth Stocks For Your Watchlist Today
There’s no question that many top growth stocks have failed significantly over the past year. For this reason, it’s understandable that many investors are shying away from such stocks. We only need to look at the likes of Tesla (NASDAQ: TSLA) and Shopify (NYSE: SHOP) to feel the impact of the market downturn in recent months. Despite showing healthy growth rates in their latest quarterly updates, these growth names were not able to escape the market downturn.
Whether you believe this market route is just a temporary ‘shakeout’ or the beginning of a drawn-out bear market, sticking with some of the top growth stocks over the long term is still likely to make you money. And since they are trading at massive discounts right now, some investors would take advantage of the current weakness in the stock market. After all, there will come a time when this beaten-down growth plays return to the fore.
Of course, I’m not saying that investing in growth stocks is a sure way to beat the market. That’s because growth stocks may remain more volatile than the broader market as recession fears loom and as the Fed continues to raise interest rates. While no one can predict the market direction in the short run, you should be able to do well over the longer term if you invest in fundamentally strong stocks. Thus, if you’re in it for the long run, here are four growth stocks to watch in the stock market today.
Growth Stocks To Buy [Or Sell] Today
Zoom Video Communications
zoom is a provider of video communication platforms. Through its platform, people around the world are able to connect through video, phone, chat, and webinars. Therefore, allowing users to share these experiences across disparate devices and locations. Its products include Zoom Phone, Zoom Rooms, Zoom Events, and many more. Much like most of the top growth names over the past year, sentiment around ZM stock has been rather gloomy. However, the fundamental story of the company has remained robust.
During its fiscal year 2022, it reported revenue of $4.1 billion, up 55% year-over-year. Despite increasing investment in technology and go-to-market initiatives, Zoom’s GAAP operating margin still improved by 100 basis points to 25.9%. Well, Zoom carried its momentum into the fiscal 2023 first quarter. The company had 198,900 enterprise customers, representing an increase of 24% compared to the previous year’s quarter. To top it off, the number of customers contributing more than $100,000 in revenue totaled 2,916, a 46% increase from a year ago. With that in mind, would you consider ZM stock as a top growth stock to buy?
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Following that, let us look at the China-based tech giant, NetEase. In detail, the company operates three business segments, Online Game Service, Youdao search engine, and Innovative Business and Others. Its Online Game Service segment specializes in online game services for mobile and personal computers. Some of its notable games include the Onmyoji series and Westward Journey. Financially, NetEase is also showing no signs of slowing down. The company’s first-quarter revenue came in at $3.7 billion, up 14.8% year-over-year. Out of which, the Online Game Service segment continues to impress with $2.7 billion. Meanwhile, its gross profit improved to $2.0 billion, representing an increase of 16.1% compared to the first quarter of 2021.
Furthermore, the company’s Cloud Village Inc recently announced that it has signed a music licensing agreement with Beijing Time Fengjun Culture and Entertainment Development Co (TF Entertainment). As part of the agreement, NetEase Cloud Music can use a wide range of TF Entertainment’s catalog. Hence, introducing more quality music from artists such as TNT, TFBOYS, and TF Family. For those unaware, TF Entertainment is one of China’s leading entertainment groups with a focus on training idols that resonate with the younger generation. Ultimately, this will likely add to NetEase’s growing portfolio of music services and enhance its presence among the younger generation. Given such an exciting development, would NTES stock make your list of top growth stocks to buy now?
Another top growth company that warrants consideration right now is twilio. Essentially, Twilio is a company that offers cloud communication services to allow developers to build, scale, and operate real-time communications within software applications. Its Super Network is the company’s software layer that allows customers’ software to communicate with connected devices globally. Despite sliding more than 70% over the past year, there are still plenty of positive developments worth noting surrounding the company.
For example, Twilio and Syniverse announced in May that they have closed their previously announced strategic partnership. The partnership will likely help Twilio to accelerate the next wave of innovation in mobile communications while driving long-term growth. Not to mention, the company’s fiscal first quarter has also been nothing short of impressive. It posted revenue of $875.4 million, an increase of 48% year-over-year. All this goes to show that Twilio continues to grow at scale to meet the demand of the communication industry. As such, should investors be paying more attention to TWLO stock?
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Last but not least, we have one of the world’s leading energy technology companies, Enphase. The company is a supplier of micro inverter-based solar systems. Therefore, enabling its customers to harness the sun to make, sell and control their own power. In fact, Enphase is now working on several fronts simultaneously. Other than microinverters, the company has now expanded its offerings to include batteries. Moreover, the company is also collaborating with Upstart Power to integrate fuel cells into its batteries and microinverter systems. Although ENPH stock has been trading sideways over the past year, it has still risen more than 10% within the period.
Earlier in June, the company announced that a growing number of Australian solar installers are now exclusively offering Enphase products. Now, what could be the reason for this? Last month, Australia revised its installation and safety requirements for photovoltaic arrays. The revised regulations aim to support solar installers in meeting compliance requirements and promoting consumer and electrical contractor safety. As a result, many Australian installers are exclusively leveraging Enphase technology to help insulate their businesses. Safe to say, this is a testament to Enphase’s commitment to bringing quality products to the market throughout the years. All things considered, would you consider adding ENPH stock to your portfolio?
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.