Are these the best growth stocks to buy right now?
There is no doubt that the stock market has taken a hit in recent months. And many of the most important growth stocks are down. Thus, some may find investing in these growth names less attractive compared to the start of the pandemic. Now that the Fed is taking a more aggressive stance on interest rate hikes and cuts, it’s natural for investors to be bearish on these stocks.
But that doesn’t mean they aren’t great investments. Maybe you need a longer investment horizon. Investing in growth stocks involves taking a long-term view. And adopting a long-term mindset will help you sift through stock market noise and focus on underlying activity rather than stock price volatility.
With so much uncertainty still hanging over the stock market today, it can be difficult to find the best growth stocks to buy. With the Nasdaq firmly in bearish territory and the S&P 500 plunging more than 15% from its all-time high, would now be a good time to invest in these stocks? If you think so, here are five growth stocks to watch right now.
Growth stocks to watch in June 2022
When looking for growth stocks to buy, a graphic designer Nvidia would often come to mind. The semiconductor giant reported better-than-expected numbers earlier this week. According to the latest quarterly report, revenue rose 46% to $8.29 billion. Although the growth rate was lower than the 53% of the previous quarter, revenues still exceeded expectations by $8.1 billion. Overall, the company cites continued strength in its gaming section. In detail, sales were driven by the GeForce RTX 30 series, which remains the best gaming product cycle in the company’s history.
Additionally, reports indicate that Cathie Wood bought nearly 250,000 NVDA shares across three ETFs, with the bulk of the shares going to her flagship fund. On the contrary, his latest investment in Nvidia may signal that now may be the time to initiate a long-term position. Given the upbeat quarter and Wood’s latest investment, would you do the same?
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eCommerce Innovator Shopify emerged as the darling of the pandemic, but its first-quarter report sent its shares tumbling. But before we let that headline pass, let’s take a closer look at the latest financial report. For the quarter, revenue increased 22% year over year to $1.2 billion. Additionally, its monthly recurring revenue also improved to $105.2 million, up 17% year-over-year. Admittedly, these numbers may not be as exhilarating as those in the early stages of the pandemic. However, that doesn’t change the fact that Shopify continues to grow in the right direction.
Similar to other hypergrowth names, SHOP stock is down more than 70% year-to-date. And with stocks trading at near their lowest price-to-sales ratio in five years, that could make SHOP stocks a must-have investment to have in the stock market today. More importantly, the company has an upcoming 10-for-1 stock split at the end of June, subject to shareholder approval. Could this be a catalyst to push the stock higher? In light of all this, would SHOP stocks be on your list of the most important growth stocks to buy in June 2022?
Southeast Asian tech giant Sea is one of the growth names that has caught the attention of many investors during the pandemic. The company has three main businesses covering the e-commerce, digital entertainment and digital payments markets. Shopee, its e-commerce platform, is the largest in the region. Additionally, Shopee was the top e-commerce brand in YouGov’s “Best Global Brands 2021” and ranked sixth overall. Like other growth stocks on this list, the company also reported generally positive first-quarter financial results earlier this month.
For the quarter, the company reported total GAAP revenue of $2.9 billion, a 64.4% year-over-year increase. Total gross profit was $1.2 billion, up 81.3% year-over-year. This was driven by gross orders which totaled 1.9 billion, up more than 70% year-on-year. In Southeast Asia and Taiwan respectively, Shopee continues to rank #1 in the Shopping category in terms of average monthly active users and total time spent in-app for the first quarter of 2022. With that in mind , would you add SE stocks to your portfolio now?
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Reached was undoubtedly one of the best performing growth stocks in the second half of 2021. After all, it’s not often we have a fintech startup that has 1,000% revenue growth and, most importantly, which is profitable. As you may know, UPST stock has jumped almost 800% at its peak since its IPO. However, it has returned all of its earnings and is currently trading below its IPO price.
Upstart’s sharp decline was largely due to negative investor reaction to its full-year outlook. Previously, the company forecast revenue of $1.4 billion this year, but the company now expects it to hit $1.25 billion. Not to mention that an economic slowdown could have a significant impact on its results. However, it is also heartening to know that more and more lending partners are agreeing to use Upstart’s platform to underwrite loans. Given its valuation today, would you say UPST stock is worth the risk?
Last but not least, we will examine Adobe. The company is well known for its Creative Cloud software. This includes, but is not limited to, its Adobe Creative Cloud, Document Cloud, and Experience Cloud offerings. Together, these platforms help clients design content and deliver personalized consumer experiences across websites, mobile apps, and email. According to its latest quarterly report, the company managed to achieve record revenue for the quarter with $4.26 billion, a year-over-year growth of 9%.
Like the other growth stocks on this list, Adobe has been under pressure as its growth rate slows. But it’s also times like this that some investors think Adobe could be a value play in this volatile market. Not to mention that the company’s new products for 3D design and augmented reality could make Adobe a key player in the metaverse space. And that put Adobe in front of a huge opportunity. Given that ADBE stock is now trading at a more attractive valuation, would you put it on your watch list?