Here Are The Top Growth Stocks To Invest In Right Now
Have you ever thought about diversifying your portfolio? Investment in growth stocks will help you make the most of your money. These stocks have a high potential for growth since they belong to reputable companies. Learn which growth stocks will be the best in 2022 by reading on.
Growth stocks are shares in companies that see their earnings and revenues increase faster than most businesses in the same industry or market. Investing in growth requires investors to look at more than just stocks on the rise. Growth stocks are common among companies that have developed innovative products or entered new markets.
In addition to offering higher returns, growth stocks are more expensive than value stocks. Listed below are some of the top growth stocks available in 2022.
Netflix, worth $225,13 billion and expecting to reach $663.37 by the end of next year, is among the best growth stocks at $508.25. It has a market cap of $225.13 billion. Nasdaq experts predict the streaming service will add 25 million subscribers by 2022, keeping with the company’s goal of adding 25-30 million members yearly.
By the end of the year, some analysts predict the stock’s price could reach $700. The company expects solid revenues for its fourth quarter in 2022, meaning investors can expect substantial financial results.
Meta Platforms Inc. (FB)
The reasons behind the name change have put Meta Platforms Inc. in the limelight, previously known as Facebook. The company announced investing in the market to become a market leader. This has led to a split between investors. Those who believe Meta’s expansion will increase revenue think it will increase revenue.
On the other hand, Meta Platforms is rumored to allocate inadequate resources to dozens of projects it intends to launch, which might result in unreliable results. It is still estimated that Meta Platforms’ stock will increase to $401.49 in one-year time despite its current price of $16.56.
Meta, Apple, Netflix, Alphabet, and Apple remained afloat throughout the pandemic. Furthermore, Meta has introduced smart glasses with augmented reality technology. As a result, Meta has the edge over its competitors in the market for augmented reality.
BigCommerce Holdings Inc. (BIGC)
Founded in 2004, BigCommerce provides e-commerce tools to medium and small-scale online merchants. In addition to catalog management, reporting, accounting, order processing, checkout, hosting, and store design services, the company also offers web hosting services.
Currently trading at $29.32, it has a market cap of $2.1 billion, and a year-end price of $63.58 could be the following big stock. As a result of the company’s annual solid returns and revenue generation potential, the stock has growth potential.
Averaging $1,023.95, Shopify stock has a market cap of $128.734 billion. As a result, investors who plan for the future should consider purchasing it. Since November 2021, Shopify stock has fallen by almost 28%.
Despite a lower share price, analysts are confident in Shopify’s performance. A pandemic raised the demand for online shipping, leading to a 86% increase in revenue for the company in 2020.
Analysts predict a 33% increase in revenue for Shopify in 2022. In its IPO, Shopify served only 162,261 businesses worldwide. Since then, it has grown to serve over 1.7 million companies worldwide.
Unity Software Inc. (U)
A rich and intuitive ecosystem is essential for Meta products to succeed. Among those companies, Unity Software stands out. In addition to working with virtual reality, computers, phones, and consoles, Unity is a gaming engine that developers can use to construct games.
Due to its undeniable size and increasing profitability, Unit y is well positioned for future growth. In terms of market cap, Unity Software has a market cap of $33.187 billion and an expected price of $173.58 a year from now.
The gaming industry is booming, and it’s no secret that Unity could get a significant share of it. Without Meta, Unity’s graphics also can be used in the design, e-commerce, architecture, and animation.
Duolingo Inc. (DUOL)
Duolingo claims to be the best language learning tool in the world. As a result of the pandemic, people have had lots of time to learn new hobbies and languages. Before, investors worried about Duolingo’s performance due to its difficulty monetizing its services.
In contrast, Duolingo has added placement tests for academic and career purposes to its revenue streams. There is currently $3.37 billion in market capitalization for Duolingo stock, which trades at $89.93. It is likely to reach $195 in the near future.
How To Find the Next Big Stock?
Stocks can succeed regardless of how influential or prominent a company is. Current trends are also significant. Stocks of companies that benefit from these trends tend to be highly-priced. Digital payments and online shopping have increased due to the COVID-19 pandemic.
It’s essential to keep up with the trends to find the best growth stocks. Furthermore, it would be best to look for companies aligned with these trends by taking proactive measures. It is better to get into the market sooner rather than later if you want to maximize your returns.
It is also vital to consider competitive advantages in addition to current trends. A company with a competitive edge has a greater chance of growing. In this regard, Facebook serves as an excellent example.
By leveraging Instagram and Whatsapp, Facebook preserves its market position. With billions of users, any social media app that threatens to displace Facebook’s apps will be highly unlikely. Smaller organizations do not have the advantages of more prominent companies. As an example, take a look at Amazon. With a global fulfilment network, the company has an advantage over competitors.
edited and proofread by nikita sharma