The best growth stocks on Wall Street today.
The nine companies on this list have been absolutely crushing the market recently. From names you’ve known for years to the fairly obscure, they all have one thing in common: These are some of Wall Street’s best growth stocks. They’re also all growing sales — most at a much faster pace than average — and nearly all are priced at a healthy premium. By virtue of their elevated prices, growth stocks are typically more risky than the “average” Standard & Poor’s 500 index member. So remember, while there could still be great opportunities with some of these stocks, there are also likely greater risks.
Shopify (ticker: SHOP)
SHOP stock is undoubtedly one of the best growth stocks of the last year, with shares more than doubling over that time. The company, which makes e-commerce software allowing small- and medium-size businesses to conduct business online, has been growing revenue at a breakneck pace for years. From 2012 to 2016, Shopify grew revenue from $23.7 million to $388.8 million — an annual growth rate of more than 100 percent. Naturally, that can’t keep up forever; analysts expect revenue growth of 54 percent in 2017 and further deceleration after that. The company remains unprofitable, so Mr. Market is betting heavily on a well-executed future.
1-year performance: 127 percent
YTD performance: 69 percent
Netflix (NFLX)
It’s no surprise that Netflix’s revenue continues to grow pretty rapidly — the streaming video service almost single-handedly sparked the cord-cutting revolution and is practically everywhere you look in the U.S. In 2016, it began an ambitious worldwide expansion plan that should power growth going forward. What might surprise investors though, is that the NFLX stock price has continued to grow. With so much growth baked into its valuation after years as one of Wall Street’s top-notch performers, NFLX has continued to outperform. Expectations are now so high that some investors expect to be blown away by every quarterly earnings report.
1-year performance: 48 percent
YTD performance: 13 percent
Tesla (TSLA)
It’s truly a make-or-break time for Tesla’s business, and boy, has TSLA been one of 2017’s best growth stocks as investors await its next chapter. The iconic electric automaker, which recently surpassed both Ford Motor Co. (F) and General Motors Co. (GM) in value, is about to start delivering the first versions of the Model 3 — the first ever mass-market all-electric car. Tesla’s short- and medium-term future are largely dependent on the Model 3’s success, and the company has said it’s on track for volume production by September. Better-than-expected deliveries in the first quarter and a 5 percent investment from China’s Tencent also helped shares.
1-year performance: 23 percent
YTD performance: 43 percent
Qorvo (QRVO)
Qorvo, a $9 billion semiconductor company specializing in radio frequency solutions across the mobile, infrastructure, and defense and aerospace areas, has been a huge winner in recent months. It’s nice to be a trusted supplier for the Apple (AAPL) iPhone, especially as Apple itself regains investor confidence ahead of the company’s 10th anniversary iPhone, due out in September. Analysts expect solid (but not stellar) revenue and earnings growth in 2017 and 2018, and at a forward price-earnings ratio of 12, it’s possible shares still have some room to run.
1-year performance: 54 percent
YTD performance: 32 percent
Amazon.com (AMZN)
Given the size of its operations, the way AMZN remains one of the market’s best growth stocks is incredible. If analysts are right, by the end of 2018, Amazon will have grown revenue by 20 percent or more in 16 of the previous 17 years. The one year that didn’t happen, 2014, sales increased 19.5 percent. That’s remarkable for a company with $136 billion in 2016 revenue. Obviously online retail is Amazon’s bread and butter, but in recent years it’s been unrelated blowout successes like Amazon Web Services and the AI-powered Amazon Echo devices that have facilitated its enviable and consistent growth.
1-year performance: 43 percent
YTD performance: 20 percent
Priceline Group (PCLN)
One of the rare public companies that, despite incredible long-term success, has never conducted a traditional split of its stock is Priceline. And that’s why it trades for more than $1,700 per share. Like Amazon, PCLN is a massive company that stubbornly refuses to stop growing — and that analysts expect will grow by more than 15 percent annually in 2017 and 2018. Its all-in-one site for travel booking serves it well in a global economy that’s regaining growth momentum; both bookings and earnings per share grew by 23 percent in 2016.
1-year performance: 31 percent
YTD performance: 20 percent
Idexx Laboratories (IDXX)
Idexx Labs sells diagnostic instruments and services with applications in the veterinary, livestock and poultry, dairy and water testing industries. Its products can help do things like help diagnose kidney disease in cats earlier, improve farmers’ productivity with animal pregnancy tests, and address water-borne African diseases. After EPS grew by less than 3 percent in 2014, IDXX has been on a rampage of efficiency, and in 2016 EPS grew by nearly 20 percent. If current analyst estimates are right, EPS will grow by 40 percent over the next two years, from $2.44 last year to $3.42 in 2018.
1-year performance: 96 percent
YTD performance: 34 percent
Nvidia (NVDA)
The operating performance of chip-maker Nvidia was humming along when, in 2016, it suddenly exploded. A wildly successful release of its Pascal graphics cards caused gaming division revenue to soar, and automotive and data center sales followed. Revenue had grown by 7 percent the year before, but last year it jumped 38 percent. New long-term opportunities in the automotive and artificial intelligence markets came to light for investors, who bid shares up more than 200 percent in 2016. While the growth opportunities are real, 2017 hasn’t been quite as kind and it’s an open question when (and whether) the momentum will return.
1-year performance: 177 percent
YTD performance: -7 percent
National Beverage Corp. (FIZZ)
As consumers increasingly shun soda in favor of healthier drinks, the beverage industry is struggling to find growth. Not National Beverage, though, whose hottest brand, LaCroix Sparkling Water, is selling like crazy. A few years ago, FIZZ’s sales were going sideways. Last quarter, revenue grew by more than 20 percent from the previous year and profits more than doubled. Results, and speculation about a FIZZ acquisition or distribution deal with a company like Coca-Cola Co. (KO), have fueled this stock’s insane run. Easily the best of the growth stocks in the beverage industry, FIZZ looks like it’s one of the best on Wall Street, too.
1-year performance: 113 percent
YTD performance: 81 percent
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9 of the Market’s Best Growth Stocks originally appeared on usnews.com
