The global marketplace has been plagued with much volatility of late. The headwinds emerging from the pandemic combined with increasing inflation have made been major concerns among investors. For investors in growth stocks, higher interest rates and the potential for a debt ceiling crisis have added to these worries.
So what should you do?
Well, investors focused on companies with excellent long-term growth outlooks shouldn’t be afraid. There will always be great companies in every market. There’s a bull market somewhere, and the goal for long-term investors is to stick with great companies over a long period of time. As the saying goes, it’s not timing the market that matters, but rather time in the market.
That’s easier said than done, many times. Growth stocks, given their higher valuations, are prone to sharper selloffs and steeper rises. In a bull market such as the one we’re in now, that’s been a good thing.
However, the goal is to find growth stocks that can not only weather any uncertainty to come, but thrive in the decades to come.
Here are seven stocks I think have the ability to do just that. These are all companies with excellent track records of growth. However, each of these companies also has robust growth potential looking forward for at least the next decade.
Let’s dive into why investors ought to consider these seven stocks:
- Upstart (NASDAQ:UPST)
- Shopify (NYSE:SHOP)
- Snowflake (NYSE:SNOW)
- Tesla (NASDAQ:TSLA)
- Match (NASDAQ:MTCH)
- First Solar (NASDAQ:FSLR)
- Crocs (NASDAQ:CROX)
First on my list of incredible growth stocks is Upstart.
This company’s recent growth trajectory has been impressive. Indeed, some investors may argue that a significant portion of the company’s future growth potential is already priced in. After all, over the past two months alone, this is a stock that has seen its stock price more than double.
I concede that there’s certainly the potential this stock has gotten ahead of itself. Every great growth stock overshoots from time to time.
However, I also think this AI and cloud-based technology company has a lot going for it. The fintech platform allows for lenders to use more accurate data to assess a borrower’s risk. In other words, Upstart is shaking up the traditional credit scoring business, doing it better, faster and more efficiently. This is a win for those intrigued by disruption in the traditional banking and lending space.
I think Upstart represents an intriguing hyper-growth stock in this current environment. Accordingly, I view this stock as a potential 10x opportunity for growth investors right now.
The e-commerce sector has been among the most robust sectors of the economy over the past two years. For e-commerce platform provider Shopify, this has provided growth unlike many investors expected to see at the onset of the pandemic.
Accordingly, despite a small drop related to market pessimism in early 2020, shares of SHOP stock have absolutely soared, approximately tripling from pandemic lows a year-and-a-half ago.
Can this momentum continue? After all, the incredible near-triple-digit revenue growth Shopify has shown is likely to slow at some point.
While I think that’s true, the fact is that Shopify remains entrenched in a sector with strong secular tailwinds. E-commerce growth may slow, but it will likely remain robust for the long-term. Accordingly, I think investors looking for companies with strong catalysts over the next decade or two will want to keep Shopify on the watch list.
This is a stock that I think is worth holding through the volatility that’s on the horizon.
Snowflake is another high-growth stock that has recently seen some volatility. SNOW provides cloud infrastructure and cloud solutions to a range of businesses. As such, it remains a highly priced stock. Given the company’s valuation of approximately 95-times TTM sales, it’s one of the most expensive stocks in the market right now.
Again, like Shopify, I think this is a stock that’s worth holding through the potential volatility that may arise.
Well, for one, this happens to be a pick of long-term investor Warren Buffett. Any growth stock Mr. Buffett puts his stamp of approval on as a smart long-term holding ought to grab the attention of investors. Indeed, this is a company with a business model Buffett is not accustomed to investing in. However, he sees the long-term trajectory of various sectors better than most of us, and is accustomed to holding through volatility, so that says a lot in and of itself.
Snowflake’s revenue has been growing incredibly fast, leading to its rather high valuation. Triple-digit revenue growth this past quarter highlighted this for investors. I think those with a long-term investing mindset looking for companies that can grow into their valuations ought to consider Snowflake as a long-term pick, volatility be damned.
Yet another company with a valuation that remains incredibly high, Tesla is a stock that growth investors have done extremely well with. While I think this stock remains overvalued, I also acknowledge that there are strong secular tailwinds behind Tesla. Additionally, this company’s first-mover advantage may be viewed positively by those bullish on the tech aspect of this stock.
Those willing to reach for a bit more risk in their portfolios have done well by holding Tesla in recent years. This is a company that has been a 12-bagger for investors over the past 2 years alone.
Whether this momentum can continue indefinitely is unknown. However, those who have battled previous bouts of volatility with this stock have done well.
Tesla’s recent results show impressive bottom line growth. The company’s most recent quarterly results showed Tesla brought in $1.45 per share in earnings relative to analyst earnings-per-share estimates of 98 cents. If Tesla can continue this performance, anything’s possible.
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