Whether you’re a novice or a seasoned investor, having a list of potential investments can help you stay organized and keep your financial goals on track. has some exciting growth stocks in
Below are some promising examples from my current buying list and what it takes to hit the “buy” button on these stocks.
the usual suspect
First, I am always ready to add cash to the stocks I already own – should a great buy window open. netflix (NFLX 1.29%), Year (Year 0.34%), trade desk (TTD -1.12%)When duolingo (shortly 0.86%) To take advantage of really unfair price reductions.
As we speak, Netflix and Roku are transforming the entertainment industry. Trade Desk understands effective online marketing campaigns better than anyone. Duolingo wants to teach the world to speak different languages initially. Then move on to other areas such as history, mathematics, singing, and underwater basket weaving.
All of these companies are long-term growth stories, with financial success years or even decades ahead. From Duolingo’s 37% price drop to Roku’s 83% fire sale, it’s already trading at attractive discounts from its recent highs, but the market could make an even bigger mistake.
I am confident that these four companies have solid financial foundations and solid long-term business plans. What I’m primarily looking for here is another price cut based on nothing more than an overall market pullback from high octane growth stocks. The comedy of this error played out this year, but it could happen again in 2023 or 2024.
So when opportunities arise, I gladly jump on them.
looking for new blood
At the same time, I have to keep an eye out for great companies and promising stocks that are not yet in my portfolio. Right now, I’m staring at these tickers while my finger is right above the “buy” button.
Cloud-based collaboration and project management software maker Atlassian (team -0.77%) Has been on my radar for years with impressive top line growth on a minimal marketing budget where product quality can tell the whole story. Revenue quadrupled in 5 years and free cash The flow has tripled.
Atlassian will make me a buyer if in its next few quarterly reports the company proves it can sustain financial growth despite macroeconomic pressures. traditional guidance management calls into question its critical quality.
digital payment specialist block (SQ -0.13%) is also in the penalty box. With the appointment of former Twitter CEO and co-founder Jack Dorsey as chairman and CEO, the company has taken a sharp turn in the cryptocurrency market. For some investors, this shift in strategy makes Block a comfortable entry point into cryptocurrency investing, but I already have plenty of exposure to the blockchain business.
At the same time, no one can oppose the growth of Block’s burgeoning business, based on its popular Cash App and merchant-friendly Square platform.
We really need a simplified business model. This business model allows you to invest directly in your company’s payment solutions without worrying about the potential problems of cryptocurrencies.Remember, I will take advantage of the next crypto market rise by directly owning assets such as Bitcoin (Bitcoin 0.43%) When ethereum (ETH 0.79%)Otherwise, the stock is trading near multi-year lows and continues to fall in price. Might be so Convince me to take a chance on Block anyway.
Is AMD really immune to cryptocurrency risk?
semiconductor designer Advanced Micro Devices (AMD -0.08%) Price-to-sales ratios are often in the double digits and price-to-free cash flow ratios are often in the three digits. Indeed, AMD earns these high valuation ratios by producing excellent growth across the board. So these economic benefits are great.
I thought AMD was too dangerous even in my risk-tolerant blood for two reasons.
- Stock valuations demand absolute perfection, and AMD has never allowed any margin of error for its next product launch or manufacturing process update. The company has had too many setbacks in the past – certainly under different management.
- Additionally, the surge in high-end graphics cards seemed to go hand in hand with rising Ethereum prices. These cards were very effective at mining Ethereum tokens, and Ethereum’s move to proof-of-stake transactions ensured the end of that gravy train. At the same time, management has made every effort to keep his AMD performance out of the cryptocurrency market. It just couldn’t justify the extremely high ratings behind that ominous mix of risks.
That’s why AMD’s stock is cheap. CEO Lisa Soo has made up for many of his predecessor’s mistakes. Also, with the end of Ethereum mining, his warehouse was never filled with unsold graphics cards. The holiday season should provide all the evidence you need for or against my theory of game-changing crypto risk.We’ll take a closer look at AMD’s next earnings report in four weeks. If AMD’s sales prove to be strong during the holiday shopping season in Q4, we’ll take a bite.
Anders Bylund has positions at Bitcoin, Duolingo, Ethereum, Netflix, Roku, and Trade Desk. The Motley Fool has positions in and recommends Advanced Micro Devices, Atlassian, Bitcoin, Block, Ethereum, Netflix, Roku, and Trade Desk. The Motley Fool’s U.S. headquarters has a disclosure policy.