Do you think Amazon.com (NASDAQ:AMZN) is a growth machine like no other, one of the best stocks to buy? It’s a beast to be sure, with the most recently reported quarterly top line up a healthy 22% … a pace that’s pretty much been the norm for a while now. Profits are growing nicely as well, as its AWS (Amazon Web Services) division — the company’s fastest-growing segment — produces high-margin revenue.
Amazon.com certainly isn’t the only growth name worth owning, however. There are several other stocks that you should buy with even better sales growth, better earnings growth or both. It’s just a matter of going out there and finding them.
Just to help you move down that path a little faster, here’s a closer look at the best stocks to buy if you’re looking for a little more kick (or a little more value) than Amazon can offer.
Some are familiar, while some aren’t. But all of these stocks to buy merit consideration.
Biotech stocks are a tricky bunch to bother with, and Exelixis, Inc. (NASDAQ:EXEL) is no exception. It’s arguably worth the trouble, though.
Exelixis has been bearing revenue for several years, but it didn’t fan its revenue flames in earnest until the middle of 2016. That’s when its renal cell carcinoma (kidney cancer) drug Cabometyx was approved.
EXEL is not one of those stocks to buy for traders that can’t stomach volatility — shares tumbled more than 40% since the start of 2018.
Stocks to Buy for Breakneck Growth: Yelp (YELP)
Calling a spade a spade, online review and rating site/directory Yelp Inc (NYSE:YELP) hasn’t been a stock to buy since early 2014. That’s when it peaked, and even with a 170%-plus rally off of its early 2016 lows, YELP shares are still down roughly 50% from their peak price hit in 2014.
And yet, there it is. Yelp mustered a 30% improvement in last year’s top line and — oh yeah — swung to a profit three quarters ago. That profit has been widening ever since. Analysts are looking for similar growth going forward, projecting next year’s profit per share to ramp up from this year’s 8 cents to 37 cents.
Looks like the once-questionable premise is a viable business model after all.
Stocks to Buy for Breakneck Growth: Tableau Software (DATA)
Just for the record, Tableau Software Inc (NYSE:DATA) isn’t growing quite as quickly as Amazon.com is. DATA still is one of a handful of hot growth stocks to buy, however, because the pace of its bottom-line growth is leaving Amazon’s profit growth in the dust.
The name might ring a bell. Tableau Software has been rumored to be a buyout candidate off and on for some time now, with the most recent big suitor pegged as none other than Salesforce.com, Inc. (NYSE:CRM).
No such deal has been consummated yet, but it’s not tough to see why a potential buyer would be interested in the data-analytics outfit. The next five years look promising for DATA stock — earnings are expected to grow at an annual rate of 85.8%. You could do a lot worse.
Stocks to Buy for Breakneck Growth: Facebook (FB)
There’s no way to deny that Facebook Inc (NASDAQ:FB) will eventually hit a growth headwind as its total addressable market becomes increasingly saturated and the company runs out of effective ways to extract more and more revenue from each of its users. However, that day is plenty far down the road, as Facebook is still one of the best stocks to buy.
For the foreseeable future, you have to respect the organization’s growth trajectory. The raw numbers? Analysts expect FB to hit a sales trejectory of 33.7% quarter-over-quarter, and FB will continue to grow earnings at a double-digit clip for the long-term. This year, analysts are projecting earnings growth of 33.2% on revenue growth of 36.8%.
Bear in mind that Facebook has a knack for topping estimates more often than not. It is what it is.
Stocks to Buy for Breakneck Growth: JD.com (JD)
What better alternative to Amazon.com than one of the Chinese copycats of the popular e-commerce giant — JD.Com Inc (ADR) (NASDAQ:JD)? Yes, Alibaba Group Holding Ltd (NYSE:BABA) is the bigger and arguably better-established player on the landscape of China’s e-commerce industry, but it has become a bit unwieldy with its size.
JD.com is smaller, and therefore more nimble, and the company is using that to its advantage. Don’t worry about the lack of income or even the lack of clarity regarding its profitability. Like Amazon.com in its early days, JD is mostly just focused on spreading its footprint, which it’s doing quite well.
The top line is expected to grow at a 27.8% clip for the current quarter, and JD.com has been driving that kind of growth for quite some time now — with 115.4% growth in the bag for next year.
Stocks to Buy for Breakneck Growth: Ctrip.com (CTRP)
Not unlike the United States’ online travel agent market, China’s OTA space started out with many players, but has been whittled down to just a few, and just one dominant name that effectively controls the market. That’s Ctrip.Com International Ltd (ADR) (NASDAQ:CTRP), which has either acquired its competition or crushed it.
Either way, the company is taking advantage of its dominance. Its top line is expected to grow at a 16.1% clip for the current year and a 25.1% clip in 2019.
Better yet, the company’s management expects to see revenue growth of between 40% and 45% for the foreseeable future.
The reason CTRP has earned a spot on a list of the best stocks to buy for growth fans is now that the company has plenty of scale, it’s looking for its profit margins to rise to a range of 20% to 30%. And yet, nobody’s really looking.
Stocks to Buy for Breakneck Growth: Sinclair Broadcast Group (SBGI)
This list of top stocks to buy for big growth is packed with some recognizable heavy hitters. Sinclair Broadcast Group Inc (NASDAQ:SBGI) isn’t one of them. That doesn’t make the $14 billion company any less impressive, however, particularly in light of its long string of revenue and earnings growth.
Sinclair Broadcast Group does a little of everything in the world of television. Not only does it create some of its own content for syndication, it owns a handful of stations, and provides services to several others. Its most compelling feature is its ability to assimilate other media players, and when appropriate, leverage its properties into other mediums. For example, it’s the owner of the Tennis Channel, and soon will be the owner of tennis.com and Tennis Magazine.
The proof of the premise is in the numbers. Sinclair is expected to turn in growth of 76.7% this quarter, followed by 222.5% the following quarter. Analysts see 20% upside in the shares, too. The long-term looks a bit bumpy, so you may want to consider swing trading SBGI into that momentum.
Stocks to Buy for Breakneck Growth: Abiomed (ABMD)
Finally, put Abiomed, Inc. (NASDAQ:ABMD) on your list of hot growth stocks to buy sooner than later. Abiomed is self-described as a “leading provider of medical devices that provide circulatory support.” Its products enable the heart to rest by improving blood flow and/or performing the pumping of the heart.
The description doesn’t quite do the company justice, however. Its Impella is the world’s smallest heart pump, and as of last month, more than 50,000 of them had been implanted in the U.S. market.
Those who know the Abiomed story well, however, will know the Impella is nothing new. What’s new is a couple of approvals for the Impella 2.5 and Impella 5.0, for expanded use in the United States (as of December), and for use in Japan (as of September).
Even with just the approval in Japan, we saw a strong acceleration of revenue. Q4’s top line was up 33%, and it still has yet to reach full penetration with the previously approved uses and markets. The device was only given its first FDA green light in early 2015, which makes it an infant by biomedical device standards.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.