Editor’s note: This story was previously published in February 2019. It has since been updated and republished.
Do you think Amazon.com (NASDAQ:AMZN) is a growth machine like no other and one of the best stocks to buy? You’re certainly not alone, but Amazon.com isn’t the only growth name worth owning.
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, 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 who can’t stomach volatility. Shares tumbled more than 30% since Feb. 2018 but have rebounded since early 2019.
Calling a spade a spade, online review and rating site/directory Yelp (NYSE:YELP) hasn’t been a stock to buy since early 2014. That’s when it peaked, and even with a 70%-plus rally off of its early 2016 lows, YELP shares are still down over 50% from their peak price hit in 2014.
And yet, there it is. Yelp mustered a 30% improvement last year and swung to a profit, but that profit has been waning ever since. It’s trading pretty much where it was in the middle of 2017, but that leaves plenty of room to pop.
Looks like the once-questionable premise is a viable business model after all.
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.
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, since DATA’s earnings are expected to grow quite rapidly. You could do a lot worse.
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, even with the occasional scandal to hold it back.
Bear in mind that Facebook has a knack for topping estimates more often than not. It is what it is.
What better alternative to Amazon.com than one of the Chinese copycats of the popular e-commerce giant JD.Com (NASDAQ:JD)? Yes, Alibaba (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.
After taking an absolute bath last year, JD stock slowly is making its way back, as the U.S.-China trade war calms, this stock could see the highs it experienced in 2018.
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 (NASDAQ:CTRP), which has either acquired its competition or crushed it.
Either way, the company is taking advantage of its dominance. Its top line was expected to grow at a 16.1% clip last year and a 25.1% clip this year before the trade war. Still, the company’s revenue is expected to grow 18% this year.
Sinclair Broadcast Group (SBGI)
This list of top stocks to buy for big growth is packed with some recognizable heavy hitters. Sinclair Broadcast Group (NASDAQ:SBGI) isn’t one of them. That doesn’t make the $3.9 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, Tennis.com and Tennis Magazine.
The long-term looks a bit bumpy, so you may want to consider swing trading SBGI as it recovers from last year’s tumble.
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.
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 last year. The news that the mortality rate for recipients jumped, hurt Abiomed, but the stock is trading at a highly respectable $281.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.