Not all stocks have performed well this year. Many companies, like Amazon (NASDAQ:AMZN) and Peloton (NASDAQ:PTON) that dominated in 2020 at the height of the pandemic are now seeing their shares trade sideways or decline. While stock indexes continue to bump up against all time highs, they have yet to push through their peaks and run substantially higher. The S&P 500 index is up 15% year-to-date while the technology heavy Nasdaq index has risen 10% since January. Yet there are some stocks to buy that remain in hyper-growth mode and have risen more than 50% so far in 2021. These companies have seen their share prices outperform the broader market and their peers. Whether it is because of strong earnings, innovative products, or both, some stocks have not slowed down even after they had an incredible run last year.
Here are four hyper-growth stocks for investors to buy for fast-growing gains.
- Restoration Hardware (NYSE:RH)
- L Brands (NYSE:LB)
- Invesco (NYSE:IVZ)
- Ford Motor Company (NYSE:F)
- Seagate Technology (NASDAQ:STX)
- Marathon Oil (NYSE:MRO)
- Simon Property Group (NYSE:SPG)
Hyper-Growth Stocks to Buy for Fast Gains: Restoration Hardware (RH)
The sock of high-end furniture retailer Restoration Hardware was doing well before the company’s latest quarterly financial results, up 47% year-to-date and up 179% in the past 52-weeks. But the share price really kicked into high gear after the Corte Madera, California-based company reported stellar first-quarter earnings and raised its forward guidance. RH stock jumped 17% in a single trading session on June 10th after the company announced first-quarter revenue of $861 million compared to $758 million expected by analysts, and earnings per share of $4.89 compared to $4.10 that had been anticipated.
Restoration Hardware also raised its forward guidance, saying it expects revenue to grow 37% in the second quarter and 30% for all of this year. While the company has performed great at home in the U.S. during the pandemic, it is now expanding internationally, opening its first store overseas in England in spring 2022. And, Restoration Hardware is also offering new services, including landscape architecture and interior design consulting. At $682.52, RH stock is not cheap. But many on Wall Street see the share price continuing to rise despite its incredible run.
Growth Stocks to Buy: L Brands (LB)
It’s hard to imagine any stock doing better this year than Restoration Hardware, but L Brands has accomplished that very feat. Year-to-date, LB stock is up an impressive 73% at its current price of $64.30 per share. In the past 52-weeks, the stock has risen an incredible 310%. The retailer of popular brands such as Victoria’s Secret and Bath & Body Works continues to perform incredibly well despite many store locations being closed or restricted due to the pandemic.
The stock has been lifted by continued strong earnings from the Columbus, Ohio-based company. On May 19, L Brands reported first quarter earnings that narrowly beat analyst expectations but were up substantially from a year earlier. The company reported revenue of $3.02 billion compared to $3.01 billion expected by analysts and earnings per share of $1.25 versus $1.21 that was expected. On a year-over-year basis, L Brands revenue was up 80% from$1.65 billion in the first quarter of 2020.
L Brands has attributed its success to stimulus checks, the easing of pandemic restrictions on its stores and customers paying full price for its merchandise. This autumn, L Brands will spin off the popular Victoria’s Secret brand into its own publicly traded company. L Brands also just named a new Chief Financial Officer for Bath & Body Works, Wendy Arlin.
Growth Stocks to Buy: Invesco (IVZ)
Banks and financial companies have had a good run this year on anticipation of increased consumer spending and higher interest rates. But among financial companies, few if any have galloped as far as Atlanta, Georgia-based Invesco. IVZ stock is up 66% year-to-date and has climbed 179% over the past 12-months. And the stock still remains affordable at its current price of $28.93 a share. The investment management firm now has branches in 20 countries and is still growing.
The company is succeeding by offering an increasingly varied number of investment products to clients, including popular exchange traded funds (ETFs). The company also offers ETFs and other investment products specific to the different countries in which it operates. The company’s QQQ ETF that tracks the technology heavy Nasdaq-100 remains extremely popular with $135 billion currently invested in the fund.
Growth Stocks to Buy: Ford Motor Co. (F)
Ford Motor Co.’s stock was depressed for a long time. Between 2018 and 2020, F stock slid from $10 to $4 a share, putting it into penny stock territory. Shareholders and analysts were frustrated as one management shake-up and product launch after another failed to reverse the share price’s downward spiral. But now, Ford’s stock is finally on an upswing. Year-to-date, the share price is up 70% at $14.98. Over the past year, the stock has climbed 131%. Shareholders who held on are finally being rewarded.
The turnaround comes as Ford seems to have finally found its footing with electric vehicles. The company is investing $30 billion in order to get 40% of the vehicles it produces to be fully electric by 2030. Ford Chief Executive Officer Jim Farley has said that electric vehicles represent the biggest growth opportunity for the company since the invention of the Model T. The company is also pushing into self-driving cars and its shift to focus on pick-up trucks and move away from less profitable sedans looks to finally be paying off.
Seagate Technology (STX)
At its current price per share of $94.70, STX stock is up 52% year-to-date and has increased 87% over the last year. Following such big gains, many investors are asking if it is too late to buy shares of the Silicon Valley-based company that specializes in data storage? The short answer is “no.” Seagate Technology is the world’s largest manufacturer of hard disk drives (HDD) used for computer storage. Many analysts criticize the company’s business model as being antiquated, noting that flash memory-based solid-state drives (SSDs) are the future as they are smaller, faster and more power-efficient than the HDD storage units made by Seagate.
However, Seagate Technology’s focus on HDDs has insulated the company from the global semiconductor shortage that has hurt its SSD-focused competitors. The flash memory chips used in SSDs are now in short supply, while Seagate’s business has not missed a beat. That fact, along with Seagate Technology’s focus on selling its products to price conscious customers has insulated the company and enabled it to continue doing brisk business. And Wall Street has taken notice, sending the stock higher this year. But this is not a unique trend. Over the past decade, STX stock has gained nearly 550%.
Marathon Oil (MRO)
With crude oil prices back above $70 a barrel, a lot of oil and gas stocks have done well this year. But none have risen as much as Houston, Texas-based Marathon Oil, which has seen its stock price rise 104% year-to-date and climb 103% in the last 52-weeks. And, at just $13.64 a share, MRO stock remains very affordable to the average investor. Growing demand for oil as we emerge from the global pandemic, rising prices, and increasing production among oil producing countries have helped to push Marathon Oil’s stock into the stratosphere.
Also giving the company a much needed boost has been its strong earnings results, debt repayment that has amounted to about $500 million this year and free cash flow of just over $450 million. The company is also increasing its daily production to nearly 400,000 barrels of oil, up from 345,000 barrels earlier this year. As the global economy takes off in the second half of this year, MRO stock is poised for more growth. Many analysts now see crude oil prices above $80 a barrel by year’s end, which would further boost Marathon Oil’s results.
Simon Property Group (SPG)
Shopping malls are reopening all over the U.S. and that is great news for Simon Property Group, the real estate investment trust that is the biggest owner of shopping malls in America with 203 properties and counting. The renewal of store leases and return of foot traffic in its shopping malls has helped to drive SPG stock up 54% year-to-date and up 73% in the past 12-months. Simon Property’s share price now sits at just under $132. And more growth is likely as the economic recovery takes off in the second of half of this year.
Further helping Simon Property Group’s business has been the company’s strategy of buying many of the retail stores that are tenants in its shopping centers. During the pandemic, Simon Property took controlling interests in popular retail brands such as Forever 21, Eddie Bauer and J.C. Penny, among others. Simon Property did this through a joint venture it has with brand management firm Authentic Brands called “SPARC Group.” So far the strategy is paying dividends. And while Simon Property’s earnings remain challenged, the company did manage to beat analysts’ expectations in its most recent quarter.
Disclosure: On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.