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)
Top Growth Stocks: Upstart (UPST)
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.
Top Growth Stocks: Snowflake (SNOW)
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.
Top Growth Stocks: Match (MTCH)
Given the potential growth of the dating space coming out of this pandemic, Match is an intriguing pick right now. Indeed, Texas-based Match is one of the top online dating companies in the market. This is the parent company of popular dating apps Tinder, Meetic, OkCupid, Match.com and others.
This is one of the spaces I view as high-growth over the long-term. It’s also a space that got a boost by the pandemic. As far as companies with secular tailwinds go, I think Match has among the strongest potential to continue these results over the medium-term, as folks get more comfortable with meeting up in person.
The company’s recent quarterly results highlighted this strength. The company brought in $114 million of net earnings on $708 million in revenue. Those are some decent margins. Additionally, cash and cash equivalents reached $236 million.
In other words, this is a company with a great balance sheet, high growth rates and stable growth outlook. Long-term investors seeking a growth stock that can handle the volatility to come may want to consider MTCH stock right now.
First Solar (FSLR)
Moving away from high-flying tech stocks for a second, First Solar is an intriguing stock for growth investors to look at. This clean energy play is one that has nearly tripled from its pandemic lows. However, it’s also one that has been a bit more volatile than its peers on this list.
Well, clean energy is a space that depends on many macroeconomic factors. Government investment in this space, demand for clean energy from businesses and overall market sentiment drive the it higher or lower over periods of time. First Solar isn’t immune to these moves.
However, as the company has shown in recent years, holding onto this stock through the volatility has proven to be a smart move.
First Solar has quite a significant catalyst underpinning its shares. Solar power production currently accounts for approximately 3% of the total power generated in the U.S. However, the U.S. government aims to increase this percentage to around 40% by 2035. The amount of investment the government is willing to put into solar development is bullish for leading companies like First Solar.
I think this company’s current market share and its positioning in the energy space makes it a top energy play to consider. First Solar is expanding its generation capacity, wrapping up its Ohio facility in 2023. This facility is expected to provide 3.3GW of power by 2024.
Top Growth Stocks: Crocs (CROX)
For those seeking a cheeky growth play, Crocs certainly has been an intriguing stock to watch.
This (definitely) niche footwear maker has been on an absolute tear in recent years. In fact, over the past five years, CROX stock has been a 20-bagger for investors. Those are some Tesla-like returns for investors.
Who would have seen that coming?
Fundamentals have driven the company’s stock price growth. Trading at only 14-times earnings, Crocs has grown to this size on the back of some rather impressive results in recent years.
This company’s most recent quarterly results saw revenue grow at a 93% clip. What’s more interesting — adjusted net income grew by a whopping 112% to $144 million.
In other words, this company is growing its profits faster than its top line. It’s hard to find such a growth stock trading at such a reasonable valuation.
Maybe investors think this stock is just a fad. However, looking at CROX stock, it’s definitely an option for investors looking for growth that can withstand volatility moving forward.
On the date of publication, Chris MacDonald 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.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.