Growth stocks have been the best-performing stocks for many years. These are stocks with the potential for rapid growth, solid market position and a steadily expanding revenue. The companies may not be at the top today but can dominate the market. If you have a long-term investment horizon and are looking for stocks with strong upside potential, here are the hot growth stocks to buy this month.
Market volatility is temporary but growth stocks can hit new highs driven by their strong fundamentals and competitive edge. Yes, they do carry more risk than buying blue-chip stocks but they also have the potential to double or triple your money. I’ve identified three hot growth stocks worth betting on this month. These companies are in the growth phase and have seen impressive growth in the past few years. Let’s look at them.
Hot Growth Stocks No. 1: DraftKings (DKNG)
The sports wagering platform, DraftKings (NASDAQ:DKNG) has shown impressive growth over the past few years. With a market share of over 30% in the U.S., DraftKings is a strong growth stock that can impress investors. Driven by a massive addressable market, the company could become a cash flow machine in the near term.
One of the biggest reasons to bet on this stock is the expansion potential. As the online sports betting industry expands and states legalize it, DraftKings will continue to grow. With the company entering new markets, it has achieved high consumer growth and this has boosted the revenue. It currently operates in 26 states which means there is a chance of continued growth.
In the first quarter, the company reported a 53% year-over-year jump in revenue and management now expects to see revenue in the range of $4.8 billion to $5 billion for the year. In Q1, it also saw a 23% jump in the monthly unique players and a 25% jump in the average revenue per unique player.
Trading at $36, DKNG stock is up 9% year-to-date but much lower than the 52-week high of $49. I believe DKNG is one of the best stocks to buy below $50. It could be a winner in the long term and double your money.
Palantir Technologies(PLTR)
Tech stocks are all the rage this year and Palantir Technologies (NYSE:PLTR) is one of the leaders in the artificial intelligence (AI) race. A legacy business, Palantir developed its Artificial Intelligence Platform (AIP), which is helping it bag numerous commercial clients.
In the first quarter, Palantir saw a 69% jump in commercial clients and its remaining deal value soared 74% YOY. The company shows impressive revenue growth. Exchanging hands for $28, PLTR stock is up 72% year-to-date. It has gone from $16 in January to $28 today and there is no stopping its upward momentum.
One of the top reasons to buy the stock is its diversified business. The company used to focus on government contracts earlier but now has a diversified portfolio with some of the top companies across different industries. While government clients ensure a steady income, commercial clients have helped build a balanced client portfolio.
It made notable contracts in the government segment like the $178 million contract with the U.S. Army. I believe Palantir can double your money in the long term. It is a growth stock with massive upside potential and a solid runaway. While many think it is priced at a premium, I think it is priced for future growth.
Coinbase (COIN)
If you want to enjoy the upside in the cryptocurrency industry without buying crypto, consider investing in Coinbase Global (NASDAQ:COIN). It reported impressive first-quarter results with a revenue of $1.64 billion and EPS of $4.40, up over 300% YOY.
With Bitcoin (BTC-USD) and several other digital assets soaring higher, Coinbase is set to gain. It saw an impressive jump in the consumer transactions to $935 million. It also has a strong presence in the international market which contributed 17% to the total revenue in the quarter.
COIN stock has performed exceptionally well since the start of the year and I believe the momentum is nowhere close to stopping. Trading for $257, the stock is up 64% YTD and 160% in the past 12 months.
The skyrocketing crypto prices will help the stock soar and it could generate significant returns over the next five years. It has the right products for users, like Coinbase One for retail traders and Coinbase Prime for institutional investors.
Digital assets will continue to gain popularity and could become huge in the global market. There has been a dip in the crypto market in April and it could impact the company’s second-quarter results but if you look at the long-term picture, Coinbase is here to stay.
On the date of publication, Vandita Jadeja did not hold (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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
