Growth investing is one of the two primary fundamental investment strategies for beginners and serious investors alike, with the other being value investing. Investors utilizing a growth investment strategy will usually make the bulk of their portfolio growth stocks. Furthermore, investing in growth stocks may not be a guaranteed method to succeed in trading, as with any investment. However, it is one of the most popular investment strategies available due to the increased potential of receiving high returns on your investment. If you’re looking to become a serious investor, you should have a basic understanding of growth stocks and some of the best to add to your portfolio, should you choose the growth stock investment strategy. So, today, we’ll explore growth stocks, what they are, and the best growth stocks available right now.
What is a growth stock?
Put simply, growth stocks are companies that increase their revenue and earnings faster than other companies in their industry. However, growth investing is much more than just picking stocks that are steadily increasing. Frequently, a growth company has created an innovative service or product that’s quickly gaining shares in existing markets, entering new markets, or even developing completely new markets. As a result, these businesses have the potential to grow faster for longer periods, garnering significant returns for shareholders. Of course, the quicker the company grows, the larger the return.
However, many growth stocks are usually more expensive than typical stocks and don’t pay dividends. These stocks tend not to pay dividends as the company usually reinvests their profits back into the company to keep that growth going. Nevertheless, despite their higher price and lack of dividends, growth stocks can provide incredible returns if you develop a strategy that works for you.
Liberty Broadband (LBRDA) is one of the fastest-growing stocks.
Liberty Broadband is a company that operates in the media industry. Their segments include GCI Holdings, Skyhook, and Charter. GCI Holdings provides a variety of wireless, data, video, voice, and other services to residential, commercial, and government sectors. Skyhook provides a location determination service called Precision Location Solution. Charter is a cable service provider in the United States. This company has seen a 253.44 percent increase in its three-year revenue compound annual growth rate (CAGR), making them the first on our list of the top growth stocks.
Sea Ltd. (SE) is an up-and-coming growth stock opportunity.
Sea Ltd. is an internet and mobile platform company that provides online gaming services. This company operates through three segments, including digital entertainment, e-commerce, digital financial services. Sea’s businesses include Garena, Shopee, and SeaMoney. Garena offers mobile and personal computer online game services and develops mobile games. In addition, they offer e-sports and provide other gaming services like live gameplay streaming, user chat, and online forums. Shopee is a mobile, social-focused marketplace that offers a shopping environment with integrated payment, logistics, and seller services. Finally, SeaMoney offers various payment services and loans to individuals and other companies. Sea Ltd. shows promise as a growth stock investment due to the 129.02 percent increase in its three-year revenue CAGR.
Carvana (CVNA) shows excellent growth potential with its innovative services.
Carvana Co. is a holding company and e-commerce platform that provides an innovative car-buying experience. The company’s platform allows consumers to research and find a vehicle, inspect it with 360-degree imaging, obtain financing and warranty coverage, buy the car, and have it delivered or pick it up themselves. The innovation comes in as consumers can handle the entire process from their desktop or mobile devices. Carvana saw an 87.03 percent increase in its three-year revenue CAGR, landing it in the next spot on our list.
Grow your investments with growth stocks.
Remember, not every investment strategy works for every investor. So, before you invest, ensure that growth stocks have a place in your portfolio to suit your financial goals and needs. LBRDA, SE, and CVNA are three stocks with excellent growth potential if you’re looking into this investment strategy.