One could argue that investors are currently experiencing the golden age of growth investing. With so many exciting new companies to choose from and plenty of businesses delivering rapidly accelerating earnings or sales growth, market participants are almost spoiled for choice when it comes to finding intriguing new stocks to buy. While many of these companies come with premium price tags, the best names in growth have cutting-edge business models to back up their hefty valuations.
We continue to see new growth stock leaders emerging and market dips being bought up quickly, which are both great signs giving investors the confidence to add some new positions in September. There are quite a few stocks that stand out as potential buys at this time, but 3 names should be considered “must-own” stocks for growth investors in September.
Let’s take a deeper look at each one of them below.
Whenever you have multiple bullish catalysts working in a company’s favor, it can really pay off to take notice. That’s the case with Crowdstrike Holdings, which is a cybersecurity technology company offering cloud workload and endpoint security, threat intelligence, and cyberattack response services. This growth stock continues to benefit from high-profile cybersecurity compromises, with the most recent headline involving the U.S. State Department sustaining a cyber incident. These types of headlines directly highlight the importance of companies like Crowdstrike
, and it's hard to not be bullish on the cybersecurity industry going forward. It’s also important to note that as more companies move their businesses into the cloud, the demand for Crowdstrike’s software should increase in tandem.
Additionally, news broke this week that Crowdstrike stock is being added to the Nasdaq 100 Index which helped the stock rally over 8%. This is another catalyst that could send the stock to new highs in the coming weeks, as some studies show when a company is added to a popular index it can lead to increased investor demand and elevated stock valuations. Finally, the company will report its Q2 earnings on August 31st which could help the stock start September off on a positive note. Crowdstrike’s strong Q1 results included revenue growth of 70% year-over-year and customer growth of 82% to 11,420 as of the end of the quarter and could be a sign of good things to come in the upcoming Q2 report.
Another great growth stock to consider adding for September is Roblox
, which is an entertainment platform for kids that allows them to build, play, and explore games and digital environments in 3D. The company went public via direct listing back in March and had a strong rally earlier this summer, but has since cooled off and reminded investors that growth investing can be a volatile endeavor. What’s noteworthy now is that Roblox has reclaimed all of the major moving averages and rebounded strongly after the company reported a wider-than-expected Q2 net loss earlier in August, which indicates that buyers are stepping back in.
It’s easy to understand the potential of a company that combines social media and gaming so seamlessly, and there’s a lot to like about Roblox’s international expansion potential as 5G networks continue to roll out all over the world. It’s worth mentioning that Roblox delivered 127% revenue growth in Q2 to $454.1 billion and saw its average daily active users increase by 29% year-over-year to 43.2 million, so it wasn’t all bad news in the latest earnings release for the burgeoning entertainment company. It wouldn’t be surprising to see the stock make a run for the $100 mark again in September, so keep an eye on Roblox for proper entries on dips.
If you are interested in a growth stock that’s also a solid reopening play, look no further than Airbnb
. It’s a company changing the way that people travel thanks to its convenient platform that connects hosts and guests online or through mobile devices to book spaces and experiences. Airbnb stock has been a major underperformer in 2021 but recently ignited with a 9.97% move higher on heavy volume this week, which could be an indication of good things to come for the stock in September.
Consider how pent-up travel demand could boost this company’s revenue in a big way as more people get vaccinated and COVID cases decline. There’s also a lot to like about the company’s recent earnings release, which saw the company deliver revenue of $1.3 billion, up 300% year-over-year. Although the Delta variant remains a risk factor that could impact the travel industry in a negative way, there’s enough to like about this innovative growth stock’s business prospects and recent price action to warrant adding shares in September.
Before you consider Airbnb, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Airbnb wasn't on the list.
While Airbnb currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.
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