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MSFT   308.74 (-0.14%)
FB   324.39 (-0.07%)
GOOGL   2,747.57 (-0.14%)
TSLA   994.84 (+9.36%)
AMZN   3,324.65 (-0.33%)
NVDA   232.52 (+2.31%)
BABA   175.92 (-1.00%)
NIO   41.07 (+5.63%)
CGC   13.30 (-0.60%)
GE   105.67 (+1.56%)
AMD   122.69 (+2.40%)
MU   69.25 (+2.58%)
T   25.45 (-0.16%)
F   15.91 (-2.27%)
ACB   7.13 (+0.85%)
DIS   171.93 (+1.48%)
PFE   42.94 (-0.51%)
BA   212.06 (-0.43%)
AMC   36.92 (+0.87%)
S&P 500   4,568.24 (+0.51%)
DOW   35,756.92 (+0.22%)
QQQ   377.78 (+0.98%)
AAPL   148.82 (+0.09%)
MSFT   308.74 (-0.14%)
FB   324.39 (-0.07%)
GOOGL   2,747.57 (-0.14%)
TSLA   994.84 (+9.36%)
AMZN   3,324.65 (-0.33%)
NVDA   232.52 (+2.31%)
BABA   175.92 (-1.00%)
NIO   41.07 (+5.63%)
CGC   13.30 (-0.60%)
GE   105.67 (+1.56%)
AMD   122.69 (+2.40%)
MU   69.25 (+2.58%)
T   25.45 (-0.16%)
F   15.91 (-2.27%)
ACB   7.13 (+0.85%)
DIS   171.93 (+1.48%)
PFE   42.94 (-0.51%)
BA   212.06 (-0.43%)
AMC   36.92 (+0.87%)
S&P 500   4,568.24 (+0.51%)
DOW   35,756.92 (+0.22%)
QQQ   377.78 (+0.98%)
AAPL   148.82 (+0.09%)
MSFT   308.74 (-0.14%)
FB   324.39 (-0.07%)
GOOGL   2,747.57 (-0.14%)
TSLA   994.84 (+9.36%)
AMZN   3,324.65 (-0.33%)
NVDA   232.52 (+2.31%)
BABA   175.92 (-1.00%)
NIO   41.07 (+5.63%)
CGC   13.30 (-0.60%)
GE   105.67 (+1.56%)
AMD   122.69 (+2.40%)
MU   69.25 (+2.58%)
T   25.45 (-0.16%)
F   15.91 (-2.27%)
ACB   7.13 (+0.85%)
DIS   171.93 (+1.48%)
PFE   42.94 (-0.51%)
BA   212.06 (-0.43%)
AMC   36.92 (+0.87%)

7 Growth Stocks to Buy as the Market Slumps

Posted on Monday, October 4th, 2021 by MarketBeat Staff
7 Growth Stocks to Buy as the Market SlumpsAt times of volatility, it can be hard for even experienced investors to stay the course. Yet over time, stocks have consistently increased in value. And growth stocks tend to be among the ones that show the largest gains. Growth stocks are companies that analysts believe will grow at a rate that is significantly above the market average.

These stocks are also characterized by companies that invest a significant portion of its profits back into its business in order to accelerate growth. This is opposed to value stocks that make returning a portion of its profits to shareholders a priority. This typically occurs in the form of a dividend. One misconception of growth stocks is that they have a high correlation with the market. It’s true that when the market is moving higher, these stocks tend to outperform. However, when the market is moving lower, these stocks sometimes perform better.

So why should you consider buying growth stocks now? The reason is this. In many cases, the company’s underlying fundamentals are still positive, but the sentiment has changed. And that means it’s a good time to buy these stocks on sale.

#1 - Chipotle Mexican Grill (NYSE:CMG)

Chipotle Mexican Grill logo

I’ve been impressed with how strong of a comeback story exists with Chipotle Mexican Grill (NYSE: CMG). The company has fought its way back from multiple events that would have derailed many companies. In the process, the company has re-established itself as the main choice for fast-casual dining. The company’s focus on food quality will continue in the fall of 2021 with a limited-time Mexican-inspired smoked brisket menu item.

CMG stock has dropped 4% in the last month. Yet even though the stock is still trading near the high-end of its 52-week range, analysts expect a much higher upside. The MarketBeat screener ranks Chipotle ranks as one of the top 10 most upgraded stocks by analysts in the last 90 days. One reason for analyst optimism is the company’s consistent earnings-per-share growth. In the first three quarters of 2021, the company already has outpaced its earnings for all of 2019 which will be the tougher comparison.

About Chipotle Mexican Grill
Chipotle Mexican Grill, Inc engages in the development and operation of classically-cooked, real food with wholesome ingredients without artificial colors, flavors or preservatives. It offers focused menu of burritos, tacos, burrito bowls, and salads prepared using classic cooking methods. The company was founded by Steve Ells in 1993 and is headquartered in Newport Beach, CA.

Current Price: $1,766.31
Consensus Rating: Buy
Ratings Breakdown: 19 Buy Ratings, 8 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $1,992.48 (12.8% Upside)


#2 - Ross Stores (NASDAQ:ROST)

Ross Stores logo

It might seem like a strange time to be investing in retail stocks. Brick-and-mortar sales are still likely to be suppressed due to concerns over mutations in the novel coronavirus. That was the case for Ross Stores (NASDAQ: ROST) which saw store traffic decrease due to concerns over the Delta variant. And this is a sector that will be particularly impacted by supply chain concerns. Many industry experts are saying this holiday season may be unlike anything consumers are used to if they haven’t bought early.

With that said, ROST stock is trading at the low end of its 52-week range. And even though the overall outlook of analysts is mixed since the company’s last earnings report, the overall expectation is for ROST stock price to grow 26% in the next 12 months. That’s a good reason for buy-and-hold investors to consider the stock. Another good reason is that Ross Stores is that company has reinstated its dividend that it suspended at the onset of the pandemic. Prior to the suspension, Ross Stores had joined the ranks of the dividend aristocrats. Investors should note that the dividend was reinstated at its pre-pandemic level.

About Ross Stores
Ross Stores, Inc engages in the operation of off-price retail apparel and home accessories stores. Its products include branded and designer apparel, accessories, footwear, and home fashions through the Dress for Less and dd's DISCOUNTS brands. The company was founded by Stuart G. Moldaw in 1957 and is headquartered in Dublin, CA.

Current Price: $113.01
Consensus Rating: Buy
Ratings Breakdown: 13 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $135.64 (20.0% Upside)


#3 - Freeport-McMoRan (NYSE:FCX)

Freeport-McMoRan logo

Market timing is always a risky proposition. Investors that were bidding up electric vehicle (EV) stocks found that out the hard way. However, that doesn’t mean the longer-term effort toward decarbonizing won’t stay in effect. It’s becoming good business. And this is particularly true for companies involved in mining metals such as Freeport-McMoRan (NYSE: FCX).

The metal of particular interest in Freeport-McMoRan’s case is copper, which is expected to see robust demand. Copper usage has already increased significantly as industrial and construction activity has picked up as the economy reopens. If Congress can manage to pass an infrastructure bill, Freeport-McMoRan would stand to be one of the largest beneficiaries.

An analyst from Bank of America (NYSE: BAC) recently initiated coverage on FCX stock and gave it a buy rating. The bullish outlook was based, in part, on a belief in the company’s ability to increase copper output by 34% through 2028. Although he refrained from issuing a price target, the consensus target is for FCX stock to grow by 17% in the next 12 months.

About Freeport-McMoRan
Freeport-McMoRan, Inc engages in the mining of copper, gold and molybdenum. It operates through the following segments: North America Copper Mines, South America Mining; Indonesia Mining, Molybdenum Mines, Rod and Refining, Atlantic Copper Smelting and Refining and Corporate, Other and Eliminations. The North America Copper Mines segment operates open-pit copper mines in Morenci, Bagdad, Safford, Sierrita and Miami in Arizona and Chino and Tyrone in New Mexico.Read More 

Current Price: $39.17
Consensus Rating: Buy
Ratings Breakdown: 11 Buy Ratings, 4 Hold Ratings, 2 Sell Ratings.
Consensus Price Target: $39.20 (0.1% Upside)


#4 - Valero Energy (NYSE:VLO)

Valero Energy logo

Buying shares of Freeport-McMoRan is a bet on the new economy. Investing in Valero Energy (NYSE: VLO) is a reminder that the more things change the more they stay the same. Oil prices have climbed this year as the economy reopens and the infrastructure for renewable energy remains a work in progress. With that in mind, investors should have an eye on quality names in the traditional energy sector. And Valero fits that description.

Over the last five years, investors have seen a little good and a little bad with VLO stock. Still, patient investors have been rewarded with a 32% gain in the company’s stock price. And they’ve collected an attractive dividend while they were at it. Valero has an impressive dividend yield (currently over 5.5%) and it has increased its dividend payout each of the last 11 years. The MarketBeat screener ranks Valero in the top 50 of dividend stocks. Analysts project a 16% gain in the company’s stock price from its $70.36 price as of this writing.

About Valero Energy
Valero Energy Corp. engages in the manufacture and marketing of transportation fuels and other petrochemical products. It operates through the following business segments: Refining, Ethanol and Renewable Diesel. The Refining segment comprises of refining operations, associated marketing activities, and logistics assets that support its refining operations.Read More 

Current Price: $82.60
Consensus Rating: Buy
Ratings Breakdown: 10 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $87.00 (5.3% Upside)


#5 - Builder’s FirstSource (NASDAQ:BLDR)

Builders FirstSource logo

The homebuilding sector has been one of the hottest sectors both during the pandemic and as the economy reopens. Demand for new homes is likely to continue as many Americans have committed to relocating. This trend should provide strong support for Builder’s FirstSource (NASDAQ: BLDR) stock which is already up 31% for the year. Builder’s FirstSource is a leading supplier of building products and integrated services to professional homebuilders.

BLDR stock is currently trading near its 52-week high as well as the consensus price target of the analyst community. However, since the company reported earnings in August, a number of analysts have boosted their price targets for the stock suggesting that there could be a significant upside ahead.

A catalyst for the stock may be the company’s shift toward prefabricated solutions for items like roof trusses that are drawing the attention of builders who are looking for ways to shorten the time of their build cycles while also helping to reduce the rising labor costs.

About Builders FirstSource
Builders FirstSource, Inc engages in the supply and manufacture of building materials, manufactured components and construction services to professional homebuilders, sub-contractors, remodelers and consumers. The firm operates through the following segments: Northeast, Southeast, South and West. Its products include factory-built roof and floor trusses, wall panels and stairs, vinyl windows, custom millwork and trim, as well as engineered wood.Read More 

Current Price: $59.77
Consensus Rating: Buy
Ratings Breakdown: 12 Buy Ratings, 0 Hold Ratings, 1 Sell Ratings.
Consensus Price Target: $57.38 (4.0% Downside)


#6 - Axon Enterprise (NASDAQ:AXON)

Axon Enterprise logo

Remember in the introduction that growth stocks are notable for their ability to outpace the market. That certainly describes Axon Enterprise (NASDAQ: AXON) which has seen its stock increase by 52% thus far in 2021. However, investors who were aware of and invested in AXON stock in January 2018 have been rewarded with a 565% gain.

The company is most known for its Taser product, which launched the category of non-lethal weapons technology. Axon is expanding its product offerings into areas such as body cameras and Evidence.com, a cloud-based digital evidence platform. And although the company is frequently associated with law enforcement agencies, it also does business in correctional departments, fire and EMS departments, and even the U.S. military.

As our nation saw in 2020, there will be an increasing need for the company’s solution in an attempt to address issues of social justice. And from that perspective, Axon Enterprise is delivering for its customers and its shareholders.

About Axon Enterprise
Axon Enterprise, Inc engages in the development, manufacturing, and sale of conducted electrical weapons for personal defense. It operates through the TASER Weapons and Software and Sensors segments. The TASER Weapons segment sells conducted electrical weapons, accessories, and other related products and services.Read More 

Current Price: $181.26
Consensus Rating: Buy
Ratings Breakdown: 5 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $204.50 (12.8% Upside)


#7 - Shopify (NYSE:SHOP)

Shopify logo

For many years, when investors combined the words e-commerce with growth stocks the answer was always Amazon (NASDAQ: AMZN). And the tech giant remains an investable stock for many reasons. However, at the moment, Shopify (NYSE: SHOP) is likely to be the better bet.

Investors are notoriously a “what have you done for me lately” bunch. To that end, SHOP stock is up 25% in 2021; Amazon is up just 3%. Let me reiterate, this isn’t to say AMZN isn’t a quality investment. However, if you’re a growth-minded investor, Shopify is looking like a better bet.

The key to the company’s recent success has been its ability to grab new clients. In fact, the company, which has largely been known for catering to small- and medium-sized businesses is now making inroads with larger businesses. And the company’s software now allows all their customers to provide in-store and curbside pickup that will be essential ingredients to any business as the economy reopens.

About Shopify
Shopify, Inc operates a cloud-based commerce platform designed for small and medium-sized businesses. Its software is used by merchants to run business across all sales channels, including web, tablet and mobile storefronts, social media storefronts, and brick-and-mortar and pop-up shops. The firm's platform provides merchants with a single view of business and customers and enables them to manage products and inventory, process orders and payments, build customer relationships and leverage analytics and reporting.Read More 

Current Price: $1,429.61
Consensus Rating: Buy
Ratings Breakdown: 19 Buy Ratings, 11 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $1,646.41 (15.2% Upside)

 

Growth stocks tend to be expensive by market standards. This may mean they are trading at a high price-to-earnings (P/E) ratio if the company is profitable. Or it could have a high price-to-sales (P/S) ratio if it is not yet profitable. By itself, this doesn’t mean you should stay away from the stock. If the company meets or exceeds its growth expectations, the stock is likely to climb much higher.

However, if the company fails to meet expectations, the stock may decline sharply. Investors can see this in the tech sector where many growth stocks will take a sharp move downward if earnings and/or revenue do not meet analysts’ expectations. Growth stocks should not be thought of as speculative investments. They have a place in virtually any investor’s portfolio. Risk-averse investors may choose to allocate less to growth stocks.

Alternately, they may opt to invest in growth stocks through an exchange-traded fund (ETF) that specializes in growth stocks. The fund’s prospectus will outline the fund’s investment objective and its historical performance in relation to the broader market.

7 Tech Stocks That Will Avoid Government Regulation

As if investing in the tech sector did not carry enough risk, there’s a new threat to the tech part of your portfolio. There is a growing sense that the United States Congress will seek to regulate some of the largest tech companies.

At this point, it looks like several of the FAANG stocks (Facebook, Amazon, Apple, Netflix, and Alphabet/Google) may be the initial targets. Some regulation, particularly regarding data security and privacy – not to mention censorship - would be welcome. But we all know it’s not likely to stop there.

What will more extreme regulation look like? If the most vocal members of Congress hold sway, some of these companies may get broken up or face utility-like regulation. From an investment standpoint, it just adds uncertainty.

The good news is that the tech sector encompasses many companies that are likely to avoid government regulation. With areas like cybersecurity, support for remote work, and mobile gaming to continue to pick up steam, there are other areas that can help boost your portfolio.

And in this special presentation, we’ll give you seven of our picks for tech stocks that will avoid government regulation.

View the "7 Tech Stocks That Will Avoid Government Regulation" Here.





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