Log in

8 Fast-Growing Stocks You Should Own Right Now in 2020

8 Fast-Growing Stocks You Should Own Right NowPosted on Monday, April 29th, 2019 by Chris Markoch

With earnings season upon us, investors will benefit from several stocks that will get a bump in the next few weeks. However, once the market digests those results, summer will be here. And that brings to mind the slogan, “Sell in May, and go away”.

Summer is a historically slow season for equity investors. Stock analysts and investors begin to exchange their trading floor for the beach. This is one reason why the market typically acts like a lazy river throughout the dog days of summer. However, some stocks will show the ability to deliver rapid growth even when the broader market is taking a vacation. And when they do, you better believe that more investors will pile into them, which can propel them to higher highs.

Here, in no particular order, are eight stocks that are among the fastest growing right now. These stocks don’t necessarily lead their industry or sector. And being on this list doesn’t mean they don’t face challenges. However, each of these companies has shown rapid growth recently and are projecting that growth to continue in the short term.

#1 - Autodesk (NASDAQ:ADSK)

Autodesk logo

Autodesk (NASDAQ: ADSK) - Our first stock is Autodesk. This stock is up an impressive 38% since the start of 2019. Software-as-a-Service (SaaS) is becoming a vital part of the new economy. In late December, ADSK completed an acquisition of PlanGrid, a construction productivity software provider. This has helped propel the stock as investors and analysts recognize how PlanGrid will complement Autodesk’s construction portfolio in helping real estate owners and contractors manage the bid process in the preconstruction phase. Autodesk is also showing a strong ability to add new subscribers to their architectural and engineering software that includes a large collection of 3D modeling and computer-aided drafting (CAD) platforms. And the company is also doing a good job of converting current customers to move from a maintenance plan to a subscription plan. All this means that revenue is surging and investors are noticing. Autodesk had a strong fourth quarter of 2018 that was largely shrugged off by investors (the stock actually went down 11% in December). However, since the beginning of the year, the stock has been surging forward, and with revenue and GAAP earnings per share (EPS) projected to increase 27% year-over-year by the middle of 2019, the gains of the past six months look to be anything but a fluke.

About Autodesk
Autodesk, Inc. operates as a design software and services company worldwide. The company offers AutoCAD, a professional design, drafting, detailing, and visualization software; AutoCAD Civil 3D, a surveying, design, analysis, and documentation solution for civil engineering, including land development, transportation, and environmental projects; AutoCAD LT, a professional drafting and detailing software; BIM 360, a construction management cloud-based software; computer-aided manufacturing (CAM) software for computer numeric control machining, inspection, and modelling for manufacturing; Fusion 360, a 3D CAD, CAM, and computer-aided engineering tool; and Industry Collections software products for professionals in architecture, engineering and construction, product design and manufacturing, and media and entertainment industries. It also provides Inventor tools for 3D mechanical design, simulation, analysis, tooling, visualization, and documentation; Maya and 3ds Max software products that offer 3D modeling, animation, effects, rendering, and compositing solutions; and PlanGrid, a cloud-based field collaboration software, which provides general contractors, subcontractors, owners, and architects access to construction information in real-time. In addition, the company offers Revit software for building information modeling; and Shotgun, a cloud-based software for review and production tracking in the media and entertainment industry. Autodesk, Inc. sells its products and services to customers directly, as well as through distributors and resellers. The company was founded in 1982 and is headquartered in San Rafael, California.

Current Price: $200.03
Consensus Rating: Hold
Ratings Breakdown: 12 Buy Ratings, 6 Hold Ratings, 3 Sell Ratings.
Consensus Price Target: $191.29 (-4.4% Upside)

#2 - Netflix (NASDAQ:NFLX)

Netflix logo

Netflix (NASDAQ: NFLX) - Another stock that is off to a fast start in 2019 is Netflix. So far in 2019, the stock has surged 38% after falling victim to the correction that befell the broader market in December 2018. The question that investors seem to be shrugging off is the effect that Walt Disney’s new streaming service will have on the streaming giant’s subscriber base. Recent surveys project up to 14% of Netflix subscribers will drop their service in favor of Disney. On the other hand, 20% of current subscribers anticipate they will subscribe to both services. Perhaps more significantly, Netflix showed strong subscriber growth in the first quarter of 2019. This is important because Netflix recently increased the price of their service so adding subscribers at a time when they are raising prices is a strong revenue story. A larger question that investors continue to monitor is whether the company’s original content can help offset the content they will be losing from Disney. Programming such as “House of Cards” put Netflix on the map. In 2019, the company is expected to launch new seasons of some of its most popular series including “Stranger Things”, “Orange is the New Black”, “The Crown”, and “Money Heist”.

About Netflix
Netflix, Inc. provides Internet entertainment services. The company operates in three segments: Domestic streaming, International streaming, and Domestic DVD. It offers TV series, documentaries, and feature films across various genres and languages. The company provides members the ability to receive streaming content through a host of Internet-connected screens, including TVs, digital video players, television set-top boxes, and mobile devices. It also provides DVDs-by-mail membership services. The company has approximately 139 million paid members in 190 countries. Netflix, Inc. was founded in 1997 and is headquartered in Los Gatos, California.

Current Price: $348.52
Consensus Rating: Buy
Ratings Breakdown: 25 Buy Ratings, 10 Hold Ratings, 4 Sell Ratings.
Consensus Price Target: $380.66 (9.2% Upside)

#3 - Etsy (NASDAQ:ETSY)

Etsy logo

Etsy (NASDAQ: ETSY) - The numbers don’t lie. Etsy’s stock is up over 40% in 2019. Etsy was a stock that was stuck in neutral for many years. Some of that may have been due to the expectation that Etsy would fall victim to the Amazon effect, particularly as Amazon introduced its Handmade product. However, that threat has never materialized. In 2018, investors and analysts took notice, and the stock started its ascent. But is the stock a one-year wonder? The fundamentals would suggest not at all. One reason for this can be found in a healthy balance sheet that shows the company generating more than enough incoming cash to cover the interest on its $282 million debt load. It also appears that the market may be catching up to a stock that has been undervalued. Over the past five years, ETSY has reported positive year-over-year earnings growth. And that story becomes even stronger when you compare their average annual growth rate of 57% to the industry average of 23%. The company has also delivered a 19% return on equity (ROE) which also comes in above the industry average of 12%.

About Etsy
Etsy, Inc. operates Etsy.com, a commerce platform to make, sell, and buy goods online and offline primarily in the United States, United Kingdom, Canada, Australia, France, and Germany. It provides various seller services and tools that are designed to help entrepreneurs for starting, managing, and scaling their businesses. The company offers approximately 50 million items across approximately 50 retail categories to buyers. It also provides various seller services, including Etsy payments, a payment processing service; promoted listings, an on-site advertising service that allows sellers to pay for prominent placement of their listings in search results; shipping labels, which allows sellers in the United States and Canada to purchase discounted shipping labels; and pattern, a service that allows sellers to build custom Websites, as well as offers seller tools and education resources to manage the administrative side of their businesses. Etsy, Inc. was founded in 2005 and is headquartered in Brooklyn, New York.

Current Price: $49.83
Consensus Rating: Buy
Ratings Breakdown: 13 Buy Ratings, 3 Hold Ratings, 1 Sell Ratings.
Consensus Price Target: $66.52 (33.5% Upside)

#4 - Facebook (NASDAQ:FB)

Facebook logo

Facebook (NASDAQ: FB) - If you’re a fan of trading on the news, Facebook is a confusing stock. It was recently announced that the social media giant was facing a fine of up to $5 billion from the Federal Trade Commission (FTC). That would seem to be yet another reason to stay away from a stock that has faced some serious headwinds regarding privacy concerns, disappointing earnings reports, the outrage over the platform being used as a medium to “broadcast” the tragic New Zealand shootings, and the beginnings of what is being described as social media fatigue. Those problems, to differing degrees, still exist. However, if you’re a fan of trading on the news, it’s also tough to ignore Facebook’s exceptional first quarter results which have helped push their stock up 43% YTD. In that report, Facebook was showing that they still had a strong user base and that user base is proving to be very strong outside of North America. But the bottom line is that advertisers don’t have other viable alternatives to Facebook, which means the company will maintain their revenue stream for the foreseeable future.

About Facebook
Facebook, Inc. provides various products to connect and share through mobile devices, personal computers, and other surfaces worldwide. The company's products include Facebook that enables people to connect, share, discover, and communicate with each other on mobile devices and personal computers; Instagram, a community for sharing photos, videos, and messages; Messenger, a messaging application for people to connect with friends, family, groups, and businesses across platforms and devices; and WhatsApp, a messaging application for use by people and businesses to communicate in a private way. It also provides Oculus, a hardware, software, and developer ecosystem, which allows people to come together and connect with each other through its Oculus virtual reality products. As of December 31, 2018, it had approximately 1.52 billion daily active users. The company was founded in 2004 and is headquartered in Menlo Park, California.

Current Price: $217.79
Consensus Rating: Buy
Ratings Breakdown: 47 Buy Ratings, 1 Hold Ratings, 1 Sell Ratings.
Consensus Price Target: $241.58 (10.9% Upside)

#5 - JD.Com (NASDAQ:JD)

JD.Com logo

JD.Com (NASDAQ: JD) - Another stock that is up nearly 40% in 2019 is JD.Com, an e-commerce competitor to Amazon.com. Operating out of China, JD.Com is the “little brother” to Alibaba. But that may be where it’s advantage lies. Investing in JD.Com will require investors to be comfortable with the company’s lack of income and uncertain profitability forecast. However, the first step for JD.Com is to expand their footprint, which they seem to be doing. Plus, although some indicators suggest China’s economy is slowing, a productive resolution to the ongoing trade talks between the U.S. and China would bode well for the economy of both countries. E-commerce growth in China is expected to grow from $470 billion in 2018 to $839.54 billion by 2021. A concern going forward is the controversy surrounding their CEO Richard Liu. Although an accusation of rape was dropped, the accuser has since filed a lawsuit against Liu, but the CEO is still facing a social media backlash that is putting the company in the news for the wrong reasons. In the long term, Alibaba may be the better stock, but for the rest of 2019, JD.Com’s stock appears it has room to run.

About JD.Com
JD.com, Inc., through its subsidiaries, operates as an e-commerce company and retail infrastructure service provider in the People's Republic of China. It operates in two segments, JD Retail and New Businesses. The company offers home appliances; mobile handsets and other digital products; desktop, laptop, and other computers, as well as printers and other office equipment; furniture and household goods; apparel; cosmetics, personal care items, and pet products; women's shoes, bags, jewelry, and luxury goods; men's shoes, sports gears, and fitness equipment; automobiles and accessories; maternal and childcare products, toys, and musical instruments; and food, beverage, and fresh produce. It also provides gifts, flowers, and plants; nutritional supplements; books, e-books, music, movie, and other media products; and virtual goods, such as online travel agency, attraction tickets, and prepaid phone and game cards, as well as industrial products. In addition, the company offers an online marketplace for third-party sellers to sell products to customers; and transaction processing and billing, value-added fulfillment, and other services. Further, it provides online marketing services for suppliers, merchants, and other partners; supply chain and logistics services for various industries; and consumer financing services to individual customers. Additionally, the company offers online-to-offline solutions, as well as online and in-person payment options and customer services. JD.com, Inc. offers its products through its Website jd.com and mobile apps, as well as directly to customers. As of December 31, 2018, JD.com, Inc. operated fulfillment centers in 7 cities; and 550 warehouses in 81cities covering various counties and districts. The company has strategic cooperation agreement with Tencent Holdings Limited. JD.com, Inc. is headquartered in Beijing, China.

Current Price: $38.91
Consensus Rating: Buy
Ratings Breakdown: 16 Buy Ratings, 6 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $36.67 (-5.8% Upside)

#6 - Ctrip.com (NASDAQ:CTRP)

Ctrip.Com International logo

Ctrip.com (NASDAQ: CTRP) - Another Chinese company that is absolutely crushing it in 2019 is the online travel agent Ctrip.com. The company’s stock is up 53% in 2019. In fact, after many companies entered the online travel space, CTRP appears to be the sole survivor. Top line revenue was expected to grow 16.1% last year and, despite the ongoing trade war, is expected to grow 18% this year. In March, the company reported fourth-quarter numbers that beat both topline and bottom line estimates. One of the primary drivers for this growth is the desire among Chinese consumers to travel internationally, which may correspond to increasing urbanization inside the country. The number of international trips booked by Chinese residents increased by 15% year over year in the first half of 2018.  What’s particularly encouraging is that growth is coming from the 5% of the population that owns a passport, which presents a very real long-term growth opportunity.

About Ctrip.Com International
Ctrip.com International, Ltd. operates as a travel service provider for accommodation reservation, transportation ticketing, packaged tours, and corporate travel management in China. The company acts as an agent for hotel-related transactions and selling air tickets; and provides other related services, including sale of aviation and train insurance, air-ticket delivery services, online check-in, and other value-added services, such as online seat selection, express security check, and real-time flight status. It also provides independent leisure travelers bundled packaged-tour products comprising group tours, semi-group tours, and customized and packaged tours with various transportation arrangements, such as flights, cruises, buses, and car rental services. In addition, the company offers integrated transportation and accommodation services; various value-added services, such as transportation at destinations and tickets, activities, insurance, visa services, and tour guides; and supplier management and customer relationship management services. Further, it provides its corporate clients with travel data collection and analysis, industry benchmark, cost saving analysis, and travel management solutions; and Corporate Travel Management System, an online platform that integrates information maintenance, online booking and authorization, online enquiry, and travel report system. Additionally, the company offers online advertising services. It operates primarily under the Ctrip, Qunar, Trip.com, and Skyscanner brand names. Ctrip.com International, Ltd. was founded in 1999 and is headquartered in Shanghai, the People's Republic of China.

Current Price: $31.45
Consensus Rating: Buy
Ratings Breakdown: 15 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $42.81 (36.1% Upside)

#7 - Weibo Corp (NASDAQ:WB)

Weibo logo

Weibo Corp (NASDAQ: WB) - Looking to China once again, we present Weibo Corp. Currently, Weibo is up about 18% in 2019, but it has been up as high as 25%. The company has been defined as a hybrid of Twitter and Facebook, but what the company does is not as important as the juicy results it is posting. In the third quarter of 2018, the company posted a 48% year-over-year increase in topline revenue. That impressive gain came with a 19% growth in their user base. These figures highlighted an inconsistency with Weibo. Like other Chinese companies, the stock was battered in 2018 on fears of a slowing Chinese economy and the ongoing tariff dispute with the United States. However, even while their stock was dropping by 43.5%, the company was increasing its year-over-year net income by 54%. Something had to give. In this case, it was investor skepticism. As fourth-quarter results rolled in, Weibo continued to deliver, and investors are now noticing and rewarding the stock in a big way. After breaking through some key technical levels, the stock is showing strong growth that shows no sign of slowing down.

About Weibo
Weibo Corporation, through its subsidiaries, operates as a social media platform for people to create, distribute, and discover Chinese-language content. It operates in two segments, Advertising and Marketing Services, and Value-Added Services. The company offers self-expression products that enable its users to express themselves on its platform; social products to promote social interaction between users on its platform; and discovery products to help users discover content on its platform. It also provides advertising and marketing solutions, such as social display advertisements; and promoted feeds, accounts, and trends and search products that enable its customers to promote their brands and conduct marketing activities. In addition, the company offers copyright content, such as TV channels, online video Websites, and operators with copyright content through traffic resource exchange and content traffic sharing; MCNs and other self-media to manage and provide services to content creators on Weibo, such as MCNs, unions, and e-commerce partners; other app developers an application platform, which allows users to log into third-party applications; and Weibo Wallet product that enables platform partners to conduct interest generation activities on Weibo. The company was formerly known as T.CN Corporation and changed its name to Weibo Corporation in 2012. The company was founded in 2009 and is headquartered in Beijing, China. Weibo Corporation is a subsidiary of Sina Corporation.

Current Price: $43.46
Consensus Rating: Hold
Ratings Breakdown: 4 Buy Ratings, 6 Hold Ratings, 1 Sell Ratings.
Consensus Price Target: $53.65 (23.4% Upside)

#8 - Godaddy, Inc. (NYSE:GDDY)

Godaddy logo

Godaddy, Inc. (NYSE: GDDY) - Godaddy is all grown up. The website hosting and registration service made its debut on the market with an ad campaign that tested the axiom that “sex sells”. The irreverent approach, however, seemed to serve its purpose and the new ads show a much more mature, socially conscious, company helping customers build their businesses. If you’re going to invest in a commodity industry, you should look for the leader. And that’s what Godaddy provides, a leadership position which is giving the company an economy of scale. In fact, 47% of its 2018 revenue came from its domain registry business. The company is also projecting growth from its 2018 acquisition of Main Street Hub. The bottom line shows double-digit revenue growth both in 2019 (12.3%) and 2020 (11.2%). Is this exceptional growth? No. However, after a long history of losing money, the company is starting to show that it is not only profitable, it can beat expectations. That’s a winning formula for investors of any age.

About Godaddy
GoDaddy Inc. designs and develops cloud-based technology products for small businesses, Web design professionals, and individuals in the United States and internationally. The company provides domain name registration product that enables to engage customers at the initial stage of establishing a digital identity; and hosting products, including shared Website hosting, Website hosting on virtual private servers and virtual dedicated servers, managed hosting, and security. It also offers presence products, such as GoCentral, an online tool that enables customers to build Websites and online stores; a range of marketing tools designed to help businesses acquire and engage customers, as well as search engine optimization that helps customers get their Websites found on search sites; and social media management services. In addition, the company offers business application products, such as Microsoft Office 365, email accounts, email marketing, and telephony services. GoDaddy Inc. was incorporated in 2014 and is headquartered in Scottsdale, Arizona.

Current Price: $70.36
Consensus Rating: Buy
Ratings Breakdown: 7 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $88.00 (25.1% Upside)

Summer can be a tricky season for investors who are looking to find high-growth stocks in a market that is showing low volume and direction.

However, every market presents opportunities and that is true this year as well. The stocks in this presentation have shown rapid growth since the beginning of 2019 and, while some of them face larger long-term issues than others, they all look to be good investments for investors who are willing to trade a little volatility for the chance at a strong return, particularly during the summer months, which is a historically bad time to be in equities.

Many of these stocks prove that when it comes to investing, consistency is key. Some of these companies were unfairly punished by the correction that hit the market earlier. However, once the fourth quarter earnings reports were posted, investors changed their tune. And now with many of these companies getting ready to report their first-quarter earnings, these stocks are poised for further growth.

Enter your email address below to receive a concise daily summary of analysts' upgrades, downgrades and new coverage with MarketBeat.com's FREE daily email newsletter.

Yahoo Gemini Pixel