I wrote a positive report about Nvidia (NVDA) in 2009 (see image below), and since then the shares are up over 17,347%. I believe Nvidia shares can still go dramatically higher from here (driven by momentum and investor exuberance about artificial intelligence, in particular), but based on valuation, there are other (newer and smaller) high-growth stocks that are also worth considering (such as the 40 included in the detailed data table in this report). After reviewing Nvidia’s business and current valuation, we highlight a couple names from the list that are also particularly attractive, and then conclude with our strong opinion on investing.
Top 10 Growth Stocks: Forget Mega Caps
It takes a special mindset (and a certain financial fortitude) to be a long-term growth investor. But if you can persevere through years of lumpy financial results, whipsawing volatility and the constant drumbeat of naysayers, you could end up getting in early on the next mega-cap growth stock (and enjoying all the powerful long-term gains that go along with it). In this report, we rank our top 10 “non-mega-cap” growth stocks, starting with #10 and counting down to our top ideas.
SoFi: Supreme Court Decision, Student Loan Repercussions
SoFi recently sued the Biden Administration, arguing there is no legal authority to continue student loan forbearance. However, within the next few weeks, the Supreme Court is widely expected to rule against the Biden Administration’s student loan forgiveness program, which will likely end forbearance within 60 days. In this report, we review SoFi’s business and the effects of fear (from the student loan situation, combined with recent banking sector distress caused by rapidly rising interest rates) on the company’s current valuation. After discussing specific risks in more detail, we conclude with our strong opinion on investing in SoFi.
Attractive Long-Term Solar Play, Ample Room for Growth
The company we review in this report is a leading manufacturer of semiconductor-based microinverters, as well as batteries, EV chargers, and other storage solutions. The company is well positioned given the strong investment activity in the clean energy space globally as well as its innovative microinverter technology. The company is actively diversifying its product offerings and expanding into new markets, while also focusing on continuous technological advancements to maintain a strong presence in the industry. In this report, we analyze the company’s business model, its market opportunity, financials, valuations, risks, and finally, conclude with our opinion on whether an investment in the shares offers an attractive balance between risks and rewards.
This Lithium Battery Stock: Massive Growth Potential for Patient Investors
In this report, we review a manufacturer of advanced lithium-ion batteries. This early-stage public company is well-positioned to benefit from growing demand, including mobile, Internet of Things (IoT) and electric vehicles. Key differentiators include its energy density advantage (achieved through design and architecture choices) and silicon anode technology. It also addresses key safety concerns. We analyze the business model, market opportunity, financials, valuation and risks. We conclude with our opinion on investing.
Lithium: Limited Supply, Increasing Demand
As lithium demand grows (and supply remains limited), the basic materials stock we review in this report is attractive. The shares are down 35% from their 52-week high, but the business continues to strengthen (i.e. revenues are growing very rapidly, the market opportunity is huge and profit margins remain strong). In this quick note report, we consider the company’s latest strategic effort, its valuation and our opinion on investing (i.e. we own shares).
New Buy: Top Growth Stock: Solar Energy Disruption
The industrial sector business we review in this report continues to grow rapidly as it benefits from the solar energy secular trend. Specifically, it provides electrical balance of system solutions (for solar, battery energy and EV charging applications) to mainly engineering and construction firms. And its valuation is increasingly attractive, especially considering the competitive advantages of this highly profitable $3B+ market cap company. We review all the details, and then conclude with our opinion on investing in this rapidly growing business.
SOFI: Fear Creates Opportunity
SoFi Technologies (SOFI) is a financial services company, focused mainly on lending (see Income Statement operating segments below). And the shares are currently getting pummeled for one main reason: Fear. Specifically, fear of the upcoming Supreme Court ruling on student loan forgiveness and fear of banks defaulting (i.e. contagion to the financial system from the recent run on Silicon Valley Bank (SIVB)). In this note, we quickly review SOFI’s business and valuation, and then conclude with our strong opinion on investing (i.e. is the recent sell off an opportunity or a warning).
Small Cap Stock: To Benefit from IIoT, Attractive Valuation
The small cap stock we review in this report enables machines to communicate with each other and it is well positioned to benefit from vast and expanding new opportunities related to the Industrial Internet of Things (“IIoT”). It’s also being valued incorrectly because supply chain issues are being misunderstood (and they will clear up) and because it’s being valued like a traditional hardware company without proper recognition for its growing subscription revenue model (which warrants a higher multiple). In this report, we review the business, the expanding market opportunity, valuation and risks, and then conclude with our opinion on investing.
Tesla: 20 Top Growth Stocks Ranked
Tesla shares are down more than 70%, and it’s going to get worse. For starters, the “woke mob” is ticked at CEO Elon Musk. Next, growth stocks in general are getting hammered as interest rates rise and there is no “fed put” in sight. In this report, we rank Tesla (based on fundamental metrics) versus 20 top growth stocks sourced from the top 10 holdings of two popular active growth ETFs, Future Fund (FFND) and Ark Innovation (ARKK), both have very large positions in Tesla. After digging deeper into the details on Tesla (including its tangled business history with the woke mob, future growth potential, profitability, valuation and risks), we conclude with our strong opinion about investing in Tesla and growth stocks in general.
Amazon: 100 Top Growth Stocks, Ranked
2022 was an ugly year for growth stocks. And it’s going to get worse for many of them. In this report, we rank 100 top growth stocks based on the financial metrics we consider most important in the current market environment. We have a special focus on Amazon, comparing it to peers on these same financial metrics, but also diving into its specific business fundamentals, including competitive advantages, risks and valuation. We conclude with our strong opinion on Amazon and investing in select growth stocks in the current market environment.
A Top Healthcare Industry Stock Worth Considering
Given the challenging macroeconomic backdrop (high inflation, recession looming), if you had to list the top characteristics you’d like to see in a stock market investment right now, it might include things like: high profit margins, no debt, tons of cash and a sticky client base that is economically non-cyclical. The healthcare stock we review in this report has all of those things, plus a very high revenue growth rate, a large total addressable market opportunity, a wide economic moat and basically no competition. Plus the shares have sold off significantly this year, thereby creating a more attractive entry point. This is NOT a dividend stock, but rather a very attractive long-term growth stock. Your future self may thank you profusely if you pick up a few shares now.
Disruptive Healthcare Stock: Improving Numbers, But Any Path to Profitability?
Shares of this technology-based healthcare provider are up significantly following quarterly earnings, but this once famous (now infamous) “pandemic darling” is down 80% from its recent highs (as post-covid life resumes) and questions remain as to whether there is any legitimate path to profitability. The company reported a $0.45 loss per share for Q3, it beat on top and bottom lines, but slightly lowered full year guidance. We offer our opinion on investing in this report.
Google Stock: Market Puking
Stalwart, blue-chip, US stock market juggernaut, and Google parent, Alphabet (GOOGL), made a new 52-week low this week. This is a company that has over 10% revenue growth, a seemingly insurmountable ecosystem and moat, and now trades at only 10 times forward EV to EBITDA. In this report, we review Google’s business model, revenue growth, capital allocation, current valuation and big risks. We conclude with our strong opinion on investing.
Clean Energy Solutions: Buy the Dip, If You Can Call It That
What started out as a microinverter technology (to help efficiently transform sunlight into energy) is rapidly growing into a one-stop-shop home-energy-solutions and technology company. Specifically, as the company’s microinverter business continues to grow rapidly (and gain market share from the other main industry competitor’s inferior technology), the product line continues to expand (now including batteries, EV charging, and impressive industry-leading smart software) into a massive secular trend (cleaner energy) opportunity (the SAM, or “serviceable addressable market,” is estimated to be $23 billion by 2025, versus the company’s $1.7 billion in total revenue over the last 12 months).
Attractive Cybersecurity Stock: High Growth, Profitable, On Sale
The cybersecurity business we review in this report is attractive for a variety of reasons, including its high growth, large total addressable market and attractive valuation. In particular, the shares have sold off hard as the low-interest-rate bubble has burst, but unlike other “pandemic darlings” this one is actually very profitable and generates powerful cash flow (therefore it won’t face the same growth-capital-raising challenges as others that will be paralyzed by higher borrowing rates, lower stock prices for new share issuances, and a slowed economy). Its valuation multiple has been crushed, but its business and earnings keep growing—and likely will for many years to come. We currently own shares.
High-Growth, Mid-Cap, Cloud-Data Company, Attractively Priced
The company we review in this report provides high-capacity storage for data centers using software and hardware technologies that are extremely well rated by customers. What’s more, the company is growing rapidly, and will continue to do so, as the digital revolution and migration to the cloud (data centers) are the biggest secular trends in the world today. We like the shares because they are positioned to benefit from many years of high growth and because they currently trade at an attractive price.
Long-Term Investors: Attractive, Electrical Components, Smid-Cap Stock, On Sale
There is a lot to like about this attractive electrical components stock that we first wrote about back in 2015. For example, it is highly profitable, growing rapidly, has a large Total Addressable Market (“TAM”) opportunity and the shares are currently on sale because short-minded investors are incorrectly extrapolating short-term revenue growth estimates (due to a tough comp and the market cycle) and not seeing the long-term secular trend remains firmly intact.
Adobe to Acquire Figma for $20 Billion
So the highly-profitable multimedia and creativity software company, Adobe, has agreed to acquire web-first collaboration design platform, Figma, for $20 billion (half cash, half shares). At roughly 50 times next years revenues, and considering Adobe’s current total market cap is only around $173 billion, this is a hefty price tag, especially at a time when the market is down and economic growth is slowing. We share our thoughts on the acquisition and the future of Adobe in this quick note.
Top 10 Growth Stocks (That Are Currently Down Big)
Despite all the gloom and doom in the market, and despite the big reasons to stay bearish (as we will review in this report), the market will eventually recover and go much higher. We don’t know if the majority of the selling is over, or if things will continue to get worse in the short-term (no one does). But we do know that over the long-term we expect the market to eventually recover and go much higher. In this report, we review the terrible market environment, including data on 150 top growth stocks that have sold off hard. Then we rank our top 10 long-term growth stocks from the list, starting with #10 and finishing with our top ideas.