Growth stocks are the ones that are always on the wish lists of investors. Time and again, Wall Street experts have pointed to stocks with above-average growth rate as the most valuable ones. The growth stocks are the ones you can rely on in the long run.
2020 has been a tumultuous year for the stock market. But we are not joking about these growth stocks. If anything, they have notched considerable gains till date this year. But this is not the end. The wins for growth stocks is likely to keep coming through this year and beyond.
According to TipRanks’ database, in this article we’ve listed out 3 of the top growth stocks according to their stellar performance in 2020. These are the ones that are expected to climb higher in the upcoming years as well.
Stamps.com (STMP)
STMP growth stocks have already shown impressive gains in 2020 climbing to a high of 215% YTD (Year to Date). Analysts are of the opinion that there is room for more gains for Stamps.com.
Allen Klee from National Research mentions that the company is poised to profit from the accelerating demand in the e-commerce sector. This online shipping and mailing services company makes it easier for customers to print postages approved by the U.S. Postal Service.
A lot of this growth stock’s revenue depends on shipping. The growth curve also depends on how it performs in the last quarter of 2020. For now, the company has a “moderate buy” rating along with a $336.67 target price that suggests a 28% up potential.
Farfetch (FTCH)
Next, we come to Farfetch. This one will possibly ride the e-commerce ride too. This online retail platform for luxury fashion products has already seen a 157% YTD growth in 2020. Wall Street pros are of the opinion this one is still just heating up.
Doug Anmuth, a five-star analyst writes that this growth stock is a differentiated and valuable partner. With physical shops closed and a global lockdown hampering physical shopping, this company has been a crucial partner to many active customers.
The company enjoys a consensus of “Moderate Buy” rating with an average of $31.70 target price as of now implying 19% growth potential.
Chegg (CHGG)
This growth stock name has jumped up by 114% this year. But, as an educational tech company that provides online tutorials, digital book rentals and other educational services, this company is not going to go out of need very soon.
With the Covid-19 pandemic forcing a shift to online and virtual learning, this company is setting bases internationally. The company’s Q2 earnings showed a growth of 58% on a year-over-year basis.
This one shares a consensus of “strong buy” rating along with a $95.25 average target price that implies an overall 17% increase for this growth stock in the following year.
Check out these 3 growth stocks and let us know if you found these useful.
