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These companies are experiencing exponential growth and are nowhere near finished utilizing their full potential. Check them out if you’re interested in the fastest growing stocks.
Growth stocks are a favorite of many investors because – well – they are able to increase their sales very quickly. This makes it ideal if you are looking to add some momentum to your portfolio.
This growth often comes with some potential risks, including stock price volatility. But picking long-term winners is not impossible. Nor is it a guessing game. There are a lot of companies that have great businesses that are changing their markets and not speculating.
The companies on this list are not small stocks. They have a solid business growing at healthy rates – and they have the potential to do so for years to come.
5 fast growing stocks
- upstart holding
- to forbid
- trade office
1. Stacked (NASDAQ: CFLT)
- Confluent, Inc. (NASDAQ: CFLT)
- the price: $66.48 (As of February 3, 2022)
- Market Capital: $16.836B
The Internet generates a lot of data that companies can use to better understand their customers. The problem is that there is a lot of data to scrutinize. Much of it goes unused.
Confluent wants to change that. Its cloud platform takes relevant data and allows companies to make real-time decisions based on it.
For example, when COVID-19 boosted demand for online grocery delivery services, Instacart tapped Confluent to help manage real-time availability data for 500,000 new customers in just a few weeks.
This is just one small example of the 3000 corporate clients using Confluent data systems to improve their businesses.
So far, Confluent’s real-time data management services have paid off big for the company. Total sales jumped 61% in the first nine months of 2021, and management expects for the full year, 60% growth in revenue, compared to 2020.
The company went public in mid-2021. As it approaches a massive $91 billion market, investors will likely have to put up with some volatility. But betting on Confluent’s data management services could be a very wise move in the next few years if you want to be part of a rapidly growing inventory.
2. Upstart Holdings (NASDAQ: UPST)
- Upstart Holdings, Inc. (NASDAQ: UPST)
- the price: $98.63 (As of February 3, 2022)
- Market Capital: $8.026 billion
If you’re looking for an incredibly fast-growing company, Upstart Holdings might be just what you’re looking for. The company’s sales rose 270% In the first nine months of 2021, compared to the same period in 2020.
Upstart uses Artificial Intelligence (AI) to help connect people with lending companies. The company says its AI-based system not only helps more people get loans than traditional lending systems, but also has 75% fewer loan defaults with the same approval rate as major US banks.
This win-win situation for both lenders and borrowers helped propel Upstart’s business forward as it taps into the $84 billion personal loan business and $635 billion auto loan industry.
Perhaps as impressive as the total market that can be addressed is the fact that Upstart does not have any exposure to risky loans. Instead, it receives more than 90% of its revenue from fees it charges banks and lending institutions – very stable companies.
Like many other growth stocks (particularly in the technology industry), Upstart’s stock price fell at the start of 2022. But don’t let these stock price swings scare you away from the company and its strong long-term potential in the loan creation market.
3. Block (NYSE: SQ)
Block, Inc. (NYSE: SQ)
the price: $108.87 (As of February 3, 2022)
Market Capital: 58.701 billion dollars
Block is a bet on the rapidly growing field of financial technology (fintech). The company is building a leading position in many ways.
The first is the popular Cash app from Block. This personal payment app allows people to exchange money easily, whether it is to split a lunch check or pay the monthly rent. The app accounts for most of Block’s revenue, and the company continues to expand its usefulness.
For example, Block recently launched the Buy Now, Pay Later option with the Cash app. This seemingly simple service will help prevent access to an expanding market, which analysts estimate will be worth $20 billion by 2028.
The company’s Square brand has a very strong foundation in the point-of-sale terminal and payment space for merchants.
Block’s increasing focus on cryptocurrencies is already paying off. Block generated less than $1 billion in Bitcoin revenue in 2019. But that number rose to $8 billion in the first nine months of 2021 alone.
Block’s ability to tap into new areas of fintech has helped this savvy company rapidly increase its sales, with revenue in the first nine months of 2021 up 114% over the same period in 2020.
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4. Doximity (NYSE: DOCS)
- Doximity, Inc. (NYSE: DOCS)
- the price: $45.75 (As of February 3, 2022)
- Market Capital: $8.569B
Doximity isn’t exactly a household name, but those in the medical field will likely be very familiar with this fast-growing technology company.
The Doximity platform is multifaceted, allowing medical professionals to do everything from managing their careers to conducting virtual patient visits. They can even use Doximity to keep up to date with the latest medical news and research.
Doximity and its tools have already been embraced by the medical community. Currently, 80% of American physicians and 50% of nurse practitioners and physician assistants are Doximity members.
The company makes most of its money from pharmaceutical and health systems companies by promoting its products and services to medical professionals.
Doximity experienced impressive growth in the first six months of 2021, with the company’s sales up 86%. What is even more impressive is the fact that the company is also already profitableNet income increased more than fivefold in the first half of 2021, compared to the same period in 2020.
Doximity went public in mid-2021, and since then it has been tough for investors. But investors should focus on the long-term potential of this company as it enters a steerable market totaling $18.5 billion. With the company already turning a profit, Doximity is on track to become a potentially significant long-term investment.
5. Bureau of Commerce (NASDAQ: TTD)
- trade office (NASDAQ: TTD)
- the price: $73.04 (as of February 3, 2022)
- Market Capital: $31.645 billion
Trade Desk’s advertising platform allows businesses to purchase advertisements that will be shown on mobile devices and connected TVs, as well as online.
This market exceeds previous expectations. eMarketer now estimates that by 2025, the digital advertising space in the United States will be worth $315 billion.
The company’s platform has been very successful. In the first nine months of 2021, sales increased by 55% and net income increased by 44%. And just in case you were wondering if the Trading Desk profits were short-term luck, keep in mind that the company has been profitable for many years.
One of the secrets to The Trade Desk’s success is that its customers keep coming back to the platform. The Trade Desk has a customer retention rate of over 95% – an impressively high percentage that has stayed at that level for seven consecutive years.
If you’re in the market for a strong, fast-growing stock that’s absolutely impressive when you look at the bottom line, Trade Desk might be just the ticket.