- Pinduoduo's revenue skyrocketed 239% YoY to around US$13,383.4 million in Q1.
- CyberArk’s subscription revenue surged 180% YoY to US$24.7 million in Q1.
- Five Below Inc.’s net sales rose 6.2% to about US$1,962.1 million in the first quarter.
Growth stocks are companies that show high growth potential. Driven by technological innovation, the publicly listed enterprises wield the greatest financial muscle today.
Gone are the days when a handful of state-run firms would epitomize growth. In reality, many of them had become an eyesore for the wasteful expenditures of taxpayer’s money.
Nowadays, private companies are unleashing their full potential in free economies. What’s driving them is their desire to grow for the 21st century needs and serve and earn.
While most growth stocks have already reached their prime or reinventing themselves to remain relevant, the young ones are giving their older cousins a run for their money.
We explore here five stocks to understand whether they have the resolve and ingenuity to cut the grade and turn ideas into a money-spinning business for the future.
Editas Medicine (NASDAQ: EDIT)
This Massachusetts-based biotechnology company was founded in 2013. The company develops drugs and other medical interventions to fight various genetic diseases.
It has a market cap of around US$2.3 billion. In Q1 of 2021, it collected revenues of US$6.5 million from research and development projects.
Editas had liquidity reserves of around US$723.2 million as of March 31, 2021. The company has appointed Dr Mark Shearman as a chief scientific officer to lead its next growth phase.
The stock’s closing price on June 9 was US$36.40. It jumped 30% over the past year.
Also Read: 10 Hot Mid-Cap Stocks To Watch
Pinduoduo (NASDAQ: PDD)
Pinduoduo is China’s largest agri-based technology platform that connects farmers and distributors. The company is based in Shanghai, the country’s financial capital.
Pinduoduo's revenue skyrocketed 239% YoY to around US$13,383.4 million in Q1. Besides, Pinduoduo has recently launched a study to understand the impact of plant protein on human health.
The study assumes significance as more companies are tapping plant-based protein products as an alternative to meat protein for food.
Pinduoduo’s market capitalization is around US$174.908 billion. It was founded in 2015.
The stock was trading at US$125.52 on June 9. It gained 72% over the past year.
CyberArk Software Ltd. (NASDAQ: CYBR)
Founded in 1999, CyberArk is an information security company based in Newton, Massachusetts. The demand for data security products of late boosted the company’s revenue.
The market for internet security is likely to grow at a faster pace in the coming years. CyberArk’s market cap is around US$5.039 billion. At the closing on June 9, the stock was trading at US$132.59. Its value soared 27% in the past 12 months.
In Q1 of 2021, CyberArk collected revenue of around US$112.8 million. In addition, its subscription revenue surged 180% YoY to US$24.7 million during the period.
It had liquidity reserves of US$1.2 billion as of March 31, 2021.
Five Below Inc. (NASDAQ: FIVE)
It is a store chain that provides products at discounted rates. It was established in 2002 in Philadelphia, Pennsylvania. It has a market cap of around US$10 billion.
In the fiscal year 2020, Five Below opened 120 new stores in the US. In the same period, its net sales rose by 6.2% to around US$1,962.1 million against US$1,846.7 million in FY 2019.
The company plans to open 60 new stores this year and anticipates total sales in the range of US$540 million to US$560 million.
The closing price of the stock on June 9 was US$185.68. It gained 63% over the past year.
Nautilus Inc. (NYSE: NLS)
It is a technology-backed fitness company established in Vancouver, Washington, in 1986.
Nautilus’ market cap is around US$536 million. The company sells its products through a chain of retail stores in multiple countries.
Its Q1 net sales jumped 119.9% YoY to US$206.1 million. Besides, it logged an operating income of around US$39.7 million. Nautilus’ reserves were about US$113.2 million at the quarter-end.
The closing price of the stock on June 9 was US$17.39. It gained 164% in the past year.