Apr 21, 2021 (StockMarket.com via COMTEX) -- Growth Stocks May Have Pulled Back Recently But They Still Warrant Attention.
Investing in growth stocks almost seemed like a sure-win strategy to make money in the stock market. If you're lucky, you may be still sitting at nice gains you have accumulated over the past year. And you may be thinking that you are a great stock-picker. But the stock market has continued to be under pressure over the past weeks. As a result, it may be an opportune time to be looking for top growth stocks that are now trading at more reasonable prices.
Now, a big reason for the recent selling has been the rotation to cyclical stocks and value stocks. After all, as most seasoned investors would know, cyclicals often follow the flow of the economy. With the accelerating vaccination efforts and stimulus hopes, these companies could rebound strongly along with the reopening of the economy. While it is true that there has been ongoing rotation to value stocks from growth stocks, that doesn't mean value stocks are always going to be better investments than growth stocks. For instance, if one were to look at electric vehicle stocks in the stock market, General Motors ( NYSE: GM ) is certainly much cheaper than Tesla ( NASDAQ: TSLA ). But over the past month, TSLA stock is clearly the better performer here. My point is, we can't simply make broad conclusions simply because of a particular trend.
Of course, buying growth stocks when the market continues to slide may not exactly be a popular choice. However, it's also worth mentioning that the underlying fundamentals of many top growth stocks remain rock solid and the potential return that they offer could be lucrative. With all these in mind, would you put up a list of top growth stocks to buy in the stock market today ?
Top Growth Stocks To Watch In The Stock Market Today
Weyerhaeuser Co. ( NYSE: WY )
Fastly Inc. ( NYSE: FSLY )
Etsy Inc. ( NASDAQ: ETSY )
Fisker Inc. ( NYSE: FSR )
Weyerhaeuser is a lumber stock that has been quietly rising in the stock market. For starters, the company is a timber company that grows trees and sells them for profit. It is one of the world's largest private owners of timberland, controlling or managing a total of 24.8 million acres of timberland in the U.S. and Canada.
Now, the demand for wood is skyrocketing and lumber prices have soared to records. Therefore, investing in WY stock would be a great way to capitalize on this trend. The company could take advantage of the unusually high margins at the time.
From its 2020 fiscal year results, revenue came in 15% higher to $7.532 billion. More impressively, the company posted a $797 million profit, up from a net loss of $76 million net loss in 2019. Yet one can still buy WY stocks for 3.7 times revenue and 36 times earnings. That puts Weyerhaeuser at a much more attractive valuation than many of the better-known growth stocks. But would the opportunity still be around when more investors find out about it? At a time when lumber prices continue to soar, would you bet on WY stock right now?
Fastly is one of the hyper-growth tech stocks in the stock market over the past year. After reaching an all-time high of $136.5 at the end of last year, it has shed more than 50% of its value. That came amid the pullback among growth stocks.
The decline in stock price had a lot to do with Fastly's full-year outlook. In particular, the company sees its losses for this year to be higher than what Wall Street had expected. That is primarily due to higher headcount and acquisition-related expenses.
On the flip side, investors love FSLY stock because its existing clients are big fans of Fastly's services. The company managed to keep a 99% annual revenue retention rate last year. Simply put, nearly all of its existing clients stick around. If the clients love their services so much, I don't see a good reason why investors are avoiding FSLY stock amid the recent discount.