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These companies are experiencing tremendous growth and are nowhere near finished tapping into their full potential. Check them out if you’re interested in the fastest-growing stocks.
Growth stocks are a favorite among many investors because — well — they’re able to grow their sales very quickly. This makes them ideal if you’re looking to add some momentum to your portfolio.
That growth often comes with some potential risks, including share price volatility. But picking long-term winners isn’t impossible. Nor is it a guessing game. There are plenty of companies with fantastic businesses that are transforming their respective markets and aren’t speculative.
The companies on this list aren’t penny stocks. They have solid businesses that are growing at a healthy clip — and have the potential to do so for years to come.
5 Fast-Growing Stocks
1. Confluent (NASDAQ: CFLT)
- Confluent, Inc. (NASDAQ:CFLT)
- Price: $68.55 (as of close Jan 31, 2022)
- Market Cap: $17.294B
The internet generates tons of data that companies can use to better understand their customers. The problem is there’s too much data to sift through. Much of it goes unused.
Confluent wants to change that. Its cloud-based platform takes relevant data and allows companies to make real-time decisions based on it.
For example, when COVID-19 boosted the 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.
That’s just one small example of the 3,000 corporate customers that are using Confluent’s data systems to improve their businesses.
And so far Confluent’s real-time data management services have paid off tremendously for the company. Total sales jumped 61% in the first nine months of 2021, and for the full year, management is expecting 60% revenue growth, compared to 2020.
The company just went public in mid-2021. As it taps into a massive $91 billion market, it’s likely that investors will have to stomach some volatility. But a bet on Confluent’s data management services could prove to be a very wise move in the next few years if you want to be part of a fast-growing stock.
2. Upstart Holdings (NASDAQ: UPST)
- Upstart Holdings, Inc. (NASDAQ:UPST)
- Price: $117.33 (as of close Jan 31, 2022)
- Market Cap: $8.934B
If you’re looking for an incredibly fast-growing company, Upstart Holdings may be just what you’re looking for. The company’s sales soared 270% in the first nine months of 2021, compared to the same period in 2020.
Upstart uses artificial intelligence (AI) to help connect people to lending companies. The company says that its AI-based system not only helps more people secure loans than traditional lending systems but also that it has 75% fewer loan defaults at the same approval rate as major U.S. banks.
This win-win situation for both lenders and borrowers has helped propel Upstart’s business forward as it taps into the $84 billion personal loan business and the $635 billion auto loan industry.
Perhaps just as impressive as its total addressable market is the fact that Upstart doesn’t have any exposure to risky loans. Instead, it receives more than 90% of its revenue from the fees it charges to banks and lending institutions — very stable companies.
Like many other growth stocks (particularly in the tech industry), Upstart’s share price tumbled at the beginning of 2022. But don’t let those share price swings scare you away from the company and its strong long-term potential in the loan origination market.
3. Block (NYSE: SQ)
Block, Inc. (NYSE:SQ)
Price: $127.61 (as of close Jan 31, 2022)
Market Cap: $56.858B
Block is a bet on the fast-growing financial technology (fintech) space. The company is building out a leading position in numerous ways.
The first is Block’s popular Cash App. This person-to-person payment app allows people to easily exchange money, whether it’s for splitting a lunch check or paying 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 a buy now, pay later option through the Cash App. This seemingly simple service will help Block tap into an expanding market, which analysts estimate will be worth $20 billion by 2028.
The company’s Square brand has a very solid footing in the point-of-sale terminal and payment space for merchants.
And Block’s increasing focus on cryptocurrencies is already paying off. Block made less than $1 billion in Bitcoin revenue in 2019. But that figure skyrocketed to $8 billion in the first nine months of 2021 alone.
Block’s ability to tap into new areas of fintech has helped this nimble company grow its sales rapidly, with revenue in the first nine months of 2021 up 114% from the same period in 2020.
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4. Doximity (NYSE: DOCS)
- Doximity, Inc. (NYSE:DOCS)
- Price: $49.16 (as of close Jan 31, 2022)
- Market Cap: $8.545B
Doximity isn’t exactly a household name, but those in the medical field are likely very familiar with this fast-growing tech company.
Doximity’s 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 with the latest medical news and research.
The medical community has already embraced Doximity and its tools. Right now, 80% of U.S. physicians and 50% of nurse practitioners and physician assistants are Doximity members.
The company makes most of its money from pharmaceutical companies and health systems by promoting its products and services to medical professionals.
Doximity has experienced fantastic growth in the first six months of 2021, with the company’s sales spiking 86%. Even more impressive is the fact that the company is actually profitable, with net income up more than five times in the first half of 2021, compared to the same period in 2020.
Doximity went public in mid-2021, and since then it’s been a bit of a wild ride for investors. But investors should focus on the long-term potential of this company as it taps into an $18.5 billion total addressable market. And with the company already seeing profits, Doximity is on the right path to becoming a potentially great long-term investment.
5. The Trade Desk (NASDAQ: TTD)
- The Trade Desk (NASDAQ:TTD)
- Price: $71.09 (as of close Feb 1, 2022)
- Market Cap: $34.168B
The Trade Desk’s advertising platform allows companies to buy ads that will be shown on mobile devices and connected TVs, as well as across the internet.
This market is outpacing previous forecasts. eMarketer now estimates that by 2025 the U.S. digital ad space will be worth a staggering $315 billion.
The company’s platform has been extremely successful. In the first nine months of 2021, sales increased by 55% and net income rose 44%. And just in case you’re wondering if The Trade Desk’s profits were a short-term fluke, consider that the company has been profitable for many years.
One of the secrets to The Trade Desk’s success is that its customers continue to come back to the platform. The Trade Desk has a customer retention rate of more than 95% — an impressively high percentage that has stayed at that level for seven years running.
If you’re in the market for a solid fast-growing stock that’s just as impressive when you look at its bottom line, The Trade Desk may be just the ticket.