Much of what is published in the financial media divides investors and businesses into two camps: value and growth. But that doesn’t make sense. It was Warren Buffett who said, “The price is what you pay. The value is what you get.” The way I read it, it means that any stock can be a valuable investment.
This is especially true when you find businesses that are growing quickly and making a profit. It’s a rare combination. And that’s why I think Reached Holdings (NASDAQ: UPST), exp Worldwide (NASDAQ: EXPI), and The To exchange Office (NASDAQ: TTD) are the best stocks to buy when the market is selling. Here’s why.
Small banks and credit unions quickly rolled out Upstart’s machine learning-based lending product. And it got the attention of Wall Street. For the first six months of 2021, revenue climbed almost 300%. And the stock has increased 15-fold from its initial public offering (IPO) of $ 20 in December 2020.
Part of the appeal is that the company continues to explode analysts’ expectations. And that generates increasing profits. The company’s operating margin has increased since its IPO, putting aside the effect of the pandemic in the second quarter of last year.
Income and profits are likely to continue to rise – a lot more. Not only is its initial product – focused on the $ 84 billion personal loan segment – growing rapidly, but it is also entering the $ 635 billion auto loan business and making openings to the estimated US mortgage market. to $ 4 trillion. Don’t be fooled by the rise of the stock. Upstart could have a lot more growth in the future.
eXp World Holdings
Many are aware that the real estate market is slowly being disrupted. However, most believe that the biggest threats come from technology-based services. Zillow Group (NASDAQ: ZG) and Red tuna (NASDAQ: RDFN). A lesser-known actor takes shares in a more traditional way – by inducing agents.
eXp World Holdings attracts the best agents by providing them with a fully digital workplace and commission cuts that are hard to beat. While traditional brokerages can take 30% of all gross commissions from an agent, eXp only takes 20% on the first $ 80,000. After that, 100% of the commission goes to the agent. If you are a high performing agent, it is almost irresponsible to work for another company.
That’s not counting equity. The company also incentivizes agents by giving them the option to take a portion of their commission in inventory, at a reduced price. It also gives them shares when they reach certain milestones, as well as when an agent they recruited for eXp makes a sale. It’s no wonder the growth is off the charts.
For the first six months of 2021, the company saw revenue and net profit growth of 153% and 400%, respectively. It also had 87% more agents and brokers than at the same time last year. It has also grown internationally, targeting growing economies like India, as well as some in South America and Europe. Although the stock has climbed 139% in the past year, it looks set for continued growth in the years to come.
The commercial counter
The Trade Desk went public in September 2016. Since then it has seen its revenues and profits explode along with the share price. Shares are up 2,300% since that initial public offering, beating the S&P 500 Index.
This is because much of the advertising world has moved online. The Trade Desk digital platform allows ad buyers to create, manage and optimize their campaigns. It automates the process across virtually every format and channel, from social media on a smartphone to displaying ads on a webpage and streaming services on connected TVs.
Its latest product, Solimar, is a cloud platform that allows marketers to prioritize goals, manage things like analytics and data privacy, and connect to a marketplace of partners. The company believes this will improve its competitiveness in the digital advertising space.
In the first six months of 2021, revenue increased 67% from the same period last year and 78% from 2019. This is an important comparison given the effect of the pandemic. on last year’s figures. Net income jumped 85% from 2019. Shareholders are getting used to it. The company has reported a profit every year since 2014 – data for the first year is available.
As the advertising world increasingly moves to digital channels, expect the company to continue to innovate and generate high sales and profit growth. That’s why regardless of any sell off, I think Trade Desk is one of the best growth stocks to buy now as a long term investment.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.