Key Takeaways:
- Nu Holdings is expanding rapidly, with 30% annual revenue growth and 40% annual earnings growth, yet trades at just 19 times earnings.
- Hims & Hers is growing its telehealth business at a 30% annual revenue rate, and is down over 30% from its highs.
- AMD competes with Nvidia in AI chips, with 30% projected annual earnings growth. However, the stock trades at just 21 times forward earnings.
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Growth stocks can be some of the best investments when bought at the right time.
While many high-growth companies trade at premium valuations, some are still reasonably priced despite strong future earnings potential.
Here are three of the best growth stocks to buy now. The first two stocks look interesting, but Stock #3 looks like the best opportunity today on this list.
1: Nu Holdings (NU)
Nu Holdings is one of the fastest-growing fintech companies in Latin America, offering digital banking services to millions of customers.
Today, the stock trades near its lowest earnings multiple of all time, at just 19 times earnings. This is a fairly low multiple, especially considering the company’s expected earnings growth:
Why Nu Holdings is worth further analysis:
- The company is expanding rapidly, adding millions of new users each year. Revenue is expected to grow ~30% annually, while earnings are projected to grow nearly 40% annually over the next three years.
- Analysts currently see over 30% upside for Nu Holdings today.
Nu Holdings could be a strong long-term play, but the next stock has even bigger market potential.
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2: Hims & Hers Health (HIMS)
Hims & Hers is a fast-growing telehealth company, offering online healthcare solutions focused on personalized treatment plans.
Analysts expect the company’s revenue to grow 30% per year over the next 3 years, while earnings are projected to grow 20% annually over this time.
Key reasons investors are watching Hims & Hers:
- The stock is down over 30% from its all-time high, which makes it look attractive today.
- The stock trades at only 38 times forward earnings, which is reasonable given revenue is expected to grow 30% annually over the next 3 years.
- The company has a large total addressable market, meaning it still has plenty of room to expand.
Hims & Hers may not be as undervalued as Stock #3, but its long-term growth potential makes it an interesting play.
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3: Advanced Micro Devices (AMD)
AMD is a semiconductor powerhouse that competes with Nvidia in AI chips, making it one of the most important tech companies today.
The company is projected to grow earnings at 30% annually over the next three years, yet the stock trades at just 21 times forward earnings.
This is also a much lower valuation than its biggest competitor, Nvidia.
Why AMD could have major upside:
- The stock currently has nearly 50% upside, based on analyst price targets.
- AMD continues to see strong demand for its AI and data center chips, positioning the company for future growth.
With high earnings growth and a reasonable valuation, AMD looks like the best stock on this list today.
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TIKR Takeaway
Finding growth stocks that are both undervalued and expanding rapidly is one of the best ways to generate long-term investment returns.
The TIKR Terminal offers industry-leading financial data on over 100,000 stocks and was built for investors who think of buying stocks as buying a piece of a business.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. We aim to provide informative and engaging analysis to help empower individuals to make their own investment decisions. Neither TIKR nor our authors hold positions in any of the stocks mentioned in this article. Thank you for reading, and happy investing!
