4 high-growth stocks that may emerge in the rest of 2020

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If you are looking for four stocks that can bring considerable gains to your portfolio for the rest of the year, look no further. Amazon (Amazon), ServiceNow (right now),insulin(PODD) And Charter Communications (TR) Are the four stocks that passed my strict “high growth” filter. These are companies with a history of strong growth and are expected to achieve strong growth in the next few quarters. They also have business models that are unlikely to be affected by the current uncertainty in the market.

Entering October, because the market believed that October was a historical downturn, many investors worried that it would fall again this month. The problem is, that’s not true. There is actually a name called “October Effect.” Except for the notorious October 1987, stocks usually perform well in October. In addition, a strong fourth quarter usually follows a strong third quarter. According to Ryan Detrick of LPL Financial.

This is not to say that we will not fluctuate in the next few months, especially in a year full of surprises. We are about to enter the presidential election on November 3, and this week begins the third quarter profitable season. FactSet expects that the third-quarter earnings of S&P 500 companies will fall by an average of 21.8%. We may see a repeat of the previous quarter, when many companies’ performance exceeded analysts’ expectations, otherwise earnings may meet expectations. Either way, if you own a select group of high-growth companies with strong growth catalysts, then your investment portfolio should benefit.

Amazon (Amazon)

AMZN is undoubtedly one of the list, its five-year average income growth rate is 106.5%. Next year’s revenue is expected to grow by 40.2%, and revenue will reach 18%. To say that AMZN performs well is an understatement. So far, the stock has risen by 67.8% due to a surge in online orders due to the coronavirus. AMZN is the undisputed heavyweight of e-commerce in the world, and this epidemic took effect immediately.

The company has also seen strong adoption of its AWS products, which is only consolidating its position as the dominant cloud company. AMZN is also a leader in the $5.7 billion smart speaker market. It recently announced many new hardware products, including a series of fourth-generation Echo smart speakers, a new Fire TV Stick video streaming, Eero Wi-Fi router and a new Ring security camera.

In addition, AMZN’s “Prime Day” is the biggest shopping event of the year and will be held from October 13th to 14th. Last year’s “Prime Day” exceeded the company’s 2018 Black Friday and “Cyber ​​Monday” combined. Therefore, it is not surprising that AMZN was rated as “Buy” by us POWR rating system. Its trade grade is “A”, purchase and holding grade, peer grade and industry grade are “B” grade.it is at the Internet industry.

ServiceNow (right now)

Now, another cloud company with strong growth potential. The company provides software solutions to build and automate various business processes through the SaaS delivery model. The company mainly focuses on providing IT functions to corporate customers and has experienced hell once a year, with its revenue increasing by 1944.4%. Its five-year revenue growth rate is 33.9%, and analysts expect the company’s revenue to grow by 24.5% next year and profits by 24.2%.

The company is expected to benefit from strong growth in subscription revenue. In the second quarter, the company announced the completion of 40 transactions with a total annual contract value of more than $1 million. The number of customers increased by 26% year-on-year. Due to the widespread adoption of its solutions, management has increased its guidance for 2020 subscription revenue, gross profit margin and operating margin.

Due to two compelling long-term trends, digital transformation and the migration to cloud computing, growth will continue. NOW stated that its platform has been used by about 80% of the Fortune 500 companies and is seeking to increase the remaining 20%. The company was rated “Strong Buy” in our POWR scoring system, and rated “A” in trade level, buy and hold level, and pair level.It is also the number one stock in this stock Software-Commercial industry.

insulin(PODD)

PODD was established in 2000 with the goal of making continuous subcutaneous insulin infusion therapy for diabetes easier to use. This goal has definitely paid off, and the company believes that sales have increased by 33.4% on average over the past five years. Analysts expect earnings to soar 238.9% next year. The company’s main product, the Omnipod system, consists of a small disposable insulin infusion device and a dose-controlled wireless personal diabetes manager.

Most companies that make diabetes equipment are not affected by the pandemic. If diabetes patients postpone care, it will be a matter of life and death. Due to an aging population and overweight, the incidence of diabetes is increasing. Since the FDA approved Omnipod in 2005, 140,000-145,000 insulin-dependent diabetes patients worldwide are using the device. PODD is planning further geographic expansion and maintains its $1 billion revenue target in 2021.

PODD recently showcased its latest product, Omnipod 5, and hopes to bring it to the market early next year. The system dispenses a small amount of glucose regulated by a smartphone app, as well as other medications. The company was rated “Strong Buy” in our POWR scoring system, and rated “A” in transaction level, purchase and hold level, and pair level. It also ranks fifth among 140 stocks. Medical-Instruments and Equipment stock.

Charter communications (TR)

My final inventory is cable inventory, and you may question the growth. Most people think that streaming media equipment and cable cuts mean the end of the cable. Although this may be the case in the long term, I don’t think it will harm the company’s short- and medium-term prospects. Many people are still using cable TV to access live sports. In addition, cable providers also provide consumers with Internet access to watch streaming videos.

CHTR growth figures support this. In the past five years, the company’s sales have grown by an average of 37.1% annually. In the past three years, its revenue has increased by 52.7%. Analysts expect earnings to grow by 51.5% next year. In terms of subscribers, CHTR is the second largest cable operator in the United States, second only to Comcast (Chinese Medical Association). The company announced that its net new customers increased from 203,000 a year ago to 753,000 in the second quarter of this year.

The company also benefits from local advertising, but Internet and mobile revenue are the main growth drivers in the near term, as the company’s Internet usage has surged due to the trend of working from home and online learning. In our POWR rating system, CHTR is rated as “Strong Buy”. Its trade grade and buy-and-hold grade are “A”, and its peer grade and industry grade are “B”.It ranks second in the world Entertainment-TV and Internet provider industry.

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About the author: David Cohne

David Cohne has 20 years of experience as an investment analyst and writer. Prior to joining StockNews, David served as a consultant for eleven years, providing outsourced investment research and content for financial services companies, hedge funds and online publications. David likes to research and write articles about stocks and markets. He uses basic quantitative methods to evaluate inventory for readers. More…

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