7 Red-Hot Growth Stocks That Will Survive the Recession

Investing in growth stocks can be a great way to build massive wealth from the stock market. These stocks typically deliver above average earnings over time due to the consistent performance of their underlying businesses. For patient investors, the current downturn presents a great opportunity to rush stock trading growth at a substantial discount.

Leading investor firms can post high profit growth even during a bear market. The stocks discussed in the article have shown strong earnings and earnings growth over a long period of time. Moreover, their fundamentals remain stable despite the current downturn and are trading at a significant bargain.

A small investment in the right growth stocks can take your portfolio to the next level.

Ticker	company	Current price
ZS	Zscaler, Inc.	$ 144.22
NIYEBE	Snowflake Inc.	$ 119.38
NOW	ServiceNow, Inc.	$ 443.79
TWLO	Twilio Inc.	$ 84.02
TTD	The Trade Desk, Inc.	$ 46.30
UPST	Upstart Holdings, Inc.	$ 35.14
SNAP	Snap Inc.	$ 12.42

Growth Stocks: Zscaler (ZS)

Zscaler (NASDAQ:ZS) is a leading cybersecurity play that works as a software-as-a-service (SaaS) enterprise that allows various businesses to keep their data safe. Its business has grown at a breathtaking pace, with more than 5,600 customers and 150 data centers operating like “smart switchboards.” Moreover, it has partnerships with juggernauts in the cloud sector, including Amazon (NASDAQ:AMZN) Web Services and Microsoft (NASDAQ:MSFT) Azure.

Revenues have grown impressively over the past few years. Sales growth has averaged more than 53% over the past five years, well ahead of the sector’s median. The recent results are both remarkable, a testament to its high sustainability and product quality. ZS stock remains a good long -term bet with double -digit growth in cloud security over the next few years.

Snowflake (NIYEBE)

Snowflake (NYSE:NIYEBE) is a major player in the data storage space with a market cap of over $ 35 billion. It has been exposed to secular tailwinds from the emerging business intelligence space, making long -term growth sustainable. Additionally, it has a massive cash balance of more than $ 3.8 billion with minimal debt, allowing it to maintain its operations during a downturn.

Since its IPO a few years ago, it has moved from a data storage business to a cloud company. The change has opened up a total addressable market worth more than $ 200 billion compared to the relatively limited data warehousing sector. The data cloud allows various companies to have a one-stop-shop experience managing their data needs on the Snowflake platform. The change has been a game-changer for the business, resulting in $ 327 million and $ 627 million bump in sales over the past few years. Moreover, the company is now positive on cash-flow, providing more flexibility to expand its offerings in the future.

Service Today (NOW)

Service Today (NYSE:NOW) is a cloud-based platform that effectively simplifies workflows for businesses. Between 2016 and 2021, its enterprise’s customer growth increased by 105.55% to 7,400. Moreover, revenues climbed from $ 1.2 billion to $ 5.8 billion.

NOW has significantly improved its ecosystem using a laundry list of gains. Moreover, the move towards remote employment has generated long -term tailwinds for its business. Revenue growth has averaged over 30% over the past five years for NOW. Moreover, subscription and net expansion rates also increased double-digits over the period. It expects to generate an incredible $ 16 billion in sales in 2026. The forecast represents more than 20% CAGR over the next five years. Therefore, with a massive growth runway ahead, NOW has a lot of upside ahead.

Growth Stocks: Twilio (TWLO)

Twilio (NYSE:TWLO) works as a cloud-communications-as-a-service provider that handles calls, videos, messages, and authentication features for various mobile apps. Developers outsource these features to Twilio instead of building them from scratch, thus saving costs. The company served only 28,000 customers in 2016, which has grown to over 250,000. Moreover, sales have grown sharply over the past five years to $ 2.8 billion last year, from $ 277 million in 2016.

The company’s solutions are embedded using APIs, which represent the Application Program Interface. It is essentially a modern and standardized way for customers to connect and communicate with their customers. Therefore, its product offering is important in the future for businesses, which is why it expects that the overall addressable market will sky-rocket in the next few years.

The Trade Desk (TTD)

The Trade Desk (NASDAQ:TTD) is a cloud-based platform that helps companies purchase digital advertising. Online traffic has risen sharply over the past decade, especially in the pandemic years, increasing the importance of digital advertising channels. The trend allowed TTD to increase its revenues from $ 114 million in 2015 to a whopping $ 1.2 billion last year.

By 2021, advertisement spending will be at a whopping $ 763 billion, and TTD’s revenues are only part of the overall industry. However, revenue growth has returned above pre-pandemic levels after a hot two years. More importantly, margins continue to rise, with a healthy increase in free cash flows. TTD’s gross margins have averaged nearly 80% over the past five years, with more than 20% return on equity over the same period. With such a stellar margin profile, the company continues to expand its internal reserves and expand its market share.

Upstart Holdings (UPST)

Upstart Holdings (NASDAQ:UPST) is a leading fintech firm that uses AI to originate loans for banks. Its goal is to provide a more equitable lending experience for lenders and borrowers by offering a more comprehensive credit-based scoring system.

The Upstart service quickly caught on and now covers many profitable verticals in its niche. It started with unsecured loans mainly for medical reasons, among other things. Last year, it entered the more profitable automotive loan market and most recently showed interest in the small business lending and mortgage industry. As a result, its total addressable market continues to grow, and it could now swim into a market worth more than $ 5 trillion.

It runs a highly profitable operation, and the first quarter marked the seventh consecutive quarter of positive earnings. Among its stellar results was its massive transaction volume, which rose 174% to $ 4.5 billion in the first quarter.

Growth Stocks: Snap (SNAP)

social media giant Snap (NYSE:SNAP) is taking a hammer lately after its downward revision of its upcoming second quarter results. It blames challenging macroeconomic conditions for the downgrade but still has plenty of opportunity to grow in the long run.

Moreover, its guidance for 343 million to 345 million daily active users in the second quarter, still represents 17% to 18% growth from last year. The business is expanding incredibly as its ads are faced with many conflicts. Once these conflicts are gone, revenue and the adjusted EBITDA can effectively stabilize again.

Demand for its ads remains high, and the company revealed that commitments from its agency partners have risen more than 60% since last year. Additionally, it plans to further expand its traditional ads by harnessing the power of augmented reality, games, and newer elements. It also had a lot of money to pursue these plans, with its operating free cash flows being positive during the past year.

At the date of publication, Muslim Farooque does not (whether directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the authors, subject to the InvestorPlace.com Publishing Guidelines.

#RedHot #Growth #Stocks #Survive #Recession #Source Link #7 Red-Hot Growth Stocks That Will Survive the Recession