It’s difficult to imagine a better market environment for growth stocks than the current one. With massive amounts of liquidity being pumped into markets and the Federal Reserve keeping its benchmark interest rate anchored near zero, more and more investors are looking to stocks to generate returns on their capital. While we don’t know just how long this bull market will last, for now, it’s quite evident that plenty of people are using dips to buy shares of market-leading companies.
Although market pullbacks have been few and far between lately, until we see a major trend change, investors should probably continue to view dips as buying opportunities. Adding high-quality growth stocks to your portfolio can pay off both in the short-term thanks to the current market environment as well as in the long-term as these companies mature. That’s why we’ve put together a brief list of 3 high-flying growth stocks to buy on dips so that you can add some great names to your buy list.
The first company on our list is Digital Turbine, a software company that offers end-to-end products and solutions for mobile operators, application advertisers, device original equipment manufacturers, and other third parties that helps them monetize mobile content. With the way that mobile devices have become so integrated into our daily lives, the potential for advertising and monetization opportunities on these devices is seemingly limitless. That’s what makes this company so compelling and worth buying on pullbacks.
Digital Turbine recently rallied to new all-time highs after releasing stellar Q3 earnings. The company reported year-over-year revenue growth of 146% to $88.6 million along with over 300% annual growth in Non-GAAP free cash flow. Digital Turbine’s Application media software has been installed on more than 570 million devices at this time and the company’s scalable operating model is exactly what growth investors should be looking for. Although this company is in its early stages, the fact that it is delivering strong earnings growth and offers a business with seemingly unlimited potential makes it one of the best growth stocks to buy on dips.
Another high-flying growth stock that investors should be excited to buy on dips is Pinterest. It’s a company that offers a unique social media platform for visual discovery which allows users to share visual images or “pins” and save and organize ideas and recommendations into collections. With hundreds of millions of active users and strong prospects for monetizing the company’s platform, Pinterest is one of the best options for growth investors interested in social media exposure.
The company recently reported a strong Q4 earnings report that saw revenue rise by 76% year-over-year to $706 million. What was truly impressive about the report was the fact that Pinterest’s MAUs (monthly active users) rose by 37% to 459 million including 46% year-over-year growth in international users. This confirms that people all over the world are joining Pinterest, which should continue to generate double-digit revenue growth throughout 2021. While the stock has pulled back since its impressive earnings report, this shouldn’t be too concerning for investors as the stock essentially had its earnings move heading into the release. It won’t be surprising to see Pinterest reach $100 per share in the coming months, which means adding on dips could be a lucrative decision.
Sea Limited might just be the hottest growth stock in the market right now. The stock has already rallied 40% year-to-date and continues to see heavy buying on any significant dips to the 50-day moving average. It’s an interesting company for several reasons. The fact that it has such a diverse business model consisting of an integrated platform that offers digital entertainment, e-commerce, and digital financial services makes it a triple-threat for growth investors that want exposure to some of the hottest industries today. It’s also intriguing thanks to the fact that it offers investors exposure to emerging markets like Southeast Asia, Taiwan, and Latin America.
Sea Limited is a company experiencing massive growth, as it continues to report huge increases in revenue and adjusted EBITDA with every passing quarter. In Q3, the company saw total GAAP revenue increase by 98.7% year-over-year to $1.2 billion. What’s even more impressive is that both digital entertainment and e-commerce revenue grew by triple-digits in the quarter. It is the leading e-commerce platform in Southeast Asia while the company’s SeaMoney digital payment offerings are also seeing strong growth adoption. The stock is due for a pullback, and growth investors will likely be w
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