Identifying top performing stocks early on can unleash significant long-term investment gains. The three stocks I’ve identified as potential buys for long-term growth investors fit a specific investor profile. Those who are looking for exposure to parabolic growth stocks in industries such as crypto and blockchain, e-commerce, and diversified software businesses should read further.
If the bull market continues, these three companies could be among the best stocks to buy to ride the momentum trade higher. Risks do exist, so position sizing is important. But for those looking to take a risk-on approach to equities right now, here are three key stocks to consider.
Coinbase (COIN)
Coinbase’s (NASDAQ:COIN) performance has largely mirrored that of Bitcoin (BTC-USD) and other top cryptocurrencies this year. COIN stock has generally traded flat, as Bitcoin continues to consolidate. However, for those bullish on the future of crypto, and believe that trading volumes will continue to surge as valuations increase in this sector, Coinbase is a great way to play this trend.
As the largest centralized exchange in the U.S., Coinbase directly benefits from surging trading activity on its platform. With a price-to-earnings ratio of 31-times, and plenty of growth opportunity in new markets (Coinbase has expanded to 38 other countries), any sort of regulatory framework put forward by those in the U.S. market could pave the way for outsized global growth.
According to Cathie Woods, Coinbase leads the digital wallet market, which is more of a “winner take most” sector. Coinbase’s blockchain expertise distinguishes it among many digital wallets. With blockchain technology offering superior security and peer-to-peer transactions, Coinbase is a strong bet.
Shopify (SHOP)
Shopify (NYSE:SHOP) shares rose 8.4% this week after Bank of America (NYSE:BAC) analyst Brad Sills upgraded the stock to buy and raised his price target to $82 per share. Despite frequent volatility, this move reflects the market’s positive reaction to this upgrade. The largest recent change was a 19.9% drop two months ago after Q1 results implied slower growth. Shopify expects Q2 2024 revenue to grow in the high teens, down from low 20% range in Q1.
Despite realizing a loss from selling its logistics business, Shopify’s focus on high-margin areas should drive future bottom-line growth. A partnership with Target is expected to boost Q2 revenue, enhancing Shopify’s reach among larger companies. The company raised its revenue forecast for Q2, positioning itself well to benefit from ongoing e-commerce trends.
Shopify, a cloud-native commerce software platform, combines mission-critical software for business operations and a payments business with growth potential. The business is poised for high-margin cross-sells and growth in merchant services. With strong tailwinds like e-commerce and digital payments, Shopify’s growth is expected to be robust and exceed investor expectations.
Constellation Software (CNSWF)
Canadian tech company Constellation Software (OTCMKTS:CNSWF) is an $86 billion giant many investors may not be tuned into. In my view, Constellation Software is a standout choice in the market, particularly among major parabolic growth stocks right now.
Unlike other tech companies, Constellation Software differentiates itself through acquiring, developing, and managing software firms across various sectors. The company also focuses on buying profitable companies and leveraging them to enhance their success. This approach provides Constellation with stability that many others lack.
Listed on the Toronto Stock Exchange in 2006, CSU stock has surged over 22,000% since its IPO. CSU continues to show exceptional performance and unparalleled growth among its peers and rivals in the tech sector.
The company generates substantial free cash flow, suggesting its statutory profit may understate its earnings potential. Additionally, EPS grew 30% annually over the last three years. This analysis aimed to assess the reliability of statutory earnings in reflecting the company’s potential, but investors should also consider the associated risks.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.