Growth stocks have always generated a lot of interest among investors due to the possibility of enormous long-term gains. These companies may not be wildly profitable but the potential for massive growth and long-term profits can prove to be a highly attractive proposition for many investors. At this point in time there are plenty of such stocks in the market and here is a quick look at three growth stocks that investors could add to their watch lists.
There has been a major shortage of semiconductors ever since the coronavirus pandemic hit last year and that as primarily caused by the shutdown of the manufacturing facilities in Asia. However, chipmakers are getting back into business again and this is where Axcelis comes in.
The company is involved in the manufacturing of ion implantation equipment and that is absolutely essential to the process of chip manufacturing. The company has seen a massive rise in demand for its equipment as a result of the resumption of chip manufacturing activities. At this point, there is a huge demand for chips and that can only be a good thing for Axcelis. The company has projected its earnings per share for 2021 to be $2.68 and that would reflect a significant rise from the earnings per share of $0.50 in 2019.
While it is true that Confluent may not be particularly well known, it may not be long before investors come to know about it. The company is involved in providing its clients with a service that allows them to take action on data that they receive in real-time. The company has managed to emerge as a significant success in recent times and since Q4 2019, it has managed to grow its revenues in every quarter.
Despite the growth, it should be noted that Confluent is suffering from considerable losses due to its high spending. In the third quarter, the net loss had been $96 million. However, the total addressable market could be valued at $90 billion in 2024, and there lies the attraction of the stock as a growth story.
Last but certainly not least, it is the cloud computing firm Cloudflare that could end up being a major growth story in the years to come. At this point in time, the company boasts of a network that spans 250 cities spanning across 100 nations and helps in making the internet as a whole more reliable as well as secure. I
n the past year, the company managed to grow its customer base to 132,390 and that reflected a boost of 31%. In addition to that, the spending on average from customers also soared by as much as 24%. It is a growth story that investors might consider keeping an eye on.