{"id":524057,"date":"2022-08-22T04:14:34","date_gmt":"2022-08-22T08:14:34","guid":{"rendered":"https:\/\/financhill.com\/blog\/?p=524057"},"modified":"2022-08-03T12:22:26","modified_gmt":"2022-08-03T16:22:26","slug":"growth-stocks-to-bet-the-farm-on","status":"publish","type":"post","link":"https:\/\/financhill.com\/blog\/investing\/growth-stocks-to-bet-the-farm-on","title":{"rendered":"5 Growth Stocks To Bet The Farm On"},"content":{"rendered":"<div style=\"text-align: justify;\"><em>Growth Stocks To Bet The Farm On:<\/em> With the economy in such a perilous state right now, investors are turning toward low-risk assets to protect their capital during these uncertain times.<\/div>\n<div style=\"text-align: justify;\">&nbsp;<\/div>\n<div style=\"text-align: justify;\">No doubt, there\u2019s certainly some wisdom in adopting a \u201csafety first\u201d approach, especially when the macro-environment is so volatile and unpredictable.<\/div>\n<div style=\"text-align: justify;\">&nbsp;<\/div>\n<div style=\"text-align: justify;\">And yet, there\u2019s always something to be said for taking the contrarian route instead.<\/div>\n<div style=\"text-align: justify;\">&nbsp;<\/div>\n<div style=\"text-align: justify;\">In fact, to paraphrase Warren Buffett: you should be buying when others sell, and selling when others buy.<\/div>\n<div style=\"text-align: justify;\">&nbsp;<\/div>\n<div style=\"text-align: justify;\">Indeed, share prices have crashed recently, creating what could be the perfect opportunity to snap up some undervalued and overlooked bargains.<\/div>\n<div style=\"text-align: justify;\">&nbsp;<\/div>\n<div style=\"text-align: justify;\">With that thought in mind, here are five growth companies that should deliver the goods when the stock market finally recovers.<\/div>\n<div style=\"text-align: justify;\">&nbsp;<\/div>\n<h2 style=\"text-align: justify;\">Planet.com<\/h2>\n<div style=\"text-align: justify;\">Planet Labs operates the <a href=\"https:\/\/dewesoft.com\/daq\/every-satellite-orbiting-earth-and-who-owns-them\" target=\"_blank\" rel=\"noopener noreferrer\">third largest fleet of Earth observation satellites<\/a> in the world, providing imagery and geospatial analytics to its rapidly growing base of private and institutional customers. The firm\u2019s data is 100% machine learning-ready, enabling users to gain enhanced perspectives into what\u2019s really going on at ground level.<\/div>\n<div style=\"text-align: justify;\">&nbsp;<\/div>\n<div style=\"text-align: justify;\">Indeed, the company now boasts a roster of more than 800 clients, generating a recurring average contract value of 90% across the board.<\/div>\n<p><iframe loading=\"lazy\" style=\"margin: 0 auto; border: 0;\" src=\"https:\/\/financhill.com\/widget\/charts\/PL?defaultOverlays=EMA20%2CSMA50&amp;defaultIndicators=ADL&amp;periodGrouping=daily&amp;defaultSeries=candlesticks\" width=\"720\" height=\"500\" frameborder=\"0\" scrolling=\"no\" seamless=\"\"><\/iframe><\/p>\n<div style=\"text-align: justify;\">Helping to drive PL\u2019s expansion is the firm\u2019s superior technological offering. For instance, the company\u2019s new Pelican initiative is being dubbed as \u201ca category-defining satellite constellation,\u201d delivering unprecedented revisits rates and precision images at 30-centimeter resolution.<\/div>\n<div style=\"text-align: justify;\">&nbsp;<\/div>\n<div style=\"text-align: justify;\">For the First Quarter of FY 2023, PL\u2019s revenue increased <a href=\"https:\/\/investors.planet.com\/news\/news-details\/2022\/Planet-Reports-Financial-Results-for-First-Quarter-of-Fiscal-Year-2023\/default.aspx\" target=\"_blank\" rel=\"noopener noreferrer\">26% annually to $40.1 million<\/a>. The company also recorded a net dollar retention rate of 105%, and ended the period debt-free.<\/div>\n<div style=\"text-align: justify;\">&nbsp;<\/div>\n<div style=\"text-align: justify;\">Furthermore, Planet was able to announce its selection by the National Reconnaissance Office to participate in the Electro-Optical Commercial Layer (EOCL) contract. The award gives the NRO 5-year access to PL\u2019s image library, with the option of multi-year contract extensions running through until 2032.<\/div>\n<div style=\"text-align: justify;\">&nbsp;<\/div>\n<div style=\"text-align: justify;\">Importantly, Planet Labs is also highly scalable: the business offers its services through a <a href=\"https:\/\/s29.q4cdn.com\/903184914\/files\/doc_financials\/2023\/q1\/Fiscal-1Q%E2%80%9923-Update-Presentation.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">one-to-many data platform<\/a>, which ensures the cost of bringing in more clients doesn\u2019t become onerous as the firm expands.<\/div>\n<div style=\"text-align: justify;\">&nbsp;<\/div>\n<div style=\"text-align: justify;\">Describing itself as \u201cthe Bloomberg Terminal\u201d for Earth Data, Planet\u2019s certainly shooting for the stars as far as its future aspirations are concerned. And if it maintains its current rate of growth, who\u2019s to say it won\u2019t hit that lofty target?<\/div>\n<div style=\"text-align: justify;\">&nbsp;<\/div>\n<h2 style=\"text-align: justify;\">Sea Limited<\/h2>\n<div style=\"text-align: justify;\">Tech conglomerate Sea Limited is perhaps best known as the owner and creator of the wildly popular mobile phone game, <em>Free Fire<\/em>.<\/div>\n<div style=\"text-align: justify;\">&nbsp;<\/div>\n<div style=\"text-align: justify;\">However, Garena, the digital entertainment wing of the Singapore-based business, is performing poorly, with its consumer base fast declining, and <a href=\"https:\/\/cdn.sea.com\/webmain\/static\/resource\/seagroup\/website\/investornews\/1Q2022\/jMwu2u17Tp3acr3vcL1m\/2022.05.17%20Sea%20First%20Quarter%202022%20Results%20Deck.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">quarterly paying users falling 23%<\/a> in the First Quarter of 2022.<\/div>\n<div style=\"text-align: justify;\">&nbsp;<\/div>\n<div style=\"text-align: justify;\">Nevertheless, the company has two other segments that could promise big gains over the coming years.<\/div>\n<p><iframe loading=\"lazy\" style=\"margin: 0 auto; border: 0;\" src=\"https:\/\/financhill.com\/widget\/charts\/SE?defaultOverlays=EMA20%2CSMA50&amp;defaultIndicators=ADL&amp;periodGrouping=daily&amp;defaultSeries=candlesticks\" width=\"720\" height=\"500\" frameborder=\"0\" scrolling=\"no\" seamless=\"\"><\/iframe><\/p>\n<div style=\"text-align: justify;\">First off, there\u2019s Sea Limited\u2019s e-commerce platform, Shopee, which saw revenue growth improve 64% year-on-year for the last reporting period.<\/div>\n<div style=\"text-align: justify;\">&nbsp;<\/div>\n<div style=\"text-align: justify;\">Furthermore, its FinTech enterprise, SeaMoney, is prominent in the Southeast Asia market, being the <a href=\"https:\/\/en.vietnamplus.vn\/shopeepay-leads-indonesias-ewallet-market\/201571.vnp\" target=\"_blank\" rel=\"noopener noreferrer\">most popular e-wallet in Indonesia<\/a>, and showing well in other territories as well.<\/div>\n<div style=\"text-align: justify;\">&nbsp;<\/div>\n<div style=\"text-align: justify;\">With its stock having lost nearly 65% in 2022, the firm seems well-placed to grow from here. Its gross profit was up 81% in Q1, suggesting it could soon turn its total net loss into a positive in a fairly short space of time.<\/div>\n<div style=\"text-align: justify;\">&nbsp;<\/div>\n<div style=\"text-align: justify;\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/images.unsplash.com\/photo-1509017174183-0b7e0278f1ec?ixlib=rb-1.2.1&amp;ixid=MnwxMjA3fDB8MHxwaG90by1wYWdlfHx8fGVufDB8fHx8&amp;auto=format&amp;fit=crop&amp;w=1171&amp;q=80\" alt=\"\" width=\"852\" height=\"568\"><\/div>\n<div><em>Source: Unsplash<\/em><\/div>\n<div>&nbsp;<\/div>\n<h2 style=\"text-align: justify;\">Block<\/h2>\n<div style=\"text-align: justify;\">Financial services firm Block has lost over 70% of its value in the past twelve months.<\/div>\n<div style=\"text-align: justify;\">&nbsp;<\/div>\n<div style=\"text-align: justify;\">The business, formerly known as Square, was once a stock market darling, having exploded in price from the pandemic crash of early 2020 to its high in the latter half of 2021.<\/div>\n<div style=\"text-align: justify;\">&nbsp;<\/div>\n<div style=\"text-align: justify;\">Unfortunately, the Jack Dorsey-led company ended up falling back to earth with a bang recently. The operation\u2019s tight association with Bitcoin served as a tailwind for the enterprise when the crypto boom was at its peak &#8211; but since then, with BTC suffering large losses over the last few months, SQ has suffered along with it.<\/div>\n<p><iframe loading=\"lazy\" style=\"margin: 0 auto; border: 0;\" src=\"https:\/\/financhill.com\/widget\/charts\/SQ?defaultOverlays=EMA20%2CSMA50&amp;defaultIndicators=ADL&amp;periodGrouping=daily&amp;defaultSeries=candlesticks\" width=\"720\" height=\"500\" frameborder=\"0\" scrolling=\"no\" seamless=\"\"><\/iframe><\/p>\n<div style=\"text-align: justify;\">In fact, Bitcoin revenues were down <a href=\"https:\/\/s29.q4cdn.com\/628966176\/files\/doc_financials\/2022\/q1\/1Q22-Shareholder-Letter_SQ.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">$1.73 billion in the First Quarter of 2022<\/a>, a loss of over 50% year-on-year.<\/div>\n<div style=\"text-align: justify;\">&nbsp;<\/div>\n<div style=\"text-align: justify;\">That said, Block is shaping up to be an industry leader in the emerging FinTech space. The market for financial technology services is expected to grow at a <a href=\"https:\/\/www.vantagemarketresearch.com\/industry-report\/fintech-market-1543\" target=\"_blank\" rel=\"noopener noreferrer\">CAGR of 19.8%<\/a>, reaching a potential value of $332 billion in 2028.<\/div>\n<div style=\"text-align: justify;\">&nbsp;<\/div>\n<div style=\"text-align: justify;\">Indeed, SQ\u2019s Cash App ecosystem could be the winner-takes-all flagship product for a one-stop mobile FinTech solution. It has 45 million monthly active users, and has been the <a href=\"https:\/\/s29.q4cdn.com\/628966176\/files\/doc_presentations\/2022\/05\/Cash-App-Block-Investor-Day-2022.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">#1 finance app in the Apple App Store<\/a> for the last five years.<\/div>\n<div style=\"text-align: justify;\">&nbsp;<\/div>\n<h2 style=\"text-align: justify;\">MercadoLibre<\/h2>\n<div style=\"text-align: justify;\">Latin America\u2019s leading e-commerce marketplace hasn\u2019t had such a great year so far.<\/div>\n<div style=\"text-align: justify;\">\n<div style=\"text-align: justify;\">&nbsp;<\/div>\n<div style=\"text-align: justify;\">Rising interest rates negatively impacted MercadoLibre\u2019s efforts to develop its lending and FinTech businesses, while other headwinds &#8211; such as high inflation and the increasingly fractious political situation in Brazil &#8211; have also caused problems for the Buenos Aires-based company too.<\/div>\n<div style=\"text-align: justify;\">&nbsp;<\/div>\n<div style=\"text-align: justify;\">However, things could be about to get better for MELI in the near term. E-commerce penetration remains low in Latin America at present, but that\u2019s expected to rise substantially over the next few years, growing from <a href=\"https:\/\/www.fidelity.com.sg\/articles\/analysis-and-research\/2021-03-22-the-rise-of-e-commerce-in-latin-america-1616387364368\" target=\"_blank\" rel=\"noopener noreferrer\">8% today to around 16% in 2025<\/a>.<\/div>\n<\/div>\n<p><iframe loading=\"lazy\" style=\"margin: 0 auto; border: 0;\" src=\"https:\/\/financhill.com\/widget\/charts\/MELI?defaultOverlays=EMA20%2CSMA50&amp;defaultIndicators=ADL&amp;periodGrouping=daily&amp;defaultSeries=candlesticks\" width=\"720\" height=\"500\" frameborder=\"0\" scrolling=\"no\" seamless=\"\"><\/iframe><\/p>\n<div style=\"text-align: justify;\">\n<div style=\"text-align: justify;\">Moreover, despite the current fiscal conditions pressing down on MercadoLibra just now, the revenue streams it derives from its various verticals shore up confidence in the brand. The company grew its Total Payment Volume in the First Quarter by over <a href=\"https:\/\/investor.mercadolibre.com\/static-files\/bf2182f6-116d-4951-996f-5e7e824e4054\" target=\"_blank\" rel=\"noopener noreferrer\">81% to $25.3 billion<\/a>, with its credit portfolio spiking a massive 319% year-on-year to $2.40 billion.<\/div>\n<div style=\"text-align: justify;\">&nbsp;<\/div>\n<div style=\"text-align: justify;\">What should be particularly exciting for investors is the fact that MELI\u2019s profit metrics are improving too. Its net income reverted from a <a href=\"https:\/\/investor.mercadolibre.com\/static-files\/009a454a-6b3b-4c01-810a-5577543c8148\" target=\"_blank\" rel=\"noopener noreferrer\">loss of 2.5% in Q1 2021<\/a> to a gain of 2.9% in 2022, while the company\u2019s gross profit margin also grew, from 42.9% last year, to 47.7% for the same quarter this time round.<\/div>\n<div style=\"text-align: justify;\">&nbsp;<\/div>\n<\/div>\n<h2 style=\"text-align: justify;\">Snowflake<\/h2>\n<div style=\"text-align: justify;\">According to analysts at investment firm Baird, Montana-based data warehousing company Snowflake is an industry leader in the emerging field of \u201cnext-generation data.\u201d<\/div>\n<div style=\"text-align: justify;\">&nbsp;<\/div>\n<div style=\"text-align: justify;\">That\u2019s quite an endorsement. Indeed, with a stated price target of $200 implying a 33% upside to the firm\u2019s current valuation, these Wall Street insiders aren\u2019t coy about putting their money where their mouth is.<\/div>\n<p><iframe loading=\"lazy\" style=\"margin: 0 auto; border: 0;\" src=\"https:\/\/financhill.com\/widget\/charts\/SNOW?defaultOverlays=EMA20%2CSMA50&amp;defaultIndicators=ADL&amp;periodGrouping=daily&amp;defaultSeries=candlesticks\" width=\"720\" height=\"500\" frameborder=\"0\" scrolling=\"no\" seamless=\"\"><\/iframe><\/p>\n<div style=\"text-align: justify;\">For those already aware of Snowflake, this shouldn\u2019t come as a surprise. The company is a rapidly expanding software-as-a-service business that\u2019s already logging astonishing growth metrics so early in its development, with a net revenue retention rate of 174% for the First Quarter of fiscal 2023, and a product revenue that\u2019s accelerating at <a href=\"https:\/\/s26.q4cdn.com\/463892824\/files\/doc_presentations\/2022\/Snowflake-Investor-Day-2022_vF.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">106% year-on-year<\/a>.<\/div>\n<div style=\"text-align: justify;\">&nbsp;<\/div>\n<div style=\"text-align: justify;\">It can\u2019t be understated just how important SNOW\u2019s services are to businesses traversing the so-called \u201ccloud migration\u201d process.<\/div>\n<div>&nbsp;<\/div>\n<div style=\"text-align: justify;\">In fact, Snowflake can count 506 of the Forbes Global 2000 companies as customers, with the likes of Dropbox, CapitalOne, and Goldman Sachs using its native applications or cybersecurity capabilities in some way.<\/div>\n<div style=\"text-align: justify;\">&nbsp;<\/div>\n<div style=\"text-align: justify;\">And as the data transformation process continues apace, Snowflake will be there to capitalize on this burgeoning industry.<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Growth Stocks To Bet The Farm On: With the economy in such a perilous state right now, investors are turning toward low-risk assets to protect their capital during these uncertain times. &nbsp; No doubt, there\u2019s certainly some wisdom in adopting a \u201csafety first\u201d approach, especially when the macro-environment is so volatile and unpredictable. &nbsp; And [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":524059,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[22],"tags":[312,356,578,346,468,676,372,740,317,542,488,425,318],"class_list":["post-524057","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-aapl","tag-awre","tag-dbx","tag-gic","tag-gs","tag-meli","tag-bpop","tag-rhi","tag-se","tag-snap","tag-snow","tag-sq","tag-tgt"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/financhill.com\/blog\/wp-content\/uploads\/2022\/08\/Untitled-design-2022-08-03T111653.134.jpg","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p9czeV-2ckx","_links":{"self":[{"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/posts\/524057","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/comments?post=524057"}],"version-history":[{"count":5,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/posts\/524057\/revisions"}],"predecessor-version":[{"id":524063,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/posts\/524057\/revisions\/524063"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/media\/524059"}],"wp:attachment":[{"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/media?parent=524057"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/categories?post=524057"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/tags?post=524057"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}