London, England, 3rd Nov 2021, Ashford Capital Investments’ broker, Mike Goldman, talked about the top growth stocks to buy right now.
Over the last 15 years, stock market growth stocks in the index have delivered an annualized return of 12.8 per cent, nearly double the 7.5 per cent average return seen among value stocks. Of course, diversification is crucial to any portfolio, but this data suggests that at least part of your assets should be invested.
We’re now seeing a lot of new, interesting technology-related companies popping up, and we’ll continue to see more as the market for this area matures. Microsoft may be slowing down its purchases of smartphone maker Nokia (NYSE: NOK), but it’s still buying smartphones and software makers at breakneck speed; it acquired Instagram in April for
Intuit: The gold standard in accounting software, according to the broker, Intuit may not be the most thrilling growth stock. Still, over 110 million individual consumers, entrepreneurs, and tax professionals rely on its software solutions, including a range of industry-leading brands.
Its QuickBooks program, for example, includes a range of accounting tools that can help small business owners and self-employed people keep track of revenue and costs, send invoices, and pay bills. In this market, Intuit has a commanding lead with a 62 per cent market share. TurboTax is also the most popular tax preparation software in the United.
The broker praises Intuit for imbuing its products with artificial intelligence to automate, predict, and personalize the customer experience. For example, the firm uses AI technology known as knowledge engineering to turn tax rules into computer code. It relies on AI-powered chatbots to answer tax and accounting queries.
Then, in September of last year, Intuit released a new version of its QuickBooks software. The program has been optimized for smaller screens and includes other live performances of TurboTax and QuickBooks, allowing customers to talk with tax and accounting experts in real-time. These services assist clients in making complicated financial decisions with confidence. In the years ahead, management.
Intuit’s performance over the past three years has been excellent. The company’s financial position is strong, with cash and investments totaling $2 billion as of March 31, 2019. For example, Intuit used its acquisition of Credit Karma to fuel growth in digital-transaction processing by 60 per cent year-over-year.
Intuit believes the Credit Karma acquisition will expand its addressable market by $85 billion, bringing the total to $260 billion. That leaves Intuit with a lot of room to develop its business. And because of its strong competitive position, I think this stock has significant potential for investors.
- Square: The disruptive fintech company
The broker opines about Square, which offers financial tools to both merchants and customers, making it easier and less expensive to participate in the economy. The Seller ecosystem comprises hardware, software, and services that aid businesses in managing sales across physical storefronts as well as online shops. Its Cash App ecosystem also includes direct deposit, brokerage, and debit card services.
Square’s approach has generally worked well, with both ecosystems growing strongly. Square’s diverse software product portfolio, which includes everything from point-of-sale to payroll, has aided it is gaining traction among large enterprises (i.e., sellers generating more than $125,000 in gross payment volume or GPV). This group accounted for 65 per cent of Square’s total payment volume in the fourth quarter of 2018.
Square has been equally successful with its Cash App ecosystem, which includes a peer-to-peer payment service called Square Cash and a mobile wallet for deposits and withdrawals, bank transfers, and debit card services. Monthly active users of Square Cash jumped more than 50 per cent.
The Cash App, which launched in 2011 and has been unrivalled in the app store since then, is a financial tool that allows users to manage their finances. In 2021, about one-quarter of consumers checked their account balances more frequently.
Financially, Square has delivered an incredible performance over the last few years, growing its top and bottom lines at a steady clip.
Square just revealed its plans to acquire After pay, a buy now, pay later (BNPL) firm that provides interest-free consumer financing at the checkout line. Despite a vast $29 billion price tag, which Square intends to fund with shares, this acquisition may be a significant growth driver.
According to the broker, Square’s Seller ecosystem should benefit from an increase in GPV thanks to the BNPL services, which tend to boost the number and size of transactions for merchants. The Cash App will function as a payment’s platform for BNPL purchases while also being a merchant discovery tool for customers, which should increase overall interaction.
In a nutshell, the broker said these two stocks have an innovative approach to finance that has earned them a substantial following, and management is continuously expanding the business in new areas. That’s why this stock appears like a good value now.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.
Source: Ashford Capital Investments