Top 3 Growth Stocks to Invest In
Many companies have been impacted by the COVID-19 pandemic. The coronavirus has led to a volatile economy. The spread of COVID-19 crushed the stock market. With all the ups and downs in the market and COVID-19 Omicron variant cases rising again, the one thing many investors are wondering is… what are the best growth stocks to invest in?
When I think of the best growth stocks in the market right now, three companies come to mind. These companies are forward-thinking and profitable and have immense growth potential.
Growth Stocks to Invest In
Joann Inc. (Nasdaq: JOAN)
Joann Inc. is the largest public arts and crafts retailer. Moreover, it’s one of the fastest-growing businesses in its industry. The creative products industry is a large and growing market. According to a 2017 Association for Creative Industries (AFCI) study, it has a market size in excess of $40 billion. It’s also currently experiencing a significant acceleration for product demand in response to heightened do-it-yourself (DIY) customer behavior due to the COVID-19 pandemic. Joann is seeing amplified participation from both new and existing customers.
The company’s momentum throughout the pandemic has been maintained by those participating in new at-home projects. This is also influencing the continued rise of online marketplaces. Many Joann customers use the products they purchase for their online marketplace-based businesses. Increased digital engagement is another key element of Joann’s growth. This is because it has positioned itself and its go-forward strategies to capitalize on increased demand for creative products.
With the goal of helping every customer find their creative “happy place,” Joann serves as a favorite one-stop shop. It has everything needed to achieve any project or passion. And according to Earnest Research, Joann has seen an average 22% growth in year-over-year sales since May 3, 2020. However, due to rising prices in petroleum-based products, and higher-than-expected shipping costs, the company did not meet analysts expectations for its most recent earnings announcement.
That being said, according to Wade Miquelon, president and chief executive officer, “During fiscal 2022, we achieved a number of critical milestones which we expect will underpin our continued growth longer term.” He continued by saying that “Despite significant supply chain headwinds and disruptions, our top-line improved by 8% compared to pre-pandemic levels.” So it’s no wonder why investors believe this stock to be one of the best growth stocks to invest in this year.
Cleveland-Cliffs (NYSE: CLF)
Cleveland-Cliffs is a vertically integrated steel producer. It has the unique advantage of being self-sufficient with its production of raw materials for steelmaking operations. It’s the largest and oldest independent iron ore mining company in the U.S.
Cleveland-Cliffs is currently earning unbelievable profits. And analysts predict that the company will earn more than $5 per share this year. This is immense earnings growth compared with previous years. In 2017 and 2019, Cleveland-Cliffs earned just over $1 per share. It pulled in $5.98 through 2021. And, annual revenue growth jumped from$2 billion in 2019 to $20 billion in 2021.
The steel-mining giant purchased two big competitors last year, AK Steel and ArcelorMittal USA. Cleveland-Cliffs is now a fully-integrated producer and the largest flat-rolled steel and iron ore pellet producer in North America. These acquisitions came at a great time for Cleveland-Cliffs and might just make it a bet worth taking in the infrastructure industry.
President and CEO Lourenco Goncalves stated that the company “achieved record performance in 2021.” He went on to say that “Our efforts have not gone unnoticed by investors, as our one-year, three- year and five-year total shareholder returns are higher than our peer group.” It’s no wonder why many investors favor the stock, considering the timely enhancements it made just ahead of an industry boom.
Chewy (NYSE: CHWY)
Chewy is an online retailer of pet food and other pet-related products. And many investors believe it’s one of the top growth stocks to invest in. Its mission is to be the most trusted and convenient online destination for pet parents everywhere. The company is such a relationship-based company that its employees know customers’ pets’ names and birthdays. The company will even send a condolences gifts/cards when a customer’s pet passes away. Chewy is known for being a very customer-centric company. This makes it very different from many large companies, like Amazon.
You can buy pet food anywhere. However, Chewy is one of those companies that wants to form a relationship with its customers. It’s the one company that Amazon can’t dominate because it focuses on everything a person could need for their pets. From food and medicine to toys. Something Chewy offers that has continued to drive its recent growth is its auto-ship program. Auto-ship is the easiest way to set up repeat deliveries, and it allows you to save on regularly purchased items. This program allows for you to schedule regular deliveries of pet supplies, ensuring you never run out of your pet essentials.
The auto-ship program is key to Chewy’s success. The more customers Chewy has, the more they tend to turn to auto-ships. People know what they want each month for their pets, and that is a key factor in Chewy’s success. This recurring revenue is a leading factor in its continued growth and current growth prospects.
The leader of all things pet-related continues to deliver decent growth. Chewy has been a huge pandemic winner and will continue to ingratiate itself into our everyday lives.
The stocks mentioned above have all been staying afloat during some tumultuous times. Even during a pandemic, these companies have reported excellent numbers. These stocks are expected to continue seeing growth in their sales and earnings in the months and years ahead. Investors are always looking for profitable opportunities in any market. They are constantly looking for growth stocks to invest in.
These stocks are some of the best in their industries. And many analysts believe they will continue to generate growth and revenue faster than other companies in the same industries.