since the beginning of the year, the stock market has been in complete disarray. Amid multiple macroeconomic headwinds, investors have turned from risky growth stocks to ones that carry significantly less risk or simply to cash. Consequently, many long-term stocks with explosive upsides trade at a substantial discount.
growth investors have enjoyed a golden decade of returns. A report from jp morgan last year showed that global growth stocks outperformed value stocks by 146% over the past 10 years. outperformance greatly accelerated during the pandemic years, as changes in consumer behaviors benefited technology, media, and online retail companies.
Reading: Millionaire maker stock
With growth stocks trading at multi-year lows, it would be wise to add a few now that offer huge long-term upside potential. seven of the most promising are discussed below:
quantum landscape (qs)
quantumscape (nyse:qs) is a leading developer of solid-state batteries. These batteries are expected to have significantly higher energy density and shorter recharge times than lithium-ion batteries. In addition, their cells do not have an anode, which makes them much more profitable than current batteries.
During the first quarter, the company reported positively on its testing of 10-layer cells in use by one of its electric vehicle manufacturing customers. will deliver these initial sample cells to multiple clients this year.
recently published the results of his 16-layer cells, which again met all the requirements. quantumscape believes that it continues to increase layers without affecting the performance of a cell. Plus, having partnered with some of the top automakers, it has the impetus to cross the finish line and achieve the holy grail of electric vehicle batteries.
Betting giant draftkings inc. (nasdaq:dkng) has established itself as a growth giant in sports betting. The legal sports betting market continues to flourish, doubling in the past year with Americans gambling more than $52.7 billion. that number is expected to grow by double digits in the coming years, and draftkings and their peers will reap the benefits.
The company recently reported its first quarter results, where revenue increased 34% to $417 million. the massive increase was led by a 44% rise in its b2c segment. additionally, single monthly payers and average revenue per user increased 29% and 11%, respectively, with strong customer participation.
draftkings anticipates revenue in the range of $1.93 billion to $2.03 billion, a significant increase from its previous vision of $1.85 billion to $2 billion. if he continues on this path, it won’t be long before he breaks even.
block, inc. (nyse:sq) is a fintech disruptor that has been growing at an astonishing rate. their revenues have grown approximately 64% on average over the last five years. it is still expanding its rate of revenue at a healthy pace and moving towards profitability.
cash app, block’s consumer personal finance tool, has been a very popular service and continues to drive the company’s growth. at the end of last year, it had an impressive 44 million monthly active users.
In addition, it acquired buy now, pay later, the giant afterpay, which should substantially improve the company’s network infrastructure. the service generates more than 1 million leads every day for its merchants. enhancements and additions have contributed to the robustness of the ecosystem, with the block benefiting immensely from network and switching effects.
solar energy (spwr)
sunpower corporation (nasdaq:spwr) provides solar products and services to residential, commercial and utility customers. their high performance solar electric systems have become very popular over the years and continue to rapidly gain customers each quarter.
The company added 16,500 customers in the first quarter, up 40% year over year. In addition, there is a record order book of 13,800 reservations, 169% more than in the previous year period. furthermore, their gross margins came in at a whopping 20.6%.
sunpower affirmed its previous guidance for fiscal 2022 with a notable adjusted ebitda of $90 million to $110 million.
also, u.s.a. The Russian oil import ban is a major catalyst for solar energy. Likewise, the Biden administration declared a 24-month exemption from fees on solar panels. therefore, with multiple tailwinds behind it, spwr has an incredible growth track ahead of it.
unity software inc. (nyse:u) is a leading game engine with a user base of over 2.8 billion. The tech giant has posted above-average revenue for growth for the past few years, with cash flows surging sharply. Its target market for games exceeds 4 billion active users, and Unity serves more than 50% of game developers.
Although it has been a mainstay in the gaming space, its non-gaming businesses are growing faster, generating 70% growth in its most recent quarter.
Real-time 3d and the metaverse are the two most promising sectors, with 34 deals closed in the last quarter alone. furthermore, first quarter sales increased 36% year over year to $320.1 million, with a net expansion rate of 135%. therefore, with multiple use cases, it is likely to continue its upward trajectory for the foreseeable future.
microsoft corporation (nasdaq:msft) has established itself as an icon of software and cloud space. its software-as-a-service arsenal is unmatched, with a strong cloud business on azure, along with ambitions in gaming and the metaverse.
is a leading communications platform as a service in automation and equipment. perhaps the icing on the cake is its formidable cybersecurity business.
Microsoft’s role in the software industry is fundamental and has made the company one of the giants in the world of technology. azure has been a fast growing business offering more than 200 products and services. The service alone has helped boost msft’s stock valuation to over $1.5 trillion.
In addition, it has balance sheet strength, with a whopping $104.7 billion cash balance dwarfing its debt load. it also offers a growing dividend, with a payout rate of approximately 26.50%.
advanced micro devices (amd)
semiconductor giant advanced microdevices, inc. (nasdaq:amd) specializes in the production of high-performance computing and technology products. With its wide reach in various lucrative computing segments, there are many things I like about the business.
Their total addressable markets together are worth over $135 billion. In addition, the business has been growing at a breakneck pace, with five-year average sales growth of approximately 32%.
Recent amd product offerings and acquisitions have helped generate substantial cash flows over the past three years. for example, it generated negative $142 million in free cash flow in 2018, which increased to $3.14 billion last year.
In addition, it concluded its latest quarter with record revenue of $5.9 million, which represents a 71% improvement over the same period last year. consequently, it has used its growing cash flows to embark on buyback activities that totaled $1.8 billion last year.