Okay, so it’s almost time to play the old year and play the new one. While you’re busy making New Year’s resolutions, let me say that there couldn’t be a better time to build your portfolio.
Do you really want to be stuck with yesterday’s growth stocks? Or those who somehow gained from the health crisis, but now face the most difficult trade-offs? Or maybe the ones you entered before the pandemic defeated them, and you’re basically with your fingers crossed now that the worst seems to be behind you?
It really isn’t worth it. The more you retain shares that do not yield, the more you lose in terms of money as well as time. A year is a long time. Too long to wait when you should be growing up.
In addition, this has been a great year for you and you want 2021 to be as good or better.
Whether you are young and starting to invest or older and have only part of your savings in which you would invest in riskier stocks, the advice is the same.
There are tried and tested methods to eliminate the risk. So don’t reinvent the wheel.
Stick to the basics. Remember that it is profit results that ultimately drive stocks. If a company has great technology that it cannot commercialize, or all the marketing techniques at its disposal, but without a very differentiated product, in both cases, it may not generate the desired results.
At the end of the day, you want to invest in companies that can turn your offers into cash. You do not want them to take too much risk with this, and for those who are not yet making a profit, you want to see a clear path to profit.
This means that you must develop the habit of reading the numbers. Because this is what will tell you what to grab and what to let go.
Zacks proprietary models do just that. There is a rating system for all stocks in the universe that captures these numbers. There are several forms of categorization that help to divide shares according to their sector, also according to their growth potential or value perspectives. So, of course, there are the numbers themselves. This makes it much easier to choose from the thousands of stocks available.
So, here are a few that you might want to check out because of the growth potential that they offer-
Digital Turbine, Inc. APPS
Digital Turbine offers products and solutions such as DT Ignite (TM), a mobile device management solution with targeted application distribution capabilities; DT IQ (TM), a personalized user experience and application discovery tool; DT Marketplace (TM), an application and content store; and DT Pay (TM), a mobile payment and content management solution for mobile operators, device OEMs and third parties. It operates mainly in Berlin, Singapore and Sydney.
Tax revenues for 2021 (ending in March) and 2022 are expected to grow 104.07% and 28.5%, respectively. Therefore, despite the difficult compositions in the coming year, growth is expected to continue. And perhaps, as you already know, a strong growth stock should be able to continue to grow its revenues. It is not enough to simply increase profits, because without revenue growth, profit growth can only be limited by the extent of operational leverage and additional efficiencies that the company may be able to achieve.
Its 2021 and 2022 tax profits are expected to grow 215.0% and 37.0%, respectively.
After exceeding the Zacks consensus estimate by 36.4% in the September quarter, estimates for the current year and the following year increased by 34.0% and 34.4%, respectively.
Shares carry a Zacks Rank # 2 (Buy) and Growth Score A.
Cloudera, Inc. CLDR
Cloudera develops and distributes software for business data operations, including storage, access, management, analysis, security, research, processing and analysis. Its products include Cloudera Enterprise Data Hub, Cloudera Analytic BD, Cloudera Operational DB, Cloudera Data Science & Engineering and Cloud Essentials.
The company’s 2020 and 2021 tax revenues are expected to grow 8.8% and 9.3%, respectively.
Its sales are expected to grow 407.7% and 11.7%, respectively.
After exceeding the Zacks consensus estimate by 66.7% in the September quarter, estimates for the current year and the following year increased by 21.2% and 2.3%, respectively.
Shares carry a Zacks Rank # 2 (Buy) and Growth Score A.
nLight Inc. LASR
NLIGHT supplies high-powered semiconductors and fiber lasers to the industrial, microfabrication, aerospace and defense markets.
The company’s revenues in 2020 and 2021 are expected to grow 24.5% and 15.4%, respectively.
Its sales are expected to grow by 300.0% and 211.1%, respectively.
After a 1.100% surprise in the September quarter, Zacks’ consensus estimate for 2020 went from a loss of 4 cents to a profit of 12 cents. The 2021 estimate jumped 27.6% from 29 cents to 37 cents.
Shares carry a Zacks Rank # 2 (Buy) and Growth Score A.
Himax Technologies, Inc. HIMX
Himax designs, develops and markets essential semiconductor components, including video drivers for large TFT-LCD panels, which are used in desktop monitors, notebooks and televisions; and display drivers for small and medium-sized TFT-LCD panels, which are used in cell phones and consumer electronics products such as digital cameras, mobile gaming devices and automotive navigation displays. It is also expanding its product offering to include LCD TV chipset solutions and LCOS microvisors.
The company’s revenues in 2020 and 2021 are expected to grow 30.3% and 21.5%, respectively.
Its sales are expected to grow 457.1% and 76.0%, respectively.
The company only met expectations for the September quarter, but after the announcement, analysts raised their estimates for 2020 and 2021. Consequently, the Zacks consensus estimate for 2020 jumped 733% to 25 cents and to 2021 it jumped 25.7 % to 44 cents.
Shares carry a Zacks Rank # 2 (Buy) and Growth Score A.
A10 Networks, Inc. ATEN
A10 provides software-based application networking solutions, enabling businesses, service providers, web giants and government organizations to enhance, protect and optimize the performance of their applications and data center networks. The company offers its solutions on optimized hardware devices and as virtual devices in its Thunder Series and AX Series product families.
The company’s revenues in 2020 and 2021 are expected to grow 6.6% and 7.3%, respectively.
Its sales are expected to grow by 1,300.0% and 23.8%, respectively.
The company exceeded expectations for the September quarter by 30.0%, after which the Zacks consensus estimate for 2020 jumped 16.7% to 42 cents and for 2021 jumped 4% to 52 cents.
Shares carry a Zacks Rank # 2 (Buy) and Growth Score A.
Zacks Top 10 Stocks for 2021
In addition to the actions discussed above, would you like to know about our top 10 tickers for the entire year 2021?
These 10 are carefully handpicked from over 4,000 companies covered by Zacks Rank. They are our primary choices for buying and maintaining. Start your access to the new Zacks Top 10 Stocks >>
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Himax Technologies, Inc. (HIMX): Free Stock Analysis Report
A10 Networks, Inc. (ATEN): Free Stock Analysis Report
Digital Turbine, Inc. (APPS): Free stock analysis report
Cloudera, Inc. (CLDR): Free Stock Analysis Report
nLight Inc. (LASR): Free stock analysis report
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