There can be no doubt that growth stocks have dominated the world’s major stock market indexes over the past decade. The spectacular returns of the so-called ‘FAANG’ stocks, (Facebook, Amazon, Apple, Netflix and Google), have led many investors to abandon stodgy old value stocks in favour of growth stocks.
Low rates in all major global markets will help to keep the growth dynamic going, possibly for years to come, and the incremental success of the vaccine program meaning less business restrictions in the near future also gives great confidence.
The rocket-powered returns which rapidly growing tech stocks enjoyed over the last ten years may be coming soon for some other sectors. Remember that share price growth can easily compensate for weak dividend payments, so ambitious investors need to have an eye on growth potential when picking stocks. Growth potential means buying cheap stocks which can be expected to rise in value a lot fairly quickly.
Here we take you through 5 stocks that could be the next big movers which could add growth to your portfolio and make you richer this December and beyond.
5 Growth Stocks That Could Make You Richer In December:
1. PayPal Holdings
First mover into the now incredibly profitable digital payments industry, PayPal still hold a significant market share and show a willingness to grow further. Since it was spun off from eBay in 2015, the PayPal share price has more than quintupled.
Covid restrictions only served to boost the demand for online payments services even faster and further than previously expected. The fact that current owner Will Danoff bought more stock in 2020 rather than cashing out suggests he sees further growth potential here. PayPal could well be one of those magical stocks with strong growth both in its past as well as in its future.
Check Out: PayPal (PYPL) Stock Price Prediction
2. Hilton Worldwide Holdings
This is a controversial selection given that the hospitality industry has been so comprehensively battered for more than 12 months now.
However, there are reasons to suggest a recovery here is imminent. Hotel groups are currently extremely cheap by historical standards, and more and more analysts are predicting strong demand will re-emerge later this year as restrictions ease around the world.
Hilton was also able to tap capital markets for borrowing at low rates easier than expected this year, meaning short-term cash flow is unlikely to be a problem.
3. Alibaba Group
Alibaba may well be the biggest growth opportunity of the next decade, just as Amazon was of the past decade. Alibaba is the increasingly well-known Chinese e-commerce giant that has seen revenues more than triple in the last three years, and this runaway growth shows no signs of stopping any time soon.
The stock price has of course soared on the back of these stunning earning reports, but many observers see continued upside potential as the group has yet to tap into many international markets.
As such, although already a little pricey Alibaba stock could well be something to add to a dynamic portfolio focused on growth and wealth creation in the near to medium term.
Don't Miss: Alibaba (BABA) Stock Price Prediction
4. Stryker
Not a household name, Stryker produce medical devices for hospitals, pharmaceutical companies and doctors’ surgeries around the world.
They have gained large markets shares in the US, as well as Australia, Germany, Canada and China, and have plans to expand their presence in the UK soon.
Just as the Covid pandemic has reminded investors and the public alike that pharmaceutical companies are vitally important, medical device manufactures are also expected to see rising and sustained demand for the hears to come.
Public and private healthcare services around the world are desperate to invest now to build up the capability in advance of future public health emergencies.
This means earnings can be expected to be strong for many years to come, and this show power substantial share price increases.
5. Pension Bee
There is no growth without risk, so for a final pick, we have selected the recently listed Pension Bee. Pension Bee is an online pension provider operating in the UK.
Its USP is that it will quickly and cheaply amalgamate all of your previous pensions onto a single pot which you then get a lot of say in how the funds are managed.
This easy and effective service has gained the firm a flood of new customers, and management were confident enough to go ahead with an IPO in April 2021. Shares are currently changing hand at around 80p per share, but the upside potential of this innovative financial services company is virtually unlimited as more and more people look to manage their pensions online.
Growth Or Dividends?
Obviously, the ideal stock portfolio would contain both an ample dose of growth potential for smaller, more innovative companies, as well as a good serving of dividends from larger, more stable ones.
Today investors have more choice on both these fronts than ever before. These five stocks all have massive growth potential, and so could increase the investor's wealth a great deal in a short time frame, but they almost all pay low dividends. These growth stocks could make you richer in December and would add dynamic potential to any portfolio.
eToro - Best Online Broker For Growth Stocks
eToro have proven themselves trustworthy within the stock market over many years – we recommend you try them out.
Your capital is at risk. Other fees apply.