Those who buy the best stocks today pay especially attention to long-term growth because it is very important factor. Many stock reports show that small companies evolving over time and become much bigger due to various reasons.
The average rate of growth is currently estimated at 10 percent. But some firms have acknowledged significantly higher growth rates in the past several years. A few of them have made big strides in trying to move forward. Fortunately, those moves adjusted the stage for higher profits. Finance experts believe only a small minority of those companies are ready to significantly exceed S&P 500 in the next several years.
Below are the most successful candidates among many interesting companies.
SecureWorks (NASDAQ: SCWX) resolves cybersecurity issues for different customers. The company has somewhere around 4.400 clients in almost every corner of the earth. Some of them are really big companies, while others are significantly smaller by fortune and workforce. SecureWorks was acquired by Dell in 2011. And it stayed the main shareholder for a long period of time, despite an IPO launch in 2016. The company saw an average growth of nearly 52 percent per year in the last 5 years. With the increased significance of IT security, finance experts believe the growth rate may move up to 76 percent per year in the next several years. The large growth rate might create this stock one of the top winners on the United States markets.
But this stock has encountered various problems regardless of many positive opinions. SW stock just had an ultimate price of $14 per share when it was launched two years ago. Now it trades for nearly $15 per share. A potential for losses can easily explain the struggle for positions. But finance experts expect higher sales growth in the next 2 years from now. Many of them also think the company is going to become profitable by the end of 2020.
The boost might take off if it can bring higher income. The current company’s market cap is only around $1.18 billion, and a good position in the growing cybersecurity industry may bring many benefits. Also, the potential for the further rise is still very big and that is a very significant thing.
Smart Global Holdings (NASDAQ: SGH) has offered those storage and memory goods for more than twenty-five years. Today, the company is considered as one of the biggest DRAM traders in Brazil, despite the fact that it also sells the same products in the United States, Asia, and Europe. Because of the very high demand for such products, both profits and sales have grown in the recent years. Experts estimate an approximate yearly income growth of almost 70 percent in the next 5 years. All those are reasons why this stock is one of the best to buy right now. Although the main company’s headquarters are in the Cayman Islands, the majority of its operations take place in the United States.
Regardless of the stock long presence, it has only traded officially for a short period of time, starting its IPO on May 24 last year at a total price of exactly eleven US dollars for share. From that time, its stock has moved up at closely $32 for a share. But now it looks like the stock has reached a floor with thirty US dollars for a share.
The lower price makes a good chance for potential investors. If the expected earnings for this year preserve their position, then it would remove the price to earnings ratio to more than 5. Also, the current company’s value is presently estimated at closely $710 million.
This shows good potential for further progress and it might also make Smart Global Holdings stock as a target for Micron Technology (NASDAQ: MU), or any other big memory chip producer. Just like Micron, SGH could also encounter headwinds if memory demand and memory prices go down. Still, investors should pay attention to this stock because the large earnings growth is already projected.
Vertex (NASDAQ: VRTX) began as a biotech firm. The Boston-based company has become one of the top performers in the United States markets, regardless of its bigger value. The total value of this company is projected at $45 billion. It operates mostly in the sphere of autoimmune diseases, viral infections, and cancers.
Orkambi is one of the most profitable company’s drugs, and it leads this company toward the success. Symdeko is a new cure, designed to improve the Orkambi’s performances. However, it will most probably drive new cash flows to the company’s budget as well. The Orkambi’s yearly cost currently stands at $270.000 and Symdeko costs even more. That drives the attention of regulators but on the other hand, the profit from those drugs moved up the stock higher on the market. In the last 18 months, it has doubled its total worth.
The firm has had fast growth many years. Its stock has steadily moved up 49 percent on a yearly basis. Vertex stock recorded an annual income beginning last year. Now, finance experts expect a boost of more than 66 percent on a yearly basis in the next 5 years.
Experts also project consensus profit of $3.2 per share during this fiscal year. For many stocks, it would create a high valuation. However, with this stock growth, it makes sense buying it. Some costs might reduce revenue, but both of those drugs will continue to push the stock higher in the future.