Are you ready to add new stocks to your portfolio this year? Ensure that the stocks you choose are a good fit for your investment strategy by doing your research. Our list of the top stocks tap into fast-growing trends. Before investing in these stocks, be sure to do your own research. It isn’t easy to find the best up-and-coming stocks. A thorough evaluation of the company’s financials is required.
Some companies are performing well but are not good long-term bets. It is important to research a company’s financials and track record before investing in order to make sure it will be a good long-term bet. Some may end up being good investments, but their current market positions don’t seem strong enough. It is important to do your research before investing in any stock, to make sure that you are making a sound financial decision.
Selecting the right companies that could have years of strong performance takes a certain amount of early initiative and long-term patience. Over the long-term, investors who devote the time and effort to research potential investments can reap significant rewards.
You don’t have to find these stocks on your own. There are a lot of resources available to help you research potential investments. We have compiled a list of 10 fantastic growth stocks that we think have the potential to lead in their respective markets in the years to come. Long-term investors looking to build a portfolio for the future could benefit from these stocks.
How to Spot Up-and-Coming Stocks
Before we jump in, here are two key requirements that we considered before adding a company to this lineup:
- Momentum: We first asked the question “Does this company have enough momentum to grow for years to come?” The stock didn’t make the cut if we didn’t think its sales would keep growing.
- Any growth stock worth its salt needs to tap into a huge market. The companies are doing that. They want to provide products and services that impact customers and society.
Only companies we believe to be high-quality stocks have been added. There are a variety of advantages for investors in these stocks. You will not find penny stocks here. This ensures that our clients can invest confidently, knowing that their money is in safe hands. Our stocks are not without risk. Past performance is not indicative of future results. Investing in the stock market always comes with risk, and betting on high-growth companies adds an extra layer of it that investors should be aware of.
Before buying any stock, you should do your own homework. Before investing, it is important to research the stock thoroughly and understand the risks. Some of the companies on this list won’t appeal to you. It’s important to research each company thoroughly before making a final decision. If they meet your investing standards, they should be scrutinized. It’s important to remember that not all investment opportunities are worth it.
Top 10 Up-and-Coming Stocks to Invest In
Here are 10 of the top up-and-coming stocks for 2023:
- Roblox
- Doximity
- Upstart Holdings
- Lemonade
- Lucid Group
- Beyond Meat
- Airbnb
- Stitch Fix
- Ethereum
- Confluent
1. Roblox (NYSE: RBLX)
Price: $41.37 (as of close Mar 3, 2023)
- Momentum: Roblox’s sales increased 102% year-over-year in the third quarter of 2021
- Growing Market: The global video game market will be worth an estimated $293 billion by 2027
Roblox is not a typical video game company. Users can use the game’s powerful development tools to create and share their own digital experiences. The Roblox platform allows users to create their own games and experiences, as well as hosting professionally developed games.
This has created a gaming experience that is nearly unparalleled by other companies. The experience draws players in and encourages them to stay. There are over 9 million developers in the Roblox community. The community is made up of players from all over the world. Combined, they’ve created 24 million gaming experiences. Talk about decision fatigue. It’s important to be aware of your decision-making abilities and take breaks when needed in order to stay productive and make the best decisions possible, as decision fatigue can lead to bad decisions and lowered productivity.
However, even more, impressive is the number of gamers who are logging into Roblox: more than 47 million daily average users. That’s daily. Every single day. I try to stay positive no matter what.
If you think that gaming is a strange market that only slackers would invest in, please back up the bullet point above. Even people who haven’t traditionally been interested in gaming are now investing in the industry because of its success.
That’s right, the global video game market will reach a very impressive $293 billion five years from now, up nearly 87% from its current size.
2. Doximity (NYSE: DOCS)
Price: $34.44 (as of close Mar 3, 2023)
- Momentum: The company finished its most recent quarter with year-over-year revenue growth of 76%
- Growing Market: Management believes Doximity’s total addressable market is $18.5 billion.
Unless you are a doctor or nurse, there is a good chance you have never heard of Doximity. Doximity is a platform that healthcare professionals can use to stay connected. Let me introduce you to one of the most popular medical professional platforms.
Doximity built its physician-first tech platform to help medical professionals “collaborate with their colleagues, securely coordinate patient care, conduct virtual patient visits, stay up-to-date with the latest medical news and research, and manage their careers.”
It is a lot for one platform to get right, but Doximity appears to be doing it well. Consider that 80% of the U.S. population. Employers should take advantage of the technology and use it for the benefit of their employees. physicians already use Doximity, including more than 90% of graduating U.S. medical students.
Doximity’s platform is popular. How is the company doing? The company’s financial performance has been strong this quarter.
Fantastic, actually. Sales in the second quarter of fiscal 2022 skyrocketed 76% from the year-ago quarter and the company is profitable — a rarity among growth stocks.
Doximity just went public last year, which means that investors who want a long-term investment in this rising tech stock could have many years of potential growth. It is expected that Doximity’s success will continue to grow, making it a great option for investors.
3. Upstart Holdings (NASDAQ: UPST)
Price: $18.82 (as of close Mar 3, 2023)
- Momentum: Sales skyrocketed 250% year-over-year in the third quarter of 2021
- Growing Market: Total addressable market (TAM) for auto loans is $635 billion, and TAM for personal loans is $84 billion
Artificial intelligence is more than just for robot takeovers. Quality of life can be improved by using artificial intelligence. It can be used to make applying for a loan easier. It is easier and faster to transfer funds between accounts thanks to this technology.
Upstart says that only 48% of Americans have access to the best lending rates, yet 80% have never defaulted on a loan.
Upstart uses artificial intelligence to look beyond the data points traditional lending companies use to help determine if a person will be approved for a loan. The company says it’s better for customers and lending institutions. This has resulted in a more efficient and transparent lending process.
Upstart boasts that it has 75% fewer loan defaults at the same approval rates than the major U.S. banks. The company says that up to 70% of its loans are fully automated. Customers can get a loan without having to go through a lengthy process.
Upstart’s proven ability to grow sales and innovative approach to lending could make it a great investment for years to come. Upstart has seen a lot of success in its short history, and the potential for further growth is exciting.
4. Lemonade (NYSE: LMND)
Price: $15.58 (as of close Mar 3, 2023)
- Momentum: In-force premiums paid by customers increased 84% year-over-year in third quarter of 2021
- The company started tapping the $300 billion U.S. market. auto insurance market
Lemonade is using artificial intelligence to liven up one of the most boring markets out there: insurance. Artificial intelligence is making the insurance industry more efficient and cost effective for consumers.
The company uses artificial intelligence to help customers find policies. Lemonade’s platform allows customers to find insurance that’s cheaper than they’d likely be able to find on their own, and it also uses its smart assistant to process claims as well. The process of filing claims is much more streamlined and efficient because of this.
Lemonade is rapidly growing its user base, increasing its customer count by 45% year-over-year in the most recent quarter. And the dollar amount of in-force premiums (IFP) — a fancy term insurance companies use for policies that are active and being paid — increased 84% compared to the same quarter of fiscal 2020.
Lemonade’s fantastic third-quarter results are even more impressive because the company just launched its car insurance offering. In a short time period, Lemonade has achieved tremendous growth. This means it still has plenty of room to benefit from this massive $300 billion market.
And with more than 1.4 million customers already using Lemonade, we think this company’s AI-based insurance platform is just getting started.
5. Lucid Group (NASDAQ: LCID)
Price: $8.94 (as of close Mar 3, 2023)
- Momentum: Deliveries started at the end of 2021, but Lucid already has more than 17,000 vehicle reservations
- Growing Market: The global EV market will reach an estimated $918 billion in 2028
It is nearly impossible to write about up-and-coming stocks and not have an electric vehicle maker on the list. As technology advances, investing in EV companies is becoming more popular. The shift to battery-powered vehicles is well under way as the EV market is still in its early stages. The potential for growth in the EV market is enormous, as more and more consumers are becoming aware of the environmental benefits associated with switch to electric vehicles.
By the year 2030, more than half of new car sales will be in the U.S. Electric vehicles are likely to have a significant impact on the environment. will come from EVs. There is a promising bet in the rapidly expanding automotive market.
In mid-2021, Lucid went public. The company’s long-term potential is huge, despite its share price being volatile at times. The company is in a good position to take advantage of the growth of emerging markets. The goal of the company is to make one of the most luxurious vehicles you have ever seen, with a battery range to match. The longest range electric vehicle on the market is the Lucid Air, which has a range of up to 517 miles on a single charge.
The company only sells one car, the Air sedan. There is a chance of introducing more models in the near future. The Dream Edition will be delivered by the end of 2021.
While it boasts some impressive interior appointments, it’s the car’s optional 118kWh battery pack delivering up to 1,111 horsepower or 520 miles of range that’s truly impressive. The Air won Motor Trend’s “Car of the Year” award. Consumer Reports named it one of the 10 best cars of the year.
There are plans for an all-electric SUV from the company. The company plans to launch a series of electric vehicles over the next decade.
Vehicle production will ramp up this year, and Lucid says it will deliver 20,000 Air sedans (albeit a less expensive version than the Dream Edition) by the end of 2022.
6. Beyond Meat (NASDAQ: BYND)
Price: $18.71 (as of close Mar 3, 2023)
- Momentum: Net sales increased 13% year-over-year in third quarter of 2021
- Growing Market: Plant-based meat products market will reach an estimated $23 billion by 2024
Whoa! There is a plant-based meat company on the list. An exciting sign of the times is that a unique and innovative company is being given the same recognition as more traditional industries. It surprised me as well. I didn’t believe it when I heard it. It seems like a mistake to ignore this market and how Beyond Meat is competing in it. It would be wise to consider the potential of Beyond Meat and how it fits into the larger market landscape before making any decisions.
Beyond Meat’s plant-based burgers, meatballs, sausage, and chicken can be found in more than 112,000 grocery stores and restaurants.
The company has made gains in the restaurant space. The company’s success is due to their commitment to delivering a high-quality dining experience to their customers. It has partnerships with fast-food chains, including a recent collaboration with KFC to offer a There is a Beyond Fried Chicken meal in all of the company’s restaurants. The Beyond Fried Chicken meal is part of the commitment to provide customers with delicious and innovative plant-based options.
Beyond Meat increased sales by 19% in the first nine months of 2021, compared with the same period in 2020, and there’s plenty more room to grow. The plant-based meat market will be worth an estimated $23 billion in the next several years
The share price of Beyond Meat has gone up and down since the company went public a few years ago. It is important to be aware of the risks associated with investing in Beyond Meat’s stock. If Beyond Meat can continue to grow into this market and expand its partnerships, it could be a long-term winner. It could become the go-to meat substitute for people looking for a more sustainable option.
7. Airbnb (NASDAQ: ABNB)
Price: $125.73 (as of close Mar 3, 2023)
- Momentum: Revenue is up 70% compared to the year-ago quarter
- Growing Market: Total addressable market for combined short-term stays, long-term stays, and experiences is $3.4 trillion
It doesn’t seem like an up-and-coming stock, considering it’s already a household name in the short-term rental space. Since it went public last year, the company’s share price has not performed well. There is massive upside potential forAirbnb in the years to come.
The travel industry is still feeling the effects of the Pandemic. Travelers can still enjoy a safe and worry-free vacation with proper safety precautions. It will not last forever. We may enjoy the weather while it lasts, but it won’t last forever. In the most recent quarter, the gross booking value was up 48% from a year ago. As more people become aware of the convenience and cost savings thatAirbnb offers, the company continues to grow.
Even more impressive is the fact that the company’s third-quarter GBV was up 23% from the same period in 2019 (that means GBV is up significantly compared to pre-pandemic levels).
Revenue increased 70% in the most recent quarter on a year-over-year basis and up 36% from the third quarter of 2019. Not to mention that gross profit skyrocketed 280%.
It is not hard to imagine how well Airbnb will perform when the epidemic is over.
8. Stitch Fix (Nasdaq: SFIX)
Price: $5.05 (as of close Mar 3, 2023)
- Momentum: Sales jumped 19% year-over-year in the first quarter of fiscal 2022
- Growing Market: Stitch Fix estimates its addressable market will reach $220 billion by 2025
Over the past few years, clothing and retail companies have taken a hit due to the Pandemic. In order to stay afloat during the Pandemic, many clothing retailers shifted their focus to digital marketing.
Stitch Fix felt the effects of that. Stitch Fix has been working hard to meet consumer needs after seeing a surge in demand. Its share price has tumbled about 68% over the past 12 months. Why put this stock on an up-and-coming list? Even in its current state, this stock is worth considering. It has the potential to bounce back.
Stitch Fix is tapping into the fast-growing trend of online apparel shopping and recently started offering an artificial intelligence-based system to suggest clothing ideas and styles to customers. Customer data is used to personalize clothing suggestions, creating a truly individualized shopping experience for each user.
Even though investors haven’t reaped the rewards yet, the company’s innovative approach to selling clothes online is already paying off.
Stitch Fix has 4.2 million active clients and sales in the most recent quarter were up 19% from a year ago. The company shows no signs of slowing down and continues to grow at a steady rate. Additionally, the company’s net revenue per active client jumped 12% year-over-year in the first quarter of fiscal 2022.
There is no guarantee that Stitch Fix’s share price will reflect the company’s recent performance. Before investing in Stitch Fix shares, investors should be aware of the risks. If the company can continue to expand its business, investors may want to keep an eye on this stock.
9. Ethereum (CRYPTO: ETH)
Price: $1569.56883943 (as of close Jan 1, 1970)
- Momentum: Ethereum’s value has increased 178% over the past 12 months
- Growing Market: Current size of the crypto market is roughly $2.3 trillion
You can invest in it, but it isn’t a stock. You can buy ether token, which is a form of cryptocurrencies. It feels odd not to include a coin in a list of up-and-coming investments.
While most of the investors know a lot about Bitcoins, it may be a bit more of a black box. For those who are willing to take the plunge, ether can provide an exciting opportunity for portfolio Diversification. Let’s find out more about this fast-growing coin. Due to its low transaction fees and high liquidity, it has become a popular choice for those looking to invest in digital currencies.
The first thing to know is that the ether token is helping to create new markets. The way in which digital assets are exchanged is revolutionizing thanks to the use of ether. Defi apps that are part of the larger market have beencreated with the help of the blockchain.
Defi has the potential to make it easier to lend and borrow money, instead of relying on financial institutions. It could help to reduce the cost of traditional financial services and create a more open, accessible system that works for everyone. But one of the best examples of Ethereum’s Currently, DeFi uses non-fungible token markets. DeFi has quickly become the go-to platform for users who want to invest in high-risk, high-reward financial products, and one of the most popular applications of DeFi uses right now is for non-fungible token (NFT) markets, which offer investors an opportunity
Digital assets can include music or images. NFTs are changing the way people collect and trade digital assets. The sale and purchase of these goods can be done safely with the help of theBlockchain. The public ledger makes it easier for buyers and sellers to trust each other.
The entire cripto market is in its early stages, so we still consider ether to be up-and-coming. As the market for cryptocurrencies expands, investors have more opportunities to profit from its success. While investors will have to stomach a lot of volatility with an ether investment, it likely has plenty of potentials to continue growing in the coming years. Many experts believe that ether could be an attractive option for long-term investment.
10. Confluent (NASDAQ: CFLT)
Price: $25.86 (as of close Mar 3, 2023)
- Momentum: Sales spiked 67% year-over-year in the third quarter of 2021
- Growing Market: Total addressable market will be $91 billion by 2024
The phrase “big data” was used a few years ago. Big data is an important part of the way businesses make decisions. Data can be used to improve everything from customer service to improving products. Companies can use data to create better products and services that meet their customers’ needs. While collecting data is easy, using it has proved more difficult.
That is where Confluent comes in. Organizations can use Confluent to build powerful and resilient applications that leverage real-time data. The company has created a cloud-based platform that helps companies go far beyond storing data and instead gives them real-time decision-making capabilities based on the data they have. This has changed the way companies use data to make decisions, allowing them to act more quickly and accurately.
For example, Confluent has been used to build machine learning systems that decide in real-time who are ordinary customers and who are fraudulent ticket scalpers. More tickets will go to genuine fans with the help of these systems, which detect scalpers and keep them from buying tickets in bulk.
Netflix is also a customer, as is Goldman Sachs, PayPal, Walmart, and about 3,000 other companies.
In the most recent quarter, Confluent’s sales skyrocketed 67% year-over-year, and its customers with more than $100,000 annual recurring revenue (ARR) increased by 48%.
Confluent’s growth days are still ahead despite the impressive results. Confluent plans to invest a lot of money in research and development to ensure that their products are relevant and innovative. They expect the company’s addressable market to nearly double between now and 2024.
Adding Up-and-Coming Tech Stocks to a Portfolio
There are lots of potential upside for investors in the stocks on this list. Even small investments in these stocks can yield big profits over time. Balance out the potential upside with more stable investments is what investors need to remember. It is important to remember that with higher risk investments comes the potential for greater gains, but also greater losses.
Why do that? Up-and-coming companies can experience share price volatility. It is important for investors to conduct thorough due diligence before investing in such companies. If you only invest in growth companies, your portfolio is at greater risk of losing money if some of those investments don’t pan out as expected. Diversification is important in order to reduce risk.
To balance out some of that risk, make sure to invest in more stable companies that are not only leaders in their respective markets but also very profitable. Apple is an example. Apple is an example of how innovative thinking can lead to success.
You should invest in an exchange-traded fund that gives you exposure to the broader market. ETFs give you exposure to a range of different assets and are a great way to reduce your risk. Adding higher-growth stocks to your portfolio will help balance your portfolio. Even as you add higher-risk stocks, investing in both stable companies and ETFs can help to ensure that your portfolio remains balanced and profitable.
Don’t invest in companies that you don’t understand. Before making any decisions about investing, it’s important to do your due diligence. Don’t buy a stock if you don’t understand how the company works, how it makes money, and what its potential risks are. It is important to look at the company’s past financial performance and recent news to determine whether or not it is a good investment.
