Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
For every stock enthusiast, 2020 has been a rollercoaster journey. Undoubtedly, COVID-19 shocked the stock market, ushering in an unprecedented investing environment. Investors are now avidly eyeing high growth stocks, and we can’t blame them. Some of these stocks have been growing at a fast-and-furious speed, experiencing not only an aggressive growth but also a consolidating promise of sustainability.
Investors have surprisingly been active, especially a new dawn of day trading led by Dave Portnoy — not the personality you might have guessed. Investors are particularly active in a number of specific investing domains, from the best dividend stocks to the best FinTech stocks. Below, we aim to cover the top growth stocks for the month of July 2020.
What are the Best Growth Stocks in July 2020?
Admittedly, the majority of the best growth stocks for 2020 neatly reside in the tech space. This isn’t unnatural. The technology sector has a traditional resilience in an investment environment fraught with volatility.
This is what we have seen from 2020 so far, no thanks to the pandemic. Besides tech, we will examine some other exciting high-growth stocks in online workplace and fitness.
While other companies were counting their losses, the pandemic has been a disguised blessing for Roku. Across the first quarter of the year, there has been an explosive growth in video entertainment streaming. This is not some out-of-the-blue success; Roku has stepped on the gas since 2017, recording a 600% climb since its IPO.
In the Q1 2020, Roku enjoyed year-over-year growth in its number of active accounts, with an admirable 37% climb to 39.8 million. Similarly, total streamed hours shot up too to 13.2 billion, marking a hefty 49% leap. Revenue has also been on a heartwarming rise for Roku.
Thanks to its user-monetization programs like subscription services and advertisement, Roku saw a year-over-revenue climb of 55%. This brings it up to $320.8 million for last year. Well, Roku has a lot to thank the pandemic for. Streaming hours seemingly went over the roof due to Hollywood studios redirecting their releases to streaming giants like Roku, with theaters closed.
Roku’s user engagement has also shown a larger promise. For the month of May, total streaming hours also enjoyed a climb of 80% compared to the same period last year. Equally, streaming hours went up by 30% compared to last year. Isn’t this overwhelming pool of positive figures becoming unreal?
Well, Roku has experienced some rough sides too, this year. The economic devastation gushing from the pandemic has triggered some significant ad cancellation. But the good news is that Roku has managed to offset these losses reasonably with increased migration of ad money to digital spending from traditional TV. This should go a long way towards quenching your pragmatism regarding the sustainability of Roku’s seeming fantastical climb.
Roku’s CEO expects the party to last much longer. Giving his two cents in the latest earning call, Anthony Wood envisaged sustainable prosperity. According to him: “We believe that the pandemic is accelerating secular trends toward streaming and that these changes will be permanent.” But why wouldn’t we believe him?
In the United States, Roku TVs account for over 33% of smart TV sales. More than that, Roku doesn’t seem to have the virtue (or entrepreneurial vice) of content. The streaming giant is eyeing further expansions, hoping to grab a sizable share of emerging markets like Brazil. With over 1,000 free channels, Roku is poised to a streamer’s darling in emerging markets.
2. Newmont Corp
Gold will always be golden, isn’t it? Newmont is one of the most prominent gold mining enterprises based in the United States. Newmont not only mines gold on American soil, but also as far as Mexico, Chile, Peru, and Ghana.
Central banks are printing currencies all across the globe; expectedly weakening the power of these paper currencies. No one prints gold that readily, giving gold an inherently stabler purchasing power, compared to the likes of euro, dollar, and yen.
Newmont leads the global gold industry with an unparalleled reserve of 100 million ounces of gold. Accordingly, Newmont has been enjoying appreciable growth since the start of the year, snatching a coveted spot in the U.S. News’ 10 best stocks to buy for 2020. Across the last 3 years, Newmont’s has made its shareholders 3x richer, with a stock price accent from $32 in December 2016 to $66 in May 2020.
Gold has the characteristic tendency of holding its own in a bear market. When underlying commodities enjoy a rally, the likes of Newmont are sure to cash into the growth.
Undoubtedly, gold has been reveling in a sharp rise. Gold hit an 8-year high on July 6th, beating the critical $1,800-per-ounce resistance level. Therefore, it is unsurprising that in July, Newmont’s shares have shot up by approximately 40% since the start of the year.
3. CrowdStrike Holdings
With the pandemic tossing everyone online (in terms of remote working arrangements), there has never been a bigger need for cybersecurity. It is estimated that our cybercrime will mop off $6 trillion from the global economy in 2021. Also, with a hacker attacking every 39 seconds, the stocks of cybersecurity firms like CrowdStrike are shooting up speedily.
CrowdStrike has enviably garnished its reputation across the years. It has emerged as an assured global destination for cloud-based cybersecurity solutions. With more companies looking to invest in their digital fortification (against cyberattacks), CrowdStrike has enjoyed enormous growth in Q1 2020.
Precisely, sales have jumped up to $178.1 million for the first quarter. This marked an audacious 85% climb compared to this time last year. CrowdStrike also enjoyed a sharp U-turn in cash flow.
It moved from a $16.1 million cash burn in 2019 Q1 to a free cash flow of $87 million in 2020 Q1. Not bad for a pandemic-ridden era, is it?
CrowdSrtike is also feeding fat from its subscription-based model, turning out gross margins with robust customer retention. Peering closer at the numbers, CrowdStrike’s revenue for Q1 2020 rose to 77%. This is a 5% climb from the 72% recorded in Q1, 2019.
The future looks promising for CrowdStrke. The company yet ambitiously hopes to draw new enterprise customers while getting existing users to pump up their spending. CrowdStrikes boasts an approximate $23 billion market capitalization, valued 30x the sales expected for 2020.
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Fiverr??!! Yes, Fiver. Impulsively, you would think that an online marketplace like Fiverr is misplaced in the list of best growth stocks for July. But if we look closer at the numbers, we see that Fiverr has been partying hard in 2020, enjoying enormous growth. How?
When the pandemic struck hard, employers kicked their workers through the window. With 42% of coronavirus job losses anticipated to be permanent, the gig economy experienced a boom. Fiverr largely savored this boom, with its share rising by 11% in January alone.
Compared to September last year, when Fiverr dropped to an all-time share price low of $17, Fiverr has enjoyed a mouthwatering 50% rally. The gig economy is swelling with a digital pool of content producers spread across the globe. With mounting demands for the gig economy, Fiver anticipates revenue growth of 38% this year and 30% next year.
There is nothing magical about this growth, as Fiverr’s online shopping model has been an enormous success. Effectively, this shopping model pulled in 2.2 million buyers of services for Q2 2019. Not all remote workplaces have been invited to this party. The swell in the gig economy only fetched Fiverr’s rival, Upwork, a meager 100,000 active buyers for that period.
Fiverr’s growth may appear to be a bubble at first, but the platform is energetically building structures to sustain the climb. Fiverr is prompting buyers to buy more services on the platform, with automated recommendations being leveraged to cross-sell. Fiverr’s purchase of ClearVoice (a prominent content marketing platform) is a resounding statement of Fiverr’s ambitions to lord over the gig economy.
What more, Fiverr is taking its expedition past linguistic borders. Traditionally, 70% of Fiverr’s revenue is accrued from English-speaking countries. Fiverr is eyeing the non-English gig economy, launching a dedicated German online, de.fiverr.com, replicating the customary English website version.
According to the founder and CEO of Fiverr, Micha Kaufman,
“International expansion continues to be a key growth strategy for Fiverr, and we believe the potential to unlock further opportunity in the European market is huge.”
5. Peloton Interactive
Talking about fitness and what we naturally think of are the abs and well-sculpted bodies. Well, for Peloton, the famed manufacturer of interactive fitness bikes, fitness is money — thick money! This company is making a fortune from transforming conventional exercise into a lucrative subscription service.
Peloton has enjoyed robust growth since September 2019, when it went public. The last quarter saw revenues spring up to $524.6 million, an impressive climb of 66%. Admittedly, a bulk of this success could be traced to the shelter-in-place orders from authorities.
Peloton’s average monthly worker (for each subscriber) has grown from 13.9 — this time last year – to 17.7 at present. The fiscal Q3 March saw Peleton boasting a connect fitness subscriber base of 886, 100. This was an incredible rise of 94% from March, 2019.
Equally, gross margin shot up by 46.8%, thanks to throngs of fitness enthusiasts trooping into Peleton’s subscriber base. According to Peleton’s CEO, John Foley,
“Over the past several weeks, we believe we are accelerating our market share gains of the $600 billion global fitness industry and increasing our lead as the largest and most scaled connected fitness platform in the world.”
Well, no one would label you cynical if you expect Peleton’s climb to be short-lived. Realistically, the work-from-home trend necessitated by the pandemic and the increased adoption of social distancing are largely powering Peleton’s accent. But Peleton isn’t just riding the crest.
Peleton is making massive investments in consolidating its gains. Peleton is pouring loads of top dollars into fitness programming and software, stationing itself at the forefront of fitness innovation. Also, Peleton is schooling us on influencer marketing by heavily paying famed fitness instructors – like Nicole Meline, Robin Arzon, and Jenn Sherman – to add some gloss to the platform.
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Conclusion: Growth Stocks Remain at the Top
This is an emphatic guide on some of the best growth stocks globally for July. If you’re not sure where to start trading, we’ve compiled a best stock market apps report.
Aside from enjoying speedy growth, these stocks have shown substantial promise in consolidating their gains. This makes them deserving of your investment consideration for this month. Before you go make any concrete move, ensure you carry out sufficient stock research.