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3 Top Growth Stocks to Buy Right Now

By Joe Tenebruso – Apr 23, 2020 at 7:00AM

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These companies are helping the world combat COVID-19 -- and making their investors rich in the process.

There's no better way to earn life-changing wealth in the stock market than growth investing. Well-chosen growth stocks can deliver returns of 10, 20, and even 100 times or more your original investment, making you incredibly rich along the way.

The key, of course, is to know which growth stocks to buy -- and when. To help you in your pursuit of the stock market's best growth companies, here are three stocks that are delivering fortune-building gains to their investors.

A compass pointing to the word growth.

If you're looking for a way to turbocharge your investment portfolio's gains, check out these top growth stocks. Image source: Getty Images.

Teladoc Health

The COVID-19 pandemic is stretching hospitals to their breaking points. Health officials are desperately trying to scale their operations so as to be able to provide care to more people. Telemedicine is a key part of their plans -- and Teladoc Health (TDOC -3.54%) is the clear leader in this increasingly critical field.

Teladoc facilitates video-conferencing consultations between doctors and their patients. Rather than go to hospitals or other treatment centers, which could expose relatively healthy patients to the novel coronavirus, people can receive professional medical care via apps on their mobile devices.

Demand for Teladoc's services is booming. Just days ago, the company said it was routinely providing more than 20,000 virtual medical visits per day in the U.S., up from approximately 10,000 in early March. In turn, Teladoc now expects its revenue to rise 40% year over year, to roughly $180 million, in the first quarter of 2020. Its stock is already up 115% so far this year, and -- with Teladoc's growth likely to remain robust in the coming quarters -- much more gains could lie ahead for investors who buy shares now.

Zoom Video Communications

Like Teladoc, Zoom Video Communications (ZM -0.12%) is helping to keep people safe during the coronavirus pandemic. Zoom's technology enables video chats and other video-based communications. Businesses were already adopting its platform in droves, and the COVID-19 crisis has only served to accelerate this trend. In addition, many schools that have been forced to close during the pandemic are now using Zoom to communicate with their students, while many individuals are using it to host group chats with quarantined family members and friends.

Zoom is experiencing incredible growth. Its user base has soared to more than 200 million people per day, up from about 10 million at the end of 2019. Zoom's platform has performed admirably during this period of rapid expansion. The company has built its systems to be able to scale quickly as needed, which should pave the way for continued growth in the future. Better still, Zoom is already profitable. And as a software-based business, it should enjoy margin expansion as more users join its platform.

Zoom's stock price has climbed by more than 120% so far in 2020. Yet more gains are likely ahead. Despite its torrid pace of expansion, Zoom currently has only a small share of a market that could eventually exceed $40 billion, according to IDC. With so much growth still to come, investors who buy shares today should be well rewarded in the years ahead.

Shopify

The COVID-19 pandemic, and the social distancing measures enacted to combat it, have decimated a huge swath of the traditional retail industry. E-commerce has long been the future of retail, and now -- due to the devastation caused by the novel coronavirus -- that future has arrived.

Shopify (SHOP 0.67%) is one of the companies best positioned to benefit from this megatrend. Shopify helps businesses build and grow their e-commerce operations. It offers website design, payment processing, shipping, marketing, and business financing services, among other solutions. Shopify already powers more than one million online businesses -- and more merchants are likely to flock to its platform both during the coronavirus pandemic and after.

Like Teladoc and Zoom, Shopify is experiencing tremendous growth. Its revenue surged by 47%, to $1.6 billion, in 2019. And with the e-commerce platform experiencing surging traffic levels during the COVID-19 crisis, Shopify's growth is likely to continue to dazzle investors in the coming quarters. Thus, its stock's 55% gains so far in 2020 could be just the beginning of a far larger upside move.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Shopify, Teladoc Health, and Zoom Video Communications and recommends the following options: short May 2020 $120 calls on Zoom Video Communications. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Shopify Inc. Stock Quote
Shopify Inc.
SHOP
$28.76 (0.67%) $0.19
Teladoc Health, Inc. Stock Quote
Teladoc Health, Inc.
TDOC
$26.97 (-3.54%) $0.99
Zoom Video Communications Stock Quote
Zoom Video Communications
ZM
$74.45 (-0.12%) $0.09

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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