Please ensure Javascript is enabled for purposes of website accessibility

Every Stock Market Investor Should Know About These 2 Monday Winners

By Dan Caplinger - Mar 22, 2021 at 4:42PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Double-digit percentage gains could be just the beginning for these high-growth stocks.

Wall Street got off to a strong start on Monday, as major market benchmarks all managed to post significant gains. The rise in the Nasdaq Composite was the largest at more than 1%, but the S&P 500 and Dow Jones Industrial Average also managed to weigh in with respectable performances.

Index

Percentage Change

Point Change

Dow Jones Industrial Average (^DJI 0.00%)

0.32%

103

S&P 500 (^GSPC 2.02%)

0.70%

27

Nasdaq Composite (^IXIC 0.00%)

1.23%

162

Data source: Yahoo! Finance.

Investors are focusing their attention on high-growth stocks, especially stocks they believe can rebound from the recent shellacking the growth sector endured during the second half of February. Two of today's top gainers show plenty of promise, and they're starting to get the backing of professional stock analysts as well. Both Upstart Holdings (UPST 23.47%) and Digital Turbine (APPS 5.71%) posted double-digit percentage gains on Monday, but they could have a lot further to run if they remain as successful as they've been to date.

Just getting started

Shares of Upstart Holdings finished the day up another 32%. That added to massive gains last week that included a nearly 90% move higher on Thursday and another 9% on Friday. Add all that together, and the stock is trading up more than 170% in just the past three days.

Several hands holding up a small trophy.

Image source: Getty Images.

The fun for Upstart shareholders began when the artificial intelligence-powered lending platform provider announced huge gains in lending volume, revenue, and earnings. Upstart also predicted that its revenue would at least double in the coming year, and it announced an acquisition that will help it make a bigger presence in the auto lending space.

Wall Street analysts have had a chance to look more closely at Upstart's results, and they apparently like what they see. At Barclays, analysts boosted their price target on the stock by $42 per share to $110. Barclays was pleased about the fact that Upstart is making money, and it sees the upbeat guidance as saying good things about the lender going forward.

Just about the only negative was that Barclays didn't see fit to change its rating on Upstart from its current call of equal weight. However, in many investors' eyes, Upstart is just getting started as it aims to deliver a superior lending experience to customers eager to spend money again.

Revving its engines

Elsewhere, Digital Turbine's shares were up more than 10%. The advertising technology company made another acquisition in an effort to bolster its growth.

Digital Turbine will acquire Fyber, a German company providing a mobile advertising monetization platform. The $600 million deal will give Digital Turbine access to Fiber's network of more than 180 programmatic demand partners, with a viewership that includes 650 million unique monthly active users across more than 180 different countries around the world.

The move is consistent with Digital Turbine's broader strategy to offer clients comprehensive media and advertising services with a desirable mobile experience for users. Fyber provides another missing piece of the puzzle for Digital Turbine as it aims to create a true end-to-end solution to help clients turn brand awareness into sales.

Investors have liked Digital Turbine's acquisition-fired growth strategy, having previously bid up the stock price on past strategic purchases. There's often a limit to how much a company can grow through acquisitions before it hits a wall, but Digital Turbine shows no signs of stalling out anytime soon.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Upstart Holdings, Inc. Stock Quote
Upstart Holdings, Inc.
UPST
$46.66 (23.47%) $8.87
Dow Jones Industrial Average (Price Return) Stock Quote
Dow Jones Industrial Average (Price Return)
^DJI
$32,223.42 (0.00%) $0.00
S&P 500 Index - Price Return (USD) Stock Quote
S&P 500 Index - Price Return (USD)
^GSPC
$4,088.85 (2.02%) $80.84
NASDAQ Composite Index (Price Return) Stock Quote
NASDAQ Composite Index (Price Return)
^IXIC
$11,662.79 (0.00%) $0.00
Digital Turbine, Inc. Stock Quote
Digital Turbine, Inc.
APPS
$27.21 (5.71%) $1.47

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

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
338%
 
S&P 500 Returns
119%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/18/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.