Please ensure Javascript is enabled for purposes of website accessibility

3 Growth Stocks I'd Buy Right Now

By Keith Speights - Apr 5, 2021 at 5:52AM

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

Without any hesitation.

Don't believe for a second that you should avoid growth stocks. Yes, there has been a significant shift of money away from many previously high-flying stocks into less pricey stocks over the last couple of months. However, that doesn't impact the long-term prospects of the best growth stocks at all.

On the contrary, the recent sell-off has made quite a few stocks even more attractive thanks to their lower prices. Here are three growth stocks, in particular, that I'd buy right now.

Fingers holding a wood block with a star carved on it near two identical blocks

Image source: Getty Images.


Etsy (ETSY 0.51%) has held up better than many stocks with the latest market rotation. Shares of the e-commerce company are down only 15% from the highs set earlier this year. I think Etsy is poised for a strong rebound.

The company enjoyed a banner year in 2020 because of the COVID-19 pandemic, with gross merchandise sales growing 2.5 times faster than the U.S. government's e-commerce benchmark. While face mask sales presented a significant source of revenue growth, Etsy had a much broader appeal for customers looking for unique, handcrafted products. 

My prediction is that Etsy will continue to deliver exceptional growth well after the pandemic is over. Etsy now ranks as the fourth-largest e-commerce site in the U.S. based on monthly visits. It's one of the most recognized brands in retail. A growing number of customers return to the site frequently for purchases, with 88% of Etsy buyers saying that the platform offers products that can't be found anywhere else.

I also like that the company is investing heavily in product development. Etsy has improved its search capabilities. It's expanding the use of video to allow sellers to tell their stories more effectively. 

Etsy is only in the early stages of going after the huge online retail market. This stock should be a tremendous winner over the next decade.

Social Capital Hedosophia Holdings V 

I'm a big fan of fintech stocks in general. So when I saw that Chamath Palihapitiya's special-purpose acquisition company (SPAC), Social Capital Hedosophia Holdings V (IPOE), planned to take SoFi public, my interest was piqued.

SoFi stands out as one of the most innovative fintech leaders around. The company's app is a one-stop shop that offers individuals a wide range of financial services, including applying for loans, depositing checks, buying and selling stocks, and making digital payments.

The innovations keep on coming. SoFi recently announced that its app will enable users to invest in initial public offerings (IPOs) of companies going public. Buying IPO stocks has long been exclusive to large institutional investors and the super-rich.

SoFi also has big banking ambitions. In March, the company announced a deal to acquire Golden Pacific Bancorp. This transaction is a key milestone for SoFi to obtain a national bank charter, which would reduce its costs of funding loans and offer more products and services to customers. 

IPOE is down more than 30% from its January peak. I think the stock will deliver great long-term returns after the merger with SoFi closes.

Teladoc Health

Teladoc Health (TDOC 6.61%) skyrocketed nearly 140% last year. The telehealth stock also got off to a great start in 2021, with shares jumping as much as 46% by late February. But Teladoc gave up all of those gains and more. Its shares are now down nearly 9% year to date.

One key reason behind Teladoc's fall is that the company's dizzying growth rate from 2020 appears to be tapering off significantly. Another is that plans to enter the telehealth market this summer. Neither are issues that scare me away from Teladoc.

The company should still have strong growth prospects over the next decade and beyond. Teladoc is only scratching the surface of its U.S. telehealth market. It also has great cross-selling opportunities with the digital health platform for chronic disease management it picked up with the acquisition of Livongo.

I think the virtual-care market will be big enough to support multiple winners. And I'm confident that Teladoc will be one of those winners. This healthcare growth stock still looks like a great pick for long-term investors.

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

Teladoc Health, Inc. Stock Quote
Teladoc Health, Inc.
$32.91 (6.61%) $2.04, Inc. Stock Quote, Inc.
$2,146.38 (0.19%) $4.13
Etsy, Inc. Stock Quote
Etsy, Inc.
$79.24 (0.51%) $0.40
Social Capital Hedosophia Holdings Corp. V Stock Quote
Social Capital Hedosophia Holdings Corp. V

*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
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/20/2022.

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.