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Are These 3 Growth Stocks Giving Us Buying Opportunities?

By Jose Najarro - May 19, 2021 at 8:00AM

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Long-term investors should be keeping their eyes on these three growth stocks.

In today's video, I look at the growth stocks Airbnb (ABNB -4.83%)Coinbase (COIN -10.87%), and Lemonade (LMND -8.87%). The stock prices for each have dropped roughly 27% to 60% from their 52-week high. Below I share three bullish reasons for each stock on why you should add them to your watch list.

Three reasons to add Airbnb to your watch list

  1. Airbnb reported a 5% year-over-year revenue growth for the first quarter of 2021, despite some areas still experiencing closure due to the pandemic.
  2. Airbnb has strong fundamentals as it is positive in cash flow from operations and has roughly three times more cash and short-term investments than debt. 
  3. Airbnb can benefit as certain parts of the world continue to open back up, and more people begin to travel again.

Three reasons to add Coinbase to your watch list

  1. Coinbase reported an 842% year-over-year total revenue growth and a 62% adjusted EBITDA margin for the first quarter of 2021. 
  2. Coinbase has exceptional fundamentals as it is profitable, highly positive in cash flow from operations, and has roughly four times more cash and short-term investments than debt. 
  3. The current volatility and popularity of cryptocurrencies could indicate that Coinbase will have a solid second quarter.

Three reasons to add Lemonade to your watch list

  1. Lemonade reported a 25% year-over-year premium per customer growth and a 50% year-over-year total customer growth for the first quarter of 2021. 
  2. Lemonade has strong fundamentals as it is positive in cash flow from operations and has substantial cash and short-term investments compared to zero debt. 
  3. Lemonade continues to announce new products. In less than a year, the company has already announced three new products. The most recent is Lemonade Car, a car insurance product.

Click the video below for my full thoughts. 

*Stock prices used were the midday prices of May 17, 2021. The video was published on May 17, 2021. 

Jose Najarro has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Airbnb, Inc. and Lemonade, Inc. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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Stocks Mentioned

Airbnb, Inc. Stock Quote
Airbnb, Inc.
$115.41 (-4.83%) $-5.86
Lemonade, Inc. Stock Quote
Lemonade, Inc.
$25.90 (-8.87%) $-2.52
Coinbase Global, Inc. Stock Quote
Coinbase Global, Inc.
$74.40 (-10.87%) $-9.07

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

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