3 Unstoppable Growth Stocks to Buy for April (and Beyond)

What do you think of when you hear the word unstoppable? For me, unstoppable companies have the resilience, momentum, and wide-open opportunity to continue to grow for decades to come. Stocks for these companies won't always increase in value over any month or even year. But over the long term, they will provide investors with solid market-beating performances.

We asked three longtime Fool.com contributors to come up with their favorite unstoppable stock for April. It's no accident that they picked a trio of companies that are "picks-and-shovels" plays for the massive digital transformation trend that's happening today. Check out why Nvidia (NVDA -3.33%), Digital Ocean Holdings (DOCN 0.95%), and MongoDB (MDB 0.81%) are their top choices to buy this month.

Image source: Getty Images.

Nvidia: A runaway train of chips, software, and more

Danny Vena (Nvidia): Let's be clear: When we're talking about unstoppable stocks, we're not saying there won't be fluctuations in the stock price, but rather that the business is positioned to outperform in its market for years to come. One company that easily exceeds that lofty criteria is the pioneer in graphics processing units (GPU), Nvidia.

The company is the undisputed leader in the space with an unrivaled 83% share of the discrete desktop GPU market. Nvidia has never rested on its laurels and is consistently innovating to develop the next generation of state-of-the-art processors that are a must-have for diehard gamers. The company spent nearly 24% of its revenue on research and development last year. This business is a cash cow, with record gaming revenue that surged 61% in fiscal 2022 (ended Jan. 30, 2022).  

Yet that's just the tip of the iceberg in terms of opportunity. Parallel processing enables Nvidia's GPUs to process a multitude of complex mathematical calculations at ever-increasing speeds -- leaving its competitors in its wake and always playing catch-up.

Nvidia pivoted to cloud computing, using its lightning-fast processors to handle the unique needs of data centers, speeding information through the ether, while providing the number-crunching necessary to power artificial intelligence (AI) applications. In fact, Nvidia is the leading provider of processors used by the major cloud services. Its customer list includes behemoths in the space including Amazon Web Services (AWS), Alphabet's Google Cloud, and Microsoft Azure, as well as a laundry list of other cloud operators of all sizes. This led to a record performance by Nvidia's data center segment last year, as revenue climbed 58%. 

There are other potential growth drivers that are just getting started, including the metaverse and self-driving cars -- and those are merely the ones we know about. Given its relentless innovation, there are likely more worlds to conquer.

Nvidia has only scratched the surface of a large and growing opportunity. Even in the wake of record revenue of $26.9 billion last year, that number pales in comparison to its total addressable market, which management estimates will grow to $250 billion by 2023. 

Given its opportunity and undeniable business trajectory, Nvidia is a buy in April and beyond.

Image source: Getty Images.

Digital Ocean: The IT company building a unique cloud community

Will Healy (DigitalOcean): DigitalOcean has built a niche in the cloud infrastructure market by targeting small and medium-sized businesses (SMBs), a segment ignored by prominent players such as Amazon and Microsoft. Despite a market cap of less than $6 billion, it can compete with the largest companies in tech through two differing strategies.

For one, it offers simple and affordable pricing. Prospective customers can easily find the company's low-cost offerings priced on its website. This stands in contrast to products like AWS and Azure, which typically sell more extensive services to larger companies that concern themselves less with knowing the pricing in advance.

Second, DigitalOcean has built a community around its users. This is a critical benefit to many DigitalOcean customers who run one-person IT departments. Through this community, these workers have a setting where they can both offer and receive advice on resolving IT-related issues. The company just expanded this resource by acquiring CSS Tricks. That site caters to front-end developers and includes about 6,500 articles, videos, and guides related to that topic.

So far, the pricing simplicity and the DigitalOcean community have attracted around 609,000 customers in 185 countries. Also, its approach helped DigitalOcean generate $429 million in revenue in 2021, 35% more than last year. Plus, net dollar retention for the year was 113%, meaning the average client spent 13% more than they had in the previous year. And building on this growth, the company projects between $564 million and $568 million in revenue in 2022, a 32% increase at the midpoint.

Moreover, DigitalOcean has registered massive growth despite trading at a discount of almost 60% from its high. Since its March 2021 initial public offering, it has risen by nearly 35%. Also, the price-to-sales (P/S) ratio has fallen back to 12, a massive discount from the 30 sales multiple of last fall. Given its potential to bring the cloud to SMBs, investors should consider buying this high-growth stock on sale.

Image source: Getty Images.

MongoDB: A leader in the next generation database

Brian Withers (MongoDB): A decade ago, games such as Epic Games' Fornite didn't exist. The bandwidth, data center capabilities, and underlying databases weren't fast enough to host 100 players from anywhere in the world to compete on a virtual island in a battle royale format until there's only one player left. Legacy relational databases that were developed in the 1970s before personal computers, the internet, and the cellphone aren't up to the task of the expectations of users today. That's where MongoDB shines. 

MongoDB is a developer-friendly general-purpose database built for the modern era. Its no-SQL design has the versatility, performance, and scalability to power games such as Fornite and enterprise mission-critical applications. On the back of its Enterprise Advances on-premise platform and its Atlas database-as-a-service offering, the company is expected to eclipse $1 billion in revenue for the upcoming fiscal 2023, ending Jan. 31, 2023.

Let's take a quick look at the company's incredible performance over the last two years.

Data source: MongoDB's most recent 10K SEC filing. Calculations by author. 

Not only has the top line more than doubled in the over the past two years, but its annual growth has accelerated from 40% in fiscal 2021 to 48% this past year. Its easy-to-onboard cloud-based offering is attracting customers hand over fist and is now a majority of the company's revenue. Even more exciting is that many large companies are using the platform to power critical enterprise applications as evidenced by the over 1,300 customers spending at least $100,000 annually.

But what makes this company unstoppable is the incredible opportunity ahead. The database market is expected to grow from $74 billion in 2021 to $121 billion in 2025, a 13% growth rate. Much of the growth will come from new applications that are well suited to MongoDB's platform, but the massive legacy database market is bound to be disrupted as companies upgrade their infrastructure to capitalize on the advantages of the new modern database. With Mongo's tiny 1% market share, it provides the database specialist an incredible opportunity for decades to come.

MongoDB has bounced back from recent lows after its blowout earnings in early March and a recent announcement of a long-term partnership with Amazon. But with the stock still more than 25% off its high, now is a great time to get in on this long-term winner.