Winter is here. It's cold, the days are getting very short, and the stores are packed with eager shoppers.
But let's not forget stocks. After all, it can be argued that a smart investment is the best present anyone can receive. So, let's have a look at three magnificent stocks begging to be bought right now.
Image source: Getty Images.
Shopify
The holiday shopping season is officially off and running, and early sales figures show it's been fantastic for the e-commerce platform Shopify (SHOP 1.11%).
The company announced that its merchants raked in $4.1 billion in sales on Black Friday -- a new record for the platform. Total sales were up 22% from last year.
That's terrific news for a company already on a roll this year; shares of Shopify are up 110% in 2023.
Behind the surge in its share price are the company's impressive fundamentals. In its most recent quarter (the three months ending on Sept. 30, 2023), Shopify reported 25% revenue growth and $56.2 billion in gross market value -- the total sales amount recorded by its merchants.
What's more, Shopify is increasingly the platform of choice for up-and-coming brands wishing to sell online. Shopify now hosts online storefronts for MrBeast (the enormously popular YouTuber), Kylie Cosmetics, Steve Madden, and many others.
Shopify's renewed momentum is set to continue next year. Analysts expect the company to grow sales 19% in 2024 to $8.3 billion. Earnings per share (EPS) are expected to increase more than 50% to $1.04.
And that's good news for the stock, as the biggest concern for Shopify remains its valuation. Shares trade at a price-to-sales (P/S) ratio of 14, and it's forward price-to-earnings (P/E) ratio remains very high at 72.
SHOP PS Ratio data by YCharts
Growth investors with a long time horizon should keep it in mind. Shopify's impressive sales figures and increasing popularity with fast-growing brands make it a stock worth considering.
Monday.com
Many investors have never heard of Monday.com (MNDY 2.81%), but it's a name growth investors should know. The company, which operates a cloud-based project management and workflow platform, boasts red-hot revenue growth.
In its most recent quarter (the three months ending on Sept. 30, 2023), Monday.com reported 38% revenue growth, with quarterly revenue increasing to $189 million. In addition, large customers -- those with annual recurring revenue of more than $50,000 -- increased 57% to 2,077. The company's net dollar retention rate for customers with 10 or more users, a key figure for companies with a subscription-based model, stands at 115%. That means that the company is retaining -- and growing -- its subscription fee with its largest customers.
MNDY Revenue (TTM) data by YCharts
In addition to its soaring revenue, the company's free cash flow has truly taken off this year. Over the last 12 months, free cash flow has increased to $179 million. Positive free cash flow is important because it shows the company can fund operations without taking on debt. Looking ahead, analysts expect the company to grow sales by 27% next year to $920 million.
There will be, however, concerns for some investors. The stock trades with a price-to-sales multiple of 13. That will rule it out for value-oriented investors. Yet, for growth investors looking to add a higher-risk name to their portfolio, Monday.com is one to consider.
Amazon
Last but never least is Amazon (AMZN 3.43%). As has been the case for many years, e-commerce continues to set records during the holiday shopping season. This year is no different, and once again, Amazon is set to lead the way.
The company announced that it sold over 1 billion products during the 11 days between Nov. 17 and Nov. 27. It also said that it added "millions" of new Prime members during the period. The company already boasts more than 200 million Prime members, but millions more is certainly good news.
Yet while its e-commerce segment is critical to its success, it's always important to point out that Amazon is so much more than delivering cardboard boxes.
For instance, the company announced a new, enhanced partnership with Salesforce. The deal will see Salesforce expand the use of Amazon Web Services to grow its Salesforce Data Cloud, the company's hyperscale data platform.
In another high-tech move, the company introduced a new AI chatbot. Q, as it's known, will focus on the business market -- allowing users to troubleshoot and edit code, among other features.
At any rate, Amazon continues to fire on all cylinders. Shares are up 76% year to date on the back of 13% revenue growth and more than half a trillion dollars in revenue over the last 12 months.
It's undeniable that Amazon will be the source of many presents given and received this holiday season. However, for those looking for a great investment, Amazon stock could be the best gift of all.
