10 Growth Stocks to Buy Now

There are many popular styles of investing, and each method has its own advantages for the diversifying investor. Growth investing is one of the most well known of these approaches.

When an investor buys shares of a growth stock, the goal is to realize exceptional portfolio gains in a comparatively short period relative to the growth of other stocks in general or that stock’s particular sector.

Let’s take a look at 10 fantastic growth stocks that you can hold for the next decade or longer and that are stellar buys for both conservative and risk-tolerant investors.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

As one stock among a handful of companies known as FAANG, it’s no surprise that Facebook (NASDAQ: FB) has held its own despite the market’s volatility over the past year. The company capitalized on the underlying strength of its business from the start to the finish of 2020.

It reported 22% overall revenue growth compared with 2019, while its revenue in the final three months of 2020 surged 33% from the year-ago stretch. Facebook’s net income also rose 58% and 53% during the full-year and fourth-quarter periods, respectively.

CEO Mark Zuckerberg said the following about Facebook’s performance in 2020: “We had a strong end to the year as people and businesses continued to use our services during these challenging times. I'm excited about our product roadmap for 2021 as we build new and meaningful ways to create economic opportunity, build community and help people just have fun."

Facebook continues to deepen its indelible mark on the world of tech. And the company’s ability to keep delivering exceptional growth makes it a wise investment for the long-haul investor.

ALSO READ: The Best Growth Stock No One Is Talking About

DexCom (NASDAQ: DXCM) is one of the key leaders in the continuous glucose monitoring (CGM) device industry. DexCom’s business isn’t adversely impacted by traditional market headwinds, as CGM device users rely on the company’s life-saving products daily regardless of what other world events transpire.

As a result, DexCom’s business has continued to see eye-popping growth over the past year, much as it was before the pandemic began. For instance, in 2018 and 2019, the company’s revenue surged by 44% and 43%, respectively. And in 2020, DexCom’s top line increased 31% year over year. Management is projecting between 15% and 20% revenue growth for the full-year 2021 and a gross profit margin of 65%.

Google’s parent company, Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG), reported its first-ever revenue loss in the second quarter of 2020. But, you can’t keep a good stock down for long, and Alphabet’s full-year 2020 earnings report was evidence of that. The company reported about 13% total revenue growth during the 12-month period, driven by nearly 50% growth in its Google Cloud segment.

Alphabet’s Chief Financial Officer Ruth Porat stated, “Google Cloud revenues were $13.1 billion for 2020, with significant ongoing momentum, and we remain focused on delivering value across the growth opportunities we see.” The company’s Google Services segment, which includes revenue sources like Google Search and YouTube Ads, also achieved double-digit growth last year.

Alphabet also has a solid liquidity position, with about $18.5 billion in cash and cash equivalents on its balance sheet and total current assets of $152.6 billion. The company has $45.2 billion in total current liabilities and no dividend responsibility to its shareholders, making it ideally positioned to capitalize on new and existing catalysts for growth in 2021 and beyond.

The e-commerce industry has skyrocketed to new heights of success during the pandemic, and Etsy (NASDAQ: ETSY) is one of the stocks in this sector continuing to make a name for itself among investors. The stock has hit a new premium over the trailing 12 months, going from about $51 to approximately $220 per share at the time of this writing.

In the third quarter of 2020, both the company’s gross merchandise sales and revenue grew by triple digits from the year-ago period. Etsy’s bottom line also jumped by a mouth-watering 520% during the third quarter, while both active buyers and active sellers on the platform surged by double digits.

ALSO READ: 5 Growth Stocks Billionaires Can't Stop Buying

Popular financial services app Square (NYSE: SQ) looked like a particularly risky buy earlier last year, as its stock price doubled during the first half of 2020 alone. But, as the high-growth stock continues to make a name for itself in the tech universe, the strength of its business and its balance sheet are causing even the most conservative investors to take a second look at this booming company.

In the third quarter of last year, Square’s gross profits surged 59% from the year-ago period, while gross profits generated from its Cash App saw a mind-blowing 212% spike. And the company’s total net revenue grew 140% during the three-month period compared with the same quarter in 2019. Square’s ability to grow its business congruent with the booming digital payments market make the stock a compelling investment that you can easily hold for 10 years or longer.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Another winner in the e-commerce sector is Latin America’s version of Amazon, the fast-growing online commerce and payments ecosystem MercadoLibre (NASDAQ: MELI). In the third-quarter period, MercadoLibre’s unique active user count surged by more than 90%. At the same time, its gross merchandise volume grew by a staggering 62%. The company’s third-quarter net revenue also surged by the upper double digits (85%).

MercadoLibre’s grip on both the world of e-commerce and the fintech sphere is only increasing with time, and investors who buy shares of this stock can benefit from the company’s lightning-fast growth trajectory.

Computer software stock Adobe (NASDAQ: ADBE) barely moved when the market crashed last March, and it's currently trading approximately 30% higher than one year ago.

During the company’s fiscal 2020 (ended Nov. 27), its revenue grew 15% from fiscal 2019. Adobe also generated meaningful growth from its array of business areas during the 12-month period, including 20% revenue growth in its digital media segment and 12% revenue growth in its digital experience segment.

Management is also targeting double-digit revenue growth across Adobe’s key business segments during the first quarter of the company’s fiscal 2021.

ALSO READ: 2 Top Growth Stocks That Could Skyrocket

The gig economy is growing at an astonishing pace, with market and consumer data company Statista estimating that this sector will achieve a gross volume of $455 billion by 2023. Companies like online freelance marketplace Fiverr (NYSE: FVRR) are both a prominent illustration of the growth of the broader gig economy and a lucrative opportunity for forward-thinking investors. Shares of Fiverr have swelled from trading at just around $30 one year ago to nearly $300 at the time of this writing.

In the full-year 2020, Fiverr grew its top line by 77% year over year. The company continues to expand its services and open up new avenues of business for the freelancers on its platform and their clients.

In the 2020 earnings report, management stated that “Fiverr added 30 new categories in Q4 and now offers digital services in more than 500 categories.” Management also released its 2021 revenue guidance in the report, showing that it's anticipating between 46% and 50% top-line growth from 2020.

While many popular pot stocks aren’t exactly known for incredible growth or stellar financials, GrowGeneration (NASDAQ: GRWG) is one of a handful of stocks in this sector to break the mold while maintaining a rock-solid balance sheet.

The hydroponic and gardening equipment retailer reported preliminary financial data for the full-year 2020 on Jan. 11. GrowGeneration said that it realized 140% revenue growth during the full-year 2020, while same-store sales surged 63% from 2019. GrowGeneration owns and operates nearly four dozen retail and distribution centers across the U.S. The company also added 14 new stores to its roster of retail locations last year alone, a remarkable feat in the face of pandemic-related closures and a sign of its resiliency amid volatile market conditions.

Upwork (NASDAQ: UPWK) is another top growth stock flourishing in the robust gig economy. The company’s third-quarter revenue smashed previous guidance, representing 24% growth from the year-ago window. Upwork’s marketplace revenue also popped by 26% year over year, while gross services volume on its platform shot up 23% compared with the same quarter in 2019.

CEO of Upwork Hayden Brown noted, “Our third quarter performance was fueled by strength from both existing and new clients, who adopted Upwork in record numbers. As the world’s largest work marketplace that connects businesses with independent talent, as measured by gross services volume, we have been building capabilities and tools for a world now increasingly ready to use them.”

It’s no wonder that investors have been flocking to buy up shares of Upwork. The stock has surged by approximately 470% over the past year alone.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

When you invest in a winning growth stock, you can achieve meaningful portfolio gains far faster than if you bought shares of a company that tends to display more average levels of revenue or earnings growth. However, it’s important to understand that growth investing can be a risky and expensive venture, albeit one that has the potential to achieve high rewards.

Risk-aware investors who don’t want to expose their portfolios to excess volatility (particularly in the current market) should focus on tried-and-true stocks that have a solid track record of yielding remarkable growth for shareholders without undermining balance sheet stability.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Rachel Warren has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Adobe Systems, Alphabet (A shares), Alphabet (C shares), Amazon, Etsy, Facebook, Fiverr International, GrowGeneration, MercadoLibre, and Square. The Motley Fool recommends DexCom and Upwork and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool has a disclosure policy.