Here are 5 of the best growth stocks to buy now during December 2020. They all offer some MASSIVE opportunities for HUGE GAINS. So basically, these are all incredible high growth stocks, and I’m super excited to share them with you.
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Bizwebjournal here and welcome to another video. So in this video I want to share with you the best growth stocks to buy this month based on a combination of fundamental and technical analysis.
Now, for years, growth stocks have been beneficiaries of outsized gains compared to the averages. The main criteria I look for when betting on the upside in a stock are improving fundamentals, great entry points and a history of bullish trading activity in the shares.
The hallmark way I go about finding the best stocks is by looking for quiet unusual trading activity. Oftentimes that can be institutional activity. We'll go over what that big money trading activity looks like in a bit.
But before we get started if you are new to my channel make sure to subscribe and hit that bell notification so you don’t miss out when I release more stock trading tips
For trading signals, I believe that the true tell on the near-term trajectory of a stock lies in its trading activity. The bottom line here is that the manner in which a stock trades can oftentimes alert you to the forward fundamental picture more so than simply looking at a company's financials alone.
We want the odds on our side when looking for the highest-quality stocks. So let’s get started with the top growth stocks for this month.
Up first is Square which is a leading payments company. The stock has been marching higher in 2020. When I decide on the strongest candidate for long-term growth I consider many technical areas important to success. The following are a few ways in which Square stock has caught my attention YTD.
The stock outperformed this S&P 500 exchange traded trust buy 226% year to date and it also outperformed the Consumer Discretionary Select Sector Fund by 213 percent
Just to show you graphically what big buying signals looks like, have a look at all of the top buy signals. Square has shown a strong chart over the past few years. It is clear there is a lot of green recently with this stock. That's exactly what you want to see when looking for a great growth name.
On top of the technicals, one should also look under the hood to see if the fundamental picture supports a long-term investment. As you can see, Square's revenue growth has been strong.
The three-year sales growth rate has been plus 40 percent and the three year earnings growth rate is plus 55% so this looks like a great growth stock in my opinion.
Next up is The Trade Desk which is a digital advertising firm. The shares have zoomed for years. When I decide on the strongest candidate for long-term growth I typically want to see an outperformer and The Trade Desk is just that.
Year to date the stock is up 217% versus the SPY and plus 204% versus the discretionary exchange traded fund XLY.
On top of a great long-term technical picture I also like to look under the hood to see if the fundamental picture supports a long-term investment. As you can see, The Trade Desk has strong sales and earnings growth.
The three-year sales growth rate is up by 48% and the three-year earnings growth rate is plus 40% so this looks like another great growth stock to consider in my opinion.
Another growth name to consider is Paycom Software which is a leading human resources and payroll company. When I decide on the strongest candidate for long-term growth I like to see stock leadership. Those could be the next outlier stocks.
A few technical areas I like for Paycom are plus 53 percent against the SPY and up by 19% against the Technology Select Sector Fund
As you can see on the chart the moving averages are giving strong buy signals on a monthly timeframe.
On top of a strong technical picture I also had a look to see if the fundamental picture for Paycom supports a long-term investment. I must say, Paycom's growth rate is impressive. Just look at the past few years.
Paycom’s three-year sales growth rate has been up by 30 percent and its three-year earnings growth rate by 63 percent. Based on the sales and earnings this could be a great long term growth stock to hold.
Number four on the list is NVIDIA Corporation which is a leading semiconductor firm. This is a monster growth stock. When I decide on the strongest candidate for long-term growth I consider many technical areas important to success.
Look at this, it outperformed the SPY by 110 percent and this semiconductor exchange traded fund called VanEck Vectors Semiconductor fund by 81% this year.
On top of the technical picture which as you can see shows strong buy signals, again I had a look to see if the fundamental picture supports a long-term investment.
And as you can see, NVIDIA has been growing revenues and earnings handsomely. Wall Street has been rewarding the shares.
The three-year sales growth rate is plus 18 percent and the three-year earnings growth rate is up by 22%.
Now my fifth and last growth candidate is SolarEdge Technologies which is a leading solar company. When I decide on the strongest candidate for long-term growth, I consider many technical areas important to success with a few for SolarEdge being its outperformance of the SPY by 175 percent and also plus 155 percent against the XLK technology fund.
As you can see again it shows strong buying signals on the technical indicators. This stock has been an incredible growth name with a surge in share price during the coronavirus pandemic.
On top of the technical picture I also had a look if the fundamental picture supports a long-term investment and as you can see, SolarEdge has been in growth mode.
It has a nice three-year sales growth rate of 44 percent and a three-year earnings growth rate of plus 37%.
In my opinion shares of Square, The Trade Desk, Paycom Software, NVIDIA, and SolarEdge Technologies represent a potential buying opportunity if you are a long-term investor. Given the strong historical revenue and earnings growth alongside multiple big money buy signals, these stocks are worth a spot in a growth-oriented portfolio.
So these are the best growth stocks for this month, thanks for watching and make sure to watch the next stock trading videos that should show up right about now.