London, England, 4th Nov 2021, InfinityCapitalG broker says that for years, growth stocks have been the beneficiaries of outsized gains compared to other investments. However, there’s a flip side: if you’re investing in one these Outlier Growth Stocks then your returns might be lower than expected because they don’t follow traditional patterns anymore and can thus present an opportunity for those willing take their chances with “outliers.”
With that in mind, investors will want to look for Outlier Stocks that are currently undervalued and have the potential to grow their earnings at above-average rates over time. We’ve identified eight such Outlier Stocks including two labelled as “Best Stocks” even though you should read all of them, country by country, before making your choice.
It’s not always easy to find stocks that will make you money, but these 5 companies seem like sure things. NFLX is a company in the video streaming game (they own Netflix) while PYPL tracks retail sales of fuel products across North America. UPST provides an upstream capital expenditure service through its employees who are located globally at key procurement sites supporting natural resources operations for major corporations worldwide. ASML operates specialized equipment used by drug manufacturers around world including solar cells & turbines! TSLA also supplies power generation solution toss large businesses.
It’s easy to see why the companies that make up this list would be considered outliers given their impressive performance, but there are other factors that set them apart beyond just results. For example, TSLA, UPST and NFLX all have high debt-to-equity ratios while ASML has a P/E ratio of 261, well above the mean forecasted P/E ratio for 2021 of 18.35x.
To make sure you don’t miss out on future opportunities, note that these stocks are ranked by how much they might grow earnings in 2020 compared to 2019. This is known as the growth rate or year over year earnings growth. The higher this number, the greater the expected return. Also note that this list is in no particular order.
Netflix, Inc. (NFLX) is a popular growth candidate with strong performance and big money signals. Check out this company’s YTD returns: 16%.
The top buy signal for Netflix has been seen in past years as shown by blue bars on the timeline below that indicate buying activity from MAP signals according to their Big Money strategy during those periods of time when it was undervalued or overbought which led them towards higher gains than expected!
Netflix is a streaming media company that has been on fire. In the last few years, they have had three very strong quarters with increased revenue and earnings growth rates over seventy percent! The next company up in our list of potential stocks to invest will be PayPal Holdings Inc (PYPL), one of America’s leading digital payment firms–and it would make sense because its performance this year alone was at least twenty-five points higher than what we saw from Netflix during their best annual period ever ($98 vs $81).
In addition, I should mention here how historical market trends play into investing: while most people focus solely upon short term price movements when making decision abouts buying or selling, I like to incorporate what I call “The Big Picture” into my investment approach. And the bigger picture tells me that since money is already shifting away from credit cards to crypto currencies (and PayPal has all their bases covered in both markets) this trend will accelerate over time; thus, making it more likely that this company will continue to experience strong growth, even if they have a few bad quarters.
PayPal Holdings Inc (PYPL) is another strong Outlier Growth Investment Candidate who’s 2018 performance nothing has been short of spectacular! As seen above their year-to-date gains are up 24%! Not only does PayPal have wide acceptance in the digital payment industry which accounts for half their revenue, but they also own Venmo, a mobile payment app popular among millennials.
PYPL: Quarterly revenue rose 24% to $41.2 billion, while adjusted EPS increased 20% to $3.27. We are starting to see some negatives show up with the price moving below its 20-day simple moving average which could suggest a possible trend turning point for this Outlier Growth Stocks.
Perrigo Company plc is a global healthcare company, which develops, manufactures and distributes OTC medicines, nutritional products, active pharmaceutical ingredients (API)s and prescription drugs. The price of per share has been ahead of forecasted earnings by an impressive 357%. This would be great if they can keep it up but looks like they’re slowing down now so definitely not best stocks to buy right now!
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.