Some standout stocks have already resumed an uptrend and have incredible relative strength in the growth space, which means savvy investors should watch out for them. Let's take a look at three growth stocks that are currently showing market leadership.
Free book preview
Money-wise solo preneur
This book gives you the essential guide to easy-to-understand tips and strategies to achieve greater financial success.
4 min read
This story originally appeared on MarketBeat
What makes a real market leader? From a fundamental perspective, companies with exceptional profit and revenue growth that are consistently stealing market share from the competition, as well as companies that are leaders in their respective industries, are the right choice. Another way to look at market leadership is to identify stocks with strong uptrends that could spell institutional purchases from mutual funds, banks, and other sophisticated investors.
Given the sharp decline in growth stocks earlier this year, it was very interesting to see which companies are rallying the fastest. Some standout stocks have already resumed an uptrend and have incredible relative strength in the growth space, which means savvy investors should watch out for them. Let's take a look at three growth stocks that are currently showing market leadership.
Shift4 Payments Inc (NYSE: FOUR)
This stock gained over 17% in April and hit new all-time highs last week. This is worth noting as many of the most popular growth stocks are still far from their highs. Shift4 Payments is a leading provider of integrated payment processing and technology solutions. It's a popular name in payments because it features technologies that connect both e-commerce and brick-and-mortar merchants to tons of different back-end payment processors.
This company's technology is used to power over 350 software providers in a wide variety of industries. The stock is also a solid reopening game as many of its clients are in sectors that have been hard hit by the pandemic, including restaurants and hotels. Shift4 Payments recently saw its transaction volume grow, including its recently reported end-to-end payment volume in March of $ 3.3 billion, up 40% from February and 82% year over year. It is a unique growth stock that stands out for its recent strength in the market. This is a big reason why investors should have them on their shopping lists going forward.
Snapchat (NYSE: SNAP)
Another growth stock that has rallied very quickly from recent market weakness is Snapchat. This is a company that created a unique social media platform that people can use to communicate with short videos and pictures. Any of the short videos or pictures captured in the application is called a snap, and Snapchat is constantly encouraging its users to create and contribute more content with its unique camera filters.
When you think about how advertising has moved online, it is easy to see the potential of a company with a large social media platform that continues to grow at a rapid pace. Snapchat has built a loyal following, including 265 million daily active users and an average of over 5 billion snaps created daily. In the most recent quarter, the company saw daily active users grow 20% year over year and revenue increased 62% year over year to $ 911 million. Take into account the upside here as Snapchat finds new ways to monetize its platform or is acquired in the coming months. The stock was up over 16% in April and is worth a look during pullbacks or consolidation periods.
Square (NYSE: SQ)
It's hard to deny that Square has been a leader in growth over the past year. That's why it's a stock that should be one of the first options on your shopping list. Square was up 14% in April and is a fascinating option in the fintech space for a number of reasons. As a company providing payment and point of sale services to merchants, Square is well positioned to capitalize on the widespread shift towards electronic payments. The company's Cash app is also an interesting part of its business as it offers a personal payment network that consumers can use to easily complete their financial transactions.
The company reported net sales of $ 3.16 billion in the fourth quarter, up 141% year over year, and recently announced that the proportion of cashless businesses more than doubled after a year of COVID-19. This is exactly the kind of statistic that shareholders like to hear. It's also interesting that Square is offering investors exposure to cryptocurrency, as the company bought $ 170 million worth of Bitcoin back in February of this year. The bottom line is that Square is a high growth company that works a lot in its favor. That's why it's a stock that continues to lead the market.