Seek out companies distinguished not only by their durability but also by their uniquely competitive products and services. In the current market climate where previous favorites such as Apple and Alphabet no longer seem as attractive, it can be tempting to surrender to despair. However, rest assured, the market still harbors excellent stocks, you just need to dig deeper to unearth them. To offer a helping hand, let’s highlight three promising growth stock options that not only promise longevity but also hold significant potential for steady expansion.
Our first contender is Alibaba Group, a familiar name with multiple platforms under its umbrella such as Tmall, Taobao, and its international platform, AliExpress. The latter serves as a conduit for Chinese manufacturers to reach international customers. Given its extensive reach, it’s not surprising that Alibaba accounts for an impressive 40% of China’s online shopping market as per DBS Treasures research.
What may not be familiar is the other side of Alibaba – it extends beyond e-commerce. Alibaba has forayed into cloud computing, operates a digital entertainment business, and even has a delivery/logistics wing. In addition, the company also has its sights set towards artificial intelligence, developing models for both consumer and corporate utilization.
Consistent with its past growth trajectory, Alibaba’s first-quarter revenue rose by 7%, a pattern anticipated to persist for the foreseeable future. While the trade tensions between the U.S. and China raise concern, Alibaba is primed to weather the storm.
Although reduced Chinese exports due to these tariffs can influence domestic consumerism, the impact on Alibaba won’t be severe. This is because a significant portion, over 80%, of Alibaba’s revenue derives from domestic sources. In China, it’s generally preferred that Chinese corporations use services and goods provided by fellow Chinese companies.
As Alibaba operates predominantly within China, its growth mirrors the regional economic growth. Positive prospects for China’s economy, with the International Monetary Fund forecasting a GDP growth of around 4% for this year and consistent growth after tariff uncertainties are resolved, suggest Alibaba’s growth is well-insured.
Uber Technologies, the ride-hailing giant, stands as our second pick. The journey of Uber’s shares has been rather fluctuating since the beginning of the previous year, but its future is bright. Uber caters to the increasing disinterest in vehicle ownership and driving, meeting the growing demand for paid ride services.
Uber, thanks to its robust market presence domestically as well as in key international markets, is ideally positioned to capitalize on this burgeoning trend. But the most compelling argument in Uber’s favor is the path it’s carving for itself in the realm of autonomous vehicles, or as they’re popularly known, robotaxis.
This cutting-edge technology may not be quite ready for commercial use yet, but self-driving vehicles represent the single largest opportunity for Uber moving forward, adding more impetus to its growth prospects in the long term.
Finally, we turn our attention to Arista Networks, a viable long-term investment with the potential for exponential growth. Arista is a smaller competitor in the technological arena where giants like Cisco operate, proving that size isn’t always an indicator of success in the tech industry. Superior technology often wins the day, and Arista is a prime example.
Arista’s distinguishing feature is its EOS, or extensible operating system, which powers its networking hardware. EOS ensures that Arista’s hardware maintains its relevance, ultimately leading to savings for its customers by limiting the need for frequent tech upgrades.
In an era of increasing digitization and rapidly growing digital information, the demand for companies like Arista, which provide focused solutions, will remain high. Presently, Arista is on an upward trend in revenue growth, a trajectory predicted to continue for the upcoming years.
In conclusion, while the past allure of traditional favorites like Apple and Alphabet might have decreased, viable investment options remain. Alibaba, Uber, and Arista Networks are three such brilliant growth stocks, which not only promise longevity but also stand a good chance for appreciable expansion.
Driven by their unique value propositions, leveraging trends in eCommerce, ride-hailing, and digital networking respectively, these companies offer investors compelling growth potential in today’s volatile market. Readily adapting to emerging trends and advancements in technology, they hold promise for sustained growth in the long term, and thus, are certainly worth keeping in your investment radar.