Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

3 Growth Stocks Worth Buying if You Can Handle Volatility

Stock Markets Jul 01, 2022 13:45
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. 3 Growth Stocks Worth Buying if You Can Handle Volatility

It’s no secret that growth stocks can be volatile. You might’ve figured that out if you had looked at the one-year stock charts of some of the most popular growth stocks on the market. However, growth stocks tend to get even more volatile the smaller the company is. That’s because smaller companies tend to have more obstacles that need to be overcome. The tradeoff there is that small-cap stocks tend to provide greater opportunities to generate massive returns.

That’s why, if you’re an investor that can handle more volatility in your portfolio, I believe you should focus on smaller growth stocks. In this article, I’ll discuss three top stocks that investors should buy if they’re willing to handle a bit more volatility.

An e-commerce stock for your portfolio I strongly believe that the e-commerce industry will represent a much larger portion of the global retail industry by the end of the decade. That means that the companies that end up as bona fide leaders in the industry could see a lot of growth in the coming years. Although ecommerce is usually talked about in a general sense, there are certain areas in the industry that should receive more attention. For example, the online grocery industry deserves a second look by growth investors.

Of the companies operating in that space, my top pick is Goodfood Market (TSX:FOOD). It operates out of 17 facilities spread across 10 Canadian provinces. Goodfood Market’s growth story has been nothing short of spectacular. Since 2016, the company’s revenue has grown at a CAGR of 163%. Likewise, its subscriber base has grown at a CAGR of 151% over the same period. If Goodfood can bring express deliveries to its major service areas, the company could see an even greater boost to those numbers.

Digital payments will continue to grow In order for the online retail industry to succeed, merchants will require some sort of payment processing software. There are a few very popular names that you could think of that provide that sort of service. However, Nuvei (TSX:TSX:NVEI)(NASDAQ:NVEI) stands out, in my opinion. It offers an omnichannel payments platform to merchants. Using its platform, merchants are able to accept online, mobile, in-store, and unattended payments. That ability to conglomerate all transactions should attract merchants.

Nuvei has been in the headlines since its first day of trading, when it set a record IPO among Canadian tech companies. Unfortunately, the company was hit by a short report last year, which halted its outstanding growth. Since then, the stock hasn’t really recovered due to fears surrounding increasing interest rates, which have also affected the broader market. However, I strongly believe Nuvei could be a top stock by the end of the decade.

Don’t count out the telehealth industry Investors willing to explore the riskier waters of the growth stock space should consider buying shares of WELL Health Technologies (TSX:TSX:WELL). I don’t think this stock is very risky per se; however, the telehealth industry is more or less an unproven area. It’s true that the global healthcare industry needs to be revamped and optimized. However, telehealth is still a very new concept. It’s unclear how the industry will look in a few years’ time.

When it comes to WELL Health, investors will be investing in a top player in the Canadian telehealth industry. It supports more than 2,800 clinics on its platform. In addition, it offers 41 apps through its online marketplace. Finally, WELL Health operates three different virtual health business lines, giving it a solid foothold in the growing industry.

The post 3 Growth Stocks Worth Buying if You Can Handle Volatility appeared first on The Motley Fool Canada.

Fool contributor Jed Lloren has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nuvei Corporation. The Motley Fool recommends Goodfood Market Corp.

This Article Was First Published on The Motley Fool

3 Growth Stocks Worth Buying if You Can Handle Volatility
 

Related Articles

China, Australia Stocks Rattled by new COVID Lockdown
China, Australia Stocks Rattled by new COVID Lockdown By Investing.com - Aug 12, 2022

By Ambar Warrick  Investing.com-- Chinese and Australian stocks fell on Friday as a COVID-19 lockdown in commodities hub Yiwu rattled sentiment, while most other Asian stocks...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email