With broad-based for the stock market, it has been a volatile year S&P 500 Losing more than a third of its value in less than five weeks, and regaining it in less than five months. Both the intensity of the decline in the bear market and the pace of the rebound are all-time records.
When volatility like this becomes the norm, it draws short-term and / or novice traders. We know this because Robinhood, an investment online investment application known for offering commission-free trade to new members and parceling out shares for free, has seen an increase in membership. The typical Robinhood user is only 31 years old, and the platform’s leaderboard (i.e., its most managed stock) is full of penny stocks and other awesome companies that usually only attract inexperienced investors.
But if you remove these penny stocks from the equation, you will also realize that Robinhood investors love fast-growing stocks. Here are the four fastest growing stocks (as measured by the compound annual growth rate (CAGR)) currently among the 60 most-securities securities on the platform. Note that I have excluded companies without significant sales until 2019, e.g. Nicola, Workhorse group, And Innovio PharmaceuticalsIs, which would otherwise cut the results.
Image Source: Getty Images.
Modern: 139.89% CAGR
The fastest growing company to robinhood investors is the coronavirus disease 2019 (COVID-19) vaccine developer Modern (Nasdaq: MRNA). According to Wall Street estimates, Modern’s sales are expected to grow from just માત્ર 60.2 million in 2019 to $ 4.78 billion by 2024. For those of you who have a home score, it’s a five-year CAGR of 139.89%. Of course, the vast majority of these jumps are expected in 2021.
Moderna is one of the few companies in the coronavirus vaccine race. Its vaccine candidate, MRNA-1273, showed no signs of serious adverse events in participants in the first phase trials. The results also showed that people neutralized antibodies after taking a second dose of the vaccine. Moderna has now moved on to a late-stage study, with about 30,000 people expected to participate.
The company is also rolling in dough. In May, Moderna raised about 1. 1.3 billion from a share offer. It has received 5 5,955 million in funding from the federal government under Operation Operations to accelerate vaccine development, and another 25 1.525 billion for 100 million doses of the vaccine.
But despite Modern’s 2020 success, don’t discount how crowded the COVID-19 vaccine landscape has been in the coming year.
Image Source: Getty Images.
Kronos Group: 104.82% CAGR
Probably not a big shock here, but young people really prefer marijuana stocks – the fastest growing Canadian licensed manufacturer. Kronos Group (Nasdaq: CRON). On sale last year. After making 23.75 million Canadians, the Wall Street consensus brings in CA $ 856 million by 2024. That’s good enough for a five-year CAGR of 104.82%.
While I doubt that the Kronos Group can achieve such lofty development goals, it has close ties with the vast field of tobacco Ultria Group (NYSE: MO) It can be a great tailwind to help a company grow. Altria invested 8 8 1.8 billion in Kronos in March 2019, giving it a 45% stake. Since Ultria has decades of knowledge about the marketing and development of smoking products, it is widely expected to assist the Kronos Group in the development and launch of cannabis vap products.
But there is an issue in that. Two provinces in Canada have full bans on VPS (Newfoundland and Labrador, as well as Quebec), while health concerns developed in the U.S. in 2019 have also been limited in demand. Without a clear path to near-term profitability, Kronos looks like a stock that can be left on the shelf.
NIO ES8 Electric SUV. Image Source: NIO.
NIO: 60.66% CAGR
The younger generation is also fascinated by electric vehicles (EVs) and more specifically, Chinese EV manufacturers. NIO (NYSE: NIO). After breaking my calculator for some currency conversions, Wall Street is looking for NIOs to increase sales from 2019 1.12 billion in 2019 to an estimated 99 11.99 billion by 2024. That five-year CAGR is 60.66%.
There is no question that an absurd amount is built into the EV industry, and NIO is no exception. However, the company’s second quarter operating operating results indicate that NIO can earn well on its valuation premium. After a lump sum delivery in multiple quarters, NIO has recorded 10,331 deliveries of its premium ES6 and ES8 EV SUVs during its quarter. Which has almost tripled the number of deliveries since Q2 2019.
In August Gust, NIO also announced the launch of the Battery-A-Service (BAS) business model. In an effort to sell more EVs, NIO will reduce the initial cost of its vehicles and register buyers in a monthly subscription service responsible for replacing barriers and handling other improvements. In other words, NIOs will abandon short-term operating margins in favor of gaining long-term customer confidence and generating highly predictable residual cash flows.
Image Source: Square.
Square: 52.88% CAGR (4 years)
It should come as no surprise that the highest paying facilitator Square (NYSE: SQ) This list of fast-growing stocks that young investors prefer. After generating 27.27 billion in revenue last year, Wall Street’s consensus for 2023 is 12.4 billion. Which works for a four-year CAGR of 52.88%.
The tempting part of the square is its tried and true seller ecosystem. Over the years, Square has been providing point-of-sale and lending solutions to small businesses to help them grow. Between 2012 and 2019, the total payment volume to cross the Square network increased from 6. 6.5 billion to 6 106.2 billion. As more businesses use its seller ecosystem and larger merchants begin to get involved, Square should see a steady increase in merchant fees.
But the most interesting growth driver is the peer-to-peer payment platform cash application. In just 2 1/2 years, the number of monthly active users (MAUs) has quadrupled from four million. In addition, about one million of these are using MAU Cash Card, a debit card that draws from a user’s Cash App account balance. The Cash app gives Square a lot of ways to make money, including merchant fees, bitcoin exchange and quick transfer fees. It will almost certainly be the main growth driver of a moving company.
