Home » Investing » 4 of the Hottest Stocks to Watch Right Now
Investing in growth stocks such as Hut 8 Mining and Upstart could help you outpace the market in the future.
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Aditya Raghunath
Aditya Raghunath joined the Motley Fool Canada team in 2019 and has close to seven years of experience in covering publicly-listed companies. With a post-graduate degree in finance, Aditya aims to educate and engage Canadians by writing extensively about growth, dividend, and value stocks. If you are considering investing in the stock market, he recommends reading The Intelligent Investor by Benjamin Graham before taking the plunge.
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While the broader markets are trading near record highs, there are a few stocks that have the potential to deliver outsized gains in the future. Here, we look at four such growth stocks that should be part of your watchlist right now.
Voyager Digital
In case you are bullish on the cryptocurrency space, it makes sense to place your bets on Voyager Digital (TSX:VOYG), which is one of the largest digital currency platforms in the world. It offers investors a secure way to trade more than 60 crypto assets as well as earn rewards up to 12% annually on more than 30 cryptocurrencies. Voyager Digital also provides crypto payment solutions to individuals and businesses through its subsidiary Coinify.
Voyager Digital has increased sales from $1.15 million in fiscal 2020 to $175 million in fiscal 2021 that ended in June. This rapid expansion allowed the company to report an operating income of $55.84 million in 2021 compared to a loss of $8.84 million in 2020.
Bay Street analysts expect Voyager Digital sales to rise to $543 million in 2022 and to $972 million in 2023. Comparatively, its bottom line is forecast to improve to earnings of $1.47 per share compared to a loss of $0.49 per share in 2020.
Hut 8 Mining
Another stock that provides you exposure to cryptocurrencies is Hut 8 Mining (TSX:HUT)(NASDAQ:HUT). Valued at a market cap of $2.8 billion, Hut 8 stock is up over 1,100% in the last year.
In Q3 of 2021, Hut 8 disclosed it has more than 5,000 Bitcoins held in reserve. The company explained that it has received delivery of 10,000 NVIDIA chips, which have allowed Hut 8 to lower costs significantly. Hut 8 Mining claimed the mining costs for a single Bitcoin stood at less than $3,000, delivering margins of 95%.
Hut 8 Mining reported a record revenue of $50.3 million in Q3. Its self-mining operations generated $47.9 million in sales, while the rest was derived from its expanded hosting service. The company also mined 905 Bitcoins in Q3.
Upstart
A high-growth tech stock that is down 40% from all-time highs, Upstart (NASDAQ:UPST) is a company with massive upside potential. Upstart sales have risen from US$55.97 million in 2017 to US$227.6 million in 2020. Analysts tracking the stock expect sales to more than triple year over year to US$807 million in 2021 and rise to US$1.14 billion in 2022. While several tech companies are grappling with massive losses, Upstart’s adjusted earnings per share are forecast to rise from US$0.23 in 2020 to US$2.32 in 2022.
Upstart offers a cloud-based artificial intelligence or AI lending platform to financial institutions. In Q3 of 2021, Upstart’s sales rose by 250% year over year to $US228 million, while adjusted earnings per share stood at US$0.60.
The Trade Desk
Another U.S.-based company that crushed Wall Street estimates in Q3 is The Trade Desk (NASDAQ:TTD). In the September quarter, TTD reported sales of US$301 million and adjusted earnings per share of US$0.18. Comparatively, Wall Street forecast TTD’s Q3 sales at US$284 million while adjusted earnings estimates stood at US$0.15 per share.
The digital advertising space is expanding at a rapid clip and is forecast to touch US$1 trillion in the near future, providing TTD with enough room to expand top line going forward.
Analysts expect TTD sales to rise by 42% to US$1.2 billion in 2021 and by 30.2% to US$1.55 billion in 2022.
