3 Aggressive Growth Stocks to Buy to Get Ahead of Falling Housing Starts
Aggressive growth stocks can be a great way to profit from the stock market. Investing in these stocks comes with a higher risk but can prove very rewarding in the long run. With this in mind, it is important to research and screen the right aggressive growth stocks to buy.
Aggressive growth stocks are high-risk, high-reward investments that can provide investors with the potential for significant returns. These stocks are characterized by their rapid growth rate and often have a higher market capitalization than other stocks in the same sector. Investors should look for companies with strong fundamentals and positive earnings to identify an aggressive growth stock. Additionally, investors should consider factors such as competitive advantages and industry trends when evaluating potential aggressive growth stocks to buy.
At the start of 2023, the stock market experienced a noticeable value rise. Investors are eagerly watching to see if the rally will continue or if it was a one-time event.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Financial institutions anticipate the Federal Reserve to hike rates by 0.25% on Feb. 1, 2023, with the potential rate range of 4.5%-4.75%. We have seen rate hikes in the last year, which have impacted the markets tremendously.
In addition, the latest data released by the government showed that the residential starts dropped to a five-month low of 1.38 million at an annualized rate, registering a decrease of 1.4% from last month’s figures. The U.S. housing market condition has a major influence on the stock market. Its weakened state will undeniably affect it significantly.
When selecting stocks with aggressive growth potential, it is necessary to prioritize quality over sensationalism. It might not be the most riveting option, but in a constantly changing market, opting for the best performers could be vital.
Aggressive Growth Stocks to Buy: Airbnb (ABNB)
Source: Kaspars Grinvalds / Shutterstock
Investors increasingly view Airbnb (NASDAQ:ABNB) as a lucrative investment, rendering it one of the most desirable stocks. With its impressive growth rate and strong market position, Airbnb has become one of the best aggressive growth stocks to buy. The company offers a unique business model to capture large markets with minimal capital expenditure. Additionally, its innovative hospitality and customer service approach has made it an attractive option for many investors.
In December 2020, Airbnb’s initial public offering was $68 a share. Upon opening for trading in early 2021, the stock skyrocketed to a peak of $219.94. However, after that time, it has been progressively declining to settle under $90 by early 2023.
Airbnb is taking a proactive stance in these difficult times. It has introduced a new fee structure to enhance guests’ experiences, which includes service, cleaning, and rental fees. Airbnb has made its fees transparent with a variable rental fee and two fixed fees, a positive change from its history of hidden charges.
Airbnb also acts against hosts who implement unreasonable house rules, such as requiring guests to vacuum the entire house before leaving. They are now only allowing those that are deemed necessary and reasonable. Utilizing this would help to guarantee a pleasant and uniform experience for Airbnb customers.
On the financial side, everything looks great for the vacation rental platform. During the three months ending September 2022, its latest earnings report revealed a high demand for its accommodations, as nightly bookings and rates went up. The company reported record-high EBITDA and FCF growth of 80% from the previous year.
Considering the current market, Airbnb is an excellent choice of stock to invest in — its aggressive nature makes it a beneficial option for potential buyers.
Source: 360b / Shutterstock.com
Freeport-McMoRan (NYSE:FCX) is one of the most aggressive growth stocks. The company is a global leader in producing copper, gold, and molybdenum. It has been steadily increasing its presence in the mining industry by expanding its operations into new regions. With its focus on long-term growth, FCX has generated impressive returns for investors over the past few years. Additionally, FCX is well-positioned to benefit from increased demand for metals as the global economy recovers from the pandemic.
Freeport-McMoRan is the world’s largest publicly traded copper producer and a noteworthy producer of gold and molybdenum. Despite the inherent risks, investors who put their money into copper have seen a significant payoff. Freeport-McMoRan’s outstanding performance in the past year stands out from the other listed stocks in an otherwise challenging market.
The global economy faces various risks, such as the war in Ukraine, the increase in interest rates, lockdown restrictions in China, and the effect that sanctions on Russian energy are having on Europe’s industrial sector. These issues all contribute to a volatile macroeconomic environment.
China has recently lifted its lockdown policies, which have unfortunately caused a major financial loss for them and destabilized the global market. But now that the restrictions are lifting, we will see healthy trends in the price of copper. However, bullish global trends can power the stock upward in 2023. With the world’s economy being interlinked, what benefits China often has a positive effect on other parts of the world, and this holds for copper demand too. Thus, China’s growth can be a boon to copper producers around the globe.
Aggressive Growth Stocks to Buy: MercadoLibre (MELI)
Source: rafapress / Shutterstock.com
Latin America’s e-commerce and digital payments markets are showing great growth potential, and MercadoLibre (NASDAQ:MELI) is well-positioned to be the leader in these industries for the foreseeable future.
Despite the strong recovery in MercadoLibre stock from its heavy losses in 2022, it remains slightly lower than its previous peak.
MercadoLibre reported excellent numbers for fiscal Q3 2022, with net revenues rocketing by 60.6% compared to the previous year reaching a whopping $2.7 billion. There’s no faulting its business model.
MercadoLibre reported an impressive 35.8% increase in earnings to $129 million. Every metric improved, including active users and total payment volume.
The future is bright for the company. MercadoLibre is dominating its biggest Brazilian rival, Americanas S.A., due to its accounting scandal that led to the firing of its leadership. As a result, in 2023, MercadoLibre will continue to gain market share.
On the publication date, Faizan Farooque did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.
More From InvestorPlace
It doesn’t matter if you have $500 or $5 million. Do this now.
Massive Bear Market “Divergence Event” Ahead… And The #1 Way to Play It
The post 3 Aggressive Growth Stocks to Buy to Get Ahead of Falling Housing Starts appeared first on InvestorPlace.