If you’re like many other investors right now, you may be a little hesitant to step into new positions in the market. The marketwide rally that’s been underway since March of last year is still technically intact. But with stocks up more than 100% for that 20-month stretch, the stock market certainly seem vulnerable to a serious correction. Treading lightly here seems like a prudent course of action.
There are some stock names, however, with growth stories so juicy that they’re just too good to pass up, regardless of the backdrop. Here’s a closer look at three of these stocks I’d be willing to buy without a second thought right now.
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1. United Microelectronics
The worldwide shortage of microchips is anything but a secret. It has crimped earnings for a bunch of technology companies a couple of quarters in a row now. Not every tech outfit is a loser because of the crimped supply chain, though. By virtue of massive demand and backlogs, chip manufacturers are as busy as ever and enjoy incredible pricing power at the moment.
Taiwan’s United Microelectronics (NYSE:UMC) is one of these beneficiaries. The company makes a variety of computing-logic and radio-transmission semiconductors. And as one of the few foundries even capable of addressing the swell of demand, it is on pace to grow its top line by 22% this year. That’s likely to beef up its per-share profits from $0.42 in 2020 to $0.79 this time around.
But even United Microelectronics’ efforts to increase its output won’t really get traction until next year. That’s when the company is expected to drive top-line growth of 42% and subsequently report per-share earnings of $0.87. And that outlook could be conservative given the company’s earnings beats in each of the past four quarters.
Things may then start to decelerate once competing semiconductor manufacturers finally start to see some of their new production investments start to bear fruit. But that’s OK. There’s still going to be plenty of business to be won then. New investors will enjoy the fact that they’re getting into the stock while it’s priced at a mere 14.3 times this year’s projected profits.
2. Pinterest
Pinterest (NYSE:PINS) is an interesting company. The website knew how to draw a crowd when it was launched back in 2010. What wasn’t clear, however, was how the company intended to make money. Ads injected into a collage-type web page of a user’s interests didn’t seem like much of a business model.
In the meantime, Pinterest has proved that the model works. After building a base of regular followers and refining the effectiveness of “promoted …….
Source: https://www.fool.com/investing/2021/11/10/top-growth-stocks-buy-right-now-without-hesitation/