How to Invest in Fastest Growing Companies in the U.S.
Hitting it big with the fastest growing stocks in 2017 is the goal of any investors looking to make exponential gains. Some stocks are known for dividends, others for stability, and others still for long-term projections. But we’re not interested in those investments in this piece. Here, we’re looking for the stocks of fastest growing companies in the U.S.
While some investors may be scared by the potential volatility surrounding strong growth numbers (after all, strong growth fosters higher analyst estimates that in turn will hurt shares if the stock can’t make the numbers), others are keen on getting involved in fast-moving tickers.
And 2017 is looking to be one of the better years for growth in recent times.
With the economy currently booming, there are a number of stocks ready to benefit from the goodwill on Wall Street. Focusing on specific industries set to make big gains in 2017, there’s even more reason to be bullish.
With the new tech on the horizon, some of the fastest growing companies in the U.S. are looking to take advantage of potential revolutions in the market.
Other stocks are the beneficiaries of social change, like the one we’re currently experiencing in the medicinal and recreational marijuana markets. New consumer bases are slated to open up as legislation around the world is enacted with the intent to soften regulations against cannabis.
The fastest-growing stocks in 2017 also can’t be purely measured by the current numbers, but also by the potential they show and their sustainability. At least in my estimation, a stock isn’t worth much if it grows exponentially one year only to be hewed down the next, especially if you can’t easily predict when that rapid decline will take place.
With that in mind, let’s get on to the fastest growing companies in the United States. Looking at share prices, revenue, outlook and a several other factors, we’ll narrow down what I believe are some of the best picks on the market for consumers looking to see their investments grow over the coming years.
Stocks of the Fastest Growing Companies
|The Fastest Growing Stocks in 2017||Ticker|
|Insys Therapeutics Inc||(NASDAQ:INSY)|
|Micron Technology, Inc.||(NASDAQ:MU)|
1. Facebook Inc (NASDAQ:FB)
Facebook may not be a small company but that, by no means, has hampered the social media behemoth from making strong gains of late.
First, the share prices have shown strong rises in 2017, gaining 20% while, over the past 12 months, the company has jumped by 28%. While this isn’t the exponential growth you may expect from one of the fastest-growing stocks in the U.S., don’t let the numbers mislead you; things are going very, very well in the FB kingdom. (Source: “Facebook beats in Q4 with $8.81B revenue, slower growth to 1.86B users,” TechCrunch, February 1, 2017.)
First, consider that the company’s last quarterly report blew analyst estimates away, with $8.81 billion in revenue and $1.41 earnings per share. Estimates for revenue were planted in the $8.51 billion range, putting Facebook’s earnings far above the projections.
The company also registered an increase on its platform, at 1.86 billion monthly active users, up 70 million from the previous quarter. All while its mobile ad revenue made up 84% of its total ad sales, demonstrating its successful pivot and adaptation of mobile platforms and speaking to the strength of the Facebook development team.
While there’s some reason to believe that growth may slow as Facebook collects every human on a computer and runs out of room to expand, its savvy acquisitions of companies like Instagram allow for the platform to continue to experience sudden bursts of activity that will help drive the stock upward.
Consider also that, while many FB stock doubters thought that U.S. President Donald Trump would be a tech industry killer, Facebook has thrived since the new president took power. Even with all the vitriol aimed at the company due to its role in the dissemination of “fake news” during the election, FB stock is still going strong and shows no signs of slippage.
2. Netflix, Inc. (NASDAQ:NFLX)
The streaming wars are taking place, but Netflix is still the king.
While some challengers, like Amazon.com, Inc. (NASDAQ:AMZN), are trying to make headway against Netflix—and some analysts believe they might even be successful—Netflix at the moment looks unassailable.
Sure, there are the Netflix skeptics who prophesize doom for the streaming service, but they discount just how much the quality of Netflix programming is feeding into the company’s growth rate. It’s not just other networks’ programs streamed on Netflix that draw the hordes of binge watchers; it’s the company’s original programming itself. Until that quality can be matched (services like “Amazon Prime Video” have tried), there’s little incentive to abandon the red ‘N’ just yet. (Source: “Netflix Is Winning the Streaming Race—But for How Long?” Fortune, March 10, 2017.)
This high-quality programming is garnering them not only critical praise, but also a large consumer base, which in turn is boosting NFLX stock. Figure all that in with Netflix’s strong numbers, like 93.8 million worldwide subscribers with uninterrupted quarter-over-quarter growth since 2011, and you have what makes for a great tech stock investment in 2017. (Source: “Number of Netflix streaming subscribers worldwide from 3rd quarter 2011 to 4th quarter 2016 (in millions),” Statista, last accessed March 13, 2017.)
Revenue also continues upward, according to the company’s Q4 2016 report. Over the past 12 months, the Netflix share price has soared over 50%. The company has the potential to continue being on of the fastest growing stocks in 2017 and beyond.
3. Insys Therapeutics Inc (NASDAQ:INSY)
While perhaps not as well known as the above two companies, Insys is making waves in one of the hottest markets there is right now: the marijuana market.
Through the sale of “Syndros,” the only U.S. Food and Drug Administration (FDA)-approved drug to treat nausea and vomiting caused by chemotherapy, the company has to a certain extent cornered the medical marijuana business and all the potential growth that the sector carries with it.
The company’s stock is up over 20% since the beginning of the year, and is poised to bounce back from a rather poor 2016.
With countries all over the world, from Canada to Israel to the U.S., presenting legislation to help reduce the barriers of sale for legal medicinal and recreational marijuana, Insys has a chance to be one of the under-the-radar weed stocks that blows up as the regulations become less strict and pot becomes more readily available.
The company also experienced a period of high volatility recently, leading observers and analysts to expect a large trade of some sort coming soon.
Whether the trade is positive or negative, we’ll have to wait and see (if there is a trade at all.) But what’s more important is the growth potential locked away in this company. (Source: “Are Options Traders Betting on a Big Move in Insys Therapeutics (INSY) Stock?” NASDAQ, February 22, 2017.)
In fact, on the Fortune list of the 100 fastest growing companies, Insys ranks fourth overall. (Source: “Fortune100,” Fortune, last accessed March 13, 2017.)
4. Micron Technology, Inc. (NASDAQ:MU)
Micron is a company that is in the right place at the right time.
The chip industry is booming, as evidenced by exponential growth at both Advanced Micro Devices, Inc. (NASDAQ:AMD) and NVIDIA Corporation (NASDAQ:NVDA). But MU stock might be the cream of the crop and one of the fastest growing companies in the U.S.
What makes the chip industry home to so many of the fastest growing stocks in 2017 is the sheer number of applications that it will be called upon to supply in the coming future.
Think of all the big new technologies on the horizon—augmented reality (AR), virtual reality (VR), machine learning, artificial intelligence (AI), big data, Internet of Things (IoT), etc.—the thing they all have in common is their shared reliance on powerful chips to power them. From business intelligence data analytics for big data and IoT to the headsets used to present AR and VR, chip makers have struck gold in 2017 and for the foreseeable future.
Micron’s revenue grew by 96.6% over the last three years, from $8.2 billion in 2014 to $16.2 billion 2016.
Its flagship dynamic random access memory chips have continued to draw increased interest over the years from some of the world’s top tech producers. The company’s recent acquisitions have also put it on the path for growth. (Source: “America’s 15 Fastest Growing Companies,” Yahoo! Finance, October 4, 2016.)
Stocks of Fastest Growing Companies
There are a great many stocks that are poised to see some big returns in 2017, especially with the state of current market.
As the economy soars upward with the Dow Jones Industrial Average (DJIA) and the S&P 500 registering all-time highs, stocks are certain to rise on the tailwind of all this good news. The bullish fever is in full effect and, for some of the fastest growing stocks in 2017, that means they’re in for some potentially huge gains.
Whether you want to stick with the old mainstay in Facebook, go high-tech with Micron, believe in the streaming prowess of Netflix or want to put your money on marijuana with Insys, this list provided four solid stocks poised to some of the fastest growing companies in the United States.
Hailing from a variety of industries, these four stocks show just why investors are bullish on 2017 so far. For those looking into how to invest in the fastest growing companies in the U.S., 2017 may be the year they’ve been waiting for.