Got $2,000? Here Are 3 Top Growth Stocks to Buy in February

Want to know one of the best ways to make a lot of money investing? Get in early on a business that has huge growth prospects. Once you do that, all you have to do is wait.

The trick to making this work, of course, is to find the right stocks to buy that are in their early stages of potentially massive growth. You don’t even need to invest a huge amount upfront. If you’ve got $2,000, here are three top growth stocks to buy in February that fit the bill.

Image source; Getty Images.

1. DermTech

Between 4 million and 4.5 million surgical skin biopsies are performed each year. Only around 180,000 cases of melanoma are found from these biopsies. That’s a lot of cutting that ultimately proves unnecessary. Worse, these skin inspections sometimes fail to detect when melanoma or other skin cancer is present.

DermTech (NASDAQ:DMTK) addresses these problems. The company currently markets its Pigmented Lesion Assay (PLA) for diagnosing melanoma. There’s no cutting required. Instead, an adhesive patch is placed on the skin, then removed and sent to a lab. Genomic testing is performed on the lesion to determine if the individual has melanoma. 

This approach is 17 times less likely to miss a melanoma diagnosis. It’s nearly 25% less expensive than surgical biopsy. Is there a big market for such a game-changing technology? You bet. DermTech estimates its total addressable market in skin cancer is close to $10 billion per year. 

For now, the company is focused only on melanoma. However, its pipeline includes other products in development that could enable DermTech to target other types of skin cancer. The company’s market cap currently stands at around $1 billion. DermTech should have a massive growth runway ahead of it. 

2. Fiverr

Welcome to the gig economy. Freelancing is bigger than ever. The COVID-19 pandemic poured fuel on the fire, with more people working from home or out of work altogether and looking for ways to make more money. 

There are multiple websites that connect freelancers to buyers. But Fiverr (NYSE:FVRR) removes the friction with its technology platform. Freelancers don’t have to bid on work. They simply post their price. Buyers of digital services know exactly what they’ll get for exactly how much money.

Fiverr’s “service-as-a-product” approach creates a flywheel effect. The more freelancers use its platform, the more buyers spend on the platform. The more buyers use Fiverr, the more they like it. That results in increased spending, which attracts even more freelancers to even more opportunities. 

After its stock skyrocketed 730% in 2020 and rose by a double-digit gain so far this year, Fiverr’s market cap is now close to $8 billion. Huge growth prospects still lie ahead, though. Fiverr estimates its addressable market is around $115 billion. 

3. Social Capital Hedosophia Holdings V 

If you really want to get in early on a great growth stock, check out Social Capital Hedosophia Holdings V (NYSE:IPOE). It’s one of Chamath Palihapitiya’s special purpose acquisitions companies (SPACs). IPOE is in the process of taking fintech start-up SoFi public in the near future.

SoFi provides an app that pulls a full suite of financial products into one integrated solution. These include peer-to-peer payments, buying and selling stocks and cryptocurrencies, and securing home loans. SoFi also offers a credit card and has a customer rewards program.

The fintech company projects 75% member growth in 2021. It expects to almost double the number of its members who use multiple products under its umbrella.

Buying IPOE now allows investors to get in early on SoFi’s tremendous growth potential. The SPAC stock is already up more than 20% year to date. It could go a lot higher before the SoFi IPO.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *