4 Growth Stocks to BUY on the Dip

NASDAQ: NFLX | Netflix Inc. News, Ratings, and Charts

NFLX – After soaring for five months, the market has taken a step back the last couple days. This provides an opportunity for investors to pick up shares at a lesser price. Here are four growth stocks worth a look: Netflix (NFLX), Advanced Micro Devices (AMD), LAM Research (LRCX), and Franco-Nevada (FNV).

After witnessing the best August in decades, and a strong recovery from its March low, the S&P 500 has been trending downwards over the last few days. This provides a buying opportunity as shares become a little more affordable. The market still holds potential to grow, according to many analysts.

Trying to time the market due to elevated valuations is hard to achieve, especially since interest rates are so low. low-rate environment, So, the best strategy might be to focus on fundamentals rather than temporary external factors. Growth stocks have already contributed significantly to the recovery of the stock market, which can be seen from the performance of the SPDR Portfolio S&P 500 Growth ETF’s (SPYG) 65.6% gain since hitting its low in mid-March. This extraordinary performance of the growth stocks has been driven by technological advances and strong fundamentals. And these factors should keep driving these stocks higher.

Here are four  growth stocks that could rise even further in the months ahead: such as Netflix, Inc. (NFLX), Advanced Micro Devices, Inc. (AMD), LAM Research Corporation (LRCX), and Franco-Nevada Corporation (FNV).

Netflix, Inc. (NFLX)

NFLX needs no introduction. This streaming company has made a name for itself through the popularity of its original programming, and is the market leader in streaming platforms. NFLX has largely benefitted from people spending more time at home due to the global health crisis. The stock has gained 62% so far this year, and is trading at near all-time highs.

The company has added 10.1 million subscribers to the platform in the second quarter of 2020, which is a growth of 27.3% year-over-year. NFLX is looking to expand its global reach by offering mobile-only lower-cost subscriptions and through bundled offerings with ISPs and MVPDs. The revenue of the company is expected to grow by 23.4% in 2020, and by 17.4% in 2021. The company’s EPS is estimated to grow by 49.6% in the current year, and by 42.4% next year.

How does NFLX stack up for the POWR Ratings?

A for Trade Grade

B for Buy & Hold Grade

A for Peer Grade

A for Industry Rank

B for Overall POWR Rating

The stock is also ranked #7 out of 57 stocks in the Internet industry.

Advanced Micro Devices, Inc. (AMD)

AMD develops, manufactures, and markets semiconductor devices such as computer processors and graphics processors. AMD has been one of the best performing technology stocks over the last few years. The stock has returned 80% so far this year, despite disruptions to its supply-side caused by the spread of the coronavirus.

The company has recently launched an entry-level GPU (Graphics Processing Unit) called the Radeon RX 5300, which is a more cost-effective alternative to a comparable offering by NVIDIA (NVDA). The company has entered into agreements with Microsoft (MSFT) and Sony (SNE) to provide custom GPUs and processing units for their upcoming consoles. AMD’s revenue is expected to rise by 32.4% in the current year, and by 22.8% next year. The company’s EPS is estimated to grow by 70.3% in 2020, and by 51.4% in 2021.

It’s no surprise that AMD is rated a “Buy” in our POWR Ratings system, with a grade of A in Trade Grade, Peer Grade, and Industry Rank. In the 86-stock Semiconductor & Wireless Chip industry, it is ranked #9.

LAM Research Corporation (LRCX)

LRCX designs, develops, manufactures, and markets semiconductor manufacturing equipment for making integrated circuits and processors. The company’s major products called Vector, Sabre, and Kiyo are sold around the world to enterprise customers. LRCX has delivered a year-to-date price return of 16.8%, and its stock price has recovered from the dip caused by the global health crisis.

The company is highly involved in the production of memory and storage devices. And this market is poised for significant growth due to developments in the Internet of Things (IoT), cloud computing, and big data. LRCX has entered into a partnership with 3D printer manufacturer VELO3D for the development of 3D metal printing for semiconductor applications.

LRCX’s revenue is expected to grow by 23.9% in the current year, and by 8.5% next year. The company’s EPS is estimated to rise by 31.9% in the current year and by 14.6% next year. LRCX’s strong fundamentals are reflected in its POWR Ratings. It is rated a Buy, with a grade of A for Industry Rank. Within the Semiconductor & Wireless Chip industry, it’s ranked #11 out of 86 stocks.

Franco-Nevada Corporation (FNV)   

FNV is a gold-focused royalty and stream company that operates in the US, Canada, and internationally. The company has no debt and has a diverse portfolio of cash-flow producing assets. The company has a strong potential for growth thanks to its 240 exploration and development royalties. FNV has delivered a year-to-date price return of 44%.

The company has entered into an agreement to acquire a 1% NSR for $100 million with reference to all the minerals produced from the Alpala copper-gold-silver project in Northern Ecuador. FNV has also raised $66.8 million through issuance of shares. The company is estimated to witness EPS growth of 14.9% in the current year and 6.5% next year. FNV is also expected to see a rise in revenue of 11.7% in the current year and 3.7% next year.

It’s no surprise that FNV is rated a Buy in our POWR Ratings system. It has a grade of B in Trade Grade, Buy & Hold Grade, and Industry Rank. In the 30-stock Miners- Gold industry, it is ranked #7.

Want More Great Investing Ideas?

7 Best ETFs for the NEXT Bull Market

Beware Stocks in September?

9 “BUY THE DIP” Growth Stocks for 2020

NFLX shares were trading at $512.22 per share on Friday afternoon, down $13.53 (-2.57%). Year-to-date, NFLX has gained 58.30%, versus a 7.75% rise in the benchmark S&P 500 index during the same period.

About the Author: Aaryaman Aashind

Aaryaman is an accomplished journalist that’s passionate about providing in-depth insights about investing and personal finance. Recently he has been focused on the stock market and he specializes in evaluating high-growth stocks. More...

More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
NFLXGet RatingGet RatingGet Rating
AMDGet RatingGet RatingGet Rating
LRCXGet RatingGet RatingGet Rating
FNVGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com

Updated 2024 Stock Market Outlook

The bull market continues to rage on with the S&P 500 (SPY) making new highs. That is the past...the question is what does the future hold? That is why 44 year investment veteran Steve Reitmeister provides this updated 2024 Stock Market Outlook to help you carve a path to outperformance the rest of the year. Read on below for the full story...

3 Auto Stocks to Consider Over TSLA in April

Tesla (TSLA) reported a decline in deliveries in the first quarter, and Wall Street expects the company to deliver fewer vehicles than last year. Furthermore, rising competition, slowing EV sales, and stretched valuation make TSLA unattractive from an investment standpoint. Considering these factors, investors could consider buying fundamentally strong auto stocks Blue Bird (BLBD), Rolls-Royce Holdings (RYCEY), and Stellantis (STLA) over Tesla (TSLA). Read more...

3 Top-Rated Tech Stock Buys for Value in April

The technology sector is undergoing a notable surge, propelled by increasing digitalization endeavors among businesses and governmental support for technological progress. So, fundamentally sound tech stocks Box Inc. (BOX), Teradata (TDC), and Materialise (MTLS), which seem pretty undervalued, might be ideal buys this month. Continue reading...

Top Software Stocks at the Forefront of Market Gains

The software industry's prospects appear bright due to increasing investments in digital transformation, high demand for advanced software services from various sectors, and the integration of emerging technologies such as generative AI. Therefore, investors could consider buying quality software stocks Autodesk (ADSK), DocuSign (DOCU), and Pegasystems (PEGA) for solid gains. Read more...

Does the Stock Market Have Indigestion?

The easy gains have already rolled in for the S&P 500 (SPY) to new heights. However, signs point to stocks entering a stage of “digestion”. What does that mean? And what does it tell us about investing in stocks the rest of the year? Steve Reitmeister shares his time views in this new market commentary including a preview of this top stocks to outperform. Get the full story below...

Read More Stories

More Netflix Inc. (NFLX) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All NFLX News