3 monster actions in the making

It would be wise to keep an eye out for monster stocks in the making, as they are the ones that can make you quite rich over time. All of today’s giant companies have been giant stocks in the making.

Here are three candidates to consider for your portfolio. Each of them has great potential for growth, and if they execute their strategies well, they can offer great rewards to shareholders in the long run.

Image source: Getty Images.

1. Axon Enterprise

Axon Enterprise (NASDAQ: AXON) was founded in 1993 with a name you may know better – Taser. It was initially focused on weapons, but now, with a new name, its offerings include body cameras and other technology that can be used to enhance public safety. It promotes itself as “a leading provider of law enforcement technology”, with its mission “to protect life”. The company notes that 48 major North American cities use Axon cameras and software, and that its products and services have saved 254,367 lives.

So how is the business going? Between 2016 and 2020, overall revenue increased by 26% on a compound annual basis. Breaking this down into revenue-generating units, Taser revenue averaged 16%, while “sensors and the like” grew 40% on average, and Axon cloud services averaged 57%. (It should be noted that its cloud offerings recently posted a high gross margin of 77%.) Axon sees itself as having a total addressable market of around $ 27 billion, and it is chasing it. The company has great potential for growth.

2. Etsy

If you like to shop online, especially for handmade and vintage items, you are probably familiar with Etsy (NASDAQ: ETSY). But you might not realize how tall he is and how fast he is growing. Etsy’s second quarter results reflect a business with over 90 million active buyers (up 50% from a year ago) and over 5.2 million sellers (up 67%) .

These growing numbers are evidence of a strengthening of sustainable competitive advantage, as the online marketplace becomes the place where buyers will go to find sellers, and vice versa. Meanwhile, gross merchandise sales and total revenue grew 13% and 23%, respectively, year over year – and that’s impressive, because a year earlier, business was in full swing. boom due to millions of online mask purchases. Overall, customer engagement increases as they spend more on Etsy.com.

But wait, there is more! Etsy is also expanding its geographic and categorical scope through acquisitions. It bought the Reverb online musical instrument marketplace in 2019 and recently bought out the UK-based fashion resale marketplace Depop and the Brazilian craft market Elo7 (known to some as “Etsy du Brazil ”). (By the way, Brazil’s population is around 214 million, or about 65% of the 331 million people in the United States.) Etsy seems like a well-oiled growth machine.

Image source: Getty Images.

3. Coupang

Then there is Coupang (NYSE: CPNG), a huge growing e-commerce company based in South Korea. It is expanding globally and some expect it to dominate in Asia in the same way that Amazon.com dominates in the United States (and elsewhere) and Free market dominates in Latin America. This can be a tall order, as there is less room for growth in South Korea and there is competition there, but the business is still likely to continue to grow at a good pace.

The company’s recently released second quarter was its “15th consecutive quarter of constant currency revenue growth of over 50%,” with revenue growth of 71% year-over-year and gross margin up. by 86%. (Notably, the company has seen net losses, not gains, but many young and fast-growing companies are doing so, as they devote every available dollar to further growth.)

Coupang, like Etsy, is also growing by introducing new services and tackling new regions. It introduced grocery and restaurant food delivery services, and introduced a subscription service like Amazon’s Prime. However, setting them up and running can be costly and can put pressure on profit margins. The company is also expanding in Japan and is also considering Singapore, Taiwan and Malaysia. It will face competition from the e-commerce lions existing in these countries.

Each of these three companies holds great promise and could reward you handsomely in the long run. Be sure to dig out the ones that interest you yourself and pay attention to the evaluation. It may be worth paying a lot for some growth stocks, but if you overpay it your overall long-term gain may suffer.