3 of the Best Growth Stocks for Millennials
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3 of the Best Growth Stocks for Millennials

Well-picked growth stocks can offer better than average returns. We examine three stocks with long-term growth potential.
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

Growth stocks can potentially result in good gains if they’re well researched. There’s the potential for growth in the medium-term as the market is tentatively on the cusp of improvement. These stocks are particularly suited for millennials and other younger investors as they have a larger risk appetite.

News of the COVID-19 vaccine being 90% effective and that it may be ready in December is a great news. However, there is also the prospect of more infection waves. Overall, it’s worth considering investments that may prove fruitful.

Top Stocks for Millennial Investors

The following stocks have been on a solid run in 2020, despite the pandemic. Quarterly reports and fundamental analysis indicate possible growth ahead as well.

1. PayPal Holdings, Inc. (NASDAQ:PYPL)

Image courtesy of Nasdaq.

PayPal has had one of its best years in 2020 for several reasons. Not the least of which is that it now supports cryptocurrencies. The news had a noticeable impact on the stock, and the days that followed have only added to positive sentiment.

The company is also popular among millennials on Robinhood, and it is one of the most in-demand stocks on the platform. The presence of well-known founders in Elon Musk and Peter Thiel adds to the glamor.

Image courtesy of PayPal.

But there are plenty of other reasons why PayPal is good for growth going forward. The company’s quarterly reports have been remarkably good, and it has doubled down on its strategic initiatives. Almost all financial figures indicate growth, a good sign as it plans to take its crypto strategy abroad.

  • PayPal’s quarterly earnings for Q2 2020 was its best-ever quarterly financial figures.
  • Q3 2020 was just as good, where it recorded the strongest growth in total payment volume and revenue.
  • Total payment volume was $247 billion, a 36% growth year-over-year.
  • New active accounts grew by 15.2 million, a 55% increase year-over-year.
  • Net revenue grew by 25% year-over-year to $5.46 billion.

💡 Not sure what a growth stock is? Learn about growth and value stocks.

2. Innovative Industrial Properties, Inc. (NASDAQ:IIPR)

Image courtesy of Nasdaq.

Innovative Industrial Properties is a Real Estate Investment Trust (REIT) with a specific focus on the medical marijuana industry. This holds a lot of potential, as the industry is also one that is growing rapidly. All of the company’s leased properties are in the United States, where many states have just legalized marijuana.

Just a few days ago, the company’s stock doubled in value. But this is not just a one-off incident, there are other indications that there might be room for more growth. Innovative Industrial Properties has bought more properties in 2020 — a time when you’d think companies would be conservative with money.

  • The company has entered multiple long term agreements and purchased new properties in 2020, expectant of growth.
  • The stock is up by over 100% YTD in 2020, largely because of increased cannabis consumption.
  • The third quarterly report for 2020 recorded sales of $34 million, beating analyst projections by 16%.
  • Analysts have raised their targets, and estimated solid growth going forward.

3. The Trade Desk, Inc. (NASDAQ:TTD)

Image courtesy of Nasdaq.

The Trade Desk is a technology company that ad buyers use to run digital advertising campaigns. And of course, such marketing has become even more prevalent as people stay home and online.

One of the benefits of the company is that it allows the users to buy ads and avoid interacting with media companies. Its cloud computing and data-driven decision solutions could help companies and brands find opportunities in an increasingly digital world.

  • Sales have gone up 32%, according to its third-quarter report for 2020.
  • Fiscal year sales are projected to jump 22% in 2020.
  • The company recorded a quarterly revenue of $216 million.
  • The Trade Desk has have targeted revenue to be between $287 and $291 million for its Q4 estimate.

Conclusion

The stocks listed here might be among the potential gainers in the coming months and beyond. In the end, despite the US election’s completion and the prospects of vaccine distribution, the economy remains fragile. Volatility still prevails, and the pandemic is still occurring in waves across the world.

With growth stocks, there is now a better chance to make a profit if investors pick their stocks carefully. Take a good look at the ones listed here and try to find some of your own.

Ready to trade stocks? Get started with the leading stock apps.

What do you think of the companies listed above? Do you think growth stocks are set to grow in the coming months? Let us know in the comment below.

Disclosure: Tim Fries has no positions in any of the stocks mentioned, and has no plans to initiate any positions within the 72 hours following the publishing of this article. This article expresses the opinions of Tim Fries. Tokenist Media LLC has no position in any of the stocks mentioned, and does not plan to initiate any positions within 72 hours of the publishing of this article. Please consult our website policy for more information.

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