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InvestorPlace: 3 Stocks to Buy Now for Growth More Robust Than Amazon

InvestorPlace: 3 Stocks to Buy Now for Growth More Robust Than Amazon
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By    |   Thursday, 09 March 2017 08:18 AM

Online reailer Amazon.com Inc. commonly posts more than 20 percent gains in revenue in an indisputably robust growth trend.

InvestorPlace explains that with a little diligence, a savvy investor can find some lesser-known stocks growing at a comparable pace that may not quite yet be the buzz among chatter at the coffee shop, your inlaws or your auto mechanic.

InvestorPlace recently picked best nine stocks “to buy if you’re looking for a little more kick (or a little more value) than Amazon can offer.”

Below is a trio sampling of their picks:

Exelixis Inc. (EXEL)

The biotech company posted surging revenue last year when its renal cell carcinoma (kidney cancer) drug Cabometyx was approved, IP reported, "The drug generated $44.7 million in revenue during the fourth quarter of last year, accounting for more than half of the company’s total revenue for Q4 — revenue that was up nearly 700% on a year-over-year basis (Exelixis had some other things fall into place as well). EXEL is not one of those stocks to buy for traders that can’t stomach volatility as bad news on certain drugs can torpedo its stock price for a short time," the report said.

Yelp Inc. (YELP)

Online review and rating site/directory Yelp "hasn’t been fun or easy to own since early 2014. That’s when it peaked, and even with a 186% rally off of its early 2016 lows," IP reported.  "YELP shares are still down nearly 70% from their peak price hit three years ago. Yelp mustered a 30% improvement in last year’s top line and swung to a profit three quarters ago. That profit has been widening ever since. Analysts are looking for similar growth going forward, projecting next year’s profit per share to ramp up from this year’s 8 cents to 37 cents," IP reported.

Tableau Software Inc. (DATA)

Tableau Software isn’t growing quite as quickly as Amazon.com. "DATA still is one of a handful of hot growth stocks to buy, however, because the pace of its bottom-line growth is leaving Amazon’s profit growth in the dust," IP reported, "Last quarter’s top line was up 23%, and the company’s earnings are on a trajectory to turn positive this year."

As for Amazon itself, the Seattle online retail titan projected earnings for the current quarter that indicate stepped up spending on warehouses, movies and gadgets will continue this year at the expense of profits.

Operating income in the first quarter will be $250 million to $900 million, which is less than a year earlier even though revenue is forecast to increase as much as 23 percent to $35.8 billion, Bloomberg reported.

“It means they’re going to spend a ton of money,” Michael Pachter, an analyst at Wedbush Securities, told Bloomberg. “When you see revenue go up and earnings go down, it spooks people. It’s called negative leverage and the street hates it.”

Amazon reported operating expenses rose 23 percent to $42.5 billion in the fourth quarter ended Dec. 31. The spending included $5.7 billion to store and deliver items, particularly those ordered by Prime customers who pay $99 a year for free, fast shipping. 

With a current market cap of $390 billion, the Seattle-based retail giant is now worth more than the top eight traditional brick-and-mortar retailers combined, as Credit Suisse analysts led by Eugene Klerk mentioned in a recent note, Yahoo Finance reported.

For the record, that roster includes Best Buy (BBY), Macy’s (M), Target (TGT), JCPenney (JCP), Nordstrom (JWN), Walmart (WMT), Kohl’s (KSS) and Sears (SHLD).

(Newsmax wires services contributed to this report).

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InvestorPlace explains that with a little diligence, a savvy investor can find some lesser-known stocks growing at a comparable pace to Amazon that may not quite yet be the buzz among chatter at the coffee shop, your inlaws or your auto mechanic.
stocks, buy, growth, amazon, investorplace
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2017-18-09
Thursday, 09 March 2017 08:18 AM
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