It’s 2021, but it’s beginning to feel like it’s 2020 again. I know, I know. Who wants to relive 2020 all over again, right? Well, thankfully, I’m just referring to the stock market. Many of the stocks that soared during 2020, and then struggled mightily during the first half of 2021, have returned to form. I think you’ll recognize the following names:
Snap, Inc. (SNAP)
Trade Desk, Inc. (TTD)
Roku, Inc. (ROKU)
Shopify, Inc. (SHOP)
Listen, as long as interest rates remain near historic lows and growth continues, it’s going to be difficult to keep these stocks down. They will gain a lot of ground rapidly. Yes, they’re risky. High growth stocks tend to get clobbered during economic downturns, because they’re priced for a lot of future growth. When that growth doesn’t materialize or is threatened, the sellers will be out in force. But I don’t see our economy slowing for at least the next few quarters. In the meantime, expect more of what we’re seeing right now – growth back in favor.
Many growth stocks are running right now in anticipation of strong quarterly results over the next 2-3 weeks. Chances are we’ll see many opportunities ahead as the “sell on news” kicks into gear. But I’d view the longer-term trend as quite bullish.
On Monday, I’ll be featuring one upcoming earnings report as a “can’t miss” blowout-type report in our free EB Digest newsletter (SNAP was featured in our Q2 Earnings webinar last Tuesday as a potential blowout). To start your free subscription (no credit card required), CLICK HERE and enter your name and email address in the area provided. You may unsubscribe at any time.
Also, we now have a completely-free 30-day trial to our research and education platform. On Sunday evening, I’ll be sending our EB paid subscribers (including free 30-day trials) a Special Report featuring aggressive growth stocks that are on the verge of breaking out to join the 4 I mentioned above. You want to catch these just before their breakouts or as they break out. To start your 30-day free trial, CLICK HERE.
Tom Bowley is the Chief Market Strategist of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market.