3 growth stocks to buy with $ 1,000 right now

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You might want to forget about September. It was difficult for investors. After seven months of earnings, the S&P 500 slipped 4.8%. And many growth stocks have stagnated or fallen. But here’s the thing: it’s OK. Why? Because it is a temporary situation. The strongest actions will rebound. And any drop or pause in their earnings gives us the opportunity to acquire great stock at a great price.

This means that you can choose more than one name with an investment of $ 1,000. In fact, I’m thinking of three great growth stocks to add to your portfolio right now. They performed well during the worst of the coronavirus pandemic. But these players also have plenty of fuel to fuel them in a post-pandemic world. We will take a look.

Image source: Getty Images.

1. Teladoc

Teladoc Health (NYSE: TDOC) made an investment last year that could reshape its future. The company acquired Livongo, a specialist in virtual management of chronic diseases. These include high blood pressure and diabetes. Why is this so important for the online doctor’s provider? Because 40% of Americans live with more than one chronic disease. This represents an important market for Teladoc.

For now, this bet is paying. During the last quarter, the number of members using Livongo products increased by 45%. And over 20% of Teladoc’s chronic care members are enrolled in multiple programs. This is up from 6% a year ago.

And this is only part of the Teladoc package. The company offers virtual visits in primary care and provides access to experts in 450 specialties. Tours are available 24/7 in the comfort of your own home. At the worst of the pandemic, Teladoc’s business has skyrocketed. Last year, the company’s revenue soared 98% to over $ 1 billion. And virtual tours have jumped 156% to over 10 million.

The health crisis has since abated, but Teladoc’s revenues and visits continue to soar, a sign that growth is here to stay for this dynamic company.

Graph showing the increase in Teladoc revenue since the end of 2020.

TDOC revenue (quarterly) given by YCharts

2. Etsy

Etsy (NASDAQ: ETSY) is an online platform offering unique handmade items. During the pandemic, shoppers flocked to Etsy for items like masks, but they also favored Etsy because it is an online store. And, of course, it was handy during lockdowns. As a result, revenue and net profit climbed approximately 110% and 264%, respectively, last year.

But here’s one of the reasons the gains are likely to continue. Etsy was already increasing its revenue and profits before the pandemic.

Chart showing the increase in Etsy's revenue and bottom line since 2014.

ETSY income (annual) given by YCharts

The health crisis has just offered a further boost – and an opportunity for Etsy to attract new customers and strengthen relationships with existing customers. The latest earnings report shows us that the positive trends continue. Repeat buyers are up 115% year over year. These are buyers who have made purchases totaling at least $ 200 over six days or more in the past 12 months. They are Etsy’s fastest growing customer group.

Another driver of growth in the coming years is expected to come from recent acquisitions. This summer, Etsy bought two companies: Depop, a clothing resale marketplace, and Elo7, a Brazilian handicraft marketplace. This allows Etsy to access two growing markets.

A veterinarian holds a kitten on an examination table.

Image source: Getty Images.

3. Soft

My third stock to buy now is another business that benefited from the popularity of e-commerce during the pandemic. I’m talking about soft (NYSE: CHWY). The online pet supplies seller reported a 47% increase in net sales last year and increased customer base by 43%. Another milestone: The fourth quarter represented the first quarter of Chewy’s net income.

Net sales and adjusted EBITDA continued to increase this year. It’s a sign that Chewy’s pandemic gains weren’t just temporary. Even with the physical stores open, customers choose Chewy. And speaking of customers, the following numbers are encouraging. Chewy reported a 21% increase in the number of active customers in the last quarter and a 13% increase in net sales per active customer.

Going forward, Chewy is expanding its growth opportunities in companion animal health. Last month, the company launched Practice Hub, a marketplace for veterinarians only. Practice Hub allows them to access Chewy’s prescription drugs, for example, to set prices and sell those items to customers. Chewy’s health activity also includes telehealth visits for pets and pharmacy services. And the company says it plans more expansion in pet health in the coming months.

Finally, let’s quickly talk about the share price. Teladoc, Etsy, and Chewy each slipped in September.

Chart showing the fall in prices of Teladoc, Etsy and Chewy in September.

TDOC given by YCharts

I see such a move as a time to buy stocks – for all of the above reasons. These companies have each recently invested in growth. It is likely that they and the shareholders will see the benefits in the months and years to come.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.


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