Investors who aim to bet the broader indexes such as the S&P 500 need to create a portfolio of growth stocks. Generally, growth stocks have the ability to increase revenue and earnings at a faster pace allowing them to generate outsized returns over the long term. Here, we look at five such companies that can crush the S&P 500 over the upcoming decade.
1The Trade Desk
One of the fastest-growing companies in the digital advertising space is The Trade Desk. This stock has gained a stellar 2,350% since its IPO in 2016. However, it’s also down 24% from record highs allowing investors to buy the dip.
TTD sales have grown from $308.2 million in 2017 to $836 million in 2020, indicating an annual growth rate of 39%. Comparatively, its free cash flow has risen from $18.2 million to $325 million in this period, more than doubling year over year.
TTD offers a demand-side platform or DSP to advertisers and marketers. Here, companies can purchase ad space and launch data-backed ad campaigns across multiple online channels. The explosive growth in digital advertising supported by the growth in smartphones and connected televisions has helped The Trade Desk to increase revenue at a rapid clip.