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.
The e-commerce vertical has been immune to COVID-19. In fact, the pandemic has acted as a tailwind for online shopping platforms including Etsy. The company increased its sales from $604 million in 2018 to $818 million in 2019. It more than doubled to $1.72 billion in 2020.
The gross merchandise sales on the Etsy platform grew 107% year over year to $10.3 billion in 2020, making it the fourth-largest e-commerce platform in the U.S.
Etsy’s active buyers have grown at an annual rate of 33% to reach 4.7 million in Q1 of 2021, up from two million in Q1 of 2018 while the number of active sellers has grown by 38% to 90 million in this period. This has allowed Etsy to report $2 billion in sales in the last 12-months, up from $465 million in the twelve months prior to Q1 of 2018.
Etsy has estimated its total addressable market to grow to $437 billion by 2023 which means it currently accounts for less than 1% of the total market, making it a solid bet right now.