The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. Table by author. For instance, assuming Roku can grow revenue at an average annualized rate of 30% over the next 10 years, the company would generate nearly $3 billion of net income on an estimated 15% net margin (a reasonable forecast for a mature, scalable tech company). Roku will likely see consistent 50%-plus year-over-year growth in its platform revenue in late 2020 and in 2021. See the full list of top ranked stocks here. Indeed, nearly half of U.S.-based CTV users in 2020 will be Roku users, eMarketer estimates. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. Sure, there's always a risk that the company's growth decelerates more than expected -- particularly if competition heats up. You probably already know how the world's biggest companies are already making the shift. But what about Roku's valuation? Hibbett Sports has a PEG ratio of 0.77, compared with 2.23 for the industry. Mastercard has 2.6 billion co-branded cards in global circulation and reported $7.3 billion in sales and an operating margin of 51% in the first half of 2020. The company dominates the streaming-TV platform market in the U.S. Even long-term momentum will likely be fueled by the tipping point of ad dollars coming from traditional television to connected TV (CTV), where Roku is a market leader. See you at the top! If that should take care of growth, the fact that 95% of its cash flows are contracted should ensure cash flow resiliency, even through tough times. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks' 7 Best Strong Buy Stocks for October, 2020. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. If you are looking for growth stocks in an increasingly small field, we have identified the 10 best growth stocks to buy right now based on their expected earnings growth over the next several years. Roku and Netflix are currently trading at 9 and 7 times average analyst forecasts for their 2021 revenue estimates, respectively. Mastercard's revenue from value-added services like data analytics, consulting fees, cyber and intelligence fees, and loyalty reward fees jumped 23% in 2019. A select few stocks could skyrocket the most as rollout accelerates for this new tech. Stock Advisor launched in February of 2002. Let's conquer your financial goals together...faster. But the real long-term opportunity for Roku is monetizing its growing user base on its platform, which consists of revenue from transactions, subscriptions, and advertising served on its operating system. Although the coronavirus outbreak hit its earnings, Mastercard's long-term story is getting even stronger as digital payments pick up, especially during the COVID-19 pandemic. If you do not, click Cancel. It was a tough week for investors, particularly for those with a portfolio heavily invested in tech companies. Daniel Sparks is a senior technology specialist at The Motley Fool. Investing is his primary passion. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms and Conditions of Service. Lennar Corporation price-consensus-chart | Lennar Corporation Quote. Copyright 2020 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606. Early investors could see gains similar to buying Microsoft in the 1990s. To learn more, click here. Zacks Equity Research Trailing-12-month revenue grew at a rate of 49% year over year -- enough to pique any growth investor's interest. In the coming decade, Brookfield shares could easily generate annualized double-digit returns for three major reasons: Brookfield's development pipeline is not only among the largest in the world, but also nearly as large as its current capacity of 19,300 MW. It also expanded its contactless payments in Canada and saw 65% year-over-year growth in merchant cash advances and loans through Shopify Capital. With more than 1 million merchants across 175 countries already on board, Shopify has grown by leaps and bounds in recent years and will likely continue to do so as adoption of e-commerce further gathers steam. The war on cash is raging, and it's only a matter of time before nations across the globe become cashless societies, as people ditch paper money for cards and other forms of digital payments. Of the approximately $70 billion spent annually on television advertising in the U.S., only about $7 billion is spent on CTV. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and are separate companies. M.D.C. Holdings, Inc. price-consensus-chart | M.D.C. Holdings, Inc. Quote. In addition, investors should prepare for the wild volatility that comes with owning growth stocks. The 20 Best Stocks to Buy for 2020 Get ready to rumble. Data source: Reuters and YCharts. Lennar Corporation (LEN - Free Report) : This homebuilder company carries a Zacks Rank #1, has witnessed the Zacks Consensus Estimate for its current year earnings increasing 12.3% over the last 60 days. With its solid global presence, partnerships with some of the world's biggest companies, suite of lucrative value-add services, and thirst to grow via acquisitions, Mastercard could earn multibagger returns for investors in the coming decade and beyond. For patient investors in the stock, that could mean some solid returns in the coming years. Platform revenue growth slowed to a still-impressive year-over-year rate of 46% in the second quarter. E-commerce, in particular, is a massive tailwind that should bolster the transition, opening up a world of opportunities for Mastercard (NYSE:MA). The company possesses a Growth Score of A. M.D.C. Holdings, Inc. peg-ratio-ttm | M.D.C. Holdings, Inc. Quote. These sales help the company acquire new active users. Market data powered by FactSet and Web Financial Group. Highlighting the outsize decline in tech during the week, the tech-heavy Nasdaq fell about 3.6%, while the S&P 500 only declined about 2.5%. With a $19 billion market capitalization and no profits, Roku stock may seem overvalued on the surface. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. The only company with a lower price-to-sales ratio is Netflix. The global fintech industry is projected to grow exponentially in the coming years. Further, renewables are projected to make up 45% of global electricity generation by 2040, up from only about 26% in 2018. Let's conquer your financial goals together...faster. Unsurprisingly, therefore, the difference in the two companies' price-to-sales valuations narrows significantly when you are using next year's sales estimates. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Her favorite pastime: Digging into 10Qs and 10Ks to pull out important information about a company and its operations that an investor may otherwise not know. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. If you think you can do it, here are three top growth stocks riding on three separate megatrends that could make you crazy rich only if you buy and hold them for a decade -- preferably even beyond. This isn't your average growth stock, as investors will see after looking at the company's top-line momentum and the potential for its strong growth to persist for years to come. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. The best stocks to buy for 2020 will undoubtedly have growth potential, but they also should be able to withstand a market tantrum or … Among all the energy sources in the U.S., renewable energy grew the fastest, at a nearly 100% clip between 2000 and 2018, according to the Center for Climate and Energy Solutions. However, given the durability of Roku's current growth drivers and the inherent scalability of a platform-based business model, future annual profits could be substantial. Current technology will soon be outdated and replaced by these new devices. The company possesses a Growth Score of B. BJs Wholesale Club Holdings, Inc. peg-ratio-ttm | BJs Wholesale Club Holdings, Inc. Quote. In Q2 alone, it launched channels enabling merchants to customize their storefronts within Facebook and Instagram and sell their products online on Walmart. Privacy Policy | No cost, no obligation to buy anything ever. BJ's has a PEG ratio of 1.00, compared with 1.31 for the industry. 3 Dividend Stocks to Buy Now, 3 Growth Stocks to Buy and Hold for the Next 50 Years, 3 Stocks That Could Double in the Next Decade, Copyright, Trademark and Patent Information. A recent pick, Maxar, skyrocketed +178.7% in 3 months. All of this growth sounds great, particularly given that the streaming-TV ad market is just getting started. This includes personalizing content and advertising. October 07, 2020, You follow Zacks #1 Rank Additions - edit. Delayed quotes by Sungard. Top Stocks to Buy in 2020; Stock Market News; ... here are three top growth stocks riding on three separate megatrends that could make you crazy rich only if you buy and hold them for a … Zacks’ just-released special report reveals 8 stocks to watch. Weighing on Roku's top-line figure is its slower-growing hardware business, which has very little to do with what makes Roku so exciting. Experts have chosen 7 stocks out of 220 Zacks Rank #1 Strong Buys that have the highest potential to increase in price quickly amid the … Further, if Roku can command a price-to-earnings multiple of 35 on those earnings, Roku's market capitalization would likely be greater than $100 billion 10 years from now, up from less than $20 billion today. Mastercard doesn't issue cards but facilitates transactions made through them on its payments-processing network. As bad as this sell-off hurts, it seems to have created a few good buying opportunities, with some tech stocks that were already looking attractive became even more compelling. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities. Returns as of 10/17/2020. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. If you wish to go to ZacksTrade, click OK. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. These returns cover a period from January 1, 1988 through August 31, 2020. Visit performance for information about the performance numbers displayed above. Stock Advisor launched in February of 2002. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. He has previously served in the U.S. Army on active duty and holds an MBA from Colorado State University. YOY = year over year. But the streaming-TV media giant is growing much more slowly than Roku. Brookfield typically buys value assets, develops and turns them around, where necessary, to make them profitable, and eventually monetizes mature assets to reinvest the proceeds opportunistically. M.D.C. Holdings, Inc. (MDC - Free Report) : This homebuilding and financial service businesses carries a Zacks Rank #2 (Buy), has witnessed the Zacks Consensus Estimate for its current year earnings increasing 1.7% over the last 60 days.