There are many new options in the market that are great for diversifying your portfolio
- Legacy stocks are getting the most attention, but investors shouldn’t ignore the potential of these seven up-and-coming stocks.
- Monday.com (MNDY) Monday.com is a project management software that provides team collaboration and communication tools. The program helps teams manage their work and organize tasks easily.
- Roblox (RBLX) Roblox is a gaming platform, and as such, it has secular growth driving its usage. While comparing this year’s to last year’s figures will be difficult, the premise of Roblox being able to attract gamers is a given.
- GitLab (GTLB) GitLab shares have fallen alongside the rest of the market. Despite a strong first trading day, it’s never quite managed to return to its former highs. However, the company’s operations remain strong.
- Coursera (COUR) As the pandemic caused unemployment to rise, more people became interested in Coursera. They saw it as a cheap way to update their skills by taking online courses.
- Bumble (BMBL) Bumble provides an important function for lonely people during these hard times. This will also mean growth in the bottom line.
- Krispy Kreme (DNUT) Krispy Kreme is a company focused on making doughnuts, and it hasn’t lost its touch even in the age of high competition.
- Duolingo (DUOL) Last quarter, Duolingo saw rapid user growth and exceeded expectations by acquiring more subscribers than ever before last year.
This article will discuss the seven best up-and-coming stocks to invest in. At the moment, legacy stocks are getting the most attention. This is because investors want to maintain safe options in their portfolios.
However, it is important to weigh the costs against the benefits of any investment. Many new options in the market are great for diversifying your portfolio, including new(ish) companies with great operating models and value.
|DNUT||Krispy Kreme Inc||$13.68|
Up-and-Coming Stocks: Monday.com (MNDY)
Over the past few months, tech stocks have been unappealing to investors. Due to falling stock prices, many people are moving away from investments in the industry and instead choosing a more safe market.
However, for value investors, this is the ideal moment to strike. Monday.com (NASDAQ:MNDY) is a software development company working to help companies manage and optimize workflows. The solution has been adopted rapidly because it is expansive and tackles key business problems faced by many companies. Of course, the company does have some risks, but they appear to be more than balanced out by benefits.
The platform has a Chrome extension that allows users to share files and folders with other team members and add comments to any of the shared items. It also integrates with Google Drive, which means you can upload your Drive files right into Monday.com without opening them in another application first.
Roblox (NYSE:RBLX) is a game creation platform that enables players to design their games and then share them with others who can play the games.
It offers an open environment where developers can create interactive 3D experiences through a sandbox. This graphical user interface gives the player access to all of the tools they need to make whatever they want.
The Roblox community consists of developers, builders, artists, and gamers who use Roblox.
The popular social gaming platform Roblox is played by more than 22 million players every day. With over 220 million monthly active users, these numbers will only increase.
GitLab (NASDAQ:GTLB) is a web-based Git repository manager that offers all the features of Git, such as distributed version control and source code management (SCM) and integrated project management tools like issue tracking, code reviews, activity feeds, and wikis.
It is a continuous integration and collaboration service that comes in different tiers. The cheapest tier ($19 per month, per user) features tools for enterprises and allows for faster code reviews. To get additional features, like security and compliance, you’ll need to pay $99 per month.
GitLab has had exceptional growth rates since it appeared on the scene last year. On its first day of trading on the stock market, the company attracted approximately $650 million. However, since that time, shares have dipped alongside the broader market.
Up-and-Coming Stocks: Coursera (COUR)
Coursera (NYSE:COUR) is an education platform that offers online courses and degrees. It posted solid year-over-year growth in full fiscal 2021 with 41% revenue growth and 70% enterprise revenue growth.
Coursera was co-founded in 2012 by Stanford professors Andrew Ng and Daphne Koller. It provides mass open online courses led by top experts in their field, offering the same type of content that you would generally pay for.
As unemployment increased after the pandemic, Coursera received significant attention from people who wanted to update their skills cheaply. The real challenge will come this year as the company faces some tough year-on-year comps.
However, the demand for online education is rising. According to one report, from 2021 to 2027, the market will grow from $269.87 billion to $585.48 billion, representing a compound annual growth rate of 13.5%.
Bumble (NASDAQ:BMBL) is a dating app created by Whitney Wolfe, who had previously co-founded Tinder. The app was released in 2014, and it functions similarly to other online dating apps like Tinder and OkCupid.
Covid-19 had a terrible impact on the economy, people’s ability to guarantee their livelihood, and people’s mental and physical well-being worldwide. Research by Harvard psychologists worries that the coronavirus pandemic may be triggering a loneliness epidemic. A study by Making Caring Common shows that over a third of people experience feelings of loneliness frequently or “almost all the time.”
Therefore, Bumble fulfills an important function by ensuring we have companionship during these times, translating into solid growth in the bottom line.
Krispy Kreme (DNUT)
Krispy Kreme (NASDAQ:DNUT) was founded in 1937 by Vernon Rudolph, who later became the Krispy Kreme Doughnut Corporation president.
In 1996, Krispy Kreme began to expand internationally with locations opening up in Canada, South Korea, and, more recently, China. The company also raised its menu to include donuts with different flavors, such as maple bacon and pumpkin spice latte iced donuts.
Krispy Kreme went live on the Nasdaq exchange much more quietly than other companies. After entering at $17 per share, it sold 29.4 million shares and raised $500 million, below the $21 to $24 per share range specified earlier.
Unlike many tech stocks, you know what you are getting regarding Krispy Kreme. It has continued to delight in an age where it is hard to find a company that can make a profit. The company reported an 18.6% increase in net revenue last year and is narrowing its losses, clear signs it is headed in the right direction.
Up-and-Coming Stocks: Duolingo (DUOL)
Duolingo (NASDAQ:DUOL) is a free language-learning app that has made learning languages easier and more accessible. It wants to give people the opportunity to learn a new language for free, no matter their background or where they live.
The app has over 9.6 million daily active users globally. It offers courses for English speakers, Spanish speakers, French speakers, and many other languages.
The company has grown exponentially over a short period. Duolingo saw rapid user growth in the last quarter of 2021 and outperformed expectations by adding more subscribers than ever before. With a 55% increase in revenue, Duolingo had a good year.
This article originally appeared at InvestorPlace.
On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.