3 Growth Stocks for In-the-Know Investors

There are plenty of investing strategies you can use when choosing a stock to buy. Some investors may be looking for more stability, others want solid dividends for years to come, and others may be looking for companies that are growing at breakneck speeds.

For investors looking for fast-paced growth, which may also come with a bit of volatility…

Okta (NASDAQ:OKTA)Shopify (NYSE:SHOP), and Square (NYSE:SQ) should be on your short list. Here’s why.

Okta

Unless you’re a tech investor, there’s a good chance that you haven’t heard about Okta. The company is in a fast-growing, but still mostly unknown, market called identity and access management. Okta creates software that companies can use to create well-defined parameters to give users access to online information.

Okta’s technology helps companies create a gatekeeper system that makes it easy to manage existing users and add new ones. Okta is a leader in the fast-growing identity management space, which will be worth $23 billion by 2025, and the company’s sales growth has helped push its share price up 335% over the past three years.

Okta’s revenue increased by 49% in the most recent quarter, and the company continues to build its subscription sales, which jumped 51%. That’s impressive enough on its own, but there’s likely more growth ahead for the company. Okta’s management expects full-year revenue to reach $563 million at the high end of its guidance, which would represent 41% sales growth compared to the previous year.

Shopify 

Another growth stock that investors should be keeping an eye on is the e-commerce platform company Shopify. The company has a host of services for businesses of all sizes, including website and online store setup, as well as services for managing payments and shipments. Shopify has more than 800,000 businesses using its platform, and in the most recent quarter, the company’s sales jumped 48% from the year-ago quarter.

What makes Shopify’s stock uniquely compelling is the fact the company still has a lot of potential to grow as the e-commerce market takes shape. For example, only 11% of all retail sales occurred online in the U.S. this year, and the global e-commerce market will reach an estimated $6.5 trillion in 2022.

So even though Shopify’s sales are booming and the company’s share price has skyrocketed 330% over the past several years, the fact that e-commerce is just getting started means that there’s still plenty of runway left for Shopify…

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