Putting on those dual filters, the following three stocks all have that magic combination of strong growth, price momentum, and valuations that still make sense.
Good old Google parent Alphabet has had a very fine 2021 — up nearly 70% on the year.
Google Services incorporates all of Google’s ad revenue across Google search, Google ad networks, and YouTube, as well as things like Pixel phones and the Google Play store for Android apps.
Figuring higher seasonality in the fourth quarter and continued growth, and annualizing that figure going forward, it would come to over $100 billion, with net income conservatively around $80 billion after taxes.
Meanwhile, Alphabet has an exciting Google Cloud segment that grew 45% last quarter, as well as a handful of “other bets” in start-ups like Waymo, its self-driving car division, or Verily, its life sciences division.
Last quarter, LendingClub originated $3.1 billion in loans, up 14% over the prior quarter; that generated $246.2 million in revenue and $27.2 million in net income, beating analyst estimates.
It also helps de-risk its model, since LendingClub doesn’t need to find as many third parties to fund its loans in case of a downturn.
As LendingClub increases its originations of auto loans — a product it has been developing for years — and adds other products beyond personal loans to its platform, look for its stock to reach the levels of its more popular peers.
While Green Thumb generated revenue from all 14 of its end markets, it’s just getting started in key large states like New York, New Jersey, and Virginia.
New York is still medical-only, but just legalized adult-use cannabis in September, and would obviously be a massive market once that’s implemented.
Meanwhile, Green Thumb’s shares have risen strongly after earnings and are up a stunning 50% just this month, but the stock is actually flat year to date and down about 30% from its highs.
If cannabis is decriminalized, companies like Green Thumb will get a huge amount of tax relief as well as lower financing costs, and larger institutions will be able to buy the stock.