With 2020 behind us, here’s a look at the fastest-growing stocks to watch in 2021. Led by Daqo New Energy (DQ), this list of seven stocks also features Square (SQ), DocuSign (DOCU), Futu (FUTU) and Micron Technology (MU).
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ACM Research (ACMR) also makes the cut. ACMR broke out to a new high earlier in the February, then ran into resistance and pulled back. The stock is now testing the top of its buy range.
Note that ACMR joins FUTU stock and DOCU stock among the best IPO stocks to watch. Each company went public between 2017 and 2019. DocuSign and Futu have earned spots on IPO Leaders.
Conspicuously missing is GrowGeneration (GRWG). While estimates for 2021 call for 163% EPS growth, GRWG stock falls short in terms of its current EPS Rating. The distributor of organic nutrients, soils and equipment to commercial and home growers has a 74 EPS Rating, just shy of the 80 minimum the screen requires.
While it doesn’t earn a spot on the list, GRWG stock is certainly among today’s fastest-growing stocks, along with fellow IPO stocks ACMR, FUTU and DOCU stock.
Shining as one of the best solar energy stocks to watch, Daqo New Energy broke out on Dec. 15. Since then, Daqo stock has remained in the spotlight as it continues to hit new highs.
Square stock is also hitting new highs as it and fellow payments processor PayPal (PYPL) get a Bitcoin bounce.
Fastest-Growing Stocks To Watch In 2021
One of the key traits of winning stocks is strong earnings growth. This stock screen highlights companies expecting at least 50% EPS growth in 2021.
Equally important, to show both fundamental and technical strength, each stock must have a 95 or higher Composite Rating to make this list. They must also have an EPS Rating and RS Rating north of 80, which is why GrowGeneration missed the latest cut. Finally, to avoid thinly traded penny stocks, they must also have a share price above $12 and trade at least 200,000 shares a day on average.
3 Key Rules For How To Buy Stocks
Keep in mind that earnings growth is just one factor to track when looking for the best stocks to buy and watch. In addition, make sure to follow these three key rules for how to buy stocks.
As DOCU, DQ, FUTU, Square stock and others show, Wall Street looks to the future for these stocks to watch, not the past.
Despite weak earnings growth in earlier quarters from companies like Square and ACM Research, their share prices had been rebounding ahead of improved results.
While there are no guarantees in the stock market, the strong earnings estimates for the new year point to better times down the road.
Find The Best Stocks To Buy And Watch With IBD Stock Screener
| Company | Symbol | EPS Est. Next Year % | Composite Rating | EPS Rating | RS Rating | SMR Rating |
|---|---|---|---|---|---|---|
| Daqo New Energy | DQ | 128 | 99 | 90 | 99 | A |
| Micron Technology | MU | 91 | 96 | 96 | 82 | B |
| Digi International | DGII | 91 | 95 | 93 | 82 | B |
| ACM Research class A | ACMR | 72 | 99 | 81 | 90 | B |
| Futu Holdings class A | FUTU | 59 | 99 | 84 | 99 | A |
| Square class A | SQ | 51 | 97 | 89 | 92 | A |
| DocuSign | DOCU | 51 | 98 | 84 | 85 | A |
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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