A great place to hunt for growth stocks is the US market as it has a much wider breadth of companies compared to Singapore’s stock market.
The key attributes you should look for include a strong business franchise, a long growth runway that rides on sustainable trends, and a good track record of delivering on what was promised.
Although the US market has taken some knocks in recent months, you should see this as a great opportunity to accumulate strong stocks for the long term.
Here are four promising US stocks that can help to grow your wealth.
PayPal (NASDAQ: PYPL)
PayPal operates an online payment platform that connects merchants with customers and allows for secure and fast online transfers.
The company is still reporting decent growth for its fiscal 2022’s second quarter (2Q2022).
Net revenue grew 9% year on year to US$6.8 billion with operating cash flow increasing by 12% year on year to US$1.5 billion.
Free cash flow jumped by 22% year on year to US$1.3 billion.
Total active accounts hit 429 million, up 6% year on year, with the addition of 400,000 net new active accounts.
PayPal’s platform also saw total payment volume (TPV) rise by 9% year on year to US$339.8 billion.
The payments company is executing cost-saving initiatives that are expected to reduce expenses by US$1.3 billion by next year.
It has also approved a new US$15 billion share repurchase plan and expects to add a total of 10 million new active accounts for this year.
PayPal continues to enhance its offerings by rolling out new credit offerings for small and medium businesses.
It also expanded its collaboration with Shopify (NYSE: SHOP) to power Shopify payments in France to give merchants access to integrated payment offerings.
Zoom Video (NASDAQ: ZM)
Zoom is a communications company that offers a videoconferencing platform to connect companies and individuals.
The company recently reported a decent set of numbers for its 2Q2023 ended 31 July 2022.
Total revenue grew 8% year on year to US$1.1 billion, with enterprise revenue jumping 27% year on year to US$599 million.
Enterprise revenue now takes up more than half of total revenue, up from 46% in 2Q2022.
Zoom continued to generate healthy free cash flow for the first six months of fiscal 2023 (1H2023).
Free cash flow came in at US$727.3 million, dipping 20% year on year from US$909.3 million in 1H2022.
Zoom’s high value customers are also contributing more to its top line, with 3,116 customers paying more than US$100,000 in trailing 12-month revenue, up 37% year on year.
The company’s Investor Day event, Zoomtopia, will take place on 8 November, where the company will outline further strategies for growth.
Visa (NYSE: V)
Visa is another payments company that works with financial institutions, merchants and customers to deliver seamless payment solutions.
As of 31 March 2022, the payments giant had 3.9 billion cards in issue, up 8% year on year from 3.6 billion last year.
Visa reported a strong set of earnings for its fiscal 2022 third quarter ended 30 June 2022 as travel picked up around the world.
Net revenue rose 19% year on year to US$7.3 billion while net profit surged 32% year on year to US$3.4 billion.
Payment volume rose 12% year on year during the quarter to hit US$2.9 trillion.
Consumer spending is seeing a strong recovery with a 16% year on year jump in processed transactions and a 40% year on year improvement in cross-border transactions.
Barring a sharp recession in the coming quarters, Visa should continue to see steady improvements in payment volumes that should lift revenue and net profit further.
Fiverr (NYSE: FVRR)
Fiverr hosts a platform that helps to connect freelancers with organisations that are searching for talent.
The company’s Talent Cloud platform provides a ready talent pool of professionals from over 160 countries across more than 550 categories.
Fiverr’s 2Q2022 showed continued progress in building its revenue and customer base.
Revenue grew 13% year on year to US$85 million amid a rise in the company’s take rate to 29.8% for the 12 months ended 30 June.
The number of active buyers on Fiverr’s platform rose 6% year on year to 4.2 million, with spend per buyer increasing 14% year on year to US$259.
The company continues to improve its offerings to attract more clients and saw sturdy revenue growth in categories such as menu design, social media, and 3D animation.
Fiverr’s unique service-as-a-product model also improved how businesses engaged with freelancers and drove higher conversion rates for the company.
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Disclaimer: Royston Yang owns shares of PayPal and Visa.