Here's a closer look at some of the most intriguing up-and-coming growth stocks. Although they're riskier than more mature companies, they offer investors some of the highest return potential.
Best up-and-coming stocks
11 best up-and-coming stocks in 2023
One of the best long-term investment strategies for increasing wealth is to invest in the stocks of companies rapidly expanding their businesses by tapping into new market opportunities, such as solving major problems. People who invest money in emerging companies often reap the highest rewards.
With that upside potential in mind, here's a list of 11 up-and-coming stock ideas investors might want to consider:
|Stock||Ticker Symbol||Market Cap||Description|
|BILL Holdings||(NYSE:BILL)||$10.9 billion||A software company that helps automate the receipt and payment of bills and invoices|
|Coinbase Global||(NASDAQ:COIN)||$17.3 billion||The largest cryptocurrency exchange|
|CrowdStrike Holdings||(NASDAQ:CRWD)||$44 billion||A cloud-based cybersecurity company|
|Docebo||(NASDAQ:DCBO)||$1.3 billion||A cloud-based learning management platform|
|MongoDB||(NASDAQ:MDB)||$25.7 billion||A developer data platform company|
|Lemonade||(NYSE:LMND)||$831.4 million||An AI-powered insurance company|
|Opendoor Technologies||(NASDAQ:OPEN)||$1.5 billion||A real estate technology company focused on iBuying|
|Snowflake||(NYSE:SNOW)||$50.6 billion||A cloud-based data storage platform|
|Teladoc Health||(NYSE:TDOC)||$3 billion||A telehealth provider|
|PubMatic||(NASDAQ:PUBM)||$628.4 million||Helps digital publishers sell their available ad space|
|Zscaler||(NASDAQ:ZS)||$24.9 billion||A cloud-based cybersecurity company|
Stocks 1 - 4
1. BILL Holdings
BILL is a financial technology (fintech) company that provides small and midsized enterprises (SMEs) with financial automation software. The company's software automates the receipt and payment of bills and invoices. It works seamlessly with most popular accounting programs and makes it easy for companies to approve payments.
The artificial intelligence (AI)-enabled, cloud-based company is growing rapidly. Its revenue surged 65% in its 2023 fiscal year, rising to over $1 billion. The company is growing organically and through acquisition. It purchased Finmark in 2022, a leading financial planning software provider.BILL expects to continue increasing its customer count and transaction volume and expanding its relationships with existing customers. These drivers should enable it to continue growing briskly in the future.
2. Coinbase Global
Coinbase Global is the largest cryptocurrency exchange in the U.S. It allows users to buy and sell cryptocurrencies, such as Bitcoin (BTC -1.29%) and Ethereum (ETH -1.64%). The platform completed its initial public offering in 2021.Coinbase aims to build the crypto economy -- a fair, accessible, efficient, and transparent financial system powered by crypto. As more people start trading cryptocurrency and other digital assets, Coinbase will likely continue thriving.
3. CrowdStrike Holdings
CrowdStrike Holdings is a cloud-based cybersecurity platform. It relies on big data and AI to detect threats and stop breaches.Cybersecurity is a rapidly expanding market, considering threats continue to grow. That's powering brisk growth for CrowdStrike. Its annual recurring revenue (ARR) surged 48% in its fiscal year 2023 to $2.56 billion.
Docebo is a software-as-a-service (SaaS) company offering businesses cloud-based educational and training resources. Its software includes the Learn learning management system. This solution allows businesses to train their workers and educate customers.The company is rapidly expanding its customer count and contract value, with its average contract increasing fourfold since 2016. That's helping drive rapid revenue growth -- Docebo's revenue surged 25% in the second quarter of 2023. The company is adding new customers to its platform, which should continue powering robust revenue growth.
Stocks 5 - 8
MongoDB is a developer data platform company. It allows users to create, transform, and disrupt industries by enabling them to capitalize on the power of software and their data through its Atlas platform.
The company is growing briskly. Revenue rocketed by 47% to almost $1.3 billion in its 2023 fiscal year. MongoDB expects to continue expanding rapidly as more customers join its Atlas platform to unleash the power of their data.
Lemonade is a tech-based insurance company. It uses an AI-powered platform to make it easier for customers to buy insurance and process claims. Customers can buy a new insurance policy in a matter of minutes. Meanwhile, Lemonade can process claims in a few seconds. That's lightning fast compared to the days it often takes traditional insurance companies to process and pay out claims.
The company is growing quickly. Its customer count was more than 1.9 million in mid-2023, up 21% from the previous year. It's also collecting a higher premium per customer (up 24% year over year) as it expands its offerings to include renter, home, life, auto, and pet insurance.
7. Opendoor Technologies
Opendoor is a real estate technology company primarily focused on iBuying. It allows people to purchase and sell homes directly on the platform instead of dealing with each other, making the process smoother for all involved. It also takes away a lot of the stress from the buying and selling process.About $1.6 trillion worth of homes change hands in the U.S. each year, representing a massive opportunity for Opendoor. The company purchased almost 35,000 homes in 2022 and sold almost 40,000 homes, recording a profit on its total sales. Opendoor showcases its platform's ease as it continues buying homes, which could eventually take iBuying into the mainstream.
Snowflake operates a cloud-based data warehouse platform. It offers companies solutions to store all the data they collect while making it easily accessible.The company is expanding rapidly. Snowflake's product revenue soared 70% to almost $2 billion in its 2023 fiscal year, powered by new customers and growing its relationships with existing ones. Snowflake sees a massive $248 billion future market opportunity for its cloud data platform. Its ability to capture this growing opportunity will help it to continue delivering strong financial results.
Stocks 9 - 11
9. Teladoc Health
Teladoc is a videoconferencing platform that allows patients to consult with medical professionals. It's more convenient and less expensive than in-person visits to a doctor's office. The company is building an end-to-end virtual healthcare platform to make it even easier for people to get medical care.Revenue rose 10% during the second quarter of 2023 as more patients and providers used its platform. The company continues to invest in innovation to drive growth. And that's leading more patients and providers to embrace the unified platform it's building to drive improved patient care.
PubMatic developed a cloud-based system to assist digital publishers with selling their available ad inventory to advertisers. The company leverages the power of its owned-and-operated infrastructure to process data and deliver the best results to clients quickly.PubMatic's revenue grew 13% in its 2022 fiscal year, significantly outpacing the growth in the global digital ad market. The company's investments to build its infrastructure and support fast-growing markets, like online video, should continue driving above-average growth.
Zscaler is a cloud-based cybersecurity platform. Increasingly, employees and customers need to access information stored in offsite data centers instead of a central server. They're also often viewing it from remote locations instead of the office. Zscaler helps them securely access this information from remote locations.The company's revenue climbed 46% in its fiscal 2023 third quarter. The cybersecurity company continues to grow rapidly as new clients join its integrated platform and existing ones expand their relationships. Companies increasingly find they can consolidate their security architecture with Zscaler's better and lower-cost platform.