Last Updated on August 30, 2020 by Henry John
Since the Stock market crash in March, there have been incredible stock rallies that have dragged the entire market back up and even hitting record figures.
Growth stocks like Apple, Amazon, and Tesla impressed greatly, and the future of the market seems to rest on the shoulders of stocks as such.
The thing with growth stocks is that they have the tendencies of generating mind-blowing returns over a short period of time, even though most of them are not paying dividends. Albeit, there’s a high risk associated with them.
I’m still coming to terms with the fact that Tesla traded a little over $200 a year ago and now trades at $2,213 before the proposed split. That’s almost a 1000% growth in just a year, and this just goes to show how attractive growth stocks are.
If your interested in buying Cheap Growth Stocks, here are some of the most promising ‘cheap growth stocks’ to buy and hold for the next few years:
1. Nokia Corporation (NOK)
Nokia’s stock is one of the few promising growth stocks currently under $5. It’s a major player in the 5g technology space (a market that is expected to grow at a CAGR of 122.3% from 2021 to 2026).
Nokia Corporation engages in the network and technology businesses worldwide. The company operates in four segments: Ultra Broadband Networks, Global Services, IP Networks and Applications, and Nokia Technologies.
It focuses on mobile radio including macro radio, small cells, and cloud native radio solutions for communications service providers and enterprises; and provides network planning and optimization, network implementation, and systems integration, as well as company-wide managed services.
The company also offers fixed networking solutions, such as copper and fiber access products, solutions, and services.
In addition, it provides network infrastructure and professional services for mobile networks; and managed services for the fixed, mobile, Internet protocol (IP), and optical domains.
Further, the company offers network planning, implementation, operation, and maintenance services.
Additionally, it provides IP/optical networking solutions, including IP routing and optical transport systems, software, and services; software solutions, such as customer experience management, network operations and management, communications and collaborations, policy and charging, as well as Cloud, IoT, security, and analytics platforms; and submarine networks and radio frequency systems.
The company has a strategic collaboration with Microsoft. Nokia Corporation was founded in 1865 and is headquartered in Espoo, Finland.
2. NIO Limited (NIO)
Nio stock is a promising ‘cheap’ growth stock currently priced under $20. It’s an EV stock and it is no news that the EV market is a fast-growing one.
To its advantage is the fact that it is the top ‘Chinese Electric Vehicle’ company and China is the largest EV market. There has being a trend in China were local manufacturers are favored by consumers over foreign manufacturers (as seen in Huawei VS Apple).
The company has a lot going for it and I’d tag it the best EV stock after Tesla.
NIO Limited designs, manufactures, and sells electric vehicles in the People’s Republic of China, Hong Kong, the United States, the United Kingdom, and Germany.
The company offers five, six, and seven-seater electric SUVs.
It is also involved in the provision of energy and service packages to its users; marketing, design, and technology development activities; manufacture of e-powertrains, battery packs, and components; and sales and after sales management activities.
In addition, the company offers charging solutions, including Power Home, a home charging solution; Power Swap, a battery swapping service; Power Mobile, a mobile charging service through charging trucks; Public Charger, a public fast charging solution; and Power Express, a 24-hour on-demand pick-up and drop-off charging service.
Further, it provides value-added services, such as statutory and third-party liability insurance, and vehicle damage insurance through third-party insurers; repair and routine maintenance services; courtesy car services during lengthy repairs and maintenance; and roadside assistance, as well as data packages.
NIO Limited has a strategic collaboration with Mobileye N.V. for the development of automated and autonomous vehicles; and collaboration agreements with various manufacturers for the manufacture of ES8, a six or seven-seater high-performance electric SUV.
The company was formerly known as NextEV Inc. and changed its name to NIO Limited in July 2017. NIO Limited was founded in 2014 and is headquartered in Shanghai, China.
3. Slack Technologies, Inc. (WORK)
Slack is a cheap growth stock that tick the box of every key indicator of a great stock. It is a leader in the enterprise platform market.
Over the past quarters, its financials are fundamentally great for a growth stock. Its revenue is growing at an incredible pace with a gross profit margin of almost 90%.
If there’s one cheap growth stock under $50 to buy now and hold for the long term, it’s Slack Technologies (WORK).
Slack Technologies, Inc. operates Slack, a business technology software platform in the United States and internationally.
Its platform brings together people, applications, and data, as well as sells its offering under a software-as-a-service model.
The company was formerly known as Tiny Speck, Inc. and changed its name to Slack Technologies, Inc. in 2014. Slack Technologies, Inc. was founded in 2009 and is headquartered in San Francisco, California.