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Second quarter earnings were a lot better than the first quarter. Inflation is beginning to show signs of cooling. And with the economy showing signs of improvement, companies are reporting stronger financials. Also, while there are a few growth stocks worth adding to your portfolio, which we’ll take a look at. Others should be tossed, some of which we’ll also discuss. With that, let’s dive into the top growth stocks to swap.
Growth Stocks to Swap: Opera (OPRA)
The best way to invest in growth stocks is to do away with the companies that do not show growth potential. For example, Opera (NASDAQ:OPRA) might be a household name today but it’s quickly losing its momentum. The company generates its revenue from search and advertising business. It recently partnered with OpenAI to launch AI-generated services to the web. However, not all AI investments can be fruitful. And I doubt Opera will be able to thrive in the competitive landscape.
Although the partnership with OpenAI helped launch Opera One, it hasn’t contributed much to the company’s revenue. At the moment, the OPRA stock is trading at $15 and is down 37% in the past month. The stock was once as high as $27 in July 2023.
Zoom Video (ZM)
Zoom Video (NASDAQ:ZM) was at the forefront during the pandemic. Unfortunately, once the impact of the pandemic faded, many of us had to go back to the office, which send shares of Zoom off a cliff. Today, ZM trades around $66 a share after losing 37% of its value over the last year alone. The company only saw a 5% rise in revenue in the first quarter and it is still grappling with the declines of the past year. With Zoom, caution is warranted because chances are slim it will reach its former highs again.
Growth Stocks to Swap: Target (TGT)
One of the top growth stocks to sell is Target (NYSE: TGT). The retail stock was once a favorite, but lost some of its appeal. Thanks to economic issues, demand dropped for consumer discretionary products. In fact, that’s the key reason Target saw a scant 0.5% rise in sales in the previous quarter. While the company has been reducing its investor, and raising prices, that hasn’t been helpful. At least, not yet. We also have to consider the TGT stock isn’t cheap either. Last checked, it traded at $131.05 after falling about 24% over the last six months.
Advanced Micro Devices (AMD)
One of the biggest competitors of Nvidia (NASDAQ:NVDA) is Advanced Micro Devices (NASDAQ:AMD). While AMD disappointed with quarterly results with an 18% year-over-year decline in revenue, it did manage to beat analyst expectations by $40 million. The company is making significant moves in the artificial intelligence segment and believes its investments will pay off in the long term. In addition, the company revealed MI300X, which is its most powerful GPU to date and it has caught the attention of many in the industry. Trading at $110 today and up 72% year to date, this stock is worth an addition to your portfolio.
Another growth stock to consider isDraftKings (NASDAQ:DKNG), which is making big waves after reporting quarterly results. The company saw a 44% rise in the number of unique monthly users in the second quarter, and it reported a loss of 17 cents. Helping, the company raised its forward guidance for the coming quarter, now expecting revenue of between $3.46 billion and $3.54 billion up from the earlier range of $3.14 billion to $3.24 billion. The stock is trading at $27 today and the recent dip is a chance to buy.
SoFi Technologies (SOFI)
A hot fintech company, SoFi Technologies (NASDAQ:SOFI) just posted stellar quarterly results. The company reported a 37% year-over-year increase in net revenue and hit $498 million and reported a net loss of $48 million which is much better than the loss reported in the previous quarter. Its member base increased to 6.2 million, up 44% and the company managed to introduce 847,000 new products in the quarter. Despite the financial institution failures and the volatility in the industry, SoFi managed to stand strong amid competition. Its rising profitability and revenue growth are one reason to add it to your portfolio.
One growth stock with low risk and high upside is AI company, Palantir (NYSE:PLTR). It just beat expectations on its top and bottom line and recently launched a new AI platform known as AIP which will allow users to incorporate large language models in their internal networks. The company was once highly criticized for being extremely dependent on Government contracts but a lot has changed today. It has several private companies that have long-term contracts and Palantir continues to remain the Government’s favourite. PLTR stock is trading at $15 today and is up 141% year to date. It has the potential to double but your money but you will have to remain patient. When it comes to financials, Palantir is one of the high trading growth stocks that looks undervalued to me.
On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.