Led by founders from Google, UPST stock joins InMode and TaskUs on this list of today’s top IPOs to watch.
Heading into the last quarter of the year, what are the best IPO stocks to buy and watch in 2021? Led by Upstart (UPST) and TaskUs (TASK), here’s a look at 20 IPOs that have debuted since 2019 and expect between 27% and up to 900% earnings growth in 2021 or their current fiscal year.
InMode (INMD), Avantor (AVTR), Datadog (DDOG), CrowdStrike (CRWD) and Revolve (RVLV) and Zoominfo Technologies (ZI) also made the cut.
And with the stock market indexes continuing to shake off recent selling pressure, several of the these top IPOs are in or new buy zones.
Built using MarketSmith, the screen filters the entire IBD database identifying only those companies that meet the criteria listed below.
UPST stock, TASK stock and all the IPO stocks on this screen must:
- Have gone public since 2019.
- Trade 400,000+ shares per day on average
- Expect 25% or higher EPS growth in 2021.
- Have sales growth above 25% last quarter.
- Earn a Composite Rating 80 or higher.
Stock Checkup requires a Composite Rating of 95 or higher to earn a passing grade. Many IPOs, even ones showing strong promise, have not been trading on the stock market long enough — or lag on other metrics — to meet that benchmark. But each of the IPO stocks featured here have an 80 or better Composite Rating to show their fundamental and technical performance puts them in the top 20% of all stocks.
Take UPST stock for example. Founded in 2020 by former employees Google, Upstart leverages cloud=based artificial intelligence (AI) to streamline affordable consumer credit while reducing the risks and costs of lending for its bank partners. The San Mateo Calif.-based company has already originated over $9 billion in loans with more than two-thirds fully automated.
In addition to the Alphabet (GOOGL) pedigree, UPST stock is boosted by analyst estimates of 900% earnings growth for the full year. The leading cloud computing and AI stock has also generated average annual sales growth of 70% over the last three years.
Another IPO to watch is TaskUs, which has quickly emerged as a leading Business Process Outsourcing (BPO) company. Like Upstart, TaskUs has key stock-picking traits, including the highest-possible 99 Composite Rating.
UPST stock (No. 3) and TASK stock (No. 6) both hail from industry groups ranking in the top 10 of the 197 groups IBD tracks.
IPOs On Leading Stock Lists
TASK stock and UPST stock are both on the IBD 50, while TaskUs also earns a spot on IBD Sector Leaders.
Several other top IPOs are also on IBD stock lists. InMode, Avantor, Datadog, Avantor, Dlocal (DLO) and Progyny (PGNY) join Upstart and TaskUs on the IBD 50.
Upstart, InMode, Avantor, Doximity, Revolve, and ZIM Integrated Shipping Services (ZIM) join several others on the IPO Leaders screen.
Which IPO Stocks Are In Or Near A Buy Zone?
While many of the top IPOs, such as InMode, TaskUs and Upstart stock are extended, several others are setting up or now in new buy zones.
Revolve, PGNY stock, Zoominfo, and Envista (NVST) fit that bill.
Top IPO Stocks Expecting 27% To 900% EPS Growth In 2021
|Company||Symbol||EPS Est Cur Yr %||Comp Rating||RS Rating||EPS Rating||SMR Rating|
|Upstart Holdings Inc||UPST||900||99||99||65||A|
|ZIM Integ Shipping Svcs||ZIM||628||99||99||71||A|
|Core & Main Inc Cl A||CNM||444||84||78||62||C|
|Ryan Specialty Grp Cl A||RYAN||200||80||87||63|
|Dlocal Limited Cl A||DLO||160||98||96||65||A|
|Envista Holdings Corp||NVST||102||95||80||68||B|
|G F L Environmental Inc||GFL||76||95||86||65||C|
|Allegro Microsystems Inc||ALGM||70||90||92||61||B|
|CrowdStrike Holdings A||CRWD||70||92||87||65||B|
|Taskus Inc Class A||TASK||69||99||99||98||A|
|Stevanato Group S P A||STVN||68||96||95||61||A|
|Bellring Brands Inc Cl A||BRBR||54||82||83||61||B|
|Zoominfo Techs Cl A||ZI||46||98||91||65||A|
|Jamf Holding Corp||JAMF||33||91||73||61||B|
|Revolve Group Inc Cl A||RVLV||32||95||97||98||A|
|Datadog Inc Cl A||DDOG||27||95||93||45||A|
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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