12 Most Promising Growth Stocks to Buy Now

9. Shopify Inc. (NASDAQ:SHOP)

Stock Upside Potential: 44.46%

Expected 5-Year Earnings Growth: 30.62%

Number of Hedge Fund Holders: 88

Shopify Inc. (NASDAQ:SHOP) is one of the most promising growth stocks to buy now. On May 28, UBS reiterated a Neutral rating on Shopify Inc. (NASDAQ:SHOP) and a $130 price target. The research firm expects the Retail POS business to be a key driver of growth, as it currently accounts for 12% of gross merchandise volume.

According to UBS, the Retail POS remains an underappreciated part of the business while being part of the long-term growth algorithm. It expects the business to contribute between 300 and 500 basis points of Shopify’s 10-year gross merchandise volume compound annual growth rate of up to 21%. It also expects the business to contribute between 100 and 200 basis points of a 10-year gross profit compound annual growth rate of between 15% and 20%.

The expected growth would come against the backdrop of the differentiated offering that combines Shopify’s eCommerce and ecosystem with in-store POS. The company will also benefit, as the market is relatively fragmented and lacks a clear leader.

Shopify Inc. (NASDAQ:SHOP) is a comprehensive, cloud-based e-commerce platform used by individuals and businesses to create, manage, and scale online stores. It provides everything needed to run a digital business, including website building, inventory tracking, payment processing, and shipping management, without requiring coding or technical expertise.