Underdog Growth Stocks You Should Keep an Eye on in 2021

While the year 2020 has not been kind to a lot of businesses, it doesn’t mean that certain businesses haven’t benefitted from the pandemic situation. A lot of stocks actually rose up in a way which would have been unlikely in the absence of the virus and other businesses which were expected to plummet ended up soaring. But while everyone knows about the spotlight catching companies, below are some lesser-known companies which have been faring better than ever and deserve your attention:

Cogent Communications Holdings Inc (NASDAQ: CCOI)

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Cogent Communications (CCOI) is a multinational internet service provider based in the United States which provides services related to data transport, colocation in data centres, internet access, IP data-only network, fiber optics, and data transport. It saw a startling increase in price this year and along with its 4 per cent yield, it is also growing the dividend by $0.2 per year and its chart has only been on the steady rise since the last five years. CCOI saw an increase to $0.730 per share for its fourth quarter from the third quarter’s $0.705, an increase of $0.025 per share and also a revenue increase by 0.9% from the second quarter this year to the third quarter.

Revolve Group Inc (NYSE: RVLV)

Revolve Group (RVLV) is a high-end fashion retailer with a matchless marketing approach which primarily caters to millennials and Gen Z women. One of the major ways which Revolve would display its products was though live events which came to halt during the pandemic. While the year has not been the most profitable year for RVLV, with its revenue down 2 per cent year over year, its net come still went up by 103 per cent. This is because the company dropped its tax rates from 25.6 per cent to 9.8 per cent and its gross margins went from 53.6 per cent to 55.3 per cent due to its fast turnover of inventory. And Revolve is all set for a turnaround in 2021 when the economy opens up again with the vaccine set to be released.

Coupa Software Inc (NASDAQ: COUP)

Coupa Software (COUP) is Business Spend Management’s global technology platform. Coupa serves as “the only Business Spend Management platform that empowers you to spend smarter and maximize the value of every dollar your business spends.” Some of Coupa’s clients are companies such as P&G and Unilever. COUP has also served multiple businesses during the pandemic with their work from home policies with its cloud base tools. Analysts’ reviewing of Coupa’s stocks is largely positive particularly as the company generates positive free cash flows consistently and its sales have grown at an annual clip of 47 per cent.

Shopify Inc (NYSE: SHOP)

Shopify Inc. (SHOP) is a Canadian multinational e-commerce company which serves as an e-commerce platform for online stores and retail point-of-sale systems. Unlike Revolve Group, SHOP’s stocks saw a rise during the pandemic situation this year and actually ended up with the share price of the company rising 195 per cent this year. Its share price went up by 18 per cent and, according to the company’s third quarter reports, revenue shot up by 96 per cent. While the situation all over the world is expected to improve next year, there is still a great possibility that many countries and states will stay in strict lockdown which will help the e-commerce businesses, such as Shopify.

Innovative Industrial Properties Inc (NYSE: IIPR)

Innovative Industrial Properties (IIPR) is one of the limited real estate investment trusts which caters to the required needs of the carefully blooming cannabis industry. IIPR gains properties which it then leases out to for companies to produce marijuana on. Its main source of revenue comes from the rental it collects from the leased-out land. While the company is involved in the cannabis business, it is still not a direct player, which makes it a safe plater and gives it certain perks. Innovative’s revenues grew 197 per cent year over year and brought it to $34.3 million in the third quarter. In comparison to the previous year, its net income rose by 210 per cent.

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