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3 Monster Growth Stocks That Are Still Undervalued

What’s always in fashion on Wall Street? Growth. Given the current macro environment, however, compelling growth stocks have become even harder to spot. That said, despite the wild ride that has been 2020, a select few names could still shine bright and reward investors handsomely, so says the pros from the Street. These tickers don’t have just any old growth prospects, they are some serious overachievers. Along with a track record of upward movements since 2020 kicked off, their solid businesses could drive share prices higher through 2020 and beyond. Bearing this in mind, we set out to find stocks flagged as exciting growth plays by Wall Street. Using TipRanks’ database, we locked in on three analyst-backed names that have already notched impressive gains and boast strong growth narratives for the long-term. Wix.com Ltd (WIX) Founded as an online web development platform, Wix empowers its more than 72 million registered users to develop and create websites. Up 107% year-to-date, several members of the Street believe this name has plenty of fuel left in the tank. Writing for JMP Securities, five-star analyst Ronald Josey has been impressed, to say the least. In the most recent quarter, the company added 9.3 million net registered users, the most ever in a quarter, driven by its increased marketing spend to take advantage of the digital shift brought on by the COVID-19 pandemic. What’s more, Josey cites the fact that July new subscriber additions accelerated to 200%-plus as suggesting that the above trend is continuing to accelerate. However, he argues the most important growth indicator is cohort future collections, which was up over 90%, as “it talks to an elevated growth cadence of Wix’s Q2 new subscriber additions, and as Q2 trends continue into Q3, we believe this bodes well for 2021 and beyond (we note Q2 cohort collections were 66% year-over-year).” Adding to the good news, the number of customers adopting higher-value products, such as Business and eCommerce subscription packages, is trending higher. Payment transactions nearly doubled quarter-over-quarter, which Josey believes speaks “to the adoption of Wix’s eCommerce products while highlighting Wix’s longer-term opportunity in payments.” Josey added, “With accelerating trends around the adoption of Wix’s core products like Stores (which was recently upgraded), Ascend, and Payments, coupled with newer product offerings like Editor X (not in guidance), we are incrementally confident in Wix’s ability to navigate the current environment and the potential to deliver improving Collections growth for the foreseeable future.” Taking all of the above into consideration, Josey maintains a Market Outperform rating and $363 price target. This target conveys his confidence in WIX’s ability to climb 43% higher in the next year. (To watch Josey’s track record, click here) Where do other analysts stand on Wix? 14 Buys and 1 Hold have been issued in the last three months. Therefore, WIX gets a Strong Buy consensus rating. Given the $333.93 average price target, shares could surge 32% in the next year. (See Wix stock analysis on TipRanks) Bilibili Inc. (BILI) Next up we have Bilibili, which is a Chinese video sharing website based in Shanghai and centered around animation, comic and games (ACG). It has already notched a gain of 124% year-to-date, and some analysts believe that this growth story is anything but over. Five-star analyst Alex Yao, of J.P. Morgan, tells clients he is “incrementally positive on BILI’s growth outlook.” But what’s behind his bullish thesis? Yao noted, “Management’s comment of peak MAU reaching 200 million milestone in August 2020 makes us more positive on BILI’s long-term user growth beyond Gen-Z. We expect further user growth into Q4 2020 supported by League of Legend (LoL) World Championship Season 10 (in Sep/Oct 2020, BILI is one of the key broadcasting platforms).” To this end, the analyst estimates that MAU will surpass 400 million by 2023. On top of this, BILI saw strong advertising revenue growth in the second quarter, with it up 108% year-over-year. According to Yao, this result “demonstrates its strong attraction to advertisers driven by its rich content and growing user base,” with the analyst expecting its solid execution in both user expansion and revenue diversification to increase its long-term addressable market. Going forward, the company will most likely continue investing in branding and channel marketing to support user growth during strong seasonality. Expounding on the implications of this, Yao stated, “While such investment could expand near-term financial losses, we believe it could help BILI to…