Many retail investors followed high-profile investor Ryan Cohen in piling into Bed Bath & Beyond (NASDAQ:BBBY) stock. However, Mr. Cohen has since abandoned his position in the company. Thus, even the “smart money” is steering clear of this company, which doesn’t appear to be a profitable investment right now.
For investors looking for a more sound place to park capital, the good news is that there are plenty of options. This market turmoil has reduced valuations almost across the board. Accordingly, there’s plenty of value to be had out there for long-term investors presently.
Here are three of my top growth picks for investors looking beyond Bed Bath & Beyond stock.
Restaurant Brands (TSX:QSR) is a multinational fast food holding company and is the world’s fifth-largest fast-food restaurant operator. This company conducts business in over 100 nations and operates over 29,000 restaurants.
The reason why this stock is a bargain is that in the last five years, the company’s return on capital employed (ROCE) has increased by 21%. Restaurant Brands has been able to keep its capital spending relatively level, while increasing returns to shareholders. This shows that this business is efficient enough to grow its operations without the need for additional funding.
In addition, Tim Hortons has recently reported excellent gains due to its unit growth, comparable sales, and attention to its loyalty program. Furthermore, Burger King plans on investing $400 million in the next two years. These two brands have also shown solid performance in the sales department recording a growth of 12.2% and 10% in the second quarter (Q2) of 2022.
Restaurant Brands is also planning on expanding its operations in countries like France, the United Kingdom, India, Romania, Saudi Arabia, etc. Currently, QSR stock is currently trading around $75 per share.
BlackBerry (TSX:BB) operates its business through three segments: the Internet of Things, Cybersecurity, and Licensing and Other. The company provides smart security software and services to governments and companies all over the globe.
BlackBerry has recently entered a collaboration with Shanghai Dayin Technology in order to develop its very own QNX acoustics technology. It will be the driving force behind Jiayu Technology’s intelligent cockpit and also be used in Great Wall Motors’s top-of-the-line, next-generation vehicles.
This technology will provide an acoustic and intuitive travelling experience for both the passenger and driver. Furthermore, it will also include safety features that will make automatic noises to alert pedestrians on the road. It is trading around the $5.50 level now.
Zoom (NASDAQ:ZM) is an American technology communication agency. This company provides online chat services and video telephony through its cloud-based, peer-to-peer platform. According to recent reports, Zoom Video Communications is all set to expand its operations by releasing a wide range of updates for its business units, such as Zoom IQ for Sales, Zoom Contact Centre, Zoom One, Zoom Spaces, and Zoom Events.
These updates will expand the use cases for these applications and hence attract more users. Moreover, Zoom’s stock is attracting the attention of investors due to its revenue growth forecast. In the current quarter, the sales estimate for Zoom Video is $1.1 billion.
This indicates year-over-year growth of 4.4%. Furthermore, in the current and upcoming fiscal years, market estimates indicate changes of +7% and +9.8%, resulting in $4.39 billion and $4.82 billion of revenue, respectively.
These three stocks have great growth potential, making them worthy investments if investors are looking for bargain growth stocks right now.