11 Best Growth Stocks to Buy Now

Are you looking for long-term investment opportunities?

Growth stocks could present a range of potential. Growth stocks are stocks issued by companies that primarily reinvest profits into business operations rather than returning money to shareholders as dividends. The best growth stocks to buy now may not produce immediate profits but may provide greater capital returns in the long term. 

What are the best growth stocks to buy now, how can you use market analysis tools to find growth stocks, and which stocks should you add to your portfolio? Read on to learn more about growth stocks to buy now and some of the best new stocks to invest in for 2023.

What Are Growth Stocks and Growth Investing? 

Growth stocks are companies expected to grow faster than the market's average growth rate. These companies may be in the early stages of development, with management voting to reinvest most of its profits back into the business to fuel further growth. This may come at the expense of dividends, which are portions of profit sharing distributed to shareholders quarterly or annually. 

How Growth Stocks Are Different

Growth stocks are commonly confused with value stocks, which are shares undervalued by the market expected to rise in price. While value stocks may present opportunities when undervalued, growth stocks expect to see rises in pricing due to structural decisions within the company. 

For example, growth stocks may increase share price by reinvesting profits or paying down debt. Growth stocks tend to have higher price-to-earnings ratios (P/E ratios) than value stocks because investors are willing to pay a premium for the potential growth these companies showcase.

Growth stocks also differ from income and blue-chip stocks because they may be more volatile. Smaller companies usually issue growth stocks, while blue-chip companies are typically industry leaders and household names that have been on the market for many years. Blue-chip stocks are generally considered less risky than other types of stocks. They have a proven track record of success and are less vulnerable to economic downturns or market volatility. However, a blue-chip stock may also be classified as a growth stock if its current management focuses on expanding operations. 

11 Best Growth Stocks to Buy Now

Ready to learn more about specific companies on the rise? The following are 11 of the top growth stocks for 2023 and beyond. 

1. Tesla Inc.

Tesla Inc. NASDAQ: TSLA is one of the world's most recognizable manufacturers of electric vehicles, though the company does have competitors. The company's ever-expanding research and development makes it a top choice for growth investors. Tesla's vehicles have won numerous awards and accolades for their features, including their range, acceleration and advanced driver assistance systems.

Tesla has expanded into other areas, like solar panels and batteries. 

The company's solar panels are designed to integrate with Tesla's home batteries, which can store energy generated by the solar panels for use at a later time. This creates a sustainable and efficient energy ecosystem that has the potential to disrupt traditional utility companies.

2. Amazon.com Inc.

While Amazon.com Inc. NASDAQ: AMZN is best known for its range of e-commerce companies, its research and development into customer experience and new markets that can drive it as a growth stock. As of April 2023, Amazon.com had a total market capitalization of more than $1 trillion, making it an appealing choice for blue-chip growth investors. 

Amazon has relentlessly focused on delivering exceptional customer experiences through fast and reliable delivery, a wide selection of products and easy-to-use technology. For example, Amazon Web Services, the company's cloud computing division, has become a dominant player in the market in just a few years, bolstered by a loyal customer base. Amazon has recently begun investigating the healthcare market, another potential outlet for future growth. 

3. Shopify Inc.

Shopify Inc. NYSE: SHOP is an e-commerce company providing an all-in-one platform for small and medium-sized businesses to set up and run online stores. As of April 2023, Shopify had a total market capitalization of more than $50 billion. 

Shopify's strength lies in its ease of use for small business owners. For example, Shopify has developed integrations with social media platforms, such as Facebook and Instagram, that allow businesses to sell products directly through these platforms. The company has also introduced new payment and shipping options that make it easier for businesses to manage their operations.

4. NVIDIA Corporation 

NVIDIA Corporation NASDAQ: NVDA is a technology company best known for designing graphics processing units (GPUs) for gaming and professional machines. It came into prominence during the computer chip shortage of the COVID-19 pandemic and has steadily grown to a total market capitalization of more than $650 billion as of April 2023. 

NVIDIA's team invests heavily in research and development, focusing on AI and machine learning. NVIDIA's GPUs are increasingly used to train and run AI models, and the company has developed specialized hardware and software solutions to support these applications.

5. Block Inc.

Block Inc. NYSE: SQ is a financial technology company that provides payment and commerce solutions to small business owners. The company's flagship product is its Square point-of-sale system, which allows businesses to accept payments and manage their operations more efficiently. As of April 2023, Block had $38 billion in total market capitalization. 

Square has multiplied recently, driven by the increasing trend toward digital payments and e-commerce. A unique feature of investing in Block is the company's ability to leverage data to drive insights and improve its products and services. Square collects a vast amount of data on transactions and customer behavior, which it uses to develop new features and services tailored to its customers' needs. For example, the company's CashApp product makes transferring money between individuals easier. 

6. e.l.f. Beauty Inc.

e.l.f. Beauty Inc. NYSE: ELF is a beauty products company that has gained recent attention for its focus on combining quality ingredients with affordable cosmetics and skincare. Its products are largely distributed online, and the company has capitalized on various social media marketing strategies. In April of 2023, e.l.f had a total market capitalization of more than $4 billion. 

One of the key strengths of e.l.f. Beauty is its ability to target a younger demographic of consumers, who are more likely to shop online and are interested in affordable, high-quality cosmetics. The company has successfully built a strong social media presence, particularly on Instagram, which has helped it reach a wider audience and build brand awareness. Future forays into video-oriented social media (like Lemon8 and YouTube) may help this growth stock soar even higher. 

7. Alphabet Inc.

Alphabet Inc. NASDAQ: GOOG is a multinational conglomerate responsible for operating some of the largest tech services in the world, including Google and YouTube. Google is the world's most popular search engine, with a market share of over 90% in some countries, and it is the top name in search engine-related advertising. In April of 2023, Alphabet had a total market capitalization of $1.3 trillion.  

Alphabet has invested heavily in areas beyond search engine technology, such as cloud computing and artificial intelligence. The company's Google Cloud Platform is a rapidly growing business that competes with other cloud providers such as Amazon Web Services and Microsoft Azure. The company has also been developing new products and services in areas such as machine learning and autonomous vehicles, which have the potential to drive growth in the coming years.

8. Intel Corporation

The Intel Corporation NASDAQ: INTC is a semiconductor company that designs and manufactures microprocessors, system-on-chip products and other computing components. The company has a strong competitive position in the global semiconductor market, and its investments in new technologies, such as artificial intelligence, and 5G can enhance future returns. 

Despite its strong growth potential, Intel's P/E ratio is relatively low compared to other growth stocks, which may make it an attractive investment opportunity for investors looking for growth at a reasonable price. As of April 2023, Intel's P/E ratio was around 16, significantly lower than the average P/E ratio for the S&P 500 index. You can explore additional low P/E picks using MarketBeat's list of low P/E growth stocks. 

9. Zoom Video Communications Inc.

Zoom Video Communications Inc. NASDAQ: ZM is a cloud-based video conferencing company that grew significantly during the COVID-19 pandemic. Future growth avenues for the company include the Zoom Phone, a cloud-based phone system, and Zoom Rooms, which allows users to set up video conferencing in physical meeting spaces. In April 2023, Zoom Video Communications had a total market capitalization of $20 billion. 

10. The Trade Desk Inc. 

The Trade Desk Inc. NASDAQ: TTD is a digital advertising platform that enables advertisers to reach target audiences across various devices and channels. The Trade Desk focuses on programmatic advertising, an automated, data-driven approach to buying and selling digital advertising. The company's platform enables advertisers to target specific audiences based on collected demographics, providing advertisements customized to fit the user on the opposite end of the screen. In April 2023, The Trade Desk had a total market capitalization of more than $30 billion. 

11. DocuSign Inc.

DocuSign Inc. NASDAQ: DOCU is a cloud-based software company that offers electronic signature and digital transaction management services. This service has become crucial for remote work, empowering employers to expand their talent searches beyond the geographic area where new hires can sign paperwork. DocuSign recently expanded into new areas such as contract lifecycle management and document analytics. 

Pros and Cons of Investing in Growth Stocks

Consider the pros and cons of growth stocks before adding these assets to your portfolio. 

Pros

The benefits of investing in growth stocks largely relate to increased returns via share price over time. 

• Growth stocks are generally companies expected to experience rapid revenue and earnings growth in the future. If this growth materializes, investors can see higher returns in share price. 
• Many growth stocks are start-ups investing heavily in proprietary technology. Investing in these stocks can add new tech exposure to your portfolio. 
• You can find growth stocks in a range of industries, which can make diversification easier. 

Cons

Also consider the potential risks of growth stocks, which may relate to volatility and payments. 

• Most growth stocks do not pay dividends, causing investors to lose out on potential income. Learn more about buying the best dividend stocks here.
• Growth stocks can be volatile, as their valuations are often based on expected future growth rather than current earnings or cash flows. This means that their stock prices may be subject to large swings in response to changes in market sentiment.

Investing in Growth Stocks 

The definition of growth stocks specifies any company that devotes the majority of its earnings back to growth. You can find growth stocks in various industries with varying market capitalization levels. Be sure to diversify your investments between multiple companies or growth-oriented ETFs to minimize your chances of sharp losses. 

FAQs

The following are some of investors' most common questions about growth stocks. 

Which is the fastest-growing stock?

The fastest-growing stocks on the market are constantly changing. Some of the fastest growing companies in 2023 include Alphabet, e.l.f Beauty and Shopify. 

Are growth stocks a good buy?

Investing in growth stocks can lead to higher returns than the broader market. This can lead to enhanced returns over time. However, growth stocks may be more volatile, making them less risky. 

How do you find growth stocks?

Research companies in high-growth industries, including e-commerce and technology, to find growth stocks. Focus on companies offering a specialized business model or unique customer service angle to evaluate a stock's growth potential.