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Best Growth Stocks - Best Stocks to Buy Now

The stock market has been growing since the New York Stock Exchange opened its doors in 1817. Sometimes, a stock will outpace the rest of the market in terms of growth. These skyrocketing securities—or the ones that analysts expect to skyrocket—are called growth stocks.

What Every Investor Needs to Know About Growth Stocks

Growth stocks are a great opportunity for an investor to make money in the stock market, but you’ve got to know what you’re going to buy or sell. A good understanding of growth stocks will help you get there.

At the beginning of a bull market, you can almost choose stocks randomly and find yourself a winner. Now that we are entering the current bull market's ninth year, growth stocks have appreciated considerably. It's becoming far more challenging to find stocks with real opportunities for appreciation.

Growth companies are still largely outperforming their value counterparts in the United States and the rest of the world largely because of low-interest rates, improved corporate earnings, and global economic growth. Over the last five years, the S&P 500 Growth Index has returned 14.22% per year. During the same time, the S&P 500 Value Index returned just 12.94%.

Now that the bull market is now nearly a decade old, stocks have become very expensive. Value investors are largely sitting on the sidelines, and growth investors have a hard time figuring out where the remaining growth opportunities exist.

If you are looking for growth stocks in an increasingly small field, we have identified the 10 best growth stocks to buy right now based on their expected earnings growth over the next several years. These companies are all growing rapidly and will likely see double-digit earnings growth next year.



#1 - H World Group (NASDAQ:HTHT)

2022 EPS Estimate:
$0.06
2023 EPS Estimate:
$1.07 (+1,683.3%)
Stock Price
$33.25
Dividend Yield
0.64%
Consensus Rating
Buy
Ratings Breakdown
4 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$45.97 (38.2% Upside)

H World Group logoH World Group Limited, together with its subsidiaries, develops leased and owned, manachised, and franchised hotels primarily in the People's Republic of China. The company operates hotels under its own brands, such as HanTing Hotel, Ni Hao Hotel, Hi Inn, Elan Hotel, Zleep Hotels, Ibis Hotel, JI Hotel, Orange Hotel, Starway Hotel, Ibis Styles Hotel, CitiGO Hotel, Crystal Orange Hotel, IntercityHotel, Manxin Hotel, Mercure Hotel, Madison Hotel, Novotel Hotel, Joya Hotel, Blossom House, Steigenberger Hotels & Resorts, MAXX by Steigenberger, Jaz in the City, Grand Mercure, Steigenberger Icon, and Song Hotels. Read More 
 



#2 - Rocket Companies (NYSE:RKT)

2022 EPS Estimate:
$0.03
2023 EPS Estimate:
$0.51 (+1,600.0%)
Stock Price
$7.00
P/E Ratio
5.5
Consensus Rating
Hold
Ratings Breakdown
1 Buy Ratings, 9 Hold Ratings, 2 Sell Ratings.
Consensus Price Target
$9.88 (41.1% Upside)

Rocket Companies logoRocket Companies, Inc engages in the tech-driven real estate, mortgage, and e-Commerce businesses in the United States and Canada. It operates through two segments, Direct to Consumer and Partner Network. The company's solutions include Rocket Mortgage, a mortgage lender; Amrock that provides title insurance, property valuation, and settlement services; Rocket Homes, a home search platform and real estate agent referral network, which offers technology-enabled services to support the home buying and selling experience; Rocket Auto, an automotive retail marketplace that provides centralized and virtual car sales support to online car purchasing platforms; and Rocket Loans, an online-based personal loans business. Read More 
 



#3 - MGM Resorts International (NYSE:MGM)

2022 EPS Estimate:
$0.04
2023 EPS Estimate:
$0.66 (+1,550.0%)
Stock Price
$30.05
P/E Ratio
4.2
Dividend Yield
0.03%
Consensus Rating
Buy
Ratings Breakdown
7 Buy Ratings, 7 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$52.93 (76.2% Upside)

MGM Resorts International logoMGM Resorts International, through its subsidiaries, owns and operates casino, hotel, and entertainment resorts in the United States and Macau. The company operates through three segments: Las Vegas Strip Resorts, Regional Operations, and MGM China. Its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities. Read More 
 



#4 - United Airlines (NASDAQ:UAL)

2022 EPS Estimate:
$0.44
2023 EPS Estimate:
$6.10 (+1,286.4%)
Stock Price
$33.07
Consensus Rating
Hold
Ratings Breakdown
8 Buy Ratings, 8 Hold Ratings, 2 Sell Ratings.
Consensus Price Target
$53.47 (61.7% Upside)

United Airlines logoUnited Airlines Holdings, Inc, through its subsidiaries, provides air transportation services in North America, Asia, Europe, Africa, the Pacific, the Middle East, and Latin America. The company transports people and cargo through its mainline and regional fleets. It also offers catering, ground handling, training, and maintenance services for third parties. Read More 
 



#5 - NU (NYSE:NU)

2022 EPS Estimate:
$0.01
2023 EPS Estimate:
$0.12 (+1,100.0%)
Stock Price
$4.72
Consensus Rating
Buy
Ratings Breakdown
10 Buy Ratings, 3 Hold Ratings, 2 Sell Ratings.
Consensus Price Target
$10.27 (117.5% Upside)

NU logoNu Holdings Ltd. operates as a digital financial services platform and technology company primarily in Brazil, Mexico, and Colombia. It offers Nu credit and debit cards; Ultraviolet credit and debit cards; and mobile payment solutions for NuAccount customers to make and receive transfers, pay bills, and make everyday purchases through their mobile phones. Read More 
 



#6 - Huaneng Power International (NYSE:HNPIY)

2022 EPS Estimate:
$0.33
2023 EPS Estimate:
$2.69 (+715.2%)
Stock Price
$18.73
Consensus Rating
N/A
Ratings Breakdown
0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
N/A

Huaneng Power International logoHuaneng Power International, Inc, together with its subsidiaries, engages in the generation and sale of electric power to the regional or provincial grid companies in the People's Republic of China and internationally. It is involved in the development, construction, operation, and management of power plants and related projects. Read More 
 



#7 - Sibanye Gold (NYSE:SBGL)

2022 EPS Estimate:
$0.42
2023 EPS Estimate:
$3.12 (+642.9%)
Stock Price
$8.18
Dividend Yield
2.31%
Consensus Rating
N/A
Ratings Breakdown
0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
N/A

Sibanye Gold logoSibanye Gold Limited operates as a precious metals mining company in South Africa, the United States, Zimbabwe, Canada, and Argentina. The company produces gold; platinum group metals (PGMs), including palladium, platinum, and rhodium projects; and by-products, such as iridium, ruthenium, nickel, copper, and chrome. Read More 
 



#8 - Kanzhun (NASDAQ:BZ)

2022 EPS Estimate:
$0.10
2023 EPS Estimate:
$0.59 (+490.0%)
Stock Price
18.25
P/E Ratio
83.0
Consensus Rating
Buy
Ratings Breakdown
1 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
24.25 (32.9% Upside)

Kanzhun logoKanzhun Limited operates an online recruitment platform, BOSS Zhipin in the People's Republic of China. Its recruitment platform assists the recruitment process between job seekers and employers for enterprises, and corporations. The company was founded in 2013 and is headquartered in Beijing, the People's Republic of China.
 



#9 - Cameco (NYSE:CCJ)

2022 EPS Estimate:
$0.20
2023 EPS Estimate:
$1.04 (+420.0%)
Stock Price
$25.29
P/E Ratio
210.8
Dividend Yield
0.24%
Consensus Rating
Buy
Ratings Breakdown
8 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$42.88 (69.5% Upside)

Cameco logoCameco Corporation produces and sells uranium. It operates through two segments, Uranium and Fuel Services. The Uranium segment is involved in the exploration for, mining, and milling, as well as purchase and sale of uranium concentrate. The Fuel Services segment engages in the refining, conversion, and fabrication of uranium concentrate, as well as the purchase and sale of conversion services. Read More 
 



#10 - AppLovin (NYSE:APP)

2022 EPS Estimate:
$0.23
2023 EPS Estimate:
$1.07 (+365.2%)
Stock Price
$20.21
Consensus Rating
Buy
Ratings Breakdown
15 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$67.60 (234.5% Upside)

AppLovin logoAppLovin Corporation engages in building a software-based platform for mobile app developers to enhance the marketing and monetization of their apps in the United States and internationally. The company's software solutions include AppDiscovery, a marketing software solution, which matches advertiser demand with publisher supply through auctions; Adjust, an analytics platform that helps marketers grow their mobile apps with solutions for measuring, optimizing campaigns, and protecting user data; and MAX, an in-app bidding software that optimizes the value of an app's advertising inventory by running a real-time competitive auction. Read More 
 



#11 - Scientific Games (NASDAQ:SGMS)

2022 EPS Estimate:
$0.55
2023 EPS Estimate:
$2.53 (+360.0%)
Stock Price
$0.00
P/E Ratio
15.6
Consensus Rating
Hold
Ratings Breakdown
2 Buy Ratings, 3 Hold Ratings, 1 Sell Ratings.
Consensus Price Target
$71.43

Scientific Games logoScientific Games Corporation, doing business as Light & Wonder Inc, develops technology-based products and services, and related content for the gaming, lottery, social and digital gaming industries in the United States and internationally. The company's Gaming segment sells new and used gaming machines, electronic table systems, video lottery terminals, conversion game kits, and spare parts; table products, including shufflers; and perpetual licenses to proprietary table games. Read More 
 



#12 - Penumbra (NYSE:PEN)

2022 EPS Estimate:
$0.25
2023 EPS Estimate:
$1.13 (+352.0%)
Stock Price
$184.94
Consensus Rating
Buy
Ratings Breakdown
9 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$228.90 (23.8% Upside)

Penumbra logoPenumbra, Inc designs, develops, manufactures, and markets medical devices in the United States and internationally. The company offers aspiration based thrombectomy systems and accessory devices, including revascularization device for mechanical thrombectomy, such as Penumbra System under the Penumbra RED, JET, ACE, 3D Revascularization Device, and Penumbra ENGINE brands, as well as components and accessories; neurovascular embolization coiling systems to treat patients with various sizes of aneurysms and other neurovascular lesions under the Penumbra Coil 400, POD400, PAC400, and Penumbra SMART Coil brand names; and neurovascular access systems designed to provide intracranial access for use in a range of neurovascular therapies under the Neuron, Neuron MAX, Select, BENCHMARK, BMX96, DDC, and PX SLIM brands. Read More 
 



#13 - Tata Motors (NYSE:TTM)

2022 EPS Estimate:
$0.73
2023 EPS Estimate:
$2.66 (+264.4%)
Stock Price
$25.47
Consensus Rating
Hold
Ratings Breakdown
2 Buy Ratings, 1 Hold Ratings, 1 Sell Ratings.
Consensus Price Target
N/A

Tata Motors logoTata Motors Limited designs, develops, manufactures, and sells various automotive vehicles. The company offers passenger cars; sports utility vehicles; intermediate and light commercial vehicles; small, medium, and heavy commercial vehicles; defense vehicles; pickups, wingers, buses, and trucks; and electric vehicles, as well as related spare parts and accessories. Read More 
 



#14 - Live Nation Entertainment (NYSE:LYV)

2022 EPS Estimate:
$0.40
2023 EPS Estimate:
$1.35 (+237.5%)
Stock Price
$75.27
Consensus Rating
Buy
Ratings Breakdown
9 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$121.10 (60.9% Upside)

Live Nation Entertainment logoLive Nation Entertainment, Inc operates as a live entertainment company. It operates through Concerts, Ticketing, and Sponsorship & Advertising segments. The Concerts segment promotes live music events in its owned or operated venues, and in rented third-party venues; operates and manages music venues; produces music festivals; creates associated content; and offers management and other services to artists. Read More 
 



#15 - Zillow Group (NASDAQ:ZG)

2022 EPS Estimate:
$0.29
2023 EPS Estimate:
$0.97 (+234.5%)
Stock Price
$29.54
Consensus Rating
Hold
Ratings Breakdown
9 Buy Ratings, 12 Hold Ratings, 2 Sell Ratings.
Consensus Price Target
$55.50 (87.9% Upside)

Zillow Group logoZillow Group, Inc, a digital real estate company, operates real estate brands on mobile applications and Websites in the United States. The company operates through three segments: Homes; Internet, Media & Technology; and Mortgages. The Homes segment is involved in resale of homes; and title and escrow services to home buyers and sellers, including title search procedures for title insurance policies, escrow, and other closing services. Read More 
 


What Are Growth Stocks and Investing in Them

A growth stock is a share in a company that is growing at a significant rate and often trades at a high valuation compared to a value stock. These companies might be in their earliest startup stages, or perhaps going through some aggressive expansion but, either way, growth is their focus. Because they are using their capital to invest in growth, they usually don’t pay dividends. Instead, they’ll reinvest their earnings back into the company to help it grow.

Many growth stocks are in startup industries that have blossomed in recent years, and may not have even existed a few decades ago. This could include biotech, cannabis, and artificial intelligence—but growth stocks can also be found in more traditional industries, such as transportation, energy, and entertainment. It all depends on the company issuing the stock and what they’re doing.

Growth companies tend to have a uniquely singular product or product line, which facilitates their rapid growth beyond the rest of the industry. They may have proprietary technology, special access to certain resources, or incredibly growth-oriented management. Whatever the case may be, they’ll want to continue to stay ahead of the competition, so there’s a good chance they’ll be reinvesting their earnings into research and development.

Another trait of growth companies is a loyal following or customer base for their product and may command a large market share. The trait of sizeable market share is what we’ve seen with some of the biggest growth stocks in the past few decades.

Amazon was once one of the only e-commerce sales venues where consumers could buy a wide variety of goods online. Facebook held a virtual monopoly on the concept of social media—and then bought up competitors like Instagram who entered their space. The proprietary technology at Google gave them the ability to outpace other search engines that had already existed for years. In all these cases, growth companies had a lockdown on a particular market, and the company grew exponentially within a short time.

The Benefits of Investing In Growth Stocks

Growth stocks are not known for paying out dividends but what they are known for is growth. If the company is worth $100 million and the stock trades at X dollars and then grows to $100 million it makes sense the shares would be worth 2X.

Investors might also hope a company might become an established, dividend-paying asset as well, but that is a very long-term view for most.

Companies in aggressive states of expansion might split their shares of stock, as well. They do this to increase the number of outstanding shares, which helps the share price stay low and attracts more investors so they can raise more capital. If you had bought just 10 shares of Apple in 1980, you’d find yourself today with 650 shares of this tech behemoth after the four splits it’s gone through in the last 30 years.

Beware The Dangers of Growth Stocks

The biggest danger with growth stocks is getting in too early when they are totally unproven entities. They may project an appealing image that makes them stand out from the other cheap stocks to buy, but their business model could prove to be an epic failure or they could go bankrupt, or the market could be full of hype like the cannabis market was.

Growth stocks can also be overvalued. This is because they attract a lot of attention and their stock prices are based on expectations of future earnings. If those earnings materialize then good, the stock is not overvalued but if the earnings do not materialize share prices can implode.

Growth stocks can also be some of the most volatile stocks on the market which does not bode well for the average retail investor. Unequipped to analyze the waves of the stock market and know when to hop on and off, bumpy prices will take them for a harrowing ride—ultimately landing not too far from where they started and leaving them with minimal or negative profits. Stock trading is not for everyone, and knowing which stocks to buy now is a real blend of arts and sciences that takes years of trading experience.

A Guide To Growth Investing

Growth investing is sort of like drinking red wine—a moderate amount every day is good for your health, but too much is detrimental. A portfolio made entirely of growth stocks can wildly careen out of control especially if profits are taken when they are available.

That said, investors will want to invest a portion of their portfolio into growth stocks or use small allocations for each company within a growth stock portfolio.

This is actually a great strategy for younger investors who are just building their retirement portfolios. It’s better to invest in risky assets while they’re young, with decades ahead of them, because they have time to ride out the waves of the market and grow their money.

Some financial pundits warn against the inherently risky nature of growth stocks. Instead, they suggest buying stocks that have the potential for dividend growth. These dividend stocks or dividend growth stocks usually have a higher amount of earnings per share and are able to grow their dividends over time. They argue income stocks that pay dividends provide a better return on equity for long-term investing.

Dividend And Value Versus Growth Stocks

Value stocks may not be the most active stocks, but they tend to have great value as indicated by a lower price-to-earnings ratio. These companies have usually been around for a while and do not generate huge amounts of speculative excitement.

Beginning investors may wonder what is dividend yield and why it matters. The dividend yield is another strong indicator of a stock’s value, in addition to the P/E ratio (price-to-earnings). The dividend yield formula is just dividing the dollar value of yearly dividends by the stock’s share price). If a stock has a dividend yield of 4-6%, that’s considered quite good.

A dividend investing strategy is the secret formula for some of Wall Street’s wealthiest investors. If you own one share of a stock priced at $50, and the dividend yield is even just 3%, that company will pay you $3 every year from their earnings. That dividend might not mean a lot to a casual investor with ten shares, but if you owned 100,000 shares of that stock, it would generate a dividend of $3,000 annually for you. If you consider big investors like Warren Buffet owning millions of shares of stock, it’s easy to see how dividend revenue alone can turn into a six-figure income.

Some stocks might be undervalued because of poor performance, or because other similar companies are stealing the limelight. But even these poorly performing companies might issue sizeable dividends. However, income investors are not banking on a tremendous price increase that will yield some sweet capital gains.

Overall, value stocks tend to be issued by stable companies that won’t be going out of business anytime soon. Growth stocks, by contrast, tend to be issued by companies that have not yet withstood the test of time and are inherently riskier. Many experienced investors will build a portfolio from both growth stocks and value stocks, relying on the dividend payments and stability of the latter, and the potential capital gains of the former.

Buying Growth Stocks Now

Buying and selling stocks is a great way to profit from their capital appreciation, but you need to understand what you’re buying. Growth stocks are great for investors who want to grow the value of their portfolio or ride a wave of potential success all the way to the shores of huge cash growth. These growth stocks are issued by companies that are in an aggressive phase of expansion, either because it’s part of their business plan, or because they have a huge market share locked down with proprietary technology or a patent.

However, since many growth stocks are recently founded startups, it can be hard to predict where their stock price will go from one day to the next. That said, investors can mitigate their risk profile by balancing out their growth stock portfolio with some value stocks. The ratio of the two will depend on how much risk they can handle.

 

 

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