Growth stocks have had a difficult time of it lately, but there looks to be a comeback brewing.
After a tumultuous bear market in 2022, investors are eager for a more stable year. Moreover, it seems as though the equity market is rebounding, with many of the best growth stocks trading in the green.
Though there is still considerable volatility in the market, there’s much to look forward to this year.
There are still plenty of risks, such as supply chain hiccups, high-interest rates, and other macroeconomic factors. Those who have been patient enough to wait until now could reap healthy long-term rewards. The valuations of many of the top growth stocks have become particularly attractive following the selloff last year. Having said that, here are seven growth stocks with great potential for superior returns in 2023.
|MARA||Marathon Digital Holdings||$8.02|
|PANW||Palo Alto Networks||$159.78|
Apple (NASDAQ:AAPL) is arguably the most popular tech giant, which has made several strong moves across its various sectors.
Even though the launch of the Apple Glass got delayed, it is still forging ahead into the AI/virtual reality sector. This may be an early step in what will eventually become a long-term strategic plan for the company, which makes AAPl one of the best growth stocks to buy now.
Meanwhile, its massive customer base continues to purchase its flagship products, such as iPhones, Apple watches, and other accessories, resulting in stronger revenue and earnings growth.
Apple has blown past estimates across both lines in 18 out of the past 20 quarters. This gives investors more confidence in buying the stock of this future-focused tech giant as it continues to play a major role in the ever-evolving economy.
Intuitive Surgical (ISRG)
Intuitive Surgical (NASDAQ:ISRG) is incredibly positioned for the future on the back of robust demand for robotic surgery in the upcoming decade.
The company’s success is already apparent in the glowing results of its da Vinci Surgical System, which saw double-digit growth in its installed base during its most recent quarter. As robotic technology continues to evolve and improve, it appears that Intuitive will be one of many beneficiaries of this trend.
ISRG’s track record of growing its sales and earnings has been mighty impressive. Over the past five years, Intuitive’s revenue growth has averaged 16%.
Analysts expect to see double-digit growth in earnings for the next five years. Layer that up with its massive addressable market, ISRG stock is likely to offer tremendous upside down the road.
ChargePoint (NYSE:CHPT) is changing how electric mobility works with its robust range of charging solutions, boasting a leadership position in the niche.
The firm has grown its sales at an incredible pace, with revenues up over 90% in its most recent quarter. Also, with passenger EV sales expecting a 51% compound annual growth rate from 2020 to 2026, investing in CHPT stock remains an incredible long-term opportunity.
With the recent agreement between Chargepoint, Mercedes-Benz Group, and MNB Energy, EV drivers in the U.S. and Canada are sure to benefit from increased access to fast chargers that will get their vehicles up and running.
Even with a few cautionary notes, such as diminishing investors’ support for CHPT stock and the company’s road to profitability projected for several years down the line, it’s well worth investing in this EV charging giant.
Datadog (NASDAQ:DDOG) offers a powerful, convenient platform for cloud-based monitoring and security solutions.
Instead of juggling multiple services to monitor and protect IT systems adequately, businesses can have it all under a one-stop-shop platform such as Datadog. Its intuitive and user-friendly service makes it easy for any business to access the necessary tools without needing specialized IT support.
This all-in-one approach makes Datadog so attractive for businesses looking for a comprehensive cloud solution.
Datadog has had a remarkable success story, with its sales jumping from $101 million in 2017 to over $1.2 billion in the past three quarters. Additionally, forward revenue growth estimates are over 50%, with the firm likely to break even soon. All this suggests that Datadog can continue growing at a robust pace and become a dominant force in its market.
Unity Software (U)
Unity Software (NYSE:U) is a leading video game engine developer who has effectively revolutionized the sphere.
However, Unity’s success has extended further than the game domain with its foray into video animation, architecture, and e-commerce. This bold expansion by Unity comes at key rival Unreal’s expense. Together, the two companies now control an impressive majority of the video-game-engine market with its potent user base.
The future looks bright for Unity’s software suite as the rise of virtual and augmented reality unlocks a new world of potential. The firm’s revenue growth has averaged over 40% growth over the past five years.
Also, it continues to invest in its cloud capabilities and has shifted to a subscription sales model, which should significantly expand its margins. With its latest advancements in VR/AR technology and subscription models, Unity will be well-poised to reap the rewards from this burgeoning industry over the long run.
Marathon Digital Holdings (MARA)
Marathon Digital Holdings (NASDAQ:MARA) has seen the potential growth in blockchain technology and its subsequent possibilities for the industry, providing the hope that the value of Bitcoin will not only return but will continue to expand.
Though 2022 wasn’t ideal, it’s far too early to write off the incomparable value Bitcoin can bring.
Marathon Digital Holdings has made a name for itself amongst bitcoin miners as an industry leader, consistently displaying impressive growth.
This is especially true during the crypto winter of 2022 when its output increased by 29%. Also, analysts believe that it could take until the year 2040 for all of the remaining two million bitcoin to be mined, pointing to a massive addressable market for the stock.
Palo Alto Networks (PANW)
Palo Alto Networks (NASDAQ:PANW) is in an enviable position concerning the increasing demand for cybersecurity solutions.
During such unprecedented times, the need for secure access has driven the relentless search for reliable and advanced technologies, creating favorable conditions for Palo Alto’s security portfolio.
Investing heavily in research and development while leveraging its expansive data will undoubtedly place Palo Alto far ahead of its competitors in this digital age of security.
Palo Alto has long been a leader in the field of cybersecurity, and this recent distinction as the top global vendor is no surprise.
The company’s dedication to premium technology and strong consistency have put it in a position for success, positioning it far above the competition. Palo Alto’s impressive gross profit margins of over 60% indicate just how successful its operations have been and justify its premium valuation in the tech space.
This win is only another example of Palo Alto’s dominance within the industry, which surely set them up for continued success.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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