Although value-oriented enterprises may arguably offer a safer, more reliable route to success, few sectors are as exciting (and potentially rewarding in an accelerated sense) as the top growth stocks to buy. Fundamentally, investors gravitate toward this sector for exactly that: growth over a hopefully short period of time in exchange for accepting higher-than-average volatility risk.
Primarily, market participants that elect this space do so in anticipation of forward disruption. For example, the top tech stocks for growth align with paradigm-shifting innovations such as artificial intelligence, cloud computing, and medical/biotech applications. Or, in the case of cybersecurity, the underlying enterprises attempt to safeguard their clients from tech’s nefarious uses.
Moreover, betting on the top tech stocks for growth positions investors for the future standard of business. As a silly but relevant example, investors who assumed the typewriter would continue being in demand sorely found themselves out of order. Again, you must accept a greater degree of risk in this arena. But if you’re okay with that, below are the top growth stocks to consider.
Growth Stocks: Arista Networks (ANET)
Billed as an industry leader in data-driven, client-to-cloud networking for large data center environments, Arista Networks (NYSE:ANET) undergirds high-level connectivity protocols. Unsurprisingly given its powerful relevance, investors have piled into ANET. Right now, shares have gained almost 50% of equity value. Even better, circumstances appear quite favorable for this stalwart, which carries a market capitalization of nearly $56 billion.
According to TipRanks, technical indicators suggest that ANET ranks among the growth stocks to buy now. Especially the moving average consensus indicates that ANET is a strong buy. Further, we see significant movement in the options chain for contracts expiring on Aug. 25. Specifically, out-of-money calls with strike prices of $185 and $187.50 saw a positive change in open interest of 108 and 59 contracts, respectively.
Overall, Wall Street analysts peg ANET as a consensus strong buy. This assessment breaks down as 14 buys, three holds and zero sells. Moreover, the average price target lands at $199.44, implying over 10% upside potential.
One of the most important names among top tech stocks for growth, ASML (NASDAQ:ASML) is a leading manufacturer of chip-making equipment. According to a CNBC report, ASML specializes in extreme ultraviolet (EUV) lithography. Essentially, the company builds machines that allow semiconductor firms to print intricate designs on silicon wafers. Since the start of the year, shares gained over 19%.
Contrary to Arista Networks above, technical indicators present a mixed profile for ASML stock. While standard gauges such as oscillators suggest a bullish profile, the moving average consensus suggests a pessimistic outlook. In the trailing month, shares gave up around 5% of equity value. Admittedly, bearish activity in the options chain for contracts expiring on Aug. 25 has picked up steam. Nevertheless, the bulls have also moved in on the out-of-money $660 calls, which shows an open interest increase of 12 contracts.
Lastly, analysts peg ASML as a consensus moderate buy with an average price target of $785.67, implying nearly 20% upside potential.
Growth Stocks: CrowdStrike (CRWD)
A cybersecurity specialist, CrowdStrike (NASDAQ:CRWD) provides cloud workload and endpoint security solutions. As well, it focuses on threat intelligence and cyberattack response services. According to one expert, the cost of cyberattacks may hit an annual $10.5 trillion by 2025. Obviously, it’s imperative that high-level institutions protect themselves. Unsurprisingly, CRWD has performed well this year, gaining over 42% since the Jan. opener.
Despite the positive print in the charts, the technical profile for CRWD is mixed. While standard technical gauges point to a buy rating, the moving average consensus suggests a pessimistic outlook. However, the fundamental relevance makes CRWD a worthy inclusion among top growth stocks to buy.
In full disclosure, CrowdStrike’s options chain for the expiration date of Aug. 25 indicates significant interest in out-of-money puts. Mainly, a significant contract price cut has attracted contrarians. On the other hand, there’s a positive open-interest delta for CRWD calls as well, particularly for the $149 and $150 contracts. Right now, analysts peg CRWD as a consensus strong buy with a price target of $178.93, implying 22% upside potential.
iRhythm Technologies (IRTC)
One of the growth stocks focused on medical technologies, iRhythm Technologies (NASDAQ:IRTC) is a complete ambulatory cardiac monitoring solution built around single-use monitors, per its website. Designed with patients in mind, iRhythm may help change the game for people requiring continuous heart monitoring. Carrying a market cap of over $3 billion, investors have pushed IRTC to a 17% return since the start of the year.
For those seeking a contrarian opportunity, IRTC could be one of the top tech stocks for growth. Although standard technical gauges rate IRTC as a buy, indicators based on moving averages suggest it’s a sell. In fairness, during the past one-year period, shares stumbled more than 23%. In terms of the options chain for contracts expiring Sept. 15, 2023, neither the bulls nor the bears are showing their hands at the moment. Open interest on both sides shows very little movement, implying a lack of new positions.
Nevertheless, analysts peg IRTC as a strong buy with a $139.56 price target, implying nearly 27% upside potential.
Growth Stocks: NuScale Power (SMR)
One of my favorite top growth stocks to discuss, NuScale Power (NYSE:SMR) conducts business as a manufacturer of small modular reactors or SMRs. Unlike traditional nuclear power plants, SMRs – as their acronym suggests – feature a smaller physical footprint. As such, this fresh platform enables modularity, permitting nuclear facilities in areas deemed inaccessible to traditional facilities. Plus, with advanced safety protocols, NuScale’s SMRs could potentially revolutionize nuclear power.
To be 100% clear, though, SMR ranks among the riskiest ideas for top tech stocks for growth. Since the start of the year, SMR stock tumbled roughly 35%. In the trailing one-year period, shares gave up over 50% of their equity value. Now, it’s not a be-all, end-all indicator. However, NuScale’s options chain for contracts expiring on Sept. 15, 2023, shows an increase in new positions for out-of-money calls. Specifically, the $7 and $8 options printed a positive open-interest delta of 12 and 6 contracts, respectively.
Currently, Wells Fargo’s Neil Kalton pegs SMR a “hold” but with a price target of $9, implying nearly 35% upside.
An Irish-American automotive technology supplier, Aptiv (NYSE:APTV) is one of the top growth stocks to buy for the next generation of mobility. According to its website, Aptiv is hard at work on the advanced tech that makes autonomous driving possible. To achieve its directive, the company partnered with a major automaker to take driverless vehicles in bold new directions. Since the Jan. opener, APTV gained around 3%.
Based on TipRanks technical analysis indicators, APTV comes out to a consensus sell. While standard gauges suggest an optimistic framework, the moving average consensus points to extreme pessimism. In the trailing year, APTV sits a hair under parity. In full disclosure, Aptiv’s options chain for the expiration date of Sept. 15 shows rising interest in out-of-money puts, particularly the $92.5 strike price options.
Despite some apparent concerns, the Street remains positive on APTV, pegging it a moderate buy. This assessment breaks down into nine buys, two holds, and one sell. Further, the average price target clocks in at $130.09, implying around 36% upside potential.
Rigetti Computing (RGTI)
One of the most-celebrated growth stocks in recent memory, Rigetti Computing (NASDAQ:RGTI) specializes in the field of quantum computing. According to Fortune Business Insights, the quantum computing market reached a valuation of $717.3 million in 2022. Further, experts project that by 2030, the sector will command a value of nearly $6.53 billion. Obviously, that’s a massive addressable market for Rigetti, which presently only features a market cap of $274 million.
Since the start of the year, RGTI skyrocketed to the tune of over 180%. However, with so much upside baked in, TipRanks technical consensus overall sits at neutral. Both common technical gauges and indicators based on moving averages point to neither hot nor cold. Relatively speaking, though, the options chain for Rigetti might intrigue speculators. Specifically, the out-of-money $2.50 calls with an expiration date of Sept. 15, 2023, featured an open interest increase of 55 contracts. On a final note, analysts peg RGTI as a moderate buy with a price target of $3.50, implying around 70% upside potential.
On the date of publication, Josh Enomoto 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.