Growth stocks caught a break recently. The Federal Reserve has held the target range for interest rates between 5.25%-5.50%.

It also signaled that Americans should expect an additional rate hike this year. Meanwhile, the Fed has also signaled that 2024 rates are going to be kept higher for longer. 

For investors, one of the more useful assertions is that growth stocks are becoming more attractive.

Rising interest rates tend to de-incentivize growth firms because they require borrowing to fund growth-seeking behavior. Rates are potentially as high as they will go. Thus, it’s reasonable to expect that growth firms will improve. 

Arcos Dorados (ARCO) 

Arcos Dorados (NYSE:ARCO) is a holding company that franchises McDonald’s restaurants throughout Latin America and the Caribbean. The stock is similar to MCD shares in many ways. Both derive their strength McDonald’s franchises while paying dividends at similar levels. 

However, Arcos Dorados is growing much faster than its American counterpart. Arcos Dorados’ system-wide comparable sales grew at 31.5% in Q2 whereas McDonald’s reached 11.7%. It wouldn’t be fair to list MCD among growth stocks, but the moniker very much fits Arcos Dorados’ case. 

System-wide comparable sales includes both franchised and company-operated restaurants. Total revenues increased by 17.2% during the second quarter which suggests that Arcos Dorados franchisees are doing particularly well. 

Arcos Dorados is doing especially well in regard to overall operations. Its EBITDA increased by 0.3% to 10.6% in Q2.

That led to a doubling of income for the firm. Meanwhile, the company expects that all the openings it scheduled earlier in the year will come on line suggesting that no unexpected shocks will present themselves. 

Planet Fitness (PLNT)

In the world of gyms, Planet Fitness (NYSE:PLNT) doesn’t have the greatest reputation.

Hard core athletes don’t go there because it lacks the equipment they demand. However, for the average gym-goer seeking inexpensive memberships as low as $10 per month, it makes sense. 

I think that offering is only going to become more appealing over the next year. Let’s face it, the economy is caught in an uneasy status quo: Interest rates and inflation are going to remain elevated and there’s no realistic chance of that changing drastically without something breaking.

That implies that consumers will continue to seek value overall which will spur Planet Fitness on. 

The firm grew by nearly 9% in the second quarter and expects 12% expansion in 2023 overall. It’s a strong but not an exceptional number.

However, where Planet Fitness shines is its EPS should grow by 34% this year. The company has enacted repurchases that will benefit investors who hold PLNT shares throughout. It is one of the growth stocks to buy while you can. 

Nvidia (NVDA) 

Investing in Nvidia (NASDAQ:NVDA) at this point is straightforward. The markets are undertaking something of a tech selloff at the moment that is affecting Nvidia negatively.

Rates are expected to stay higher for longer and that implies that the tech sector, led by Nvidia and its AI prowess, will be beset by continued turbulence. 

I don’t buy it. There’s very little chance that Nvidia slips back much further from here. It’s already trading below the low target price on Wall Street and remains more than $200 below the average target price. 

If you buy now there’s a strong chance that it increases by 45% or more in the next year and a half. 

The market is upset that rates will remain at current rates. That’s fine and understandable. However, Nvidia has done nothing wrong. Q2 revenues of $13.5 billion were better than anyone could have reasonably expected.

Further, the company continues to have a stranglehold on AI chips. AI isn’t going anywhere. Sure, the company is facing competition, but there are no clear signs that any other chip makers can erode its dominance soon. This is one of those growth stocks you can depend on. 

Tesla (TSLA) 

Tesla (NASDAQ:TSLA) has had an incredible run in 2023 as one of the most important stocks overall.

However, it too, is suffering as the markets digest the latest news regarding rate hikes. That said, positions established now will not lose value if held for the next year. 

The firm’s growth trajectory suggests it will grow by 22.45% this year and by 23.9% in 2024. It’s going to be difficult for bearish investors to gain much traction because of that simple fact.

Combine that with the idea that rates could decline in 2024 and Tesla’s prospects only improve. Further, also consider that Tesla is pushing hard to sell more of its vehicles by lowering prices in order to gain market share. It has competition but those manufacturers are much younger and more inexperienced. Thus, build quality is likely to be lower giving Tesla an advantage. 

Tesla also has an emerging opportunity to boost relations with Saudi Arabia and may bring a factory to the nation in the future. That could be a huge boon to the manufacturer given how eager Saudi Arabia is to diversify its revenue streams overall.

Beyond that, it’s a clear winner in the ongoing UAW strikes affecting the Big Three automakers in Detroit. Among EV growth stocks, it’s hard to do better. 

Salesforce (CRM) 

Salesforce (NYSE:CRM) stock is probably going to move a bit lower on the rate hike news. That is your opportunity to buy shares because it won’t stay down for very long. 

Overall, investors are upset that the economy isn’t improving as rapidly as they hoped. They’re angry that inflation is proving very stubborn. And that truth is doing what it always does to tech firms. 

However, Salesforce is a behemoth in the customer relationship management space and its recent performance was strong. Thus, its scale and results means that CRM shares will head up from here.

The company controls roughly 30% of its market. Its competition is a fractured group of much smaller firms which speaks to the idea that Salesforce isn’t likely to cede much ground. 

More importantly, Salesforce is performing well as earnings and revenues for Q2 and expectations for Q3 came in better than expected.

Management points to AI as one of the primary reasons to anticipate its continued strength. I don’t see why not. It has the resources to invest and that leads me to believe that AI can propel it to a greater market share in CRM overall. 

MercadoLibre (MELI) 

MercadoLibre (NASDAQ:MELI) stock sits at the confluence of several megatrends and shouldn’t be overlooked by investors.

The Ecommerce giant serving Latin America benefits from growth forecasts in that sector and from growth expectations in fintech, where it is also rapidly improving. 

Let’s start with the fintech argument. The overall numbers are very clear: The fintech market should grow at 20% annually through 2030. Meanwhile, the Ecommerce market may grow at rates in the lower double digits. Add in the emergence of Latin America and it all suggests that MercadoLibre is in a great position. 

Revenues grew by more than 57% during the second quarter. As impressive as that figure is, it’s MercadoLibre’s payments progress that is really worth considering. Total payment volume nearly doubled during the same period reaching $42.2 billion.

The company is a huge player in the payments space. It is connecting a region that has traditionally remained underserved. That is setting it up for strong continued growth overall. 

Wingstop (WING)

There are currently more than 2,000 Wingstop (NASDAQ:WING) locations globally, 1,750 of which are in the U.S.

The growth of its locations has been rapid which is an indication of the stock’s overall strength. 

One of the strongest pieces of evidence in favor of that is store growth this year. Domestic same store sales growth increased by 16.8% in Q2 ‘23. It fell by 3.3% a year earlier. The economy weakened between Q2 ‘21 and Q2 ‘22 as the effects of quantitative easing became clear.

Rate hikes began in March of 2022 which halted growth across the economy. Rates have been more stable and predictable over the last year and that clarity has resulted in growth at Wingstop.

Revenue and income figures are well above 20% and the franchise is catching on in a way that isn’t dissimilar to what Chipotle (NYSE:CMG) did in the recent past. 

On the date of publication, Alex Sirois 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.