7 High-Growth S&P 500 Stocks to Buy Now

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  • Exxon Mobil (XOM): Positioned well in a favorable energy sector, Exxon Mobil boasts consistent profitability and growth potential.
  • Sherwin-Williams (SHW): With steady real estate demand, Sherwin-Williams, despite modest gains, is set for industry growth.
  • Yum! Brands (YUM): Despite recent underperformance, Yum! Brands could benefit from consumers seeking affordable dining options.
  • Read more on these top high-growth stocks to buy and hold now!
high-growth S&P 500 stocks - 7 High-Growth S&P 500 Stocks to Buy Now

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While publicly traded securities that benefit from significant upside potential usually carry a higher-risk profile, with high-growth S&P 500 stocks, you can almost get the best of both worlds. To be fair, we need to set some expectations. If you’re looking for absolutely blistering gains – securities that can go 3X or higher – you need to look elsewhere.

However, what’s the point of targeting incredibly speculative ventures that could facilitate a ten-bagger but would most likely end up losing you tons of cash? For the conservative investor, it might make better sense to get 20% returns. Sure, you’d rather get 200% but then again, you’re much likelier to extract the former potentiality. Thus, high-growth S&P 500 stocks are rewarding or sensible.

Or, since we’re in baseball’s playoff season, would you rather take an A-swing hack and miss or get a critical single to bat in a baserunner? Of course, singles aren’t nearly as sexy as home runs. But in the playoffs, you want to take home victories, not stat lines. On that note, below are high-growth S&P 500 stocks to consider.

Exxon Mobil (XOM)

Exxon Retail Gas Location
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Investors look to Exxon Mobil (NYSE:XOM) for stable exposure to the energy market. Unless they’re playing a high-stakes game with XOM options, people aren’t usually looking to Exxon Mobil for ridiculous gains. However, on a relative basis, the stalwart makes a solid case for high-growth S&P 500 stocks.

No, you’re probably not going to get cryptocurrency-rich with XOM. However, when you acquire shares, you’re doing so at a reasonably favorable time for the sector. With major oil-producing nations agreeing to cut production until the end of this year, XOM could swing higher.

In addition, you’re getting a consistently profitable enterprise that enjoys a three-year revenue growth rate of 15.9%, above 60.26% of its peers. Also, it pays out a 3.3% forward yield. Lastly, analysts peg XOM as a moderate buy with a $126.88 price target, implying nearly 15% upside. Overall, that’s a decent showing from number 12 on the S&P 500 list.

Sherwin-Williams (SHW)

A Sherwin-Williams (SHW) sign in Richfield, Minnesota.
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Based in Cleveland, Ohio, Sherwin-Williams (NYSE:SHW) primarily engages in the manufacture, distribution, and sale of paint, coatings, floor coverings, and related products. Most of these products are aimed at the professional and industrial communities. However, retail customers also gravitate toward Sherwin-Williams. On paper, it’s a reliable but boring enterprise. Given the present context, it’s one of the high-growth S&P 500 stocks.

Yes, I know how strange that sounds. When you add that SHW only gained less than 6% since the January opener, the notion seems even more absurd. However, in the past one-year period, SHW gained almost 24% of equity value. Fundamentally, consistently strong demand for real estate – along with new housing construction – may lift shares.

Exposure to SHW gives you a consistently profitable and predictable business. Also, based on investment data aggregator Gurufocus’ proprietary calculations for intrinsic value, SHW is modestly undervalued. Analysts rate SHW a moderate buy with a $299.29 target, implying over 18% upside. Not bad for number 127 on the S&P 500 rankings.

Yum! Brands (YUM)

YUM stock: the yum logo on the side of a building
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Clocking in at number 223 on the S&P 500 list, Yum! Brands (NYSE:YUM) doesn’t immediately come to mind as one of the high-growth S&P 500 stocks. Part of that perception stems from its negative performance. Since the beginning of this year, YUM slipped more than 5%. Unfortunately, YUM has been looking rather soft since the end of July.

Still, the restaurant operator – which owns several popular fast-food brands – may benefit from the trade-down effect. Basically, consumers will trade down from pricey eateries to more affordable fare, which theoretically should benefit Yum. It’s not just logic either. In a Reuters report in August, Yum beat estimates for quarterly comparable sales and profit due to stronger demand for cheaper meals at KFC.

Also, Yum enjoys at least a 10-year streak of net income. Also, its three-year revenue growth rate of 9.7% beats out 79.51% of its peers. In closing, analysts rate YUM a moderate buy with a $146 target, implying over 21% growth.

Zimmer Biomet (ZBH)

Modern Medical Research Laboratory with Computer, Microscope, Glassware with Biochemicals on the Desk. Scientific Lab Biotechnology Development Center Full of High-Tech Equipment. Biomedical technology stocks, RSLS Stock
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A medical device company, Zimmer Biomet (NYSE:ZBH) features a long history, being founded in 1927. According to its website, Zimmer commands attention for its innovative portfolio of implants and enabling technologies. Also, medical practitioners and clinics across over 100 countries utilize the company’s solutions. Given its massive footprint, it’s no surprise that Zimmer ranks among the S&P 500, specifically at number 280.

While an important component of healthcare, arguably most folks wouldn’t consider ZBH as one of the high-growth S&P 500 stocks. However, that perception could be wrong. Yes, it’s down almost 12% since the start of the year. But for contrarians, that red ink translates to a forward earnings multiple of 13.94X, lower than the sector median of 21.45x.

Sure, cheap multiples aren’t the end-all, be-all. However, Zimmer is working through its cobwebs following the Covid-19 disruption. Plus, it offers a very credible business. Unsurprisingly, analysts peg shares as a moderate buy with a $147.93 target, implying nearly 32% upside.

Corteva (CTVA)

A Corteva (CTVA) sign in Indianapolis, Indiana.
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A significant player in the agricultural industry, Corteva (NYSE:CTVA) focuses on specialty chemicals and seeds. Clocking in at number 208 on the S&P 500 list, Corteva currently sports a market capitalization of just under $36 billion. Though a vital component of our national infrastructure, the market unfortunately has other ideas. Since the start of the year, CTVA slipped more than 15% in equity value.

With that kind of print, CTVA might not seem an ideal candidate for high-growth S&P 500 stocks to buy. However, as boring as the underlying agricultural sector is, geopolitics has made (regrettably) more exciting. With adversarial nations competing for access to precious resources, the U.S. must not lag behind. From a purely cynical perspective, Corteva holds much promise.

Also, it may offer enticing value for forward-looking investors. Currently, shares trade at 1.37x book value. In contrast, the sector median hits a loftier 1.66x. Analysts rate CTVA a strong buy with a $68.92 target, implying over 38% upside potential.

Kenvue (KVUE)

Albuquerque, New Mexico / USA - November 2 2020: Boxes of Band-Aids in Walmart in the pharmacy and over-the-counter medication aisle. Kenvue (KVUE) split from JNJ and now owns the Band-aid brand.
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Representing the consumer health component of the Johnson & Johnson (NYSE:JNJ) umbrella, Kenvue (NYSE:KVUE) saw significant interest prior to its spinoff. However, since making its debut as a separate entity, KVUE hasn’t looked that great, to be honest. Down nearly 27% since its first public session, KVUE doesn’t appear to be one of the high-growth S&P 500 stocks.

However, looks might be deceiving. With some patience, Kenvue may rise higher. Ranked as number 218 on the venerable list, the company fundamentally benefits from everyday demand. While I don’t want to be cynical, the reality is that during economic hardships, people might not go to the doctor. But they’ll acquire over-the-counter meds for basic needs. Thus, Kenvue should enjoy business predictability.

Again, a little patience may go a long way. And while you’re waiting, Kenvue offers a forward yield of 4.06%. Looking to the Street, analysts peg KVUE as a consensus moderate buy with a $27.25 target, implying over 38% upside.

NextEra Energy (NEE)

Person holding the glowing world in their hands with icons with different types of energy. AI Recommended Energy Stocks in July
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Historically a popular idea thanks to its focus on clean and renewable energy generation, NextEra Energy (NYSE:NEE) finds itself in a pickle. Since the start of the year, NEE fell more than 38%, an uncharacteristic performance. Even worse, the negative acceleration has been severe, with shares dropping nearly 24% in the trailing one-month period.

As The Wall Street Journal reported, the current high interest-rate environment imposes significant headwinds against wind and solar developers. It’s so bad that the pessimism easily clouds a wave of government subsidies for green projects. Still, for the contrarian investor, NEE could be one of the enticing high-growth S&P 500 stocks.

Yes, the recent volatility is incredibly worrying. Nevertheless, renewable energy probably won’t go out of style given the broadly rising demand. Also, the red ink has made NEE more attractive. Right now, shares trade at 12.75x trailing earnings, lower than the sector median of 14.94x. Finally, analysts rate NEE a strong buy with a $75.07 target, implying almost 46% 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.


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