Growth stocks, marked by surging revenues and earnings, continue to captivate discerning investors. These juggernauts channel profits into expansion, promising potential market outperformance. As investors continue to hunt for the best growth stocks to buy, it’s worth noting that over the past 15 years, this investment approach has glittered with undeniable success.
After a somewhat subdued 2022, there’s a renewed vigor in this sector. As we witness inflation’s deceleration and the 2023 market rally surging ahead, a strategic shift is unfolding. Yet, it’s imperative to proceed with foresight, not just momentum. By targeting firms with stellar growth, investors can buffer against fleeting market disturbances and position themselves for robust future returns.
As the U.S. Federal Reserve hints at halting its interest rate hikes, growth stocks are gearing up for a significant lift-off. As we edge towards that traditionally prosperous final quarter, here are three growth stocks poised to supercharge your future returns.
Palantir Technologies (PLTR)
Palantir Technologies (NYSE: PLTR) has carved out a distinctive niche in the burgeoning field of generative AI. Its prowess lies in crafting tailored data analytics software, enabling firms to dissect data and forge critical decisions. Notably, the U.S. government emerges as its premier client, with collaboration spanning vital contracts from monitoring the State Department diplomats’ health to bolstering combat unit communications for the Department of Defense.
Palantir’s stock surged by an impressive 140% this year, underpinned by strategic client onboarding and upselling. Additionally, its second-quarter revenue announcement of $533.32 million further solidifies its market position. Palantir’s trajectory remains promising as the artificial intelligence sector gains momentum.
Anticipated forward revenue growth of 19.57% paints a compelling picture of a possible S&P 500 entrant. Palantir’s recent third-quarter guidance foresees a revenue range of $553 million to $557 million.
In the swiftly changing terrain of stocks, Nvidia (NASDAQ: NVDA), a leading semiconductor company, stands out brilliantly this year. The trailblazer has sprinted past a $1 trillion market cap and is ranked among the top ten companies based on global stock market capitalization. The corporation’s unmatched prowess in the world of AI has contributed to a dramatic year-to-date surge that exceeds 200%. Dominating the arena, Nvidia holds an imposing 95% share in the graphics processors market.
Moreover, this stellar journey was fueled early on by robust first-quarter 2024 earnings, but it was an unexpected second-quarter guidance pegged at a bold $11 billion, which turned heads. Additionally, it blew past analyst estimates, delivering revenues of $13.5 billion, a leap of 101% year-over-year. Simultaneously, its earnings per share catapulted by a whopping 854%.
Furthermore, with it expected to deliver another earnings surprise in the third quarter, Nvidia’s future gleams even brighter. With insights from its executive, Manuvir Das, who predicts the sector’s rise to $600 billion, the horizon looks promising indeed.
Amazon (NASDAQ: AMZN) isn’t just a global e-commerce and tech titan. The company’s powerhouse, Amazon Web Services (AWS), is firmly entrenched as a leader in AI-fueled cloud services. Contributing to a whopping 70% of Amazon’s total operating profits, recent sales peaked at $22.1 billion. Amazon’s stock has soared by over 45% YTD, with analysts forecasting a promising median uptick of roughly 40% for the coming year.
The synergy between AWS and Anthropic underscores Amazon’s AI-centric vision. Anthropic, now relying primarily on AWS, aims to sculpt groundbreaking AI software, further bolstering Amazon’s cloud portfolio. This partnership is poised to amplify Amazon’s AI offerings, setting the pace for future advancements. Furthermore, with a robust $4 billion investment into Anthropic, Amazon is smoothly setting the stage. Especially as it gears up to craft an Alexa-integrated rival to ChatGPT, the revenue forecast of $141.5 billion for the next quarter makes its AI-forged trajectory even more compelling.
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.