Investors who want to beat the market must consider growth stocks. You have to be aggressive to capture higher returns. That’s precisely what shares of growth firms do: By definition, their returns exceed those of average stock returns from the market.
The markets are volatile right now. The S&P 500 index has fallen since early August. However, caution is for the weak. There are plenty of signs that late 2023 will see a sharp reversal of conditions over the last few months. Rate cuts are taking longer than initially expected, but an end is near. Growth stocks will jump up before the first rate cut is enacted sometime in 2024. That’s why those positioned in growth stocks by late 2023 will win the biggest.
Stocks Gearing Up for a Breakout Soon: Cipher Mining (CIFR)
Cipher Mining (NASDAQ:CIFR) operates a Bitcoin (BTC-USD) mining ecosystem. Bitcoin spot ETFs are nearing reality. In turn, demand for BTC is rising, and prices have again jumped into the mid-$30k range. That’s good news for Bitcoin, which had leveled off at around $30k from March through mid-October. And it’s particularly good news for Cipher Mining, which has been pulling more BTC from the digital dirt.
In August, the firm deployed 68,000 mining rigs and mined 357 BTC. September was better, with 70,000 rigs mining 416 BTC during the month.
It’s probably a good idea to pick up CIFR shares before it releases earnings on Nov. 8. The company is looking stronger and stronger as Bitcoin becomes less risky due to ETFs. BTC prices are up again, and so too is the quantity of BTC Cipher Mining captured. Things seem to be coming together in a positive way for the firm right now. Crypto isn’t the only alternative to fiat money that investors are highly interested in at the moment.
Newmont (NEM)
Investors also like gold, which is why Newmont (NYSE:NEM) stock has great potential in late 2023. Fear and concern over the strength of the U.S. dollar serve to make gold and cryptocurrency more attractive. Newmont is one of the best-known gold miners, and it has plenty of upside for investors. Gold prices are up by 5.6% over the last month and 19.5% this year.
Newmont also produced more gold than any other mining firm in 2022. That’s one reason that investors should expect Newmont to do well. It is simply the biggest. It recently became even bigger.
Newmont agreed to purchase Newcrest months ago, in May. Newcrest is an Australian gold and copper miner. Shareholders overwhelmingly approved the acquisition just weeks ago. The $17.5 billion acquisition is the largest ever deal in the space. Newmont is in a position to benefit greatly from the tumult rippling through the economy. Gold prices are strong, and Newmont’s increased ability to pull even greater quantities of gold and copper out of the ground makes it a clear buy with growth ahead.
CrowdStrike (CRWD)
CrowdStrike (NASDAQ:CRWD) has been growing at more than 40% for each of the last several years. Cybersecurity is a growing concern, and CrowdStrike has emerged as one of the leading names to invest in. The firm has long struggled to find profitability, but that is changing.
CrowdStrike has posted positive net income figures in both H1 and Q2. That wasn’t true during the same periods in 2022.
It also leverages machine learning to better prevent cyber attacks from occurring in the first place. CRWD shares have already grown rapidly in 2023. AI is here. Machine learning is, too. Enterprise-level opportunities await CrowStrike as it continues to grow. Annual recurring revenue was up by 37% in the second quarter. That’s a strong indication that CrowdStrike is capitalizing on those enterprise opportunities right now.
The firm has reached profitability, shown the market that firms will buy its services based on ARR figures, and still has upside priced in.
Chevron (CVX)
I think Chevron (NYSE:CVX) is sitting in a very powerful position right now. It’s a position that isn’t going to change for quite some time.
Chevron is large and just got larger following its acquisition of Hess. Some analysts didn’t like the purchase and penalized Chevron after the announcement. Those analysts hoped that Chevron would have instead purchased assets in the Permian basin. Hess is primarily centralized in the Bakken region of North Dakota.
Chevron is signaling that American energy is back. That’s what really matters here. Chevron also has an advantage geopolitically because it was one of the first oil companies to operate in Israel. It has advantages due to its power in the area. Prices may rise due to the conflict, which benefits CVX shares overall. CVX shares should rise as short-term energy catalysts reemerge. It isn’t only the Israel-Palestine conflict that I’m talking about. EV sales are weak, and oil is again returning to power. That said, I believe it is one of the stocks poised for a breakout in the coming months
Adobe (ADBE)
Adobe (NASDAQ:ADBE) is my favorite AI stock that doesn’t get much attention. Everyone knows Adobe for its creative software. It’s directly at the center of generative AI with Firefly. It’s just that illustration and graphics haven’t received as much attention as other AI applications. Even within generative AI, you can argue that text-generation applications have garnered much more attention. Everyone knows ChatGPT. Far fewer talk about applications like Firefly.
That said, Firefly holds tremendous potential. Actually, that potential is already being realized. More than 2 billion text-to-image graphics have been created this year.
That demand helped Adobe to beat its most recent quarterly targets by $0.11, reaching $4.09. Adobe continues to integrate its Firefly AI into standards like Illustrator and Photoshop. It’s very far to state that Adobe is leading a quiet revolution in the creative side of business. It may not be as salient as AI chips that drive everything, but Adobe is truly a force in the AI space. It is one of my favorite stocks as a breakout candidate.
Pfizer (PFE)
Investing in Pfizer (NYSE:PFE) stock is like buying the safety of a stock with a beta of 0.57 and the growth potential of a tech firm.
That growth is currently not occurring, though. Pfizer is experiencing a post-Covid hangover that has thrashed its sales. Paxlovid is responsible, but instead of lamenting what it was, appreciate what Paxlovid did for Pfizer. Its sales have set Pfizer up to remain well-funded as it launches 20 new treatments over the next year. The company has shown again and again that it has what it takes to develop those treatments and commercialize them.
It also purchased Seagen (NASDAQ:SGEN) partially for its antibody-drug conjugate technology. That technology has been described as guided missile drugs that more accurately target cancer while simultaneously sparing surrounding tissue. Pharma firms are intently focused on that technology because it produces lower revenues that are less likely to draw Medicare’s scrutiny as drug pricing faces greater pressure. Thus, I believe it is one of the top stocks poised for a breakout in the coming months.
Nvidia (NVDA)
Nvidia’s (NASDAQ:NVDA) market capitalization is headed downward toward $1 trillion as I write this. AI chip export regulations in China, ongoing valuation concerns, and aggressive sales targets are all contributing factors.
The truth is, no one knows with any certainty where Nvidia is headed price-wise. Analysts have given prices ranging between $535 to $1,100. The positive news there is that Nvidia trades for $410 currently. Further, demand remains strong even in the face of Chinese restrictions. The real test will come as Nvidia searches for ways to replace data center revenue in China elsewhere. For those confident that Nvidia is up to the task, now is the time to pull the trigger and buy-in.
The U.S. restrictions are the most recent volley in a geopolitical saga. They’re meant to restrict China’s military access to chips first and foremost. Nvidia must have made preparations for such an event in its strategy. It’s time for the firm to show that it can make them work.
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.
