The Growth Guardians: 3 Stocks to Shield Your Portfolio from Volatility


  • These are a few companies that will set investors up for great returns.
  • Toyota Motor (TM): Rising profits let the Japanese automaker recently increase its earnings outlook for the coming year.
  • Netflix (NFLX): The streaming giant is still seeing subscriber growth whereas others are in decline.
  • Salesforce (CRM): The customer relations management leader is benefiting from the generative AI buzz.
Growth Stocks - The Growth Guardians: 3 Stocks to Shield Your Portfolio from Volatility

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Growth companies are a vital addition to any investment portfolio as they tend to experience above-average returns compared to the general stock market. The category of growth stocks is very appealing to investors because it provides the possibility of increased profits.

Investors should also be aware that certain growth stocks may be drastically overvalued due to the overblown interest of traders trying to raise the share price before it returns to earth. Others, like those mentioned below, have experienced significant share price appreciation but also have a solid financial foundation. Their strong balance sheet is the backbone of the company and helps to shield investors from the inevitable volatility that comes with investing.

Here are some exciting options for investors wanting greater exposure to companies with significant upside potential and protection from the changing market.

Toyota Motor (TM)

Toyota motor corporation logo on dealership building
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Toyota Motor (NYSE:TM) is an automobile manufacturer that produces a wide range of vehicles, such as trucks, sedans, SUVs, vans and luxury cars. 

The Japanese carmaker reported earnings for the third quarter of fiscal year 2023, which stated that a profit doubled, with reported revenue growing by 23% year-over-year. It also slightly raised its sales forecast for fiscal year 2023. Its share price surged by nearly 8% following the earnings released because it beat analyst expectations.

TM stock offers investors a dividend yield of approximately 1.9% on an annual basis, with a dividend amount of $2.00 per share distributed semi-annually. Following the large growth that Toyota is experiencing, there may be plans to raise it in the near term.

On a global level, Toyota is one of the largest vehicle manufacturing companies. Over this last year, its share price has risen by 75%, far exceeding that of its competitors. 

Netflix (NFLX)

Netflix (NFLX) app open on a phone screen
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Netflix (NASDAQ:NFLX) is one of the largest streaming companies offering a wide range of content, including movies, TV shows and documentaries. 

The streaming service reported earnings for the fourth quarter of 2023 on Jan. 23, stating that total revenue and subscriber growth increased by 13% year-over-year. The growth in subscribers was in line with what Netflix experienced during the pandemic; this can be attributed to Netflix’s initiative to stop password sharing, which was a massive success for the company. 

Netflix is a streaming giant. Its share price over this past year has risen by 88%. The customer base for Netflix is much greater than that of other streaming competitors such as Amazon (NASDAQ:AMZN) and Apple (NYSE:AAPL), giving them a massive advantage within the streaming landscape. Netflix also has robust fundamentals and an impressive entertainment lineup for 2024, making it a great choice for investors seeking strong upside potential.

Salesforce (CRM)

The entrance sign of Salesforce Tower, at the American cloud-based software company Salesforce's (CRM stock) Headquarters campus in San Francisco, California.
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Salesforce (NYSE:CRM) is a customer relationship company that focuses on providing data analytics and forecasting to businesses in many different industries.

The generative artificial intelligence (AI) boom that has captured investors’ attention has benefited Salesforce cloud computing business. It recently released a new round of AI products, such as the Einstein Copilot, an AI assistant model, ahead of its earnings report today.

Its share price has been on an upward trend ever since the beginning of 2022, and in that time has more than doubled. On Nov. 29, Salesforce released third-quarter earnings, which beat Wall Street’s estimates. Total revenue saw an increase of 11%, mainly fueled by subscriber growth. Net income surged by nearly sixfold year-over-year.

Investors are paying close attention to Salesforce to see if their new AI tools help add to its profit growth trend. Salesforce is a great growth pick primarily due to its large market share, especially in the generative AI space.

As of this writing, Noah Bolton held a LONG position in TM. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Noah has about a year of freelance writing experience. He’s worked with Investopedia dealing with topics such as the stock market and financial news.

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