3 Growth Stocks to Buy Now: May 2024


  • Despite high government debt, proactive fiscal management and bipartisan efforts can guide the U.S. economy toward sustainable growth and stability.
  • Synopsys (SNPS): Its superb financials and collaboration with Samsung make it a top-notch software stock.
  • Crowdstrike Holdings (CRWD): Outstanding financials and upgrades in SIEM Solution fuel this software stock’s momentous growth.
  • Alphabet (GOOG): This tech growth stock’s solid business model, growing revenue and vital innovation make it a great buy.
growth stock - 3 Growth Stocks to Buy Now: May 2024

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Despite concerns surrounding rising government debt, there are optimistic indicators for the future of the U.S. economy. Federal Reserve Chair Jerome Powell emphasized the importance of addressing structural deficits promptly, indicating a proactive approach to fiscal responsibility. While the debt-to-GDP ratio is at a historic high, the U.S. has historically thrived in relative prosperity, suggesting resilience amid challenges. Additionally, bipartisan acknowledgment of the issue indicates a potential for concerted efforts to manage fiscal imbalances. The U.S. economy can navigate the current budgetary landscape toward sustainable growth and stability.

With this confidence in economic performance, you will be scoring deals. But you need to make the right choice regarding which companies offer the best deals for profitability. Here, I uncover your top three options, from well-known blue chips to growth titans. You will find the best companies below.

Synopsys (SNPS)

Person holding mobile phone with logo of American technology company Synopsys Inc. (SNPS) on screen in front of web page. Focus on phone display. Unmodified photo.
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Synopsys (NASDAQ:SNPS) is an electronic design automation company specializing in silicon intellectual properties, software security design and quality. It is valued around $572, up 40% year over year.  

SNPS’s revenue is $6.1 billion, up 18.5% from last year and 463% more than the sector median of 3.29%. Trailing gross profit margin was 81%, 65% more than the sector median of 48.79%. Trailing EBIT margin was 23%, 419% more than the sector median of 4.43%. These metrics portray Synopsys’s short- and long-term growth prospects and immense profitability. 

SNPS is in the electronic design automation industry, valued at $17.72 billion as of 2024 and projected to reach $26.59 billion in 2029, representing a CAGR of 8.46%. Key prospects for this growth include digitalization and technological advancements in the field. 

As of May 2, Synopsys and Samsung Electronics have successfully collaborated to craft a high-performance mobile central processing unit (CPU). This marks a long-term partnership and gives SNPS credibility while aiding in a breakthrough. SNPS should win similar deals in the future as it has proved its capability and credibility. Therefore I give it a “Buy” rating. This stock is already performing exceptionally well and its price will only increase with further deals.

Alphabet (GOOG, GOOGL)

GOOG stock: letters spelling out google
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Alphabet (NASDAQ:GOOG, GOOGL) offers a range of services under its brand name, including software-as-a-service (SaaS) products like Search, AdSense, YouTube, Cloud, and Workspace. Additionally, the company is expanding into artificial intelligence (AI) and quantum computing.

GOOG consistently exceeds earnings estimates, demonstrating rising profitability and revenue, making it a reliable investment. Year-over-year (YOY) revenue has grown by 15.40%, while YoY earnings have grown by 57.20%. Analysts predict an average growth potential of around 4.06%. A profit margin of 25.90%, an operating margin of 32.52%, and a return on equity of 29.76% show management’s efficiency. Additionally, Yahoo Finance! is giving GOOG stock a rating of “buy,” which is consistent with other stock recommendation services.

The technology sector has a projected compounded annual growth rate (CAGR) of 7.75%, reaching $11.47 trillion in 2026. Rapid industry-wide growth coupled with excellent financials put GOOG in a great position. Recently, it posted a cash flow growth of 16.7% YoY. GOOG has also announced plans for post-quantum cryptography and has started to encrypt data using quantum-safe algorithms. This shows Google’s innovative stance.

Rapid growth in the technology sector, where GOOG is innovating, suggests revenue will continue to climb. Excellent financials also provide decent padding for the company, allowing it to invest more in research and development, leading to more significant future growth.

Crowdstrike Holdings (CRWD)

A sign with the Crowdstrike (CRWD) company logo
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Crowdstrike Holdings (NASDAQ:CRWD) is a cyber security technology company that provides threat intelligence, cyber attack response and many other services. It is valued at $320.76, a 139.73% increase year over year.

CRWD’s revenue was $3.1 billion as of January 2024, a revenue growth YoY of 36.33%, 1,009.49% more than the sector median of 3.27%. Trailing gross profit margin was 75.27%, 53.22% more than the sector median of 49.12%. EPS Diluted Growth YoY was 47.12%, incrementally more significant than the sector average of 6.59% and, when compared, 614.67% larger. These financials portray CRWD’s short- and long-term success and speedy momentum, showing this stock’s profitability. 

The global cyber security market was valued at $182.84 billion as of 2024 and is projected to reach $314.28 billion in 2029, representing a CAGR of 11.44%. Key prospects for this immense growth involve digitalization and the increase and evolution of hacking techniques. 

Crowdstrike has announced an upgrade on its Falcon Next-Generation SIEM Solution with features including improvements in speed, data visualization and monitoring performance. This innovation makes Crowdstrike’s suite of products superior to other SIEM solutions. As a result, sales and customers should rise. CRWD is a software stock with a massive upside, prompting me to give it a “Buy” rating with complete confidence that its stock price will appreciate soon.

On the date of publication, Michael Que 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.

The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.

Article printed from InvestorPlace Media, https://investorplace.com/2024/05/3-growth-stocks-to-buy-now-may-2024/.

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