Investing in growth stocks when the market is falling can be scary at times. Sometimes you can buy the dip, and the dip keeps dipping. 

This remains one of the most sound ways for investors to snap up shares at cheaper prices. Cheap can all be relative depending on the financial metrics you’re evaluating. Therefore, selecting the right companies with strong business models, cash flows, and significant short and long-term growth prospects is important. 

The intelligent investor understands that evaluating traditional price-to-earnings metrics is outdated and not enough to outperform the market. Some companies seem cheap for a reason, while others that appear more expensive can offer better value. With a market correction underway, buying the dip can put investors on the path to building sustainable long-term wealth. 

Now, let’s unpack the top three growth stocks intelligent investors will be buying in August!

Godaddy (GDDY)

Godaddy (NYSE:GDDY), a leading domain registration and web hosting company, is a growth stock that you should not take your eyes off in 2024. After becoming one of the newest additions to the S&P 500 this year, the company’s streak of record profitable growth continues.

Godaddy is a remarkable business that is now reaping the fruits of its labor. What started as a success for its domain and web hosting services has since grown into a comprehensive platform for small and medium-sized enterprises (SMEs). Its new business offerings and investments in e-commerce and artificial intelligence are paying off. Godaddy offers website builders, various digital marketing tools, and an AI-powered platform with robust design capabilities.

As a result, these diverse offerings have bolstered the company’s revenue, earnings and cash flow potential. In the second quarter, revenue increased 7% from year over year to $1.12 billion, with net earnings up 76% to $146.3 million. With free cash flow swelling by 35%, Godaddy’s increased operational efficiency reflects its commitment to driving long-term shareholder value. 

Hewlett Packard Enterprise (HPE)

Hewlett Packard Enterprise (NYSE:HPE), a global technology company, is currently at the forefront of the cloud computing and artificial intelligence revolution. With much of the tech market valuations still high, HPE stock is extremely attractive at current levels. 

Hewlett-Packard has been thriving after the company’s strategic shift towards hybrid IT models, edge computing, and as-a-service business offerings. The company’s modern GreenLake cloud platform allows businesses to scale their IT infrastructure across various clouds. This includes areas such as storage, computing, and networking, delivering on its hybrid experience.

Moreover, the company has been investing heavily in artificial intelligence, offering services such as HPE supercomputing to accelerate AI workloads. In the 2023 fiscal year, revenue increased 2% year over year to $29.13 billion. Additionally, net earnings swelled 133% year over year to $2.02 billion, or $1.54 per share. Despite a mixed first quarter in 2024, the company drove near-record year-over-year growth in recurring revenue. Trading at just 9x forward earnings, HPE stock remains one of the best growth stocks to bet on the AI revolution. 

Emcor Group (EME)

Emcor Group (NYSE:EME) is an American diversified electrical and construction company. It primarily provides mechanical and electrical construction, energy infrastructure, and building services for its customers. 

Emcor Group is a business that deserves all the love and attention in 2024. After reporting record revenue, earnings, and free cash flow in 2023, its growth continues to accelerate. Its expertise in energy-efficient and sustainable building solutions has made it the preferred partner for complex projects from solar farms to data centers. Additionally, its robust backlog growth has been a key business driver as demand for specialty contract services remains high.

In the second quarter, the company maintained its momentum with a record quarterly revenue of $3.67 billion. Net earnings skyrocketed 76% year over year to $248 million, or $5.25 per share. The company’s record remaining performance obligations are near record highs of $9 billion. This helps instill confidence in the business as pipeline opportunities continue to drive profitable growth. With revised full-year revenue and earnings guidance significantly higher than previous forecasts, the future remains extremely bright.

On the date of publication, Terel Miles 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.

On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.