3 Powerhouse Growth Stocks to Load Up On During This Bull Market Cycle

For investors seeking growth, these stocks could be excellent long-term picks

By Chris MacDonald, InvestorPlace Contributor Jul 31, 2024, 6:15 am EDT
  • These powerhouse growth stocks appear to be set up nicely for strong returns over the long-term. 
  • Taiwan Semiconductor (TSM): Its 3-nanometer technology is crucial for advancing AI, and could be a high-volume product for years.
  • Constellation Software (CNSWF): Continues to excel by acquiring, developing and managing diverse software firms across various sectors.
  • AbbVie (ABBV): Is seeing strong growth in alternative medicines, despite diminishing sales from its core patented drug portfolio. 
growth stocks - 3 Powerhouse Growth Stocks to Load Up On During This Bull Market Cycle

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Growth stocks, known for rapid expansion and solid market positions, have outperformed for years. Despite not being market leaders yet, they possess the potential to dominate. For long-term investors seeking high upside potential, these growth stocks are compelling choices. Although riskier than big names, their strong fundamentals and competitive edge can drive significant gains. 

Despite numerous S&P 500 companies reporting losses, top performers tend to outperform this index and others. However, performance alone will not accurately predict future success. Investors should be careful and meticulous when looking into a company’s financial standing while considering risks. 

Here are three powerhouse growth stocks to consider, each showing impressive recent growth.

Taiwan Semiconductor (TSM)

TSMC Taiwan Semiconductor Manufacturing Company (TSM) logo displayed on mobile phone screen
Source: Piotr Swat / Shutterstock.com

Taiwan Semiconductor (NYSE:TSM) accounts for 4.3% of KraneShares AI and Tech ETF (AGIX) assets. Dominating over 50% of the foundry market, TSMC produces advanced chips for Apple, Qualcomm, and Nvidia. Despite a depressed valuation due to geopolitical concerns, analysts like Bank of America’s Brad Lin, who set a $180 price target, see TSMC as crucial for AI growth.

The company saw Q2 2024 revenue rise by 13.6% in NT dollars and 10.3% in USD. Advanced technologies (7-nanometer and below) contributed 67% of wafer revenue. High-performance computing boosted revenue by 28%, with 3-nanometer tech alone accounting for 15%. IoT and automotive segments grew annually by 6% and 5%. This diverse revenue base highlights TSMC’s strength in high-growth tech sectors, reducing risk and enhancing its market position.

TSMC expects strong Q3 2024 demand for smartphones and AI. Q2 saw 67% of revenue from advanced technologies. TSMC raised 2024 revenue growth outlook to above mid-20s percentage and increased capex plans to $30-$32 billion.

Constellation Software (CNSWF)

software stocks: Coding software developer work with augmented reality dashboard computer icons of scrum agile development and code fork and versioning with responsive cybersecurity
Source: Shutterstock

Canada-based tech company Constellation Software (OTCMKTS:CNSWF) has been focusing more on acquiring and managing software firms. Founded in 1995 by Mark Leonard, has consolidated vertical market software businesses, creating six platforms serving over 100 markets with more than 800 companies. This strategy acquires not only software assets and IP but also valuable human capital.

CNSWF is listed on the Toronto Stock Exchange, and it has seen over 22,000% surge since its IPO. The company emphasizes profitability and stability, which generates free cash flow and increasing EPS. Despite risks, Constellation Software sees impressive growth.

Jefferies has a buy rating for CNSWF with a $5,000 CAD price target. Constellation, serving 153 verticals, is expected to see high-teens to low-twenties revenue growth through significant VMS acquisitions and low single-digit organic growth. The company’s outlook underscores confidence in its pricing strategy and acquisition plans leading to financial growth. 

AbbVie (ABBV)

Closeup of AbbVie (ABBV) building corporate office, an American biopharmaceutical company with its headquarters in Lake Bluff, Illinois, USA
Source: Valeriya Zankovych / Shutterstock.com

Topping Yahoo Finance’s trending tickers on July 25, AbbVie (NYSE:ABBV) surged after announcing1 an optimistic Q2 earnings report. Revenue reached $14.463 billion, beating estimates.  CEO Robert Michael highlighted the strong performance and optimistic long-term outlook due to ex-Humira growth and continued investments.

The company is also confident and raised its 2024 outlook. EPS is forecasted $10.91, it surpasses Wall Street’s estimate of $9.93. The stock rose 5.2% Thursday.

Additionally, ABBV also hit its all-time high after its earnings report. Despite an 8.9% drop in adjusted EPS to $2.65, Rinvoq and Skyrizi sales surged, offsetting a 29.8% decline in Humira sales due to biosimilar competition. CEO Robert Michael stated that AbbVie’s strong growth outside Humira supports its long-term outlook.

On the date of publication, Chris MacDonald did not hold (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.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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