Growth stocks give you the most potential for returns. However, forecasts are unreliable due to current market conditions, and experts can’t agree on what will happen in a year. In these circumstances, investors must be especially prudent when choosing the most aggressive growth stocks to buy for their portfolio.
Inflation exceeding the Federal Reserve’s target of two percent amid growing recession fears has seen value stocks outperform growth stocks in the past year. However, one should not give up on growth stocks and their potential.
The recent dip in their prices might provide a long-term buying opportunity rather than an omen of further weakness if the right growth stocks are identified and bought. Investment selection is key to ensuring that these growth stocks turn out to be successful investments for any investor.
Microsoft Corp. (MSFT)
Microsoft (NASDAQ:MSFT) is an impressive growth stock worth considering for any investor’s portfolio.
The world’s largest software company is well-known for its iconic Windows and Office products, but more recently, it has become a leader in the cloud services sector with Azure.
Despite a market capitalization of nearly $2 trillion, Microsoft is still producing remarkable growth numbers despite its size. In addition to growth in cloud technology, it also has investments in gaming and social media, giving it ever-increasing opportunities to generate growth. An investment in Microsoft is sure to be lucrative over the long term as one of the top most aggressive growth stocks to buy.
In 2022, the PC market has been bittersweet. Sales appear to be on a steady decline due to the growing allure of smartphones and tablets.
After experiencing multiple years consecutively with no dip in stock prices, weary investors have finally seen their worst fears come true in this short-lived dive. Microsoft and other tech stocks have experienced rough patches throughout the year. And experts believe a rebound should occur shortly as the industry progresses in new directions.
Microsoft has been one of the most aggressive growth stocks to buy, as evidenced by its 11% growth in revenue for the fiscal first quarter and especially its growth in Intelligent Cloud revenue.
This is a testament to Microsoft’s successful transition to a cloud-based business model, which makes up over two-thirds of the company’s overall earnings. Thus, it is no surprise that Microsoft stock prices have been soaring, signaling investors are bullish on this software behemoth.
The e-commerce and cloud services giant Amazon (NASDAQ:AMZN) has had one of the best growth stock performances.
Since its initial public offering in 1997, the company’s market value has expanded exponentially. Amazon’s growth is because of innovative products and services such as Amazon Prime, Kindle devices and digital streaming content; it is now more than just an online store.
Furthermore, Amazon continues to acquire a greater share in new markets such as groceries and publishing, while expanded delivery options have improved customer experience offerings. This makes it attractive to growth investors looking to buy stocks with long-term growth potential.
Amazon has faced recent disappointment in the stock market. But growth investors may have found a silver lining. Despite slowing growth in the third quarter and double-digit dips in share prices, Amazon’s investments in high-margin businesses such as cloud services and advertising have opened new avenues of growth potential. This means it is one of the best, most aggressive growth stocks to buy.
Visa (NYSE:V) is an attractive growth stock for those looking to add reliable industrial stocks to their portfolios.
Its diverse product portfolio and worldwide presence mean the company can generate growth, even during turbulent economic times. As a global leader in credit cards and electronic payments, Visa has achieved worldwide market access and converted them into steady growth for over 50 years.
This makes it one of the most reliable aggressive growth stocks to buy in today’s competitive landscape.
As investors reacted to the market selloffs, Visa shares were hit hard even though their earnings suggested otherwise. Despite earning $16 billion on an adjusted basis over the past year, shares took a significant dive in price. To be sure, some pullback was expected as Visa had enjoyed a strong run-up in the markets over the past 12 months. Nonetheless, investors overshot when selling off Visa shares. And investors may find value in buying into those depressed prices and riding any potential rebound.
For growth investors looking to beat the market, Visa is an attractive stock to buy. With 18.7% revenue growth over its most recent quarter, the growth potential of this investment seems very strong. Investors can also be reassured that Visa generates healthy returns on capital.
It has plenty of room for growth in adjacent verticals such as analytics, security, and cryptocurrency. Its approach to innovation and cutting-edge technology make it a leader in the payment process category. It is a quality that can help growth investors achieve long-term success.
On the publication date, Faizan Farooque 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.