If I’m looking to outperform the market over time, I’m usually going to buy growth stocks. While value stocks have a place in any portfolio, growth stocks are the ones that keep the returns rolling in.
Usually, companies represented by growth stocks are innovative and quickly adapt to changing times. By being involved in some of the most creative industries, such as biotechnology, technology and green energy, growth stocks help you capitalize on emerging trends and technologies.
I also like growth stocks because of their long-term potential. There’s nothing better than finding a creative company at the beginning of its growth story, buying shares and building your position over time, and reaping the rewards when the company takes off.
I’m using the Portfolio Grader to identify the best growth stocks to buy. The Portfolio Grader gives an overall score of “A” through “F,” but I’ll also be pointing out the specific growth score for each of these stocks.
There are never guarantees in the stock market. But if you’re looking for strong growth contenders, the Portfolio Grader has these names at the top.
FingerMotion (NASDAQ:FNGR) is a Chinese mobile services and data company. It offers customers telecommunication services and mobile recharge data subscription plans, with plans to reach 1 billion users in China.
The company’s stock is rising fast this year – up 137%. It took a big jump in September when it announced in a filing with the U.S. Securities and Exchange Commission that it would raise $300 million by selling common shares, warrants and subscription receipts.
A short report published by Capybara Research on Oct. 3 took some wind out of its sails. Still, FingerMotion announced it hired legal representation to protect shareholders from “potential market participants utilizing unlawful means.”
Earnings for the fiscal fourth quarter 2024 (ending Aug. 31, 2023) were $9.28 million in revenue, up 86% from a year ago.
FNGR stock has a “B” rating in the Portfolio Grader but an “A” growth grade.
Super Micro Computer (SMCI)
Super Micro Computer (NASDAQ:SMCI) is a California-based tech company that develops and manufactures computer server and storage solutions. It also sells motherboards, power supplies and networking equipment.
It has plans to become a total IT solutions provider offering servers, AI-powered products, storage, software and services, as well as products that work with the Internet of Things.
The company is one of the hottest on Wall Street with growing interest in artificial intelligence. SMCI stock is up more than 210% this year.
The company has more than 1,000 customers for its high-end servers, with most of those being small- and medium-sized businesses. Revenue jumped by 37% in fiscal 2023, after a 46% increase in 2022.
The company projects for revenue in 2024 to rise between 33% and 47% as SuperMicro’s growth story continues. The company has an “A” rating in the Portfolio Grader.
Rigetti Computing (RGTI)
Rigetti Computing (NASDAQ:RGTI) builds quantum computers and quantum processors to make them run. The company also operates a cloud services platform that allows its computers to integrate into public, private or hybrid clouds.
Quantum computing uses computer science, physics and mathematics that use quantum mechanics to solve equations faster than traditional computers.
Quantum computing performs computations differently than conventional computers, allowing it to solve problems that are out of the reach of powerful supercomputers.
Its full-stack development approach, which includes chip design, manufacturing and cloud delivery, is designed to provide low risk in building high-performing quantum computers.
In the second quarter, Rigetti sold its first quantum processing unit to an unnamed national lab and signed a collaboration agreement with Adia Lab to design and build a quantum computing product.
We’re still a long way from day-to-day use of quantum computers. But if you think computing is ready to advance, then Rigetti could be a solid investment.
RGTI stock is up 72% this year but trades at less than $2 per share. IT gets a “B” rating in the Portfolio Grader but an “A” grade for growth.
A2Z Smart Technologies (AZ)
A2Z Smart Technologies (NASDAQ:AZ) is a Canadian technology company helping automate the retail space.
A2Z provides retail automation solutions for grocery stores and supermarkets in the smart shopping cart industry.
Smart shopping is a disruptive idea that could revolutionize the grocery industry. It involves cameras and other technology on shopping carts to provide a video display of what’s going in and coming out of the basket.
It keeps a running tally of items and can charge the customer accordingly, eliminating the sometimes lengthy wait at checkout lines that make customers unhappy.
The company last month announced partnerships with Hex 1011 to provide 20,000 smart carts in Asia and with IR2S to provide 30,000 smart carts in France. In the U.S., it launched its Cust2Mate USA business in August and hired a leadership team to address what it sees as growing demand.
Revenue in the second quarter was $2.86 million, up 100% from a year ago. AZ stock is volatile but up 19% this year. It gets an “A” rating for growth and a “B” overall in the Portfolio Grader.
Evoke Pharma (EVOK)
Evoke Pharma (NASDAQ:EVOK) is a penny stock, but it may not be for long. The company is perhaps best known for its Gimoti nasal spray, which is Medicaid-approved to treat symptoms of acute and recurrent diabetic gastroparesis.
Evoke also has drug product exclusivity for Gimoti for the next three years, giving it a window to capitalize on the profits.
Earnings for the second quarter, announced on August 10, included revenue of $1.1 million, an increase from $461,000 in Q2 2022. Sales were also up 40% from the first quarter of 2023.
EVOK stock has a “B” rating in the Portfolio Grader but an “A” score for growth.
Kandi Technologies Group (KNDI)
Kandi Technologies Group (NASDAQ:KNDI) is a Chinese electric vehicle and battery manufacturer that also has some business going in the U.S. It makes and sells electric golf carts, and it makes the Cowboy e10K heavy-duty vehicle, the Offroad K32 truck and the Lucky T9 all-terrain vehicle.
Its U.S. subsidiary, Kandi America, announced the purchase of a new distribution center in Dallas to support its growing position in the all-electric sports vehicle space.
Meanwhile, in China, the company started mass production of its next-generation EV crossover electric golf carts, the 1124 and 1124A, in the third quarter. It also makes entry-level EVs, sells EV parts and provides an automated battery swap system for its vehicles.
The company sees a significant runway in China, which is expected to see 25% annual growth through 2030 in the EV market and 82% yearly growth in the battery swap space through 2026.
KNDI stock is up 46% in 2023. It has a “B” overall grade in the Portfolio Grader and an “A” rating for growth.
Blue Bird (BLBD)
The company manufactures school buses and has more than 20,000 currently in operation. It’s also transitioning to clean-energy vehicles with its next-generation electric buses. Its Vision model has a battery capacity that’s 25% than buses used today, with a range of 130 miles and only a three-hour recharge rate.
Earnings in Q3 were $294.3 million, up 43% from a year ago. The company also turned a profit with a net income of $9.4 million, a vast improvement after recording a net loss of $6.4 million a year ago.
BLBD stock is up 72% this year. It gets an “A” rating for growth and a “B” overall rating in the Portfolio Grader.
On the date of publication, Louis Navellier had a long position in SCMI. He did not hold (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.