3 Growth Stocks You’ll Kick Yourself for Not Buying Today
Growth stocks epitomize the attraction of equity investing due to their strong potential and ability to generate substantial returns. When referring to these stocks, those companies with leadership and business models are poised to capture significant market share within industries and are expected to expand rapidly. During their early high-growth phases, figures like Jeff Bezos, Elon Musk, and Bill Gates accrued much of their wealth from ownership in iconic growth stocks like Amazon (NASDAQ:AMZN), Tesla (NASDAQ:TSLA), and Microsoft (NASDAQ:MSFT).
Given the myriad available options, identifying specific growth stocks to buy with the potential to appreciate exponentially can be quite challenging. While the upside can be huge, significant downside risks also exist. Therefore, traders must exercise diligence to separate opportunities from potential losses.
Traits like large and growing target markets, dominant market share, and capable leadership in can help uncover growth stocks you’ll kick yourself for not buying today. Three growth stocks to buy with a high probability of delivering returns are:
Netflix (NFLX)
Netflix (NASDAQ:NFLX) represents one of the top growth stocks to buy thanks to strong subscriber growth. The streaming giant recently reported subscriber numbers that significantly surpassed estimates, with earnings blowing past forecasts. While the stock price dipped slightly after the company announced plans to stop reporting subscriber counts as it focuses on profitability, this could present a valuable “buy the dip” opportunity.
Netflix shares are up 27% already this year despite the recent pullback. Even without explicit subscriber reporting, investors can still gauge growth through metrics like Netflix’s steadily increasing share of TV viewing. It recently topped 8.1%, indicating the vast market potential ahead as Netflix works toward surpassing cable.
Currently, down over 20% from recent highs, NFLX has technically entered a correction phase, and its price-to-earnings (P/E) ratio came down to 38x forward earnings estimates. Solid leadership positioned to maximize opportunities and continued strong growth makes Netflix stand out as a top growth stock to avoid disappointment.
Intuit (INTU)
While an accounting company may not initially seem like one of the top growth stocks to buy, Intuit (NASDAQ:INTU) could change that. The company owns TurboTax, a brand that has been front of mind for many Americans focused on taxes recently. Despite operating in the seemingly stable tax preparation industry, Intuit has consistently delivered double-digit revenue growth. As taxes remain inevitable, demand for TurboTax and Intuit’s other products and services stays strong.
After Intuit reported a 20% jump in earnings last quarter, management anticipates continued top and bottom line growth in the low double digits – in line with its proven track record of steady expansion and shareholder returns. Over the past five years, Intuit has achieved an average earnings per share (EPS) growth rate of 13%.
Analyst consensus also points to further upside, with a price target 10% above current levels. Based on the company’s history of exceeding estimates, Intuit’s consistent growth makes it one of the top growth stocks to buy for investors seeking high-quality, growth-oriented opportunities.
Vertex Pharmaceuticals (VRTX)
Vertex Pharmaceuticals (NASDAQ:VRTX) is the third of growth stocks to buy worthy of consideration. The company has already grown substantially from the success of its cystic fibrosis drug Trikafta, which now captures nearly 90% of the U.S. market. However, the company is not resting on its accomplishments and is reinvesting its consistent profits into expansion opportunities that can further growth potential.
Vertex is currently pursuing partnerships with Moderna (NASDAQ:MRNA) and CRISPR Therapeutics (NASDAQ:CRSP), as well as the acquisition of Alpine Immune Sciences (NASDAQ:ALPN) to diversify its pipeline in kidney disease treatments. Additionally, the FDA recently approved Vertex’s new drug application for Suzetrigine, a non-opioid treatment for acute pain. With a diversifying pipeline and reinvestment of revenues, Vertex displays qualities, making it one of the growth stocks to buy before tomorrow becomes too late.
After beating EPS estimates for 25 consecutive quarters and improving shareholder equity year in and year out while reducing debt, its earnings report on May 6 could be the catalyst for further growth.
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