The Ultimate Growth Portfolio: 3 Stocks to Buy and Hold for the Next Decade
Growth stocks tend to outperform industry peers in earnings or revenue growth, often holding higher valuations based on metrics like price-earnings, price-sales and price-free cash flow ratios. For these companies, maintaining strong momentum is crucial for their valuations to hold up over time. Accordingly, building a portfolio of the ultimate growth stocks usually means finding companies with some sort of durable advantage early, and sticking with these names for a long time.
Importantly, with the Federal Reserve signaling a halt to interest rate hikes and growing investor optimism, investing in growth stocks appears to be a wise move. A recent statement from New York Fed Governor John Williams suggests an end to further rate increases. Thus, it should be no surprise the S&P 500 nearing its record high indicates increased investor confidence. The Fed’s estimate of the economy growing at a robust rate supports the outlook for strong economic growth.
Let’s dive into three top growth stocks with substantial upside potential and positive Wall Street ratings.
Zoom Communications (ZM)
Zoom Video Communications (NASDAQ:ZM) evolved from a pandemic necessity to a communication staple. Pre-2020, its advanced web conferencing platform gained traction, but the pandemic accelerated its growth.
Zoom, like many tech firms, utilized generative AI to enhance user experiences. Last year, it introduced a range of features, integrating its AI assistant across sub-platforms, transforming into a one-stop-shop for remote workers’ needs and reducing friction for users.
Zoom is unlikely to regain its previous stay-at-home popularity due to the permanence of hybrid work. Its revenue growth has normalized, but with $6.5 billion in cash and strong enterprise relationships, it remains recognizable and trades reasonably at 14-times forward earnings. Q3 results showed a 3.2% year-over-year revenue increase to $1.14 billion, with 7.5% growth in the enterprise segment.
Matterport (MTTR)
Matterport (NASDAQ:MTTR), the leading spatial data company, reported robust Q3 2023 financials with a 6.97% year-over-year revenue increase to $40.6 million. The subscription model achieved a record high of $22.9 million, marking a 20% year-over-year growth.
In Q3 2023, MTTR launched a next-gen AI-powered real estate program in beta, automating room measurements and layouts through millions of 3D data points, eliminating manual efforts. The company also announced new collaborations and partnerships, making MTTR a compelling investment in the virtual reality stocks landscape.
In recent Matterport news, The Ivy Collection, a prominent U.K. restaurant brand, chose the company’s 3D Property Marketing solution to virtually showcase its private dining spaces, simplifying event planning and enhancing customer satisfaction. The exclusive venues across London, the UK, and Ireland offer customizable experiences for intimate gatherings or grand events. Such news makes MTTR a good stock to buy and hold for many years to come.
Celsius Holdings (CELH)
Celsius Holdings (NASDAQ:CELH) has achieved remarkable growth in its core U.S. market, and has already piqued the interest of many long-term growth investors. However, the company’s recent move into the Canadian market has continued this company’s international growth trajectory, providing yet another catalyst for investors to focus on. Moving forward, Celsius is targeting other key markets such as the U.K., Germany, and Australia.
In the competitive beverage market, Celsius stands out. With the beverage industry projected to hit $294.5 billion in 2024 and grow at a 4-year CAGR of 11.09%, Celsius has plenty of room for growth on the horizon. Indeed, the company’s recent Q3 2023 showed just how strong the company’s growth profile is. Revenues reached $384.7 million, growing 104.4% year-over-year, while its net income and earnings per share surged approximately 140%.
Beating industry projections by 91.85% for earnings per share growth and 9.45% growth in the company’s top line, Celsius’s strong performance and collaboration with PepsiCo (NASDAQ:PEP) signal future profitability and brand expansion, making it an attractive Russell 2000 stock.
The company’s rapid growth and global expansion plans position CELH as a potential, money-maker stock.
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