A market crash occurs when the price of a broad index of equities drops suddenly and dramatically. Although the term is open to interpretation, many investors believe we have already crossed that line. The Nasdaq, typically favoring growth, has been down 28% from its peak, while the S&P 500 is down 17%.
One common strategy among investors is to seek firms with steady profit development. Such growth stocks are frequently traded with value at a premium. They do, however, have the potential to deliver substantial long-term profits to shareholders.
Keep in mind that stocks are not like lottery tickets. When you buy a stock, you purchase a piece of a company. And if the company’s sales and earnings are increasing, the stock will rise at some point. Growth stocks are definitely something you’d want to think about purchasing soon and holding on to while the market tries to recover. I’ve recommended some of these stocks before, but I’m revisiting them for this list in the interest of good timing (which is an essential factor in investing.)
With that said, I’ve narrowed it down to three growth stocks that are considered by economists – especially during this volatile market – to be excellent additions to our portfolios:
Advanced Micro Devices Inc (AMD)
Advanced Micro Devices, Inc (AMD) is a well-regarded global semiconductor firm that produces computer processors and related tech for both corporate and consumer markets. Chipsets for desktop and laptop CPUs, integrated graphics processing units (GPUs), data center and professional GPUs, and development services are among AMD‘s products and services. AMD also provides embedded CPUs, as well as development services and game console technologies. W. J. Sanders III created AMD on May 1st, 1969, based in Santa Clara, California.
AMD has easily beaten Wall Street’s earnings forecasts for four consecutive quarters. It most recently beat EPS estimates by 22.02% and revenue expectations by 5.62%. AMD also shows healthy year-over-year numbers, with revenue growth of 70.89% and diluted EPS growth of 24.44%. AMD’s current quarter offers an EPS of $1.01 per share, with sales of $6.4 billion. AMD upped its sales guidance, expecting a 60% increase from last year. Shares are presently trading at 20 times 2022 profit forecasts, which is low for such a fast-growing company. Analysts offering 12-month price forecasts for AMD have a median target of 140.00, with a high of 200.00 and a low of 80.00. The estimate shows a 61.57% increase from its previous price, and AMD’s buy rating makes this stock worth a strong look.
Enphase Energy Inc (ENPH)
Enphase Energy (ENPH) is a cutting-edge energy technology firm based in the U.S. ENPH creates software-driven home energy solutions that include solar power, home energy storage, and web-based monitoring and control. ENPH specializes in the sale of microinverter systems for the solar energy industry. Microinverters essentially take power absorbed by solar panels and translate it into useable energy for a home or business. ENPH’s products include the IQ 7 Microinverter Series, IQ Battery, IQ Envoy, and related accessories. ENPH was founded by Raghuveer R. Belur and Martin Fornage in March of 2006 and is headquartered in Fremont, California.
ENPH has had mixed results regarding earnings but recently managed to beat revenue projections by 1.76% and has bested estimates on revenue for the previous three fiscal quarters. ENPH shows optimistic year-over-year stats, with revenue growth of 46.24%, EPS growth of 68.18%, and profit margin growth of 11.81%. ENPH’s current quarter shows $504.1 million in sales, at 84 cents per share. Over five years, ENPH‘s income has increased by roughly 46%. ENPH is also predicted to continue its momentum and boost earnings at a 39% pace annually. The consensus price target for ENPH from analysts that provide 12-month predictions is 224.00, with a high of 307.00 and a low of 165.00. The estimate is up 58.79% from its most recent price, and ENPH’s buy rating is solid.
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Amazon.com Inc (AMZN)
Amazon.com, Inc (AMZN) is an e-commerce, digital streaming, cloud computing, and A.I.-focused American multinational technology firm. It has been described as “one of the most influential economic and cultural forces in the world” and is considered one of the most valuable brands worldwide. AMZN has established itself as a global leader in its field, and the stock’s value is anticipated to expand at double-digit rates in the foreseeable future. AMZN has a well-earned competitive edge and can make for an excellent long-term investment. With AMZN being a global leader in e-commerce and cloud computing, both areas will likely expand by double-digits sooner than later.
Rising prices have hampered AMZN’s financial performance in recent quarters. Regardless, AMZN has continued to grow steadily over the previous three years. Although its earnings history has been mixed in the last few quarters, AMZN impressively exceeded analysts’ EPS projections by 657.58% in Q4 of 2021. AMZN’s current quarter shows $120.4 billion in sales, at $3.67 per share. AMZN’s stock has returned more than 30% each year over the previous ten years, and growth is only expected to continue. AMZN has a consensus price target of 3,700.00, with a high of 4,250.00 and a low of 2,250.00 among analysts that provide 12-month price estimates. The forecast implies an increase of 73.46% from current pricing, and – also a consensus among analysts – AMZN comes with a dependable buy rating.
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