Top 10 US stocks to buy right now
Growth rates tend to increase during periods of economic growth when interest rates are low. From the end of the global financial crisis until now, the stock has outperformed the stock and the S&P 500 as a whole. Unfortunately, the historic era of low housing prices and rising housing prices is over. With an increase from a 40-year high, the bond market sees an 80% chance that the Federal Reserve will raise the fed funds rate between 5.50% and 6.0% by the end of 2023. Investors ignored rising interest rates in emerging markets and shifting assets. As a result, pre-expansion prices have returned to the world, providing a good buying opportunity for long-term investors. Bank of America has updated its "Growth 10" list of the best stocks. Here's a look at the growth stocks that Bank of America analysts believe have the most to offer.
| Compony | 5-year EPS Estimate |
|---|---|
| Amazon (AMZN) | -278.7% |
| Constellation Energy (CEG) | +21.7% |
| Chipotle Mexican Grill (CMG) | +24.4% |
| Alphabet (GOOG, GOOGL) | +16.3% |
| Eli Lilly (LLY) | +22.9% |
| Match (MTCH) | +22.0% |
| Progressive (PGR) | +28.6% |
| SolarEdge Technologies (SEDG) | +42.0% |
| T-Mobile (TMUS) | +66.6% |
| United Rentals (URI) | +15.6% |
Methodology
Bank of America has been running the Growth 10 list since 1999. The company selects the list based on four criteria:
- Companies included in the list must have a Bank of America vs. Consensus Earnings Surprise Rating of “1,” suggesting near-term earning upside relative to consensus Wall Street estimates.
- They must have a “buy” rating from Bank of America analysts.
- Members must maintain a “1” or “2” BofA vs. Consensus Earnings Surprise Rating for at least 10 months.
- Among the stocks that meet the first three criteria, the 10 stocks with the highest five-year projected earnings growth rate are chosen for the list.
- To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Rates Investing Products.
The stocks highlighted on this list are sourced from industry analysts, but they may not be a perfect fit for your portfolio. Before you decide to purchase any of these stocks, do plenty of research to ensure they are aligned with your financial goals and risk tolerance.
What is growth of stocks ? Growth stocks are public companies that are growing their profits, revenue or cash flow at rates well above their competitors and the market at large. Investors choose growth stocks to earn profits from the rapid price appreciation they promise. Generally growth stocks are smaller, newer companies that are disrupting their industries. They tend to offer unique services and products, and frequently develop novel technologies or intellectual property that puts them ahead of their competitors. By and large, growth companies reinvest their earnings and take on debt to expand rapidly. They are constantly ramping up production, acquiring other businesses and hiring lots of new employees to grow their businesses quickly.
What Is Growth Investing? Growth investing is a strategy that involves identifying stocks to buy based on the long-term expansion potential of their underlying businesses. Growth investors prioritize a company’s future potential over its current business metrics or fundamental market valuation. Growth investing is generally considered a more offensive investment style than value investing. Growth stocks have historically performed better during periods when interest rates are low or falling and corporate earnings are growing. Growth investors are often willing to buy stocks with high price-to-earnings ratios (P/E ratio) or price-to-sales ratios based on the expectation that the companies will eventually grow into and beyond their current valuation. Growth stocks tend to be more volatile than the broader market, and investors often sell growth stocks during periods of uncertainty in the market.
Risks of Growth Investing Since most growth stocks are priced in anticipation of future growth, they tend to trade at higher prices relative to their current business. If inflation is a key factor in the prospect of strong growth in the future, the rate of growth that excites Wall Street could hurt growth and drive investors away. If the growth shows signs of slowing down or slowing down in growth, the investors can continue to abandon the asset at once, causing a significant decline. The rate of growth is very sensitive to rising interest rates. The discounted cash flow model is used by financial managers to estimate future cash flows when interest rates are high. In other words, the lower the discount rate, the higher the future cash flow.
Growth vs. Value Stocks Stocks are public companies that are trusted by investors and investors based on their current business performance. Growth stocks are companies that investors believe will provide better than average returns in the future. Stocks are considered low-cost, low-cost stocks, while growth stocks are high-priced companies with the potential to increase over time. Growth rates may increase based on current market rates but are expected to grow and exceed current rates. The value of the property is estimated at the current market price. Generally, stock prices have better ratios, such as the earnings-earnings (P/E) ratio and the price-to-sales (P/S) ratio. High P/E and P/S are associated with growth stocks. Real estate companies are often good businesses and pay high profits. It does not require high growth costs and does not pay interest.
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