The 7 Best Growth Stocks to Buy Now: November Edition
In the thrill of bull markets, investors often race to buy the best growth stocks. Conversely, bear markets cast a shadow of hesitation, with investors wary of diving into the downtrend. However, embracing a contrarian view might pave a golden path for long-term future gains. Amid looming economic clouds, the best growth stocks stand as beacons of resilience.
Paul Tudor Jones spotlights the hurdles stock analysts encounter, from geopolitical wrangling to the country’s fiscal nuances, yet faced with adversity, growth stocks exhibit robust potential. History shows they don’t just weather storms; they often thrive amidst them, making them savvy long-term picks for those with an eye on the horizon.
Nvidia (NVDA)
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Nvidia (NASDAQ:NVDA), with its leadership position in the production of GPU chips, has witnessed its stock price rise by an astounding 187% year-to-date. The insatiable appetite for AI and its heavy computational needs have primarily fueled the developments over the past year.
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Even as geopolitical tides sway, with the U.S. clamping down on AI chip exports to China, Nvidia remains relentless, claiming a massive 90% market share in China’s AI chip market. Beyond AI, Nvidia is pushing the envelope in generative tech and joining forces with Arm Holdings, venturing into the CPU design realm.
With an adjusted EPS of $2.70, Nvidia effortlessly eclipsed the $2.08 expectations in its most recent quarter. The company’s revenue took a giant leap, clocking in at a rapid 101% year-over-year growth to $13.5 billion, sailing past the projected $11.2 billion.
Those figures are complemented by a 71.2% adjusted gross margin, surpassing the 70.1% forecast. As for the future, best growth stocks is that Nvidia is forecasting revenue of roughly $16 billion for the upcoming quarter, with the company poised to outperform expectations yet again. The icing on the cake is Jensen Huang, announcing a whopping $25 billion stock buyback plan.
Microsoft (MSFT)
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Microsoft (NASDAQ:MSFT) remains at the forefront of the AI revolution, weaving ChatGPT into its suite of products and services, including Bing to Azure Cloud Services. Despite the financial hiccup of operating Copilot at a monthly deficit of $80 per user, Microsoft’s long game is clear. With plans to roll out its own AI accelerator chip, it’s on a mission to reduce dependencies on third-party suppliers and improve its cost-efficiency.
In its first quarter results, the company showed a 27% spike in net income courtesy of prudent spending cuts. It generated $56.5 billion in revenue, up 13% year over year, especially when Azure pitches in with a 29% revenue boost.
Looking ahead, the company is expected to post a healthy 15% revenue growth in the upcoming quarter, placing it between $60.4 billion and $61.4 billion. Their $13 billion punt on OpenAI is beginning to pay dividends, with substantial returns expected by 2024 as more AI-centric products hit the market.
Uber Technologies (UBER)
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What makes Uber Technologies (NYSE:UBER) one of the best growth stocks to buy is that it has redefined both transportation and delivery.
Its second quarter earnings echoed this evolution, showcasing a robust 14% revenue hike year-over-year. Contrasting the somber $2.6 billion net loss generated in the second quarter, 2023 heralded a net income of $394 million, with the mobility segment turbocharging this turnaround, resulting in a superb 25% growth.
Uber Eats, its food delivery dynamo, isn’t trailing either, with a 12% increase in gross delivery bookings, amounting to a meaty $15.6 billion. Layer that up with a 14% leap in delivery sales and a staggering 232% uptick in adjusted EBITDA profit; Uber remains on a roll.
Amidst economic headwinds, the Uber One program, with its tentacles in diverse delivery domains and growing membership base, solidifies the company’s status as a promising growth titan.
Meta Platforms (META)
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Meta Platforms (NASDAQ:META), formerly known as Facebook, has become synonymous with pioneering advancements in the tech space. Its recent third quarter results echo this sentiment with a resounding revenue bump of 23%, amounting to $34.15 billion.
Layer that up with an awe-inspiring 164% jump in income to $11.5 billion, underpinning Meta’s market dominance. Notably, the daily active users swelled to 2.09 billion in September, up 5% year-over-year.
While its sales growth has soared, it’s prudent to note the corresponding increase in costs and expenses. Meta is pocketing hefty profits while dishing out a bit more, allowing its shareholders to pocket robust gains and making it one of the best growth stocks to buy for its dividend.
Additionally, its horizon appears even more promising, with plans of integrating AI chatbots into flagship platforms, including Facebook and Instagram, painting a picture of futuristic, interactive social spaces. For investors with an eye on long-term growth, META stock stands as a beacon of long-term potential.
NextEra Energy, Inc. (NEE)
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NextEra Energy, Inc. (NYSE:NEE) remains a stalwart in the energy sector with a significant footprint in Florida, playing a critical role in the generation, distribution, and sale of electricity.
In its recent third quarter announcement, the company unveiled a GAAP net income of $1.219 billion, or 60 cents per share, a slide from the previous year’s $1.696 billion, or 86 cents per share.
Moreover, in cementing its reputation as a shareholder-friendly entity, NextEra Energy declared a quarterly dividend of 46 cents per share, set for disbursement on Dec. 15, with a forward dividend yield of 3.21%.
In strategic moves to streamline its focus, NextEra’s subsidiary, Florida Power & Light Company, has entered an agreement to hand over Florida City Gas (FCG) to Chesapeake Utilities Corporation for a solid $923 million in cash. This move underscores the company’s intent to bolster its core assets and fortify its financial positioning.
Sociedad Quimica y Minera de Chile (SQM)
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Sociedad Quimica y Minera de Chile (NYSE:SQM) is a heavyweight in the lithium sphere that’s currently facing the brunt of missed revenue and earnings forecasts. However, as we dive deeper, it reveals a company that’s effectively positioned in the lithium realm.
Boasting the title of the world’s second-largest lithium producer, SQM’s operations extend across Chile and Argentina, with the Salar de Atacama mine under its umbrella, which is renowned for its vastness and rich deposits,
A closer look at SQM’s metrics showcases its mettle. The lithium sector, where the company claims north of a 20% market share, has witnessed an astronomical rise in its contribution to SQM’s revenue, a jump from 25.5% to a staggering 76.6% within just two years.
This escalation is predominantly due to lithium’s powerful price trajectory. However, growth rates have normalized of late, but with multiple long-term growth catalysts in motion, SQM stock presents a promising prospect for discerning investors.
Li Auto (LI)
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Li Auto (NASDAQ:LI) is a true trailblazer in the Chinese EV space, which continues to speed past its competition with aplomb. Part of its allure is its cars, which boast extended ranges, delivering on the promise of going the extra mile.
This rising star is likely to reveal its third quarter figures, with early indicators hinting at brilliance. With a year-on-year delivery growth of a whopping 296.3%, reaching 105,108, it’s no stretch to predict a LI stock rally.
The upcoming launch of the LI MEGA has industry watchers abuzz, a positive signal for the firm’s future growth. Li Auto’s aggressive expansion of its retail footprint in China adds another feather to its cap.
In terms of financials, the company posted a robust $10.17 billion in cash and equivalents at the end of the second quarter, giving Li Auto the muscle to further its product innovation and retail sprawl.
With new models on the horizon and the buzzworthy Li MEGA set to make its grand entry in December, the EV behemoth is gearing up to set China’s roads ablaze.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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