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Best Growth Stocks to Buy Now for February 2022

The best growth stocks in this environment have low debt levels and great business models, which means they can survive rocky times. In other words, they’re the highest quality, “best in breed” names. You see this combination a lot in large-cap stocks, which have been supporting markets for a long time, but smaller stocks can check the boxes too.

See, I believe the process is more important than the stocks. The best outlier stocks (regardless of market cap) have 3 traits: strong fundamentals, great technicals, and a history of Big Money activity in the shares.

Outlier stocks see a lot of Big Money buying. Oftentimes, that can be institutional activity. At MAPsignals, we believe Big Money trading can alert you to the forward fundamental picture of a stock. And we want the odds on our side when looking for the highest quality stocks.

Focusing on quality is paramount when markets are under pressure. Using the MAPsignals database, we’ve filtered for various quality metrics to identify five ideas for potential long-term investment. Three of the names are large caps that can handle storms, while the other two are smaller, riskier stocks with big upsides: GOOGL, ADBE, MSFT, GNRC, & INMD.

Up first is Alphabet, Inc. (GOOGL), Google’s parent company.

Even though great stocks can be volatile, like GOOGL this year, these companies are worthy of attention, especially after blowout earnings and stock split announcements. Check out GOOGL:

  • 3-month performance (-9.7%)

  • Historical Big Money signals

Just to show you what our Big Money signal looks like, have a look at the top buy signals GOOGL has made the past few years in the chart below. Blue bars are showing it was likely being bought by a Big Money player according to MAPsignals.

When you see a lot of them, I call it the stairway to heaven:

Source: www.MAPsignals.com

But, what about fundamentals? As you can see, GOOGL’s sales and earnings have been strong, and its debt-to-equity ratio is low:

  • 1-year sales growth rate (+41.2%)

  • 3-year earnings growth rate (+39.9%)

  • Debt/equity (+11.3%)

Next up is Adobe Inc. (ADBE), the design software giant.

Check out these technicals for ADBE:

  • 1-month performance (-9.0%)

  • Historical Big Money signals

Let’s look long-term. These are the top buy signals Adobe has made since 2016. The Big Money love is obvious:

Source: www.MAPsignals.com

Now let’s dive deeper. As you can see, Adobe has had rock-solid growth and low debt:

  • 3-year sales growth rate (+20.8%)

  • 3-year earnings growth rate (+29.2%)

  • Debt/equity (+31.6%)

The third growth stock idea is Microsoft Corporation (MSFT), the technology giant.

Strong candidates for growth usually have Big Money buying the shares. Microsoft has that. Also, the stock has fallen recently:

  • 3-month performance (-12.4%)

  • Historical Big Money signals

Below are the Big Money signals Microsoft has made since 2010. That’s the JUICE!

Source: www.MAPsignals.com

Now let’s look under the hood. Microsoft’s sales and earnings growth is impressive. And given its strong cloud business, software foothold, and gaming prospects, I expect more growth in the coming years:

  • 3-year sales growth rate (+15.1%)

  • 3-year earnings growth rate (+63.7%)

  • Debt/equity (+57.9%)

Number four on the list is a high-quality smaller company with a lot of promise, Generac Holdings Inc. (GNRC), which makes residential generators and other power generation equipment.

Here are the technicals important to me:

  • 1-month performance (-10.1%)

  • Historical Big Money signals

Below are the Big Money signals for GNRC since 2013:

Source: www.MAPsignals.com

Let’s examine a bit more. Generac has been growing nicely and has manageable debt:

  • 1-year sales growth rate (+12.7%)

  • 3-year earnings growth rate (+30.0%)

  • Debt/equity (+68.3%)

Our last growth candidate is an under-the-radar small cap, InMode Ltd. (INMD), which designs, makes, and sells minimally invasive and non-invasive medical products.

Check out these technicals:

  • 3-month performance (-49.7%)

  • Historical Big Money signals

InMode has lost nearly half its value recently, but believe me, it’s still a high-quality stock. It’s made the MAPsignals Top 20 report many times since it began trading in 2019:

Source: www.MAPsignals.com

Now look under the hood. InMode has been growing sales and earnings at HUGE clips for years, and its debt is almost non-existent:

  • 3-year sales growth rate (+58.4%)

  • 3-year earnings growth rate (+119.7%)

  • Debt/equity (+0.5%)

The Bottom Line

GOOGL, ADBE, MSFT, GNRC, & INMD represent top growth stocks to buy now for February 2022. Strong fundamentals and historical Big Money buy signals make these stocks worthy of extra attention for long-term investors.

To learn more about MAPsignals’ Big Money process please visit: www.mapsignals.com

Disclosure: the author holds long positions in GOOGL, MSFT, and INMD in personal and managed accounts.

Investment Research Disclaimer

https://mapsignals.com/contact/

This article was originally posted on FX Empire

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