Growth stocks are those that grow faster than the average rate of 4% in the S&P 500. These stocks represent companies that show significant growth potential compared to others in the market.
Investing in growth stocks can be risky, as seen in recent years when rising interest rates and reduced debt availability affected the attractiveness of these stocks. However, with anticipated rate cuts in 2024, growth stocks are becoming attractive again.
Three growth stocks that are considered relatively safe options include Microsoft (MSFT), Intuitive Surgical (ISRG), and Alphabet (GOOG).
Microsoft is a top choice for investors seeking growth stocks due to its impressive revenue growth of 17% in the most recent quarter. The company’s position in the market and strong performance make it a safe investment option.
Intuitive Surgical is another solid stock choice, offering stability in the healthcare sector and consistent growth in revenues and earnings. The company is well-positioned for growth as the demand for procedures increases, both domestically and globally.
Alphabet has shown a resurgence in recent times, particularly in search revenues and cloud growth. The company’s strategic focus on core products like search and AI has led to tangible results, making it a strong growth stock to consider for your investment portfolio.
Overall, these three growth stocks offer a balance of growth potential and safety for investors looking to build their portfolios for the future.