InvestorPlace discusses the potential of growth stocks to outperform the stock market. These stocks typically show high revenue and earnings growth over multiple years, making them appealing to investors with long-term horizons. Despite being more volatile than average investments, holding onto promising growth stocks for 5-10 years can lead to significant returns and boost your portfolio.
One such top growth stock is Visa (V), a leading fintech firm specializing in credit and debit cards. The company has seen solid returns for investors, with shares up by 5% year-to-date and 60% over the past five years. Visa trades at a 33.5 P/E ratio and offers a 0.76% yield. The company’s high net profit margins and consistent revenue and net income growth make it an attractive investment.
Microsoft (MSFT) is another growth stock worth considering, offering exposure to various industries like gaming, social media, artificial intelligence, and cloud computing. The company’s Microsoft Cloud segment is a significant growth driver, with revenue increasing by 23% year-over-year in Q3 FY24. Microsoft has shown strong performance, with shares up 12% year-to-date and more than tripled over the past five years. The company trades at a 36 P/E ratio and offers a 0.72% yield.
Amazon (AMZN) is a well-diversified growth stock with a leading cloud computing platform in Amazon Web Services. The company reported $143.3 billion in revenue in Q1 2024, with Amazon Web Services achieving 17% year-over-year revenue growth. Amazon’s online marketplace remains a key revenue driver, and the stock has seen an 18% year-to-date gain and a 96% gain over the past five years. Amazon currently trades at a 49.5 P/E ratio.
Overall, growth stocks like Visa, Microsoft, and Amazon have the potential to supercharge your portfolio with their strong performance and growth prospects. Wall Street is bullish on these stocks, with potential upside from current levels. It’s important to note that the opinions expressed in this article are those of the writer and subject to InvestorPlace.com’s Publishing Guidelines.