These have been amazing growers — and still have plenty of room to run.
Here comes a new year…and with it, perhaps, a few new stocks for our portfolios. Below, I’m offering a few growth-stock ideas for your consideration.
1. Nvidia
Nvidia (NVDA +0.04%) is already in my portfolio, and despite the fact that it has averaged annual gains of 145% over the past three years, the semiconductor company doesn’t look wildly overvalued. That’s because it’s growing so briskly.
Image source: Getty Images.
In its second quarter, revenue soared 56% year over year, thanks to great demand for data centers to accommodate artificial intelligence (AI) technologies. Nvidia recently became the first stock to reach a $5 trillion valuation.
Today’s Change
(0.04%) $0.07
Current Price
$188.15
Key Data Points
Market Cap
$4572B
Day’s Range
$178.91 – $188.32
52wk Range
$86.62 – $212.19
Volume
265M
Avg Vol
181M
Gross Margin
69.85%
Dividend Yield
0.00%
2. Netflix
Netflix (NFLX +0.60%) has also grown briskly, averaging annual gains of 26% over the past decade. It’s grown so much that management has announced a 10-for-1 stock split. (Yes, it will be nice to own 10 times as many shares, but they’ll be valued at roughly a tenth of their former price, so the value of an investor’s holdings won’t change.)
Third-quarter revenue jumped 17% year over year, and its share of TV time in the U.S. has been growing in the past few years. Netflix’s shares seem a little overvalued, with a recent price-to-sales ratio of 10.9 well above the five-year average of 6.6, and a forward-looking price-to-earnings (P/E) ratio of 34 about even with average. So proceed thoughtfully, perhaps buying gradually over time.
Today’s Change
(0.60%) $6.64
Current Price
$1103.66
Key Data Points
Market Cap
$468B
Day’s Range
$1087.50 – $1108.22
52wk Range
$795.57 – $1341.15
Volume
4.4M
Avg Vol
3.5M
Gross Margin
48.02%
Dividend Yield
N/A
3. Vanguard Information Technology ETF
An easy way to quickly invest in about 300-plus growth stocks is via the Vanguard Information Technology ETF (VGT 0.14%). This exchange-traded fund has averaged annual gains of 20% over the past 15 years, and its top holding is Nvidia.
Vanguard Information Technology ETF
Today’s Change
(-0.14%) $-1.03
Current Price
$761.37
Key Data Points
Market Cap
$0B
Day’s Range
$742.60 – $761.37
52wk Range
$451.00 – $806.99
Volume
723K
Avg Vol
0
Gross Margin
0.00%
Dividend Yield
N/A
Remember that many growth stocks (and ETFs) can fall sharply whenever the market pulls back. So expect some volatility if you’re looking for growth stocks. If that makes you nervous, perhaps consider an ETF such as the Invesco S&P 500 Equal Weight ETF (RSP +0.84%) — an S&P 500 index fund, holding each of its 500-some components in roughly equal proportion.