10 Best Growth Stocks To Invest In Now

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In this article, we will be taking a look at the 10 best growth stocks to invest in now. To skip our detailed analysis of current stock market news, you can go directly to see the 5 Best Growth Stocks To Invest In Now.

Growth Outperforms in 2023 and Beyond

Investing in growth stocks is a good way to bolster your portfolio with high-profit names. Traditionally, growth stocks are companies that quickly grow their sales and earnings relative to the market, making them highly attractive to investors. But on the flipside, these stocks typically have incredibly high valuations and P/E ratios, which may discourage some investors looking for less expensive stocks. However, if you're an investor who is willing to commit to a higher valuation in exchange for quick profits and gains, growth stocks may be the best for you.

Last year, growth stocks outperformed the S&P 500 by a large margin. According to a Bloomberg article published this January, the S&P 500 Growth Index actually saw gains of 30% for 2023 compared to the broader benchmark index's 22% gain for the year. This performance came as a shock to many investors, considering the fact that the Federal Reserve was on a rate-hiking journey for most of the year, and traditionally, growth is expected to underperform in periods of rising interest rates. This stellar performance has resulted in growth stocks acquiring somewhat of a reliable appearance, leading to many investors in 2024 continuing to stick with their growth picks over their value counterparts.

For example, UBP's Head of Equity Research for Asia, Kieran Calder, joined Bloomberg on January 3 and stated that US growth stocks are at present a "better bet" for investors, with Calder himself preferring growth over value stocks in 2024. One of the major growth sectors in the market today is the technology sector with its exponential growth in light of the rise of artificial intelligence. According to Calder, for investors today, the following are the places to be in high-growth tech:

"One is the Magnificent Seven, and we think these should probably be core holdings in a portfolio, but we also expect kind of a broadening out into, let's say, software names within tech, which have underperformed over the court of last year. But we'll be able to use and get improved earnings on the back of implementation of AI, for example, and more cloud adoption. So we think that the second tier of cloud and AI names is a good place to start to look for more ideas within US tech."

In keeping with the above, our list of the best growth stocks to buy today also has several major tech names in it, such as Meta Platforms, Inc. (NASDAQ:META), Amazon.com, Inc. (NASDAQ:AMZN), and Microsoft Corporation (NASDAQ:MSFT). For growth investors looking to identify key investment areas within tech, it would be necessary to first identify the main themes within the tech sector in terms of what will drive the sector's growth the most in 2024 and beyond. According to BlackRock Active Equity Group's Ben Bei, there are three major themes in this sector: AI, cloud computing, and electric and autonomous vehicles. These areas offer the most interesting investment opportunities for investors today and are thus worth taking a look at.