Economists around the world are expecting U.S. economic growth to slow in 2023 and 2024, and many are calling for at least a mild U.S. recession. It may become increasingly difficult for investors to find reliable growth stocks to buy. Nevertheless, growth stocks have outperformed value stocks so far in 2023, and investors are anticipating that trend will continue if the Federal Reserve pauses its interest rate hikes and eventually pivots to rate cuts.
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Here are 10 of CFRA Research analysts’ top growth stocks that have reported at least 15% annual revenue growth in the past three years:
| Stock | Implied upside from June 9 close |
| Microsoft Corp. (ticker: MSFT) | 13.2% |
| Alphabet Inc. (GOOGL) | 10.4% |
| Amazon.com Inc. (AMZN) | 27.2% |
| Nvidia Corp. (NVDA) | 7.0% |
| Meta Platforms Inc. (META) | 1.2% |
| Tesla Inc. (TSLA) | 2.3% |
| Chevron Corp. (CVX) | 8.3% |
| Pfizer Inc. (PFE) | 23.2% |
| Salesforce Inc. (CRM) | 18.9% |
| Adobe Inc. (ADBE) | -9.3% |
Microsoft Corp. (MSFT)
Microsoft is the world’s largest software company, and it is best known for products like Windows, Office and Azure cloud services. Even at a $2.4 trillion market capitalization, Microsoft is still putting up some solid growth numbers. In the fiscal third quarter, Microsoft’s revenue was up 7% overall, including 16% growth in Intelligent Cloud revenue. Analyst Angelo Zino says Microsoft’s transition to a cloud-based model
has been a tremendous success. Zino projects 11% revenue growth in fiscal 2024 and 12% growth in 2025 driven by Office 356 Commercial momentum. CFRA has a “strong buy” rating and $370 price target for MSFT stock, which closed at $326.79 on June 9.
Alphabet Inc. (GOOGL)
Alphabet is one of the world’s largest online search and advertising companies and is the parent company of Google and YouTube. In the first quarter, Alphabet reported 3% revenue growth, which included 28% Google Cloud revenue growth. Zino says Alphabet is positioned to sustain between 6% and 11% annual revenue growth, has tremendous free cash flow potential and is attractively valued. He projects revenue growth will accelerate from 5.9% in 2023 to 10% in 2024 as the global advertising industry continues its shift from offline to online ads. CFRA has a “buy” rating and $135 price target for GOOGL stock, which closed at $122.23 on June 9.
Amazon.com Inc. (AMZN)
E-commerce and cloud services giant Amazon has been one of the best-performing growth stocks of all time
. Unfortunately, Amazon shares are essentially flat over the past three years as revenue growth slowed to 9.3% in the first quarter. Analyst Arun Sundaram says Amazon’s top-line growth may be disappointing, but the company is positioned for a multiyear turnaround in margins and profits. He projects operating profits will grow 85% and revenue will grow 8.5% in 2023. E-commerce fulfillment opportunities and digital advertising will remain growth catalysts. CFRA has a “buy” rating and $157 price target for AMZN stock, which closed at $123.43 on June 9.
Nvidia Corp. (NVDA)
High-end semiconductor maker Nvidia has been one of the most spectacular growth stories in the entire stock market in the past 15 years. Unfortunately, Nvidia’s sales growth has dried up in recent quarters thanks to a cyclical downturn in the semiconductor market, but analysts anticipate a growth rebound in coming quarters. In the most recent quarter, Nvidia’s net income grew 26.2%, but its revenue declined 13.2%. Zino says Nvidia’s data center business is gaining momentum, and he projects 59% revenue growth in fiscal 2024. CFRA has a “buy” rating and $415 price target for NVDA stock, which closed at $387.70 on June 9.
Meta Platforms Inc. (META)
Meta Platforms is a market leader in social media and online advertising and is the owner of Facebook, Instagram and other platforms. After three straight quarters of negative year-over-year revenue growth, Meta’s growth rebounded to positive 3% in the first quarter of 2023. Zino says artificial intelligence, Reels and metaverse investments are long-term growth opportunities, and he projects revenue growth will continue to accelerate from 5.5% in 2023 to 10% in 2024 and 11% in 2025. He says Meta is regaining market share in a difficult advertising market. CFRA has a “buy” rating and $268 price target for META stock, which closed at $264.95 on June 9.
[READ: 6 of the Best AI ETFs to Buy for 2023]
Tesla Inc. (TSLA)
Tesla is the leading U.S. electric vehicle manufacturer. The company’s revenue growth slowed to 24.3% in the first quarter, and net income dropped 24.2% compared to a year ago. Automotive segment revenue was up 18%. Analyst Garrett Nelson says Tesla’s new factories in Texas and Germany have the company positioned for its next phase of growth in 2023 and beyond. Nelson expects deliveries of the Cybertruck to begin in mid-2023. He projects 28% revenue growth in 2023 and 30% growth in 2024. CFRA has a “strong buy” rating and $250 price target for TSLA stock, which closed at $244.40 on June 9.
Chevron Corp. (CVX)
Chevron is a global oil major that operates exploration and production, refining, marketing, and petrochemical businesses. Oil majors aren’t traditionally considered high-growth stocks, but unique and favorable energy market conditions in recent years have made oil stocks some of the highest-growth companies in the market. Chevron reported a 5% drop in revenue in the first quarter following a 52.1% jump in revenue last year. Analyst Stewart Glickman projects 2023 revenue will decline from 2022 levels but will remain up 45% from pre-pandemic levels in 2019. CFRA has a “buy” rating and $172 price target for CVX stock, which closed at $158.86 on June 9.
Pfizer Inc. (PFE)
Pfizer is one of the largest global pharmaceutical companies. In the past two years, Pfizer has generated plenty of sales from its COVID-19 vaccine and booster shots. However, including dividends, the stock is down 22.4% year to date through June 9 as COVID concerns have died down. Pfizer’s revenue dropped 28.7% in the first quarter, but the company guided for between 7% and 9% revenue growth this year, excluding COVID product sales. Analyst Sel Hardy says product launches will drive revenue growth acceleration in the second half of 2023. CFRA has a “buy” rating and $48 price target for PFE stock, which closed at $38.97 on June 9.
Salesforce Inc. (CRM)
Salesforce is the world’s largest provider of cloud-based customer relationship management, or CRM, software. Salesforce reported 11% revenue growth and 610% net income growth in the first quarter. Analyst Angelo Zino says Salesforce shares have an attractive valuation, and the company has opportunities to improve profitability and gain market share. He says Salesforce has by far the most comprehensive CRM product portfolio available. Zino projects revenue growth of between 9% and 11% through at least fiscal 2026 as cloud migration continues, creating upselling and cross-selling opportunities. CFRA has a “strong buy” rating and $256 price target for CRM stock, which closed at $215.31 on June 9.
Adobe Inc. (ADBE)
Adobe produces creative content software and other applications used for marketing and e-commerce. Adobe reported record sales and 9% revenue growth in the first quarter, including 9% growth in its digital media segment and 11% growth in its digital experience segment. Analyst John Freeman says global growth in creative professionals, as well as cross-selling and up-selling opportunities and monetization of unauthorized users will help Adobe grow content creation app sales by at least 13% annually. Freeman projects three-year compound annual revenue growth of 15% for Adobe. CFRA has a “buy” rating and $412 price target for ADBE stock, which closed at $454 on June 9.
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10 Best Growth Stocks to Buy for 2023 originally appeared on usnews.com
Update 06/12/23: This story was previously published at an earlier date and has been updated with new information.
