Economists around the world are expecting muted U.S. economic growth in coming quarters, and some are still calling for a mild recession. It may become difficult for investors to find reliable growth stocks to buy if interest rates remain at 23-year highs for much longer. Nevertheless, growth stocks have outperformed value stocks since the beginning of 2023, and investors anticipate that trend will continue when the Federal Reserve pivots to rate cuts.
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Here are 10 of CFRA analysts’ top growth stocks that have reported at least 15% annual earnings-per-share growth in the past three years:
| Stock | Implied upside* |
| Apple Inc. (ticker: AAPL) | 15.8% |
| Nvidia Corp. (NVDA) | 12.3% |
| Alphabet Inc. (GOOG, GOOGL) | 32.9% |
| Broadcom Inc. (AVGO) | 13.9% |
| JPMorgan Chase & Co. (JPM) | 6.2% |
| Visa Inc. (V) | 15.7% |
| Mastercard Inc. (MA) | 19.4% |
| Netflix Inc. (NFLX) | 5.2% |
| T-Mobile US Inc. (TMUS) | 6.9% |
| Wells Fargo & Co. (WFC) | 21.5% |
*As of Aug. 22 close, based on CFRA 12-month price targets.
Apple Inc. (AAPL)
Apple produces the iPhone, iPad, Apple Watch, Mac computers and other personal computing devices. In addition, its services segment includes its App Store, Apple Music, iCloud and licensing businesses. Analyst Angelo Zino says Apple’s improving margin profile, interconnected ecosystem of products and services, artificial intelligence opportunities, and expanding addressable market make the stock an attractive long-term investment. He’s bullish on Apple’s stable free cash flow generation and its aggressive capital return program. Zino projects 8% revenue growth in fiscal 2025 and 7% growth in fiscal 2026. CFRA has a “buy” rating and $260 price target for AAPL stock, which closed at $224.53 on Aug. 22.
Nvidia Corp. (NVDA)
High-end chip designer Nvidia has been one of the most spectacular growth stories in the entire stock market in the past 15 years. Nvidia’s growth numbers have wowed Wall Street, especially for a company of Nvidia’s size. Nvidia’s revenue grew 262% year over year in the fiscal first quarter, while its net income skyrocketed by 628%. Zino says Nvidia’s expanding total addressable market and opportunities in software and AI devices create plenty of future growth opportunities. He projects 98% revenue growth in fiscal 2025 and 23% growth in 2026. CFRA has a “buy” rating and $139 price target for NVDA stock, which closed at $123.74 on Aug. 22.
Alphabet is one of the world’s largest online search and advertising companies and is the parent company of Google and YouTube. In the second quarter, Alphabet reported 13.6% revenue growth, which included 28.8% Google Cloud revenue growth. Zino projects Alphabet can maintain at least 10% revenue growth through 2025. He says that growth will be driven by AI innovation across Google’s ads ecosystem. In addition, he projects annual cloud services revenue growth of at least 25% through 2025 as more capacity for AI workloads comes online. CFRA has a “buy” rating and $220 price target for GOOG stock, which closed at $165.49 on Aug. 22.
Broadcom Inc. (AVGO)
Broadcom is a diversified global analog semiconductor supplier. Zino says Broadcom will be a major beneficiary from the AI infrastructure investment boom. He projects the company’s networking, switcher and application-specific integrated circuit businesses will generate a combined $11 billion in revenue in fiscal 2024. Zino says VMware integration is ahead of schedule. The addition of recurring software revenue is boosting margins and free cash flow, as well as improving financial visibility. Zino projects 43% revenue growth for Broadcom in fiscal 2024 and 14% growth in fiscal 2025. CFRA has a “buy” rating and $185 price target for AVGO stock, which closed at $162.34 on Aug. 22.
JPMorgan Chase & Co. (JPM)
JPMorgan Chase is one of the world’s largest banks and financial services companies with roughly $3.8 trillion in assets. In 2023, JPMorgan acquired First Republic Bank after it failed during a regional banking crisis and was seized by the Federal Deposit Insurance Corp., or FDIC. JPMorgan has reported consistent double-digit revenue growth in recent quarters. Analyst Kenneth Leon says JPMorgan is growing its wallet share in several different core areas. Leon projects 19% revenue growth in 2024 and 1.1% growth in 2025. CFRA has a “buy” rating and $230 price target for JPM stock, which closed at $216.63 on Aug. 22.
Visa Inc. (V)
Visa is a global credit card leader and owner of the world’s largest electronic payment network. Analyst Alexander Yokum says Visa is one of the most innovative financial sector companies. Yokum says Visa has a massive addressable market, and acceptance of its cards is expanding. He says the transition of the global economy away from cash will be a tailwind for Visa. Yokum is also bullish on Visa’s opportunity to provide additional value-added services to existing customers. He projects 10% revenue growth in fiscal 2024 and 2025. CFRA has a “buy” rating and $310 price target for V stock, which closed at $267.94 on Aug. 22.
Mastercard Inc. (MA)
Mastercard is one of the world’s largest credit card and payments providers. In the second quarter, Mastercard reported 11% year-over-year revenue growth, 15% net income growth and 9% gross dollar volume growth. Yokum says Mastercard’s management team is among the most innovative in the payments space and has an impressive history of execution. He says the company’s economies of scale will allow earnings growth to outpace revenue growth by at least 4% annually for the foreseeable future. Yokum projects 12% revenue growth in 2024 and 13% growth in 2025. CFRA has a “buy” rating and $560 price target for MA stock, which closed at $468.82 on Aug. 22.
Netflix Inc. (NFLX)
Netflix is a market leader in video streaming and has about 277 million paid subscribers around the world. In the second quarter, Netflix reported 8 million paid net subscriber additions, 16.5% global streaming paid memberships growth and 16.8% revenue growth. Analyst Kenneth Leon says Netflix is the undisputed leader in streaming video, and he believes the company can expand operating margins and generate revenue growth in the mid-teen percentage range. Leon projects 14.7% revenue growth in 2024 and 12.1% growth in 2025. CFRA has a “buy” rating and $725 price target for NFLX stock, which closed at $688.96 on Aug. 22.
T-Mobile US Inc. (TMUS)
T-Mobile is the second-largest U.S. wireless provider. Analyst Keith Snyder says T-Mobile will continue to outgrow Verizon Communications Inc. (VZ), AT&T Inc. (T) and other competitors. Despite an intensely competitive market, Snyder says T-Mobile has attractive churn metrics and free cash flow potential. In addition, he says T-Mobile’s 5G network is at least 12 months ahead of its competitors. Snyder says T-Mobile has been gaining market share from Verizon and AT&T, and he projects 2.9% revenue growth in 2024 and 4.3% growth in 2025. CFRA has a “strong buy” rating and $210 price target for TMUS stock, which closed at $196.44 on Aug. 22.
Wells Fargo & Co. (WFC)
Wells Fargo is one of the largest U.S. banks, lending mostly within the U.S. market. Yokum says Wells Fargo is positioned to improve its efficiency throughout the remainder of 2024 and 2025. He is also bullish on the company’s share buybacks, which should support the stock. Wells Fargo’s heavy exposure to the struggling commercial real estate market creates risk, but Yokum says the company has reduced exposure to commercial real estate by 22% over the past four years. He projects a return to EPS growth in 2025. CFRA has a “buy” rating and $68 price target for WFC stock, which closed at $55.96 on Aug. 22.
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10 Best Growth Stocks to Buy for 2024 originally appeared on usnews.com
Update 08/23/24: This story was previously published at an earlier date and has been updated with new information.
