3 Unstoppable Growth Stocks to Buy Before 2025
Generated by AI AgentAinvest Technical Radar
Saturday, Oct 5, 2024 3:36 pm ET2min read
AAPL--
As we approach the midpoint of the decade, investors are seeking stocks that can deliver sustained growth and outperform the broader market. In this article, we highlight three growth stocks that have compelling growth stories, robust fundamentals, and strong market positions. These companies operate in diverse sectors and have the potential to generate significant returns for investors over the next few years.
1. Apple Inc. (AAPL)
Market capitalization: $3.5 trillion
Sector: Technology
Apple, the largest U.S. stock by market capitalization, continues to grow thanks to its dominant position in the consumer electronics market. Its products segment, which includes iPads and iPhones, remains the most important, contributing to more than 70% of revenue. However, Apple's services segment is increasingly important and growing at a faster rate. This segment, which includes cloud storage, Apple Pay, Apple Music, and App Store revenue, is worth a cool $100 billion in revenue annually. As a stand-alone unit, Apple's services would be larger than health care king Johnson & Johnson (JNJ). Considering this business line was about $53 billion in fiscal year 2020, recent trends hint at the beginning of a growth trajectory that Apple has to offer.
2. Alphabet Inc. (GOOG, GOOGL)
Market cap: $2 trillion
Sector: Technology
Google parent Alphabet has started paying dividends at 20 cents per quarter, good for a roughly 0.5% yield but adding up to a payout of about $7.5 billion annually, considering the massive scale of this tech giant. This commitment to shareholders comes as Alphabet keeps ample cash invested in new bets on artificial intelligence, cloud services, and other high-tech endeavors. As the leading digital advertising platform in the world, the firm is positioned to profit from the continued megatrend of marketing spending moving off traditional TV channels and into online alternatives like YouTube. Revenue is forecasted to grow at a double-digit rate both this fiscal year and in fiscal 2025, showing strong momentum for a stock that's already at the head of the pack.
3. Amazon.com Inc. (AMZN)
Market cap: $2 trillion
Sector: Technology
Rounding out the list of mega-cap tech stocks on the list of the best growth stocks to own for the next 10 years, Amazon has proven adept at unlocking new opportunities for revenue expansion. That includes moving into new e-commerce channels as well as launching its now-dominant Amazon Web Services division. In fact, Amazon's cloud infrastructure market share is the largest out there at more than 30% of the entire market, and is worth more than $100 billion in annual revenue. Even more impressive than the raw size is that AWS is growing strong, with fiscal Q2 numbers in August showing a 19% growth rate. With massive scale and a history of innovation, Amazon is the kind of growth stock that investors should consider for the long haul.
These three growth stocks have compelling growth stories, robust fundamentals, and strong market positions. Their market capitalizations and sector positions provide a solid foundation for growth, while their primary drivers of revenue growth – innovation, market leadership, and expanding services – ensure continued momentum. Their dividend policies and cash flow management strategies support their growth trajectories, making them attractive investments for long-term investors seeking growth and income.
1. Apple Inc. (AAPL)
Market capitalization: $3.5 trillion
Sector: Technology
Apple, the largest U.S. stock by market capitalization, continues to grow thanks to its dominant position in the consumer electronics market. Its products segment, which includes iPads and iPhones, remains the most important, contributing to more than 70% of revenue. However, Apple's services segment is increasingly important and growing at a faster rate. This segment, which includes cloud storage, Apple Pay, Apple Music, and App Store revenue, is worth a cool $100 billion in revenue annually. As a stand-alone unit, Apple's services would be larger than health care king Johnson & Johnson (JNJ). Considering this business line was about $53 billion in fiscal year 2020, recent trends hint at the beginning of a growth trajectory that Apple has to offer.
2. Alphabet Inc. (GOOG, GOOGL)
Market cap: $2 trillion
Sector: Technology
Google parent Alphabet has started paying dividends at 20 cents per quarter, good for a roughly 0.5% yield but adding up to a payout of about $7.5 billion annually, considering the massive scale of this tech giant. This commitment to shareholders comes as Alphabet keeps ample cash invested in new bets on artificial intelligence, cloud services, and other high-tech endeavors. As the leading digital advertising platform in the world, the firm is positioned to profit from the continued megatrend of marketing spending moving off traditional TV channels and into online alternatives like YouTube. Revenue is forecasted to grow at a double-digit rate both this fiscal year and in fiscal 2025, showing strong momentum for a stock that's already at the head of the pack.
3. Amazon.com Inc. (AMZN)
Market cap: $2 trillion
Sector: Technology
Rounding out the list of mega-cap tech stocks on the list of the best growth stocks to own for the next 10 years, Amazon has proven adept at unlocking new opportunities for revenue expansion. That includes moving into new e-commerce channels as well as launching its now-dominant Amazon Web Services division. In fact, Amazon's cloud infrastructure market share is the largest out there at more than 30% of the entire market, and is worth more than $100 billion in annual revenue. Even more impressive than the raw size is that AWS is growing strong, with fiscal Q2 numbers in August showing a 19% growth rate. With massive scale and a history of innovation, Amazon is the kind of growth stock that investors should consider for the long haul.
These three growth stocks have compelling growth stories, robust fundamentals, and strong market positions. Their market capitalizations and sector positions provide a solid foundation for growth, while their primary drivers of revenue growth – innovation, market leadership, and expanding services – ensure continued momentum. Their dividend policies and cash flow management strategies support their growth trajectories, making them attractive investments for long-term investors seeking growth and income.
If I have seen further, it is by standing on the shoulders of giants.
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PROEditorial Disclosure & AI Transparency: Ainvest News utilizes advanced Large Language Model (LLM) technology to synthesize and analyze real-time market data. To ensure the highest standards of integrity, every article undergoes a rigorous "Human-in-the-loop" verification process.
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