In this article you will know why growth stock can help you in 2023. We also bring to you the best 7 growth stocks you may consider buying now.
Our analysts point to a likely favourable investment in bond with a bleak forecast on the side of stock market. We expect 2023 to be very volatile year as there will be crazy share price movement.
The up and down swings may trigger a significant growth but not really on the side of the value stocks. The outlook today is bad given how elevated inflation and rising interest rates have negatively affected the global stock market operation.
Stock Market Outlook in 2023
There is a consensus among 5 analysts that global shares will grow on an average 10% in 2023.
This projection is in line with the average historical return of the MSCI All-Country World Index. This looks unrealistic forecast given the poor global economic health condition.
The looming global energy insufficiency that is connected with the Russo-Ukrainian war has pushed the energy sector into record gains. The S&P 500 Energy sector analysis shows a rise of 70.3% in 2022. This is the only stock sector that has generated positive year-to-date gains.
Wells Fargo anticipates a weak economy in the first half of 2023 but experts prefer the earnings power of energy stock, tech and health care.
An expert, Darren Colananni, says the S&P 500 may struggle in gaining much attraction in 2023 as interest rates remain high. His year-end 2023 S&P 500 price target is 3,700, about 7% below current levels.
Therefore, investors should focus on sectors that have the most projected earnings growth in 2023. This means that growth stock should be the focus of investors in 2023.
What is Growth Stock?
A growth stock is any share in a company that is projected to grow at a rate clearly above the average growth for the stock market.
The growth stocks normally do not pay dividend because the issuers of such stocks are typically companies that want to plough-back any earnings they accrue in order to accelerate growth mainly in the short term.
The investors who invest in growth stocks usually anticipate that they will earn money through capital gain when they sell their shares in the future. This is called stock price appreciation.
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Growth stocks are somewhat expensive, trading at a high-price per-earnings ratio, which could become cheap if the company continues to grow steadily as this will push up the price.
7 Growth Stocks You Can Buy in 2023
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Visa Inc. (V)
Visa is a global credit card giant and owner of the largest electronic payment network across the globe and trades its shares in NYSE.
Analysts believe that Visa’s exposure to diverse payment categories would sure help it generate some viable income with significant earnings growth during recession. And in the last quarters of 2022 Visa had reported revenue growth of 18.7%.
An analyst, Holt, says Visa will attain high returns on capital, and it has additional growth potential in adjacent verticals, such as analytics, security and cryptocurrency. We forecast an 8.9% revenue growth for Visa in 2023 with a good buy-rating and $260 price target for V stock, which closed at $205.83 on December 26, 2022.
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Amazon Inc. (AMZN)
Amazon has been one of the best growth stocks of all time and has remained the global cloud services leader.
Amazon was badly hit by the recession as its shares are down by over 45% in the third quarter of 2022 as revenue growth slowed down significantly.
Of course, we note that the Amazon’s earnings growth in 2022 year was a disappointment to investors, but its investments in productivity, effective cost management, high-margin businesses and diversification plans would make Amazon to experience a long-term profit growth in 2023.
We expect the revenue growth of Amazon to reach a minimum of 8.3% in 2023 with a buy rating that projected average target price of $155 for AMZN stock, which closed at $85.25 on December 26, 2022.
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Zscaler, Inc. (ZS)
Zscaler commands an advantage of having a strong customer base and real growth prospect. The internet security company is well-positioned to benefit from the growing migration of companies into the cloud.
Zscaler is increasing its product offerings to propel further growth, and we believe ZS will rank high among the viable growth stocks in 2023.
We expect the revenue growth of Zscaler to reach a minimum of 53.7% in 2023 with a good buy rating that projected average target price of $168.45 for ZS stock, which closed at $108.78 on December 26, 2022.
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Apple Inc. (AAPL)
Apple produces the iPhone and more other consumer electronics applications. Apple is one of the global blue-chip companies that recorded a net income of $94.6 billion in 2021.
Apple remains a good growth stock as the company also reported 8.1% revenue growth in recent time. A great analyst Angelo Zino appreciates the company’s high customer holding, strong global ecosystem and expanding market.
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We expect higher growth rate in 2023 due to favourable fundamental from varying innovative products. AAPL has a good buy-rating and $172 price target, closing at $131.86 on December 26, 2022.
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Lithium Americas Corp. (LAC)
Lithium Americas is a leading mining giant in Canada with mandate to develop and commercialize the lithium deposits. It controls two large lithium deposits; the Cauchari-Olaroz in Argentina and the Thacker Pass in Nevada.
The global demand for lithium is expected to increase because it is essential input in electric vehicle batteries and energy storage.
LAC is expected to gain from the growth in demand for lithium. It is ranked high among the growth stocks that will survive the expected recessionary pressure on the stock market sector in 2023.
In November 2022, an analyst updated his price target on (NYSE:LAC) to $38 from $41 and reiterated a buy-rating on the shares.
We expect the revenue growth of LAC to reach a minimum of 7.4% in 2023 with a good buy rating that projected average target price at $53.12 for LAC stock, which closed at $20.17 on December 26, 2022.
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Riot Blockchain, Inc. (RIOT)
Riot is a leading global Bitcoin mining and blockchain technology company. The company has a substantial investment in Bitcoin mining, partnering with Bitmain, one of the largest Bitcoin mining hardware creators in the world.
RIOT will tap into the advantage arising from the growth of the Bitcoin and blockchain sectors, ranking high among the stocks that will grow significantly in 2023.
As at November, 2022, the company attained $872.3 million market cap. Quite recently, analyst Lucas Pipes updated his price target on RIOT to $11 from $13 and maintained a Buy rating on the shares.
We expect the revenue growth of RIOT to reach a minimum of 8.20% in 2023. We predict a good buy rating at average target price of $10.70 for RIOT stock, which closed at $3.68 on December 26, 2022.
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Nvidia Corp. (NVDA)
Nvidia is a leading manufacturer of high-end semiconductor and in the past over a decade Nvidia remains of the most remarkable growth stories in the entire stock market sector.
Zino says Nvidia is a major dealer in numerous high-growth markets, including the metaverse, artificial intelligence and cloud computing. The issue is Nvidia stock has also dropped significantly from all-time highs then dropping down the growth of the stock as its net income dropped 72.4% with revenue declined 16.5% in recent time.
Experts expect revenue growth of Nvidia will rebound to 13% in fiscal 2024.We expect the revenue growth of NVDA to reach a minimum of 7.90% in 2023. We predict a buy rating at average target price of $203.46 for NVDA stock, which closed at $152.06 on December 26, 2022.
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