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5 Growth Stocks That Investors Should Buy in November
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The Wall Street mojo returned to start November as last week was the best for U.S. stock markets this date. The Fed kept the benchmark lending rate unchanged at the existing 5.25-5.5% range in its last two FOMC meetings in September and October.
Fed Chair Jerome Powell said that the central bank still has a long way to go before reaching the 2% target inflation rate. Yet, he acknowledged that the higher interest rate regime is getting the desired results. Notably, the current range of the Fed fund rate is the highest level since March 2001.
The Fed remains open for another round of 25 basis points of interest rate hike in December depending of economic data. However, CME FedWatch has currently assigned a less than 10% chance of another round of rate hike.
However, defying recent headwinds, we have identified a handful of large-cap (market capital > $10 billion) companies that have strong growth potential for the rest of 2023. Investment in these stocks should be prudent going forward.
Our Top Picks
We have narrowed our search to five growth stocks that have solid upside left for the rest of 2023. These stocks have witnessed positive earnings estimate revisions in the last 60 days. Each of our picks carries a Zacks Rank #1 (Strong Buy) and has a Growth Score A. You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the priceperformance of our five picks in the past three months.
Image Source: Zacks Investment Research
AppLovin Corp. (APP - Free Report) is engaged in building a software-based platform for mobile app developers to enhance the marketing and monetization of their apps in the United States and internationally. APP provides a technology platform that enables developers to market, monetize, analyze and publish their apps.
AppLovin has an expected revenue and earnings growth rate of 9.7% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.3% over the last 30 days.
Lamb Weston Holdings Inc. (LW - Free Report) benefits from solid pricing actions to counter input and manufacturing cost inflation. Strategic pricing efforts drove LW’s first-quarter fiscal 2024 net sales, which increased year over year and surpassed the Zacks Consensus Estimate. Management is on track with solid offerings and capacity expansion, enabling the company to meet rising demand conditions for snacks and fries effectively.
LW continues investing in supply-chain, commercial and information technology operations. A solid start to the year and the ongoing demand and pricing scenario prompted LW to raise its fiscal 2024 outlook.
Lamb Weston has an expected revenue and earnings growth rate of 28.3% and 24.8%, respectively, for the current year (ending May 2024). The Zacks Consensus Estimate for current-year earnings has improved 10.8% over the last 30 days.
NVIDIA Corp. (NVDA - Free Report) is gaining from the strong growth of artificial intelligence, high-performance computing and accelerated computing, which is boosting its Compute & Networking revenues. The datacenter end-market business is likely to benefit from the growing demand for generative AI and large language models using GPUs based on NVIDIA Hopper and Ampere architectures.
A surge in Hyperscale demand and a solid uptake of AI-based smart cockpit infotainment solutions are acting as tailwinds for NVDA. Collaboration with Mercedes-Benz and Audi is likely to advance NVDA’s presence in the autonomous vehicles and other automotive electronics space.
NVIDIA has an expected revenue and earnings growth rate of more than 100% each for the current year (ending January 2024). The Zacks Consensus Estimate for current-year earnings has improved 2.7% over the last 60 days.
Pinterest Inc. (PINS - Free Report) is making solid progress in deepening user engagement on the platform. Focus on improving operational rigor and integration of cutting-edge AI models will likely boost relevancy and personalization. The corporate strategy to introduce more actionable content on the platform from a wide range of sources has resulted in healthy growth in engagement metrics across all regions.
PINS’ mobile deep linking product is helping retailers make more purchases through their mobile apps. PINS has significantly propelled shopping ads revenue growth. Advanced tools such as Travel Catalog and Premier Spotlight empower advertisers to reach target audiences with greater precision.
Pinterest has an expected revenue and earnings growth rate of 9% and 69.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 8.2% over the last seven days.
Vertiv Holdings Co. (VRT - Free Report) designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. VRT offers hardware, software, analytics and ongoing services.
Vertiv Holdings has an expected revenue and earnings growth rate of 20.3% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 7.5% over the last 30 days.
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5 Growth Stocks That Investors Should Buy in November
The Wall Street mojo returned to start November as last week was the best for U.S. stock markets this date. The Fed kept the benchmark lending rate unchanged at the existing 5.25-5.5% range in its last two FOMC meetings in September and October.
Fed Chair Jerome Powell said that the central bank still has a long way to go before reaching the 2% target inflation rate. Yet, he acknowledged that the higher interest rate regime is getting the desired results. Notably, the current range of the Fed fund rate is the highest level since March 2001.
The Fed remains open for another round of 25 basis points of interest rate hike in December depending of economic data. However, CME FedWatch has currently assigned a less than 10% chance of another round of rate hike.
However, defying recent headwinds, we have identified a handful of large-cap (market capital > $10 billion) companies that have strong growth potential for the rest of 2023. Investment in these stocks should be prudent going forward.
Our Top Picks
We have narrowed our search to five growth stocks that have solid upside left for the rest of 2023. These stocks have witnessed positive earnings estimate revisions in the last 60 days. Each of our picks carries a Zacks Rank #1 (Strong Buy) and has a Growth Score A. You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the priceperformance of our five picks in the past three months.
Image Source: Zacks Investment Research
AppLovin Corp. (APP - Free Report) is engaged in building a software-based platform for mobile app developers to enhance the marketing and monetization of their apps in the United States and internationally. APP provides a technology platform that enables developers to market, monetize, analyze and publish their apps.
AppLovin has an expected revenue and earnings growth rate of 9.7% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.3% over the last 30 days.
Lamb Weston Holdings Inc. (LW - Free Report) benefits from solid pricing actions to counter input and manufacturing cost inflation. Strategic pricing efforts drove LW’s first-quarter fiscal 2024 net sales, which increased year over year and surpassed the Zacks Consensus Estimate. Management is on track with solid offerings and capacity expansion, enabling the company to meet rising demand conditions for snacks and fries effectively.
LW continues investing in supply-chain, commercial and information technology operations. A solid start to the year and the ongoing demand and pricing scenario prompted LW to raise its fiscal 2024 outlook.
Lamb Weston has an expected revenue and earnings growth rate of 28.3% and 24.8%, respectively, for the current year (ending May 2024). The Zacks Consensus Estimate for current-year earnings has improved 10.8% over the last 30 days.
NVIDIA Corp. (NVDA - Free Report) is gaining from the strong growth of artificial intelligence, high-performance computing and accelerated computing, which is boosting its Compute & Networking revenues. The datacenter end-market business is likely to benefit from the growing demand for generative AI and large language models using GPUs based on NVIDIA Hopper and Ampere architectures.
A surge in Hyperscale demand and a solid uptake of AI-based smart cockpit infotainment solutions are acting as tailwinds for NVDA. Collaboration with Mercedes-Benz and Audi is likely to advance NVDA’s presence in the autonomous vehicles and other automotive electronics space.
NVIDIA has an expected revenue and earnings growth rate of more than 100% each for the current year (ending January 2024). The Zacks Consensus Estimate for current-year earnings has improved 2.7% over the last 60 days.
Pinterest Inc. (PINS - Free Report) is making solid progress in deepening user engagement on the platform. Focus on improving operational rigor and integration of cutting-edge AI models will likely boost relevancy and personalization. The corporate strategy to introduce more actionable content on the platform from a wide range of sources has resulted in healthy growth in engagement metrics across all regions.
PINS’ mobile deep linking product is helping retailers make more purchases through their mobile apps. PINS has significantly propelled shopping ads revenue growth. Advanced tools such as Travel Catalog and Premier Spotlight empower advertisers to reach target audiences with greater precision.
Pinterest has an expected revenue and earnings growth rate of 9% and 69.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 8.2% over the last seven days.
Vertiv Holdings Co. (VRT - Free Report) designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. VRT offers hardware, software, analytics and ongoing services.
Vertiv Holdings has an expected revenue and earnings growth rate of 20.3% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 7.5% over the last 30 days.