Best aggressive growth stocks

Best aggressive growth stocks DEFAULT

Investing in Growth Stocks

Adam Levy

Updated: Sept. 13, , p.m.

Investing in growth stocks can be a great way to earn life-changing wealth in the stock market. The key, of course, is to know which growth stocks to buy -- and when.

To help you get started, here’s a handy guide to growth investing. With these tools and strategies, you’ll be able to position your portfolio for long-term success with growth stocks.

What is a growth stock?

Growth stocks are companies that increase their revenue and earnings at a faster rate than the average business in their industry or the market as a whole. Growth investing, however, involves more than picking stocks that are going up.

Often a growth company has developed an innovative product or service that is gaining share in existing markets, entering new markets, or even creating entirely new industries.

Businesses that can grow faster than average for long periods tend to be rewarded by the market, delivering handsome returns to shareholders in the process. And, the faster they grow, the bigger the returns can be.

Unlike value stocks, high-growth stocks tend to be more expensive than the average stock in terms of metrics like price-to-earnings, price-to-sales, and price-to-free-cash-flow ratios.

Yet, despite their premium price tags, the best growth stocks can still deliver fortune-creating returns to investors as they fulfill their awesome growth potential.

Did You Know

Growth stocks are companies that increase their revenue and earnings faster than the average business in their industry or the market as a whole.

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Great growth stocks

To provide you with some examples, here are 10 excellent growth stocks available in the stock market today:

CAGR = compound annual growth rate. Data sources: Morningstar, company quarterly financial reports

As this list shows, growth stocks come in all shapes and sizes. They can be found in a variety of industries, both within the U.S. and in international markets. In fact, while all the stocks on this list are larger businesses, smaller companies can be fertile ground for growth investors, too.

A great way to invest in a wide variety of small-cap growth stocks is via an exchange-traded fund (ETF) such as Vanguard Small-Cap Growth ETF(NYSEMKT:VBK). This fund tracks the performance of the CRSP US Small Cap Growth Index, which gives investors an easy way to invest in roughly small-cap growth companies all at once.

Importantly, the Vanguard Small-Cap Growth ETF has an ultra-low expense ratio of %. This means investors will receive nearly all of the fund’s returns, with only a small amount in fees going to Vanguard. (An annual expense ratio of % equates to only $ in fees per $1, invested per year.)

How to find growth stocks 

To find great growth stocks, you’ll need to:

  1. Identify powerful long-term market trends and the companies best positioned to profit from them
  2. Narrow your list to businesses with strong competitive advantages
  3. Further narrow your list to companies with large addressable markets
Graphic of identifying the best growth stocks to buy.

Image source: The Motley Fool

Identify trends and the companies driving them

Companies that can capitalize on powerful long-term trends can increase their sales and profits for many years, generating wealth for their shareholders along the way.

The coronavirus pandemic accelerated many trends that were already well underway. Here are some examples, along with the companies that can help you profit from those trends:

  • E-commerce: As more people shop online, Amazon and Shopify are well positioned to profit within the U.S. (and many international markets). Alibaba(NYSE:BABA) and JD.com(NASDAQ:JD), meanwhile, dominate e-commerce in China. And MercadoLibre(NASDAQ:MELI) holds a leading share of the online retail market in Latin America.
  • Digital advertising:Facebook(NASDAQ:FB) and Alphabet(NASDAQ:GOOG)(NASDAQ:GOOGL) own the lion’s share of the digital ad market and are poised to profit handsomely as marketing budgets shift from TV and print to online channels.
  • Digital payments:Square(NYSE:SQ) is helping to accelerate the global shift from cash to digital forms of payment by allowing businesses of all sizes to accept debit and credit card transactions.
  • Cloud computing: Computing power is migrating from on-premise data centers to cloud-based servers. Amazon’s (NASDAQ:AMZN) and Alibaba’s cloud infrastructure services help make this possible, while Salesforce.com(NYSE:CRM) provides some of the best cloud-based software available.
  • Cord-cutting and streaming entertainment: Millions of people are canceling their cable subscriptions and replacing them with less expensive and more convenient streaming options. As the global leader in streaming entertainment, Netflix(NASDAQ:NFLX) offers a great way to profit from this trend.
  • Remote work: For many organizations, remote work arrangements became a necessity during the COVID pandemic. Studies indicate that the remote work trend will continue well after the pandemic is over as companies realize the financial efficiencies and workforce benefits associated with flexible working arrangements. Zoom(NASDAQ:ZM) will continue to benefit from this trend on the strength of its user-friendly, cloud-based phone and video collaboration tools.

The key is to try to invest in these types of trends and companies as early as possible. The earlier you get in, the more you stand to profit. However, the most powerful trends can last for many years and even decades, giving you plenty of time to claim your share of the profits they create.

Prioritize companies with competitive advantages

It’s also important to invest in growth companies that possess strong competitive advantages. Otherwise their competitors may pass them by, and their growth may not last long.

Some competitive advantages are:

  • Network effects: Facebook is a prime example here. Each person who joins its social media platform makes it more valuable to other members. Network effects can make it difficult for new entrants to displace the current market share leader, and Facebook’s more than billion users certainly make it unlikely that a new social media company will displace it.
  • Scale advantages: Size can be another powerful advantage. Amazon is a great example here, as its massive global fulfillment network is something its smaller rivals will find extremely difficult to replicate.
  • High switching costs: Switching costs are the expenses and difficulties involved in switching to a rival product or service. Shopify -- which serves as an online retail operating system for more than 1 million businesses -- is a great example of a business with high switching costs. Once a company begins to use Shopify as the core of its online operations, it’s unlikely to go through the hassle of switching to another competitor.

Pinpoint companies with large addressable markets

Lastly, you’ll want to invest in businesses with large addressable markets -- and long runways for growth still ahead. Industry reports from research firms like Gartner(NYSE:IT) and eMarketer -- which provide estimates of industry sizes, projections for growth, and market share figures -- can be very helpful in this regard.

The larger the opportunity, the larger a business can ultimately become. And, the earlier in its growth cycle it is, the longer it can continue to grow at an impressive rate.

FAQs

What is a growth stock?

A growth stock is the stock of a company that's expected to increase its profits or revenues faster than the average business in its industry or the market broadly. Growth stocks appeal to many investors because Wall Street often values a company based on a multiple of its earnings (its profits), which may be diminished if the company is reinvesting most of its leftover cash in further expansion.

What are growth vs value stocks?

Value investing and growth investing are two different investing styles. Usually, value stocks present an opportunity to buy shares below their actual value, and growth stocks exhibit above-average revenue and earnings growth potential. Wall Street likes to neatly categorize stocks as either growth or value stocks. The truth is a bit more complicated since some stocks have elements of both value and growth. Nevertheless, there are important differences between growth and value stocks, and many investors prefer one style of investing over the other.

What are the best growth stocks?

Here are 10 excellent growth stocks available in the stock market today:

  • Shopify
  • Alibaba
  • Square
  • MercadoLibre
  • Facebook
  • JD.com
  • Netflix
  • Amazon
  • Salesforce.com
  • Alphabet

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Sours: https://www.fool.com/investing/stock-market/types-of-stocks/growth-stocks/

Aggressive Growth ETF List

This is a list of all Aggressive Growth ETFs traded in the USA which are currently tagged by ETF Database. Please note that the list may not contain newly issued ETFs. If you&#;re looking for a more simplified way to browse and compare ETFs, you may want to visit our ETF Database Categories, which categorize every ETF in a single &#;best fit&#; category.

* Assets and Average Volume as of EDT

This page includes historical return information for all Aggressive Growth ETFs listed on U.S. exchanges that are currently tracked by ETF Database.

The table below includes fund flow data for all U.S. listed Aggressive Growth ETFs. Total fund flow is the capital inflow into an ETF minus the capital outflow from the ETF for a particular time period.

Fund Flows in millions of U.S. Dollars.

The following table includes expense data and other descriptive information for all Aggressive Growth ETFs listed on U.S. exchanges that are currently tracked by ETF Database. In addition to expense ratio and issuer information, this table displays platforms that offer commission-free trading for certain ETFs.

Clicking on any of the links in the table below will provide additional descriptive and quantitative information on Aggressive Growth ETFs.

The following table includes ESG Scores and other descriptive information for all Aggressive Growth ETFs listed on U.S. exchanges that are currently tracked by ETF Database. Easily browse and evaluate ETFs by visiting our ESG Investing themes section and find ETFs that map to various environmental, social, governance and morality themes.

This page includes historical dividend information for all Aggressive Growth ETFs listed on U.S. exchanges that are currently tracked by ETF Database. Note that certain ETPs may not make dividend payments, and as such some of the information below may not be meaningful.

The table below includes basic holdings data for all U.S. listed Aggressive Growth ETFs that are currently tagged by ETF Database. The table below includes the number of holdings for each ETF and the percentage of assets that the top ten assets make up, if applicable. For more detailed holdings information for any ETF, click on the link in the right column.

The following table includes certain tax information for all Aggressive Growth ETFs listed on U.S. exchanges that are currently tracked by ETF Database, including applicable short-term and long-term capital gains rates and the tax form on which gains or losses in each ETF will be reported.

This page contains certain technical information for all Aggressive Growth ETFs that are listed on U.S. exchanges and tracked by ETF Database. Note that the table below only includes limited technical indicators; click on the &#;View&#; link in the far right column for each ETF to see an expanded display of the product&#;s technicals.

This page provides links to various analysis for all Aggressive Growth ETFs that are listed on U.S. exchanges and tracked by ETF Database. The links in the table below will guide you to various analytical resources for the relevant ETF, including an X-ray of holdings, official fund fact sheet, or objective analyst report.

This page provides ETF Database Ratings for all Aggressive Growth ETFs that are listed on U.S. exchanges and tracked by ETF Database. The ETF Database Ratings are transparent, quant-based evaluations of ETFs relative to other products in the same ETF Database Category. As such, it should be noted that this page may include ETFs from multiple ETF Database Categories.

Sours: https://etfdb.com/etfs/investment-style/aggressive-growth/
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Top Growth Stocks for October

Growth investing is one of two main fundamental investment strategies,the other being value investing. Investors employing a growth investing strategy will typically place the majority of their portfolio in growth stocks, which are shares of companies with earnings or sales expected to grow at a significantly faster rate than the rest of the market. They generally don’t pay dividends at this stage, since all earnings are usually reinvested back into the business to generate even more earnings or revenue in the future.

The primary way that investors expect to earn profits from growth investing is through capital gains. Classic examples of growth stocks include Facebook Inc. (FB), Amazon.com Inc. (AMZN), and Netflix Inc. (NFLX).

Growth stocks, as represented by the Russell Growth Index, have slightly underperformed the broader market over the past year. The Growth Index has provided a total return of % over the past 12 months, just below the Russell Index’s % total return, as of Sept. 23, All statistics in the tables below are also as of Sept. 23,

Here are the top three stocks with the fastest earnings per share (EPS) growth, the top three stocks with the fastest sales growth, and the top three stocks ranked according to a 50/50 weighting of their combined EPS and sales growth.

Top Growth Stocks by EPS Growth

These are the stocks with the highest year-over-year (YOY) EPS growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders. Companies with quarterly EPS of more than 2,% were excluded as outliers.

Top Growth Stocks by EPS Growth
Price ($)Market Cap ($B)EPS Growth (%)
Freeport-McMoRan Inc. (FCX)2,
Ross Stores Inc. (ROST)2,
Chipotle Mexican Grill Inc. (CMG)1,2,

Source: YCharts

  • Freeport-McMoRan Inc.: Freeport-McMoRan is a leading international mining company with significant reserves of copper, gold, and molybdenum. The company has operations in North and South America and Indonesia. On Sept. 22, Freeport-McMoRan announced a cash dividend of $ per share on shares of common stock. The dividend is payable on Nov. 1 to stockholders of record as of Oct. 15,
  • Ross Stores Inc.: Ross Stores operates off-price apparel and home accessories stores. The company operates Ross Dress for Less and dd’s DISCOUNTS stories across the United States.
  • Chipotle Mexican Grill Inc.: Chipotle Mexican Grill owns and operates a chain of restaurants serving burritos, bowls, tacos, and salads. The company has locations throughout the United States. On Sept. 21, Chipotle announced the launch of a special, Mexican-inspired smoked brisket for a limited time at locations throughout the U.S. and Canada. Chipotle said that smoked brisket is consistently among the top requested menu items.

Top Growth Stocks by Sales Growth

These are the stocks with the highest YOY sales growth for the most recent quarter. Rising sales can help investors identify companies that are able to grow revenue through organic or new ways, as well as find growing companies that have not yet reached profitability. In addition, EPS can be significantly influenced by accounting factors that may not reflect the overall strength of the business. However, sales growth can also be potentially misleading about the strength of a business because growing sales on money-losing businesses can be harmful if the company has no plan to reach profitability. Companies with quarterly revenue growth of more than 2,% were excluded as outliers.

Top Growth Stocks by Sales Growth
Price ($)Market Cap ($B)Revenue Growth (%)
ConocoPhillips (COP)
Builders FirstSource Inc. (BLDR)
Valero Energy Corp. (VLO)

Source: YCharts

  • ConocoPhillips: ConocoPhillips focuses on oil and natural gas exploration and production, with operations across 15 countries. It produces crude oil, bitumen, natural gas, natural gas liquids, and liquefied natural gas. ConocoPhillips reported on Sept. 20 that it would acquire for $ billion in cash from Shell Enterprises LLC a Permian Basin position. The purchase includes roughly , net acres and more than miles of crude, gas and water pipelines and infrastructure.
  • Builders FirstSource Inc.: Builders FirstSource makes and distributes building products and provides integrated services to professional homebuilders. It’s one of the largest suppliers in the building industry. Builders FirstSource announced the completion of two acquisitions in early September: California TrusFrame LLC, a designer and builder of prefabricated structural building components; and the Apollo software platform, which performs construction budgeting, scheduling, and field task assignments. Builders FirstSource acquired California TrusFrame for $ million in cash, and Apollo for $ million.
  • Valero Energy Corp: Valero Energy is a refiner and marketer of transportation fuels and petrochemical products, including gasolines, distillates, lubricants, and jet fuel. Its operations include 15 petroleum refineries with a total throughput capacity of about million barrels per day and 14 ethanol plants with a combined production capacity of billion gallons per year.

Top Growth Stocks by EPS and Revenue

These are the top growth stocks in the Russell Index as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly YOY percentage revenue growth and most recent quarterly YOY EPS growth. Both sales and earnings are critical factors in the success of a company. Moreover, ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one or the other figure unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of more than 2,% were excluded as outliers.

Top Growth Stocks by EPS and Revenue
Price ($)Market Cap ($B)Revenue Growth (%)EPS Growth (%)
Freeport-McMoRan Inc. (FCX)2,
Ross Stores Inc. (ROST)2,
Louisiana-Pacific Corp. (LPX)1,

Source: YCharts

  • Freeport-McMoRan Inc.: See above for company description.
  • Ross Stores Inc.: See above for company description.
  • Louisiana-Pacific Corp.: Louisiana-Pacific Corp. makes building materials and engineered wood products used in home construction. Its primary market is in North America but it also has capacity in Chile and Brazil. The company's products include oriented strand board sheathing, siding and trim, i-joists, laminated veneer lumber, and similar products.

The comments, opinions, and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or adopt any investment strategy. While we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described in our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions, and analyses contained within our content are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment, or strategy.

Sours: https://www.investopedia.com/investing/best-growth-stocks/
10 Best Growth Stocks Analyzed (Dot-com Bubble or Disruption?)

9 best long-term investments in October

One of the best ways to secure your financial future is to invest, and one of the best ways to invest is over the long term. With the ups and downs that came during the COVID pandemic, it may have been tempting to chase quick returns in But the economy is still recovering, and it&#x;s more important than ever to focus on long-term investing and stick to your game plan.

While many people think of investing as trying to make a short-term score in the stock market, it&#x;s long-term investing where regular investors can really build wealth. By thinking and investing long term, you can meet your financial goals and increase your financial security.

Investors today have many ways to invest their money and can choose the level of risk that they&#x;re willing to take to meet their needs. You can opt for very safe options such as a certificate of deposit (CD) or dial up the risk &#x; and the potential return! &#x; with investments such as stocks and stock mutual funds or ETFs.

Or you can do a little of everything, diversifying so that you have a portfolio that tends to do well in almost any investment environment.

What to consider

While long-term investing can be your path to a secure future, you&#x;ll want to understand the importance of risk and time horizon in achieving your financial dreams.

In investing, to get a higher return, you generally have to take on more risk. So very safe investments such as CDs tend to have low yields, while medium-risk assets such as bonds have somewhat higher yields and high-risk stocks have still-higher returns. Investors who want to generate a higher return will usually need to take on higher risk.

While stocks as a whole have a strong record &#x; the Standard & Poor&#x;s index has returned 10 percent over long periods &#x; stocks are well-known for their volatility. It&#x;s not unusual for a stock to gyrate 50 percent within a single year, either up or down. (Some of the best short-term investments are much safer.)

Can you withstand a higher level of risk to get a higher return? It&#x;s key to know your risk tolerance and whether you&#x;ll panic when your investments fall. At all costs you want to avoid selling an investment when it&#x;s down, if it still has the potential to rise. It can be demoralizing to sell an investment, only to watch it continue to rise even higher.

One way you can actually lower your risk is by committing to holding your investments longer. The longer holding period gives you more time to ride out the ups and downs of the market. While the S&P index has a great track record, those returns came over time, and over any short period, the index could be down substantially. So investors who put money into the market should be able to keep it there for at least three to five years, and the longer the better.

So you can use time as a huge ally in your investing. Also valuable for those who commit to invest for the long term, you don&#x;t have to spend all your time watching your investments and fret about short-term moves. You can set up a long-term plan and then put it (mostly) on autopilot.

Here are the best long-term investments in October:

  1. Growth stocks
  2. Stock funds
  3. Bond funds
  4. Dividend stocks
  5. Target-date funds
  6. Real estate
  7. Small-cap stocks
  8. Robo-advisor portfolio
  9. IRA CD

Overview: Top long-term investments in October

1. Growth stocks

In the world of stock investing, growth stocks are the Ferraris. They promise high growth and along with it, high investment returns. Growth stocks are often tech companies, but they don&#x;t have to be. They generally plow all their profits back into the business, so they rarely pay out a dividend, at least not until their growth slows.

Growth stocks can be risky because often investors will pay a lot for the stock relative to the company&#x;s earnings. So when a bear market or a recession arrives, these stocks can lose a lot of value very quickly. It&#x;s like their sudden popularity disappears in an instant. However, growth stocks have been some of the best performers over time.

If you&#x;re going to buy individual growth stocks, you&#x;ll want to analyze the company carefully, and that can take a lot of time. And because of the volatility in growth stocks, you&#x;ll want to have a high risk tolerance or commit to holding the stocks for at least three to five years.

Risk/reward: Growth stocks are among the riskier segments of the market because investors are willing to pay a lot for them. So when tough times arrive, these stocks can plummet. That said, the world&#x;s biggest companies &#x; the Facebooks, the Alphabets, the Amazons &#x; have been high-growth companies, so the reward is potentially limitless if you can find the right company.

2. Stock funds

If you&#x;re not quite up for spending the time and effort analyzing individual stocks, then a stock fund &#x; either an ETF or a mutual fund &#x; can be a great option. If you buy a broadly diversified fund &#x; such as an S&P index fund or a Nasdaq index fund &#x; you&#x;re going to get many high-growth stocks as well as many others. But you&#x;ll have a diversified and safer set of companies than if you own just a few individual stocks.

A stock fund is an excellent choice for an investor who wants to be more aggressive but doesn&#x;t have the time or desire to make investing a full-time hobby. And by buying a stock fund, you&#x;ll get the weighted average return of all the companies in the fund, so the fund will generally be less volatile than if you had held just a few stocks.

If you buy a fund that&#x;s not broadly diversified &#x; for example, a fund based on one industry &#x; be aware that your fund will be less diversified than one based on a broad index such as the S&P So if you purchased a fund based on the automotive industry, it may have a lot of exposure to oil prices. If oil prices rise, then it&#x;s likely that many of the stocks in the fund could take a hit.

Risk/reward: A stock fund is less risky than buying individual positions and less work, too. But it can still move quite a bit in any given year, perhaps losing as much as 30 percent or even gaining 30 percent in some of its more extreme years.

That said, a stock fund is going to be less work to own and follow than individual stocks, but because you own more companies &#x; and not all of them are going to excel in any given year &#x; your returns should be more stable. With a stock fund you&#x;ll also have plenty of potential upside. Here are some of the best index funds.

3. Bond funds

A bond fund &#x; either as a mutual fund or ETF &#x; contains many bonds from a variety of issuers. Bond funds are typically categorized by the type of bond in the fund &#x; the bond&#x;s duration, its riskiness, the issuer (corporate, municipality or federal government) and other factors. So if you&#x;re looking for a bond fund, there&#x;s a variety of fund choices to meet your needs.

When a company or government issues a bond, it agrees to pay the bond&#x;s owner a set amount of interest annually. At the end of the bond&#x;s term, the issuer repays the principal amount of the bond, and the bond is redeemed.

A bond can be one of the safer investments, and bonds become even safer as part of a fund. Because a fund might own hundreds of bond types, across many different issuers, it diversifies its holdings and lessens the impact on the portfolio of any one bond defaulting.

Risk/reward: While bonds can fluctuate, a bond fund will remain relatively stable, though it may move in response to movements in the prevailing interest rate. Bonds are considered safe, relative to stocks, but not all issuers are the same. Government issuers, especially the federal government, are considered quite safe, while the riskiness of corporate issuers can range from slightly less to much more risky.

The return on a bond or bond fund is typically much less than it would be on a stock fund, perhaps 4 to 5 percent annually but less on government bonds. It&#x;s also much less risky.

4. Dividend stocks

Where growth stocks are the sports cars of the stock world, dividend stocks are sedans &#x; they can achieve solid returns but they&#x;re unlikely to speed higher as fast as growth stocks.

A dividend stock is simply one that pays a dividend &#x; a regular cash payout. Many stocks offer a dividend, but they&#x;re more typically found among older, more mature companies that have a lesser need for their cash. Dividend stocks are popular among older investors because they produce a regular income, and the best stocks grow that dividend over time, so you can earn more than you would with the fixed payout of a bond. REITs are one popular form of dividend stock.

Risk/reward: While dividend stocks tend to be less volatile than growth stocks, don&#x;t assume they won&#x;t rise and fall significantly, especially if the stock market enters a rough period. However, a dividend-paying company is usually more mature and established than a growth company and so it&#x;s generally considered safer. That said, if a dividend-paying company doesn&#x;t earn enough to pay its dividend, it will cut the payout, and its stock may plummet as a result.

The big appeal of a dividend stock is the payout, and some of the top companies pay 2 or 3 percent annually, sometimes more. But importantly they can raise their payouts 8 or 10 percent per year for long periods of time, so you&#x;ll get a pay raise, typically each year. The returns here can be high, but won&#x;t usually be as great as with growth stocks. And if you&#x;d prefer to go with a dividend stock fund so that you can own a diversified set of stocks, you&#x;ll find plenty available.

5. Target-date funds

Target-date funds are a great option if you don&#x;t want to manage a portfolio yourself. These funds become more conservative as you age, so that your portfolio is safer as you approach retirement, when you&#x;ll need the money. These funds gradually shift your investments from more aggressive stocks to more conservative bonds as your target date nears.

Target-date funds are a popular choice in many workplace (k) plans, though you can buy them outside of those plans, too. You pick your retirement year and the fund does the rest.

Risk/reward: Target date funds will have many of the same risks as stock funds or bond funds, since it&#x;s really just a combination of the two. If your target date is decades away, your fund will own a higher proportion of stocks, meaning it will be more volatile at first. As your target date nears, the fund will shift toward bonds, so it will fluctuate less but also earn less.

Since a target-date fund gradually moves toward more bonds over time, it will typically start to underperform the stock market by a growing amount. You&#x;re sacrificing return for safety. And since bonds are yielding less and less these days, you have a higher risk of outliving your money.

To avoid this risk, some financial advisors recommend buying a target-date fund that&#x;s five or 10 years after when you actually plan to retire so that you&#x;ll have the extra growth from stocks.

6. Real estate

In many ways, real estate is the prototypical long-term investment. It takes a good bit of money to get started, the commissions are quite high, and the returns often come from holding an asset for a long time and rarely over just a few years. Still, real estate was Americans&#x; favorite long-term investment in , according to one Bankrate study.

Real estate can be an attractive investment, in part because you can borrow the bank&#x;s money for most of the investment and then pay it back over time. That&#x;s especially popular as interest rates sit near attractive lows. For those who want to be their own boss, owning a property gives them that opportunity, and there are numerous tax laws that benefit owners of property especially.

That said, while real estate is often considered a passive investment, you may have to do quite a bit of active management if you&#x;re renting the property.

Risk/reward: Any time you&#x;re borrowing significant amounts of money, you&#x;re putting extra stress on an investment turning out well. But even if you buy real estate with all cash, you&#x;ll have a lot of money tied up in one asset, and that lack of diversification can create problems if something happens to the asset. And even if you don&#x;t have a tenant for the property, you&#x;ll need to keep paying the mortgage and other maintenance costs out of your own pocket.

While the risks can be high, the rewards can be quite high as well. If you&#x;ve selected a good property and manage it well, you can earn many times your investment if you&#x;re willing to hold the asset over time. And if you pay off the mortgage on a property, you can enjoy greater stability and cash flow, which makes rental property an attractive option for older investors. (Here are 10 tips for buying rental property.)

7. Small-cap stocks

Investors&#x; interest in small-cap stocks &#x; the stocks of relatively small companies &#x; can mainly be attributed to the fact that they have the potential to grow quickly or capitalize on an emerging market over time. In fact, retail giant Amazon began as a small-cap stock, and made investors who held on to the stock very rich indeed. Small-cap stocks are often also high-growth stocks, but not always.

Like high-growth stocks, small-cap stocks tend to be riskier. Small companies are just more risky in general, because they have fewer financial resources, less access to capital markets and less power in their markets (less brand recognition, for example). But well-run companies can do very well for investors, especially if they can continue growing and gaining scale.

Like growth stocks, investors will often pay a lot for the earnings of a small-cap stock, especially if it has the potential to grow or become a leading company someday. And this high price tag on a company means that small-cap stocks may fall quickly during a tough spot in the market.

If you&#x;re going to buy individual companies, you must be able to analyze them, and that requires time and effort. So buying small companies is not for everyone. (You may also want to consider some of the best small-cap ETFs.)

Risk/reward: Small-cap companies can be quite volatile, and may fluctuate dramatically from year to year. On top of the price movement, the business is generally less established than a larger company and has fewer financial resources. So small-caps are considered to have more business risk than medium and large companies.

The reward for finding a successful small-cap stock is immense, and you could easily find 20 percent annual returns or more for decades if you&#x;re able to buy a true hidden gem such as Amazon before anyone can really see how successful it might eventually become.

8. Robo-advisor portfolio

Robo-advisors are another great alternative if you don&#x;t want to do much investing yourself and prefer to leave it all to an experienced professional. With a robo-advisor you&#x;ll simply deposit money into the robo account, and it automatically invests it based on your goals, time horizon and risk tolerance. You&#x;ll fill out some questionnaires when you start so the robo-advisor understands what you need from the service, and then it manages the whole process. The robo-advisor will select funds, typically low-cost ETFs, and build you a portfolio.

Your cost for the service? The management fee charged by the robo-advisor, often around percent annually, plus the cost of any funds in the account. Investment funds charge by how much you have invested with them, but funds in robo accounts typically cost around percent to percent, or $6 to $15 per $10, invested.

With a robo-advisor you can set the account to be as aggressive or conservative as you want it to be. If you want all stocks all the time, you can go that route. If you want the account to be primarily in cash or a basic savings account, then two of the leading robo-advisors &#x; Wealthfront and Betterment &#x; offer that option as well.

But at their best a robo-advisor can build you a broadly diversified investment portfolio that can meet your long-term needs.

Risk/reward: The risks of a robo-advisor depend a lot on your investments. If you buy a lot of stock funds because you have a high risk tolerance, you can expect more volatility than if you buy bonds or hold cash in a savings account. So risk is in what you own.

The potential reward on a robo-advisor account also varies based on the investments and can range from very high if you own mostly stock funds to low if you hold safer assets such as cash in a savings account. A robo-advisor will often build a diversified portfolio so that you have a more stable series of annual returns but that comes at the cost of a somewhat lower overall return. (Here are the best robo-advisors right now.)

9. IRA CD

An IRA CD is a good option if you&#x;re risk-averse and want a guaranteed income without any chance of loss. Like the name says, this investment is just a CD inside an IRA. And inside a tax-friendly IRA, you&#x;ll avoid taxes on the interest you accrue, as long as you stick to the plan&#x;s rules.

Even if you don&#x;t get a CD within your IRA, an IRA is a very smart investing decision.

Risk/reward: The risk on an IRA CD might not be quite where you expect it. You have almost no risk at all of not receiving your payout and your principal when the CD matures. It&#x;s about as safe an investment as exists, and the FDIC can guarantee your account at any individual insured institution up to $, per depositor.

The real risk on an IRA CD is whether you&#x;re earning enough to beat inflation. It&#x;s one reason that, if you have a core CD portfolio, a great strategy actually adds some risk to get a much better long-term return, especially if you have a long time until you need the money.

Is now a good time to buy stocks for the long term?

If you&#x;re taking a long-term perspective on the stock market and are properly diversifying your portfolio, it&#x;s almost always a good time to invest. That&#x;s because the market tends to go up over time, and time in the market is more important than timing the market, as the old saying goes.

The market (as measured by the Standard & Poor&#x;s index) has risen about 10 percent per year over the long term. The longer you&#x;re invested, the more of that return you&#x;re likely to earn.

But that doesn&#x;t mean you should just dump all your money into the market now. It could go up or down a lot in the short term. Instead, it&#x;s more prudent to invest regularly, every week or every month, and keep adding money over time. You&#x;ll take advantage of the strategy of dollar-cost averaging, helping ensure that you don&#x;t buy at a price that&#x;s too high.

If you&#x;re regularly investing in your employer-sponsored (k) account, for example, you&#x;re already using this strategy, adding money with each paycheck. That kind of regularity and investing discipline is valuable for long-term investing.

While any time can be good to invest for the long term, it can be especially advantageous when stocks have already fallen a lot, for example, during recessions. Lower stock prices offer an opportunity to buy stocks at a discount, potentially offering higher long-term returns. However, when stocks fall substantially many investors become too afraid to buy and take advantage.

That&#x;s another reason it&#x;s advantageous to invest regularly through thick and thin: You&#x;ll be able to continue adding to your investment even when the price is down, likely scoring a bargain. But that means you need to plan ahead and already have your brokerage account open and funded.

Why are long-term investments good?

Long-term investments give you the opportunity to earn more than you can from short-term investments. The catch is that you have to take a long-term perspective, and not be scared out of the market because the investment has fallen or because you want to sell for a quick profit.

And by focusing on the long term &#x; committing not to sell your investments as the market dips &#x; you&#x;ll be able to avoid the short-term noise that derails many investors. For example, investors in the S&P who held on after the huge drop in early may have broken even and then some in under a year. By focusing on the long term, you can ride out the bumps.

Investing for the long term also means that you don&#x;t need to focus on the market all the time the way that short-term traders do. You can invest your money regularly on autopilot, and then spend your time on things that you really love rather than worrying about the market&#x;s moves.

Bottom line

Investing for the long term is one of the best ways to build wealth over time. But the first step is learning to think long term, and avoiding obsessively following the market&#x;s daily ups and downs.

If you&#x;re looking to get started with long-term investing, see Bankrate&#x;s review of the top online brokers for beginners. If you&#x;re looking for an experienced professional to do the investing for you, then consider a leading robo-advisor such as Wealthfront.

Learn more:

Sours: https://www.bankrate.com/investing/best-long-term-investments/

Stocks growth best aggressive

The 21 Best Stocks to Buy for the Rest of

might have been the most anticipated year in history, or at least in recent memory. After the hard slog of and the COVID pandemic, would have to be better by default. That's why, as analysts went about picking their best stocks to buy for , they focused on recovery stories.

A small wrinkle in that, as we consider the best stocks for the rest of this year: COVID is, alas, still with us, and the delta variant is driving a third wave. And alas, we're having to dust off our masks to enter a lot of public places.

But with more than 70% of American adults having received at least one dose of a vaccine, the damage is expected to be at least less severe this time around, for what that's worth.

"We see the virus trends, and it's something we take seriously," says Sonia Joao, senior partner at Robertson Wealth Management, a Houston-based registered investment adviser (RIA). "But at this stage, we're not expecting a major market reaction, as investors appear to be looking past virus concerns and focusing on accelerating earnings. We may see a little market volatility if cases continue to spike, but we're not expecting major disruption."

There will be surprises. There always are. But several trends are emerging as potential winners in the second half of and beyond. Commodities are doing well, due in part to expectations of higher spending on infrastructure. Technology should continue to be a major driver, as trends that accelerated during the pandemic still have plenty of gas in the tank.

More than anything, though, the theme should be normalization as the economy continues to battle its way back to normalcy.

Today, we're going to look at 21 of the best stocks to buy as we think about the back half of and beyond.

Data is as of Aug. 4. Dividend yields are calculated by annualizing the most recent payout and dividing by the share price.

1 of 21

Amazon.com

Amazon sign outside HQ
  • Industry: Internet retail
  • Market value: $ trillion
  • Dividend yield: N/A

Apart from a few companies, such as Zoom Video (ZM), which went from relative obscurity to becoming an integral part of the daily routine for most of corporate America, few companies benefitted more from the lockdown economy than Amazon.com (AMZN, $3,). Nearly anything you could imagine buying could be fulfilled by Amazon and could be on your doorstep in generally less than 24 hours.

But here's the thing. While Americans are indeed returning to the malls, they're likely to continue buying a much larger percentage of their purchases online than they did before the pandemic. That trend was already firmly in place, and the pandemic simply sped it up.

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Wedbush, who rates AMZN at Outperform (equivalent of Buy), writes that "Revenue growth should decelerate in but remain above levels" – in other words, growth might slow slightly from last year's windfall levels but still eclipse pre-pandemic levels. Meanwhile, "Amazon's profitability should expand as it grows operating expenses more slowly than revenues. Amazon Web Services, Fulfillment by Amazon, and ads should drive steady margin expansion, with Prime memberships driving overall retail revenue growth."

AMZN is one of the best stocks to buy for the remainder of … and likely for years to come.

2 of 21

Realty Income

Realty Income
  • Industry: Retail real estate
  • Market value: $ billion
  • Dividend yield: %

Amazon might very well be taking over the world. But brick-and-mortar retail is far from dead. In particular, service businesses will always need physical locations. Amazon can't deliver a haircut or clean your teeth (at least not yet). And high-traffic retail, such as pharmacies, convenience stores and gas stations won't be going anywhere any time soon.

This brings us to another stock to buy for the remainder of and beyond, Realty Income (O, $).

Realty Income is a "triple-net" real estate investment trust (REIT), which means its tenants are responsible for paying all taxes, insurance and maintenance. The landlord's responsibility here is limited to cashing the rent checks and not much else.

O owns a portfolio of more than 6, properties spread across 50 states, Puerto Rico and the United Kingdom. It boasts distinct tenants encompassing 58 separate industries. Its top five tenants, accounting for just over 22% of the portfolio, include 7-Eleven, Walgreens (WBA), Dollar General (DG), FedEx (FDX) and British supermarket chain Sainsbury's.

Some of Realty Income's tenants, particularly in the movie theater and gym spaces, got zinged badly during the pandemic. But these tenants are recovering as life returns to normal. This should only continue in the second half of

Now, let's talk dividends. If you need an income superstar to pay your bills in and beyond, Realty Income is easily one of the best stocks to buy. It pays its dividend monthly rather than quarterly; it has made consecutive monthly dividends and raised the dividend for 95 consecutive quarters.

3 of 21

National Retail Properties

National Retail Properties
  • Industry: Retail real estate
  • Market value: $ billion
  • Dividend yield: %

Along the same lines, National Retail Properties (NNN, $) is a strong contender for the remainder of Bond yields, which started the year in a strong uptrend, have collapsed of late as investors seems to be less concerned about rising inflation. Falling bond yields mean rising bond prices. And that means strong tailwinds for "bond like" investments like NNN.

National Retail Properties isn't a bond, but along with Realty Income, it's about as close to a bond as you can get in the stock market. As a triple-net landlord, NNN has very little in the way of an actual "business." The company collects rent from tenants, then recycles that rent into dividends.

And speaking of dividends, National Retail Properties has raised its payout for 31 consecutive years and counting. At current prices, it yields %.

You're not going to get rich quick in NNN. It's a landlord that leases out to convenience stores and car washes, for crying out loud. But if you're looking for a steady-Eddie dividend payer that will keep trucking along no matter what the economy throws at it, National Retail Properties belongs in your portfolio. And with real-economy plays back en vogue, don't be surprised if this stodgy retail REIT outpaces the market for the remainder of

4 of 21

LyondellBasell Industries

Chemical plant
  • Industry: Specialty chemicals
  • Market value: $ billion
  • Dividend yield: %

In the stock market, boring can be beautiful. Investors often chase flashy, headline-grabbing stocks while ignoring gritty industrial workhorses. This creates opportunities for value investors willing to look beyond the headlines.

As a case in point, consider LyondellBasell Industries (LYB, $). This is about as far from sexy as you can get. It's a dirty plastics, petrochemicals and refining company in an era during which investors place a premium on environmentally friendly green companies.

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But with the economy roaring back to life, cyclical industrial plays like Lyondell are doing well, and that's likely to continue.

"Driven by industrial and consumer demand, low inventories and customer order backlogs, the strong momentum of the past couple of quarters should continue for the reset of this year and into ," says Jefferies analyst Laurence Alexander (Buy). "Given the strength in the leading indicators, we expect petrochemicals prices to remain strong through at least "

Lyondell trades at a price-to-earnings (P/E) ratio of just 8 and yields an attractive % in dividends. And while the stock has enjoyed an epic run since bottoming out March of last year, it remains just barely above pre-pandemic levels. That's why LYB is one of the best stocks to buy right now: It's a cheap stock in a market that is anything but cheap.

5 of 21

Enterprise Products Partners LP

Photograph of pipeline
  • Industry: Midstream oil and gas
  • Market value: $ billion
  • Distribution yield: %*

The past 10 years have been a lost decade for the midstream energy sector (read: oil and gas pipelines and storage). As a case in point, consider that Enterprise Products Partners LP (EPD, $) – considered by many to be the blue chip of the master limited partnership (MLP) space – today trades at levels first seen in late

But here's the thing. While Enterprise's stock price hasn't budged, its underlying businesses have been expanding, as have its cash distributions. Ten years ago, Enterprise paid 30 cents per quarter in distributions; today, the payout is fully 50% higher at 45 cents. At current prices, that works out to a massive yield of 8%.

"[Enterprise Products Partners] should continue to benefit from higher volume as the economy recovers," says Argus Research analyst Bill Selesky, who rates the EPD stock at Buy. "EPD also has a strong balance sheet with below-industry-average leverage, and a well-regarded management team. On valuation, EPD appears attractive based on historical P/E and our discounted cash flow analysis."

Selesky also notes Enterprise's year streak of distribution hikes.

It has been a long road for midstream stocks like Enterprise, but valuations are attractive and the shares have been trending higher. If the economy cooperates, EPD could be one of the best stocks for the rest of and beyond.

* Distributions are similar to dividends but are treated as tax-deferred returns of capital and require different paperwork come tax time.

6 of 21

Kinder Morgan

Kinder Morgan energy pipeline
  • Industry: Midstream oil and gas
  • Market value: $ billion
  • Dividend yield: %

If you like the bullish thesis for Enterprise Products Partners, then you should be equally enthusiastic about Kinder Morgan's (KMI, $) prospects for the rest of and beyond.

Kinder Morgan is one of the largest energy infrastructure companies in the world with approximately 83, miles of pipelines and terminals spread across North America. Approximately 40% of all natural gas consumed in the United States passes through Kinder Morgan pipelines.

Pipeline stocks have been a no-man's land for years, and Kinder Morgan is no exception. Shares have been trending higher since November but remain below their pre-pandemic levels and are still more than 60% below their highs. In Kinder Morgan, you get the opportunity to buy a cheap stock in a cheap sector that, after years of declines, is finally trending higher. And you're getting paid a 6%-plus dividend while you wait!

Simply returning to pre-pandemic levels would mean upside of nearly 30% from current prices, not including the dividend. That's not too shabby in a market in which value is getting increasingly difficult to find.

7 of 21

Ryder System

photo of Ryder truck
  • Industry: Rental and leasing services
  • Market value: $ billion
  • Dividend yield: %

Ryder System (R, $) is best known for its ubiquitous trucks crisscrossing America's roads. Ryder owns and rents more than , trucks and other commercial vehicles of assorted shapes, sizes and functions.

It also does a lot more than that. Ryder offers a turnkey logistics and supply-chain operation, including e-commerce fulfillment. Building out a logistical operation takes time and capital that most companies simply don't have, and Ryder offers this, ready to go, as a service.

There is no company on earth that is truly "Amazon-proof," but Ryder seems as close as you can get. It might be an economy stock, but its services are critical to the functioning of the new economy.

Ryder sports a current dividend yield of 3%, which is more than double the S&P 's historically modest yield. Better still: Ryder is a dividend growth stock that has more than doubled its payout since

R shares have enjoyed a fantastic run over the past year, though the price remains at levels. Still, that means this pick could have further to run if value stocks remain in favor.

8 of 21

Vale

A line of iron ore mining carts
  • Industry: Industrial metals and mining
  • Market value: $ billion
  • Dividend yield: %

Commodities have enjoyed a great first half in as rising demand from a reopening economy combined with curtailed supply due to pandemic-related bottlenecks to create some of the best pricing conditions in decades. These conditions likely will take time to correct, which is good news for Vale (VALE, $), the Brazilian miner. Vale happens to be one of the world's largest producers of iron ore and is also a major producer of other industrial metals and precious metals.

Like most miners, Vale had a rough run in the years leading up to The shares were in free fall off and on for most of the past decade.

It's not that Vale did anything particularly wrong. It simply had the classic problem of having a nice house in a bad neighborhood. Neither commodity stocks nor emerging market stocks never really recovered after the crisis. Well, Vale is both a resource stock and an emerging market stock. It never stood a chance.

But then, conditions finally improved in Emerging markets and commodities both finally bottomed out. Vale stock has more than tripled since hitting lows in March , and more gains could be on the way.

"The major iron ore miners should be the standout performers due to extraordinarily high iron ore prices, free cash flow and dividends in the period," says Jefferies analyst Christopher LaFemina (Buy). "This should not be a surprise as these companies have pristine balance sheets and a track record of large capital returns, but we do believe that the market still under-appreciates the magnitude of the upcoming capital returns."

He adds that he thinks Vale – as well as BHP (BHP), Rio Tinto (RIO) and Fortescue (FSUGY) – are "likely to announce strong results and very large dividends." LaFemina forecasts annualized capital return yields of % for Vale, including its ongoing buyback program.

Mining stocks can be wildly volatile, of course. But with industry conditions positive for the first time in years, Vale could be one of the best stocks to buy for the rest of and even farther out.

9 of 21

Freeport-McMoRan

Freeport McMoran mine
  • Industry: Copper
  • Market value: $ billion
  • Dividend yield: %

Along the same lines, shares of Freeport-McMoRan (FCX, $), one of the world's largest copper miners, look like a good bet.

Copper is a critically important commodity in construction, particularly in electricity and plumbing. Roughly 43% of all mined copper is used in construction, and another 20% is used in building transportation equipment.

Congress just agreed to a trillion-dollar infrastructure package, and you can bet that other countries will be looking to infrastructure spending as well to boost their post-pandemic economies. Copper stocks such as Freeport, then, suddenly have the potential to be some of the best stocks for the remainder of

In late July, CFRA reiterated its Strong Buy recommendation on FCX shares, with analyst Matthew Miller writing "We remain bullish on the outlook for copper in the short term and long term, and FCX is poised to grow copper production 20% in '21 and 15% in '"

Jefferies reached the same conclusions.

"As we dig deeper into the results and the outlook, we see reasons to be more positive on FCX shares," says Jefferies' LaFemina (Buy). "These reasons include good operating performance, insights regarding high-return, low capital intensity projects at Lone Star and Grasberg, and a very substantial and unique, low-risk organic growth pipeline. We expect FCX shares to perform well between now and year-end."

10 of 21

Caterpillar

Caterpillar equipment
  • Industry: Farm and heavy construction machinery
  • Market value: $ billion
  • Dividend yield: %

Continuing the general theme of infrastructure, heavy equipment maker Caterpillar (CAT, $) should be an excellent choice for the remainder of

If you're bullish on construction and mining, it only stands to reason that you'd be bullish on the leader supplier of equipment to those sectors. Caterpillar makes compactors, asphalt pavers, excavators, backhoes and pretty much everything else you'd expect to see in major infrastructure project.

"The strength of CAT stock and the broader Machinery space is not very surprising in the context of cycle positioning," says Deutsche Bank analyst Nicole DeBlase (Buy). "Machinery stocks tend to show their best performance in years of an economic recovery, driven by outsized positive EPS revisions."

In the years leading up to the pandemic, Caterpillar had mostly traded in a range. But with infrastructure spending and construction spending in general looking to accelerate in the years ahead, Caterpillar's shares are showing definite signs of life that could carry through well into

11 of 21

Oshkosh

Oshkosh HEMTT (Heavy Expanded Mobility Tactical Truck) military vehicle driving on the highway.
  • Industry: Farm and heavy construction machinery
  • Market value: $ billion
  • Dividend yield: %

Apart from increased infrastructure spending, President Joe Biden's single most important spending priority has been the shift to greener energy. Oshkosh (OSK, $) is particularly attractive for the second half of because it sits at the intersection of both these themes.

Oshkosh is a maker of specialized heavy-duty trucks and equipment. It builds military vehicles, firetrucks, cement mixers, truck mounted cranes, and hydraulic lifting systems.

Oshkosh makes battery-powered versions of many of its specialty trucks, which endears it to the Biden administration. And earlier this year, the company snagged the contract to build a new generation of mail trucks for the U.S. Postal Service.

There aren't a lot of players in the areas where Oshkosh operates, which is good. That means competition is limited. Here's where story gets even better: Deutsche Bank's DeBlase (Buy) says Oshkosh plays in the "sweet spot" for heavy machinery stocks as it has "no exposure to China or agricultural equipment [but] elevated exposure to U.S. infrastructure."

In other words, Oshkosh's product mix is exactly where it needs to be to finish strong.

12 of 21

Newmont

Gold nuggets in a weight pan
  • Industry: Gold
  • Market value: $ billion
  • Dividend yield: %

Is inflation making a comeback?

It's difficult to say. The Federal Reserve insists that the soaring prices we see today are "transitory." They are a result of pandemic-related supply disruptions and abnormally high demand. Once things get a little closer to normal, inflation will fall back into a more normal range.

Maybe. That seems to be the scenario that the bond market is pricing in right now. But what if – just if – the Fed is wrong here and inflation ends up being not-so-transitory?

If you think there is even a remote chance of that, owning a little gold makes sense. And owning a blue-chip miner like Newmont (NEM, $) is a way to potentially turbocharge the returns of gold. Gold miners tend to behave like leveraged investments in gold. It's a volatile sector, but that volatility comes with the potential for outsized returns. In the last major bull market in gold, Newmont's shares more than tripled in value.

CFRA's Matthew Miller maintained his Strong Buy rating on Newmont in late July, calling it "one of our top picks in gold mining."

"We highlight NEM's strong five-year outlook of stable gold production that should average million ounces annually at all-in sustaining costs that should be less than $ per ounce," he wrote. "NEM's robust free cash flow profile supports its best-in-class dividend (current yield of %) and organic growth projects."

Gold could do well this decade, and Newmont is a good way to play that trend.

13 of 21

Nvidia

Nvidia chip
  • Industry: Semiconductors
  • Market value: $ billion
  • Dividend yield: %

One of the unexpected beneficiaries of the cryptocurrency craze has been Nvidia (NVDA, $). Long respected among gamers for the quality of its GPU graphics cards, it turns out that that Nvidia's hardware can do a lot more than spice up video game graphics. Its chips are the go-to for miners of bitcoin and other cryptocurrencies.

That's hardly all. They're also instrumental in artificial intelligence (AI), self-driving cars, medical research and data centers. Essentially, every major computing endeavor of the past several years requires Nvidia chips. And not surprisingly, the stock has enjoyed a nice run, rising from a split-adjusted $ per share at the beginning of to just above $ today.

Speaking of which, CFRA analyst Angelo Zino (Buy) says that the 4-for-1 split, effective in mid-July, "could help support NVDA's case to be added to the price-weighted Dow 30 index." Nvidia has become such a critical piece of the modern economy, it rightly deserves consideration for the Dow Industrials.

"Looking ahead, we think NVDA remains poised to see improving momentum within its data center business (20% plus growth through FY 25), with demand aided by an acceleration in enterprise orders in the second half of the calendar year," Zino adds.

If you're tapping the hardware industry for growth, NVDA could be one of the best stocks to buy and hold for years.

14 of 21

Taiwan Semiconductor Manufacturing

Silicon chip fab
  • Industry: Semiconductors
  • Market value: $ billion
  • Dividend yield: %

One of the stranger byproducts of the pandemic is the global shortage of computer chips. The recovery in auto sales has been stunted by a lack of chips. It's gotten so bad that Ford (F) and General Motors (GM) have been forced to scale back production, as have many European and Japanese automakers. Video game consoles are in short supply. Even Apple (AAPL) has announced that iPhone sales will be impacted this year by the shortage.

And it may take a while for the industry to right itself. Forecasts from several prominent chipmakers show that the market might not return to normal until late or even early

The chip shortage might make things difficult downstream, but it's a virtual guarantee of strong demand for the makers of the chips themselves, such as Taiwan Semiconductor Manufacturing (TSM, $), the world's largest chip foundry.

Taiwan Semiconductor primarily builds chips designed by others, such as Nvidia, Apple and Broadcom (AVGO). Business has been good, and it should only get better.

"We see TSMC's leadership in chip process technology supporting revenue growth at the high end of its 10%% CAGR guidance in the next five years," says CFRA's Hazim Bahari (Buy).

Argus Research analyst Jim Kelleher has a similarly sunny view of the company's prospects.

"We believe that Taiwan Semi is positioned for multiple years of exceptional growth given its multiple drivers in the technology economy," he says. "These include accelerated digitization, which is driving demand for traditional IT products and edge devices such as PCs and smartphones; cyclical drivers such as 5G and the emergence of cloud data center; and long-term drivers such as AI, M2M, internet of things, robotics, and autonomous vehicles."

Furthermore, Kelleher believes "that TSMC's role in the global semiconductor supply chain will continue to expand in the coming years" due to its consistent investment in new capacity.

This is certainly reason enough to consider Taiwan Semiconductor as one of the best stocks to buy for the remainder of , if not longer.

15 of 21

Nucor

Steel pipes
  • Industry: Steel
  • Market value: $ billion
  • Dividend yield: %

Infrastructure spending is one of the biggest themes of , and naturally, this will involve a lot of steel. This brings us to leading American steelmaker Nucor (NUE, $).

In its own words, Nucor is "the safest, highest quality, lowest cost, most productive and most profitable steel and steel products company in the world."

While there might be a little hyperbole mixed in those words, it's hard to argue with the broader strokes. Nucor is a leader in steel and steel products and is the largest steel recycler in North America. And it has managed to survive and even thrive in what has been a tremendously difficult competitive environment for decades.

Apart from benefiting from the obvious increase in steel demand due to the bump in infrastructure spending, Nucor boasts a few other advantages qualifying it as one of the best stocks to buy going forward. Among them: The Biden Administration has shown a strong preference for buying American, which should put Nucor in a good position relative to larger foreign competitors.

Argus Research analyst David Coleman (Buy) adds that "Nucor has a strong balance sheet and offers a solid dividend that has grown for 48 straight years." He also notes that "from a technical standpoint, the shares are in a bullish pattern of higher highs and higher lows that dates to March "

16 of 21

Rayonier

forests
  • Industry: Timber real estate
  • Market value: $ billion
  • Dividend yield: %

While infrastructure has done a lot of the driving in , there's more to materials demand than just government spending plans. We're also in the midst of a major bull market in residential housing.

Some of this is due to the pandemic, of course. After a year of lockdowns and restrictions on daily life in the city, suddenly the leafy suburbs seemed a lot more attractive. But the bullish case here goes far beyond the pandemic. The millennials – that generation that we believed would never grow up – are now approaching their 40s and falling into the same lifestyle patterns as prior generations, such as buying homes and moving out of urban centers.

Construction can't keep pace with demand at the moment, which is good news for lumber and forestry products companies such as Rayonier (RYN, $). Rayonier is a timber REIT that owns or manages million acres of timberlands, primarily in North America. The shares have been trending higher since September of last year.

The housing boom is particularly strong in the United States, but Rayonier has other opportunities as well.

"Management remains very bullish regarding sawlog demand from China going forward thanks, in part, to China's ban on sawlog imports from Australia," says Raymond James timber analyst Buck Horne. "This policy change doesn't appear to be changing anytime soon and is creating pricing tension, particularly at Rayonier's New Zealand timberland assets."

In other words, demand from China remains high at a time when Rayonier's chief competitor is largest offline. Not bad.

17 of 21

Prologis

A distribution center
  • Industry: Industrial real estate
  • Market value: $ billion
  • Dividend yield: %

Again, we know that Amazon.com is taking over the world. This isn't really up for debate. But there are more ways to benefit from this trend than simply buying Amazon stock.

Why not own Amazon's landlord?

Prologis (PLD, $) is the industry leader in logistics real estate and a major landlord to Amazon and other e-tailers. They own the gritty warehouses and distribution facilities that make the modern world work. Quite simply, there would be no internet commerce without the real-economy assets that support it, and that's exactly what makes Prologis one of the best stocks to buy for the rest of and beyond.

"As the sector leader, we believe Prologis is well positioned to record impressive growth over a multi-year period as the e-commerce/logistics boom continues to rapidly expand," say Raymond James analysts William Crow, Alexander Sierra and Ronak Patel, who rate the stock at Strong Buy.

About that: % of the world's GDP already flows through Prologis properties. Stop and think about how truly remarkable that is. World GDP was estimated at $85 trillion last year. That means more than $2 trillion in inventory passes through the company's properties every year, and that number is growing.

"We actually haven't had a new idea since ," Prologis Chairman and CEO Hamid Moghadam recently said. Prologis was an early investor in the logistics of e-commerce, and it's been riding that trend for more than two decades. And it's likely it will ride those trends for decades into the future.

18 of 21

Microsoft

A Microsoft sign on a glass building
  • Industry: Software
  • Market value: $ trillion
  • Dividend yield: %

Lost Generation writer F. Scott Fitzgerald once wrote that "there are no second acts in American lives."

Generally, the same applies to technology companies. It's rare to find a technology company that is successfully able to reinvent itself. Genius rarely strikes twice.

Microsoft (MSFT, $) is one of those precious few exceptions.

Microsoft created the global office of the s and s with its Windows operating system and Office productivity suite. But the company missed the mobile revolution and seemed destined to slowly fade into obscurity.

And then the cloud happened.

Microsoft CEO Satya Nadella was an early mover in cloud computing, seeing the success of Amazon Web Services. He has since built Microsoft into Amazon's biggest competitor in the cloud while also successfully transitioning Microsoft away from its old software-as-a-product model to its modern software-as-a-service model.

MSFT has been one of the best big stocks of the past half-decade as a result. Shares have risen by a factor of five over the past five years, and they have shown no indication of slowing down.

"We continue to believe that the pandemic is forcing organizations of all sizes to accelerate the pace of their respective cloud migrations and that MSFT should continue to be a key beneficiary," say Stifel analysts Brad Reback and Adam Borg (Buy).

19 of 21

Exxon Mobil

Exxon station
  • Industry: Integrated oil and gas
  • Market value: $ billion
  • Dividend yield: %

By some measures, the S&P is as expensive today as it was during the frothy days of the s tech bubble. But there are still a few reasonable bargains out there.

As a case in point, consider energy supermajor Exxon Mobil (XOM, $).

Not all that long ago, Exxon was considered the bluest of blue chips and the largest company in the world by market cap. But a major multiyear supply glut in crude oil had a way of humbling the entire energy, including big boys such as Exxon. The stock is currently down by more than 40% from its pre-glut highs.

But remember, this isn't Exxon's first energy crisis. This is a company that survived the embargo of the s and the supply glut of the s and '90s. And the company made it through the COVID bear market – including the swoon that saw crude oil prices briefly go negative.

Exxon's shares have been trending higher since November of last year with little sign of slowing down. And importantly, they're still cheap, trading at a forward P/E ratio of just 12 and yielding nearly 6%.

XOM, then, is one of the best stocks to buy for the rest of and beyond if you like a good bargain.

20 of 21

Retail Opportunity Investments

Shopping center with Vons supermarket
  • Industry: Retail real estate
  • Market value: $ billion
  • Dividend yield: %

Few things got hammered as hard during the pandemic as small retailers. And by proxy, their landlords took a hit as the retailers couldn't pay their rent.

This was the situation facing Retail Opportunity Investments (ROIC, $). ROIC is a real estate investment trust that primarily owns neighborhood shopping centers, many of which were anchored by grocery stores. Naturally, most grocery stores did well during the pandemic. But many of the smaller tenants really struggled, and in the pits of the COVID lockdowns, ROIC was forced to temporarily eliminate its dividend during the lockdowns.

But in the months that have passed, the REIT has reinitiated its dividend, and its stock is definitely on the upswing. The shares are up about % from their pandemic lows.

There's good reason to expect that momentum to continue; 97% of its space is under lease, down only 1% from pre-pandemic levels. ROIC's stock price has essentially recovered to its pre-pandemic. But remember, most stocks are well above their old highs, so Retail Opportunity Investments has some serious catching up to do.

21 of 21

Berkshire Hathaway

Berkshire Hathaway CEO Warren Buffett
  • Industry: Diversified insurance
  • Market value: $ billion
  • Dividend yield: N/A

An investment in Warren Buffett's Berkshire Hathaway (BRK.B, $) is an investment in America.

That's not just hyperbole. Apart from the company's high-profile positions in Apple (AAPL), Bank of America (BAC) and Coca-Cola (KO), among others, Berkshire boasts a vast and sprawling empire of wholly owned companies and brands we know and love: Acme Brick Company, the BNSF railroad, Fruit of the Loom. Berkshire even owns Dairy Queen, a staple of small-town America, ostensibly because Mr. Buffett likes their ice cream.

Berkshire Hathaway, like much of middle America, took its licks during the pandemic. But as America continues to see its economy normalize, Berkshire's portfolio companies should continue to recover nicely.

Few analysts cover Berkshire, but UBS analysts Brian Meredith, Sheila Seetharaman and Weston Boomer rate it a Buy, saying "We remain constructive on BRK, which we believe is well-positioned to benefit from macroeconomic growth through its cyclical businesses … where we are anticipating a strong rebound as the economy reopens."

Thus, the Oracle of Omaha's holding company belongs among the best stocks to buy for the rest of

Charles Sizemore was long AMZN, EPD, KMI, LYB, MSFT and O as of this writing.

Sours: https://www.kiplinger.com/investing/stocks//best-stocks-to-buy-for
The 6 TOP Stocks To Buy in September 2021 (High Growth)

11 Best Growth Stocks for the Rest of

Growth stocks have done well in just not as well as their value counterparts. While the Russell Value Index is up almost 17% for the year to date, the Russell Growth Index is up 14%.  

But growth stocks start to look more interesting when you zoom in more recently. Over the past three months, the Russell Growth Index is up % to the Russell Value Index's %. And in June, the Russell Growth Index gained more than 6% while the Russell Value Index lost nearly 2%.

Momentum is back on growth's side for two main reasons. First, some investors think the reopening trade might be topping out. Also, after months of underperformance, growth stocks look more attractive from a valuation standpoint than they did before.

"When combined with their underlying growth rates, which have remained robust despite their tepid share performance, valuations look reasonable, especially on five-year projected earnings," say Osterweis Capital Management's Jim Callinan, chief investment officer of emerging growth, and Bryan Wong, vice president.

Here are 11 of the best growth stocks to buy for the remainder of They all have high grades in Stock News "POWR Ratings" system, which ranks stocks based on dozens of fundamental metrics. Each of these picks appear poised to push higher until at least the end of the year, if not longer.

Data is as of July 2. POWR Ratings work on an A-B-C-D-F system.

1 of 11

Canadian Natural Resources

Oil rig
  • Market value: $ billion
  • POWR Ratings overall rating: B (Buy)
  • POWR Ratings average broker rating:

Canadian Natural Resources (CNQ, $) is one of the largest oil and natural gas producers in western Canada, supplemented by North Sea and Offshore Africa operations. The company boasts a diversified portfolio of crude oil, including heavy and light, natural gas, bitumen and synthetic crude oil. 

CNQ has substantial mining assets in the Horizon oil sands and the Athabasca oil sands that hold leases containing an estimated billion barrels of proved and probable synthetic crude oil reserves.

The company has a broad portfolio of low-risk exploration and development projects. Its balanced and diverse production mix helps facilitate its long-term value and significantly reduces its risk profile. CNQ also has strong international exposure, yielding long-term volume growth at above-average rates. Its low-cost structure, driven by the integration of its midstream pipeline assets, compares quite favorably with its peers.

Lower capital needs and improving operational efficiencies have enabled CNQ to generate strong free cash flow. In addition, its acquisitions have allowed the company to increase its competitive edge, which boosts revenue and earnings. 

Canadian Natural Resources has an overall grade of B and a Buy rating in the POWR Ratings system. The company has a Growth Grade of A. CNQ has grown sales an average of % per year over the past five years, and analysts expect revenue to soar % year-over-year in the second quarter.

Earnings are also expected to surge, with a year-over-year increase of % projected in the same quarter. Also adding to CNQ's positioning as one of the best growth stocks to watch going forward is its strength in fundamentals, as evidenced by its Quality Grade of B. The company has an operating margin above the industry average and a debt-to-equity ratio of

CNQ is ranked No. 6 in the Foreign Oil & Gas industry. Get Canadian Natural Resources's (CNQ) Complete POWR Ratings analysis here.

2 of 11

Capital One Financial

Capital One bank sign
  • Market value: $ billion
  • POWR Ratings overall rating: B (Buy)
  • POWR Ratings average broker rating:

Capital One Financial (COF, $) is a diversified financial services holding company headquartered in McLean, Virginia. It is primarily focused on consumer and commercial lending, as well as deposit origination. Its credit card segment is the largest contributor to revenue at over 60%, followed by its consumer banking segment and its commercial banking segment.

The company is generating healthy profits through its card and online banking businesses. In particular, its domestic card accounted for % of its credit card net revenues in the first quarter, which reflects substantial loan balances. Plus, an increase in consumer confidence towards the economic recovery has led to a rise in demand for consumer loans.

The company's auto lending business has also been performing exceptionally well. It is seeing rising receivable balances and low net charge-offs, which provide COF with another source of growth. Capital One Financial has an overall grade of B, which translates into a Buy rating in the POWR Ratings system. 

COF has a Growth Grade of B, as earnings have been surging. Over the past three years, earnings per share (EPS) have grown an average of %. And in its upcoming second-quarter earnings report due out later this month, the big bank is expected to report EPS of $, compared to a per-share loss of $ from one year ago. 

The name is also one of the growth stocks on this list that is well-liked by the Wall Street pros, per its Sentiment Grade of A. Twenty out of 24 analysts rate the shares a Buy or Strong Buy. 

Capital One Financial is ranked No. 6 in the B-rated Consumer Financial Services industry. Click here to get the complete POWR Ratings analysis for Capital One Financial (COF).

3 of 11

Discover Financial Services

A Discover card among other credit cards
  • Market value: $ billion
  • POWR Ratings overall rating: B (Buy)
  • POWR Ratings average broker rating:

Discover Financial Services (DFS, $)is a bank operating in two distinct segments: direct banking and payment services.The company issues credit and debit cards and provides other consumer banking products, including deposit accounts, student loans and personal loans.

DFS also operates the Discover, Pulse and Diners Club networks.Discover is the fourth-largest payment network in the U.S., while Pulse is one of the biggest ATM systems in the country.

The company has averaged % sales growth over the past five years. Its banking business has been performing very well, thanks in part to a 5% year-over-year improvement in its private student loan portfolio in the first quarter. DFS has also benefited from a rebound in card sales due to the economic recovery and improved consumer spending.

With more people heading out to retail stores and restaurants, the company should continue to benefit from increased revenue. COF has an overall grade of B, which translates into a Buy rating in the POWR Ratings system. Like the rest of the growth stocks on this list, DFS has a strong Growth Grade. Its score here lands at a B due to past earnings performance and future growth prospects.

DFS has grown its EPS an average of % over the past three years. The financial firm is expected to post earnings of $ per share in the second quarter, compared to a per-share loss of $ one year ago.

The company also has a Momentum Grade of B, driven by bullish long-term sentiment. The growth stock is up 33% year-to-date and % over the past year. 

Discover Financial Services is ranked No. 7 in the Consumer Financial Services industry. Get the full POWR Ratings for Discover Financial Services (DFS) here.

4 of 11

Eaton

An Eaton Corporation building.
  • Market value: $ billion
  • POWR Ratings overall rating: B (Buy)
  • POWR Ratings average broker rating:

Eaton (ETN, $) is a diversified power management company operating for over years. The company operates through various segments, including electrical products, systems and services, aerospace, vehicle and e-mobility. 

In its industrial segment, Eaton serves a large variety of end markets like commercial vehicles, general aviation and trucks. Under its electrical segment, it serves data centers, utilities and the residential end market.

The company has been gaining due to increased capital expenditures (capex) from companies, driven by the economic rebound. If President Joe Biden's massive infrastructure bill gets passed, ETN is expected to see an additional jump in revenue. 

In addition to rising capex, the company's sales are expected to see a boost from the growing demand from developing economies for upgrading power infrastructure, as well as the trends toward industrial Internet of Things (IoT) and automation.

The electrification of vehicles should also help growth as the company created its eMobility segment in ETN has an overall grade of B or a Buy in the POWR Ratings system. The company has a Growth Grade of B, with earnings forecast to surge % year-over-year in the second quarter. Revenue is also expected to soar % from the year prior.

The growth stock has a Quality Grade of B due to solid fundamentals. As of the most recent quarter, it had a current ratio of and a debt-to-equity ratio of Plus, its gross margin of % is higher than the industry average. 

ETN is ranked No. 19 in the Industrial-Machinery industry. See the complete POWR Ratings for Eaton (ETN) here.

5 of 11

EOG Resources

An oil rig at night
  • Market value: $ billion
  • POWR Ratings overall rating: B (Buy)
  • POWR Ratings average broker rating:

EOG Resources (EOG, $) is an oil and gas producer with acreage in several U.S. shale plays, including the Permian Basin, the Eagle Ford and the Bakken. In fact, it is one of the largest independent exploration and production companies operating in the U.S. The company derives almost all of its production from domestic shale fields.

EOG had announced plans to shift its strategy to what it calls "double premium," which means developing wells that deliver a 60%+ after-tax rate of return at $40 per barrel of West Texas Intermediate (WTI) crude oil. The "double" is twice its original premium strategy five years ago when it aimed for a 30% return. 

The recent rise in crude oil prices also bodes well for the company. EOG has an overall grade of B, translating into a Buy rating in the POWR Ratings system. 

This is another one of the growth stocks on this list that is expected to swing to a profit in the second quarter. Specifically, EOG has a Growth Grade of B, with Q2 EPS forecast to arrive at $ versus a year-ago loss of 23 cents per share. For the full fiscal year, earnings are projected to jump %

EOG Resources also has a Quality Grade of B, which indicates a healthy balance sheet. The company had $ billion in cash as of the most recent quarter-end, compared with only a paltry $39 million in short-term debt. The company also has a current ratio of and a debt-to-equity ratio of only  

EOG is ranked No. 21 in the Energy-Oil & Gas industry. To see the complete POWR Ratings analysis for EOG Resources (EOG), click here.

6 of 11

Linde

Oxygen tank
  • Market value: $ billion
  • POWR Ratings overall rating: B (Buy)
  • POWR Ratings average broker rating:

Linde (LIN, $) is the largest industrial gas supplier in the world, with operations in over countries. The company's main products are atmospheric gases such as oxygen, nitrogen and argon, and process gases including hydrogen and carbon monoxide. LIN also offers equipment used in industrial gas production. The company serves a wide variety of end markets, including chemicals, manufacturing, healthcare and steel-making.

LIN is seeing demand for its products. Industrial gases such as oxygen are being used for life support in hospitals. Hydrogen is being used for clean fuels, and its specialty gases are being utilized for manufacturing electronics. Its sale of gas project backlog of $ billion, as of March 31, is expected to drive strong revenue growth this year.

The company is also expected to continue to hike prices in , which should also increase revenue. 

As far as growth stocks go, Linde is well-positioned to benefit from the rapid rise in green energy markets. The company has an overall grade of B and a Buy rating in our POWR Ratings system. LIN has a Growth Grade of B, as sales have grown an average of % a year over in the last three years. Plus, sales are expected to rise % year-over-year in the second quarter.

The company also has a Sentiment Grade of B as it is well-liked by Wall Street analysts. Nineteen out of 23 analysts have a Buy or Strong Buy rating on the stock. In addition, LIN has a Stability Grade of B as it has shown consistency in both its growth and price returns. 

LIN is ranked No. 30 in the Chemicals industry. Get the full POWR Ratings for Linde (LIN) here.

7 of 11

Nucor

Steel pipes
  • Market value: $ billion
  • POWR Ratings overall rating: B (Buy)
  • POWR Ratings average broker rating:

Nucor (NUE, $) is a leading manufacturer of steel and steel products. The company also produces direct reduced iron for use in its steel mills. Its operations are based on international trading and sales companies that buy and sell steel and steel products manufactured by NUE.

The company has been benefiting from a strong recovery in U.S. steel prices. Prices have hit record levels after plunging in the pandemic. This rebound has been driven by increased demand, supply shortages and higher raw material costs. Higher domestic steel prices act as a catalyst for Nucor's steel mills unit.

NUE sees momentum in the non-residential construction market and in the automotive market. The company is focused on greater penetration of the automotive market due to its long-term growth potential. 

Nucor has an overall grade of B, translating into a Buy rating in the POWR Ratings system. The company has a Growth Grade of A as earnings have surged % per year, on average, over the past five years. Analysts expect earnings to soar nearly 1,% year-over-year in the second quarter and almost % in the next quarter. 

NUE also has a Quality Grade of B due to a strong balance sheet. The company had $ billion in cash as of the most recent quarter, compared to only $67 million in short-term debt. NUE also has a high current ratio of and a low debt-to-equity ratio of  

The company is ranked No. 22 in the red-hot Steel industry, and is one of the best growth stocks to watch going forward. See the complete POWR Ratings for Nucor (NUE) here.

8 of 11

ABB

ABB building
  • Market value: $ billion
  • POWR Ratings overall rating: A (Strong Buy)
  • POWR Ratings average broker rating:

ABB (ABB, $) is a global supplier of electrical equipment and automation products. The company is one of the top suppliers in all of its core markets. 

Automation is considered the fastest growing area in the industrial space, and ABB is one of the best-positioned companies to benefit. In automation, it offers a full suite of products for process automation, as well as robotics and discrete automation. 

The company's electrification products should also aid growth. Its exposure to smart-grid technology and electrical distribution components is already helping meet the demand for grid-management and energy-saving products – and could keep ABB among the best growth stocks of and beyond.

ABB has an overall grade of A and a Strong Buy rating in the POWR Ratings system. The company also has a Growth Grade of B, which isn't surprising as earnings are forecast to rise 50% in the second quarter and % for the full fiscal year. Even with a down year last year, ABB's EPS has grown an average of % per year over the past three years.

The stock has a Momentum Grade of A, too, as it has shown bullish price action over the past year. ABB is up % so far for the year to date, and has gained more than 47% in the past twelve months. ABB is also way above its day moving average. 

ABB is ranked No. 6 in the Industrial-Machinery industry. Click here for ABB's (ABB) full POWR Ratings.

9 of 11

McDonald's

A McDonald&#;s building
  • Market value: $ billion
  • POWR Ratings overall rating: A (Strong Buy)
  • POWR Ratings average broker rating:

McDonald's (MCD, $) is the largest restaurant owner-operator globally, with systemwide sales of $93 billion across 39, stores and countries. The company was key to revolutionizing the restaurant industry with low-cost and quick-to-prepare menu options, and expanded its impressive footprint through partnerships with independent restaurant franchisees.

MCD has benefited from its increased focus on drive-thru, delivery and takeaway services, as this is now what many consumers favor. In fact, the company is working on a new loyalty program called My McDonald's Rewards in an attempt to boost traffic. MCD has also been innovating its menu to increase growth. For example, the company is focused on expanding its chicken offerings, a favorite with customers.

The company is also looking to drive growth through international markets. Management believes there is a massive opportunity to grow by expanding its presence in existing markets and new ones. 

MCD has an overall grade of A, which translates into a Strong Buy in the POWR Ratings system. The restaurant chain has a Growth Grade of B, which makes sense as its analysts expect EPS to rise % year-over-year in the second quarter.

McDonald's is also expected to grow earnings % for the full fiscal year. MCD is another one of the growth stocks on this list that has strong fundamentals and a rock-solid balance sheet, earning it a Quality Grade of A. The company sports a current ratio of  

MCD is ranked No. 5 in the Restaurants industry. Get McDonald's (MCD) complete POWR Ratings analysis here.

10 of 11

Starbucks

A Starbucks sign
  • Market value: $ billion
  • POWR Ratings overall rating: A (Strong Buy)
  • POWR Ratings average broker rating:

Starbucks (SBUX, $) is one of the world's most famous coffee and restaurant brands, with over 32, stores across 80 countries. In addition to its own retail stores, the company generates revenues through licensed stores, consumer packaged goods and foodservice operations. SBUX sells packaged coffee and tea products to grocery, warehouse clubs and specialty retail stores.

As one of the most recognized coffee brands internationally, SBUX has been able to increase its global market share by opening stores in new and existing markets and remodeling older locations. The company also allied with Swiss food giant Nestle in to expand its global reach in the consumer-packaged-goods segment. Per the terms of the deal, Nestle has perpetual rights to market Starbucks products.  

Additionally, with China and the Asia-Pacific regions becoming the fastest-growing segment, SBUX also has a partnership with Chinese e-commerce name Alibaba (BABA) to integrate multiple platforms across both companies' ecosystems. 

Starbucks has an overall grade of A, translating into a Strong Buy in the POWR Ratings system. The company has a Growth Grade of B, which makes sense as analysts forecast fiscal third-quarter EPS to arrive at 77 cents, compared to a per-share loss of 46 cents this time last year. For the full year, SBUX is expected to see earnings rise % on a year-over-year basis. 

SBUX has a Quality Grade of B, which is indicative of a healthy balance sheet. The company had $ billion in cash at the end of March, compared with only $ billion in short-term debt. SBUX also has a current ratio of  

Starbucks is ranked No. 6 in the Restaurants industry. See the complete POWR Ratings for Starbucks (SBUX) here.

11 of 11

Vale

A line of iron ore mining carts
  • Market value: $ billion
  • POWR Ratings overall rating: A (Strong Buy)
  • POWR Ratings average broker rating:

Vale (VALE, $) is the world's largest producer of iron ore and iron ore pellets, which it supplies to the steel industry. A growing global population and rapidly moving urbanization are expected to fuel steel demand for years. This certainly bodes well for VALE. 

The company also produces manganese ore, ferroalloys, metallurgical and thermal coal, nickel and copper. Additionally, VALE has a logistics network that integrates mines, railroads, ports and ships. This has provided an edge in the iron ore market as it significantly lowers costs. 

The firm has also been gaining from a rally in iron ore prices. The metal reached an all-time high in May, as demand in China soars amid supply concerns. The country, which is the largest consumer of steel worldwide, is spending more on infrastructure, so the price of iron ore is expected to remain high for the foreseeable future. 

Vale should also benefit from solid demand for nickel, as the metal is used in electric vehicle batteries. Plus, copper prices have also rebounded due to robust demand in China. 

The company has an overall grade of A, which is a Strong Buy in the POWR Ratings system. VALE has strong grades across the board, highlighted by a Growth Grade of A. Analysts expect sales to soar % and earnings to surge % year-over-year in the second quarter. Earnings are also expected to surge a whopping % for the full fiscal year. 

In addition, Vale has a Quality Grade of A due to its solid balance sheet. The company has a current ratio of and a debt-to-equity ratio of Both measures indicate healthy fundamentals. 

VALE is a favorite among growth stocks, ranking No. 2 when compared to its Industrial-Metals peers.

Click here to see the complete POWR Ratings analysis for Vale (VALE).

Sours: https://www.kiplinger.com/investing/stocks/stocks-to-buy//best-growth-stocks-for-the-rest-of

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