Best Growth Stocks to Buy Now in Top Sectors for 2019
Sam Subramanian PhD, MBA
If you are looking for the best growth stocks to buy now, this list of stodgy stalwarts from top sectors is worth checking. For one, all of them have strong near-term growth prospects. Second, some of them provide meaty dividends as well.
The fourth quarter of 2018 has proved pivotal in resetting investors' growth expectations.
S&P 500 members had grown their profits by 25% or more in each of first three quarters of 2018.
The S&P 500 and the Russell 2000 index of small-cap companies were up 11% and 12%, respectively.
Fears of slowing U. S. economic growth heightened in the fourth quarter from a number of factors coming together.
Trade negotiations between the U. S. and China stalled with each nation imposing tit-for-tat tariffs on the other. The Federal Reserve continued to tighten monetary conditions. Economic data pointed to a slowdown in China and Europe.
The price of oil swooned 38% in the fourth quarter.
As analysts lowered their fourth quarter and 2019 earnings growth expectations for U. S. companies, stock prices tumbled.
The S&P 500 and the Russell 2000 indexes lost 14% and 20%, respectively in the fourth quarter.
Under these conditions, which sectors do analysts expect to show the highest growth in 2019?
High Growth Sectors for 2019
Here is what FactSet data show as of January 11:
Analysts are forecasting S&P 500 companies to grow earnings by 6.9% in 2019.
That's down 1.0% from their forecast for 7.9% earnings growth on December 31, 2018, or just 11 days ago.
Analysts have lowered their 2019 earnings growth forecasts for all sectors except health care.
As shown below, analysts now expect earnings to grow year-over-year in 10 of the 11 sectors.
Energy is the only sector where earnings are expected to decline year-over-year.
Analysts expect earnings to grow in 10 of the 11 sectors in 2019. The industrial sector is expected to lead with double-digit earnings growth. Earnings are expected to contract only in the energy sector.
Earnings growth is expected to be strongest in the industrial, consumer discretionary, and financial sectors.
Earnings growth is expected to be less robust in consumer staples, real estate, and energy.
High growth sectors are a logical place to look for the best growth stocks to buy now.
So, what specific companies currently offer above-average earnings growth prospects?
Best Growth Stocks to Buy Now
The following is a compilation of large U. S. companies forecasted to grow their EPS at a rate higher than the 6.9% rate for the S&P 500 index.
Companies with a market capitalization of over $25 billion are included in this list.
The list is pruned to three companies in sectors where several companies show above-average growth.
1. Best Growth Stocks to Buy Now in Communication Services Sector
- Netflix (NFLX): 54%
- Charter Communications (CHTR): 38%
- Alphabet (GOOGL): 14%
2. Best Growth Stocks to Buy Now in Consumer Discretionary Sector
- Amazon.com (AMZN): 35%
- V. F. Corp. (VFC): 17%
- Lowe's Companies (LOW): 16%
3. Best Growth Stocks to Buy Now in Consumer Staples Sector
- Monster Beverage (MNST): 13%
- Costco Wholesale (COST): 9%
- Sysco (SYY): 8%
4. Best Growth Stocks to Buy Now in Energy Sector
- Marathon Petroleum (MPC): 38%
- Valero Energy (VLO): 36%
- Williams Companies (WMB): 35%
5. Best Growth Stocks to Buy Now in Financial Sector
- American International Group (AIG): 112%
- Travelers Companies (TRV): 22%
- Wells Fargo (WFC): 18%
6. Best Growth Stocks to Buy Now in Health Care Sector
- Humana (HUM): 21%
- Celgene (CELG): 18%
- Cigna (CI): 18%
7. Best Growth Stocks to Buy Now Stocks in Industrial Sector
- Deere & Co (DE): 22%
- Boeing (BA): 21%
- Delta Air Lines (DAL): 20%
8. Best Growth Stocks to Buy Now in Information Technology Sector
- Salesforce.com (CRM): 93%
- NVIDIA (NVDA): 55%
- Adobe Systems (ADBE): 41%
9. Best Growth Stocks to Buy Now in Materials Sector
- Sherwin-Williams (SHW): 15%
- DowDuPont (DWDP): 14%
- Linde (LIN): 14%
10. Best Growth Stocks to Buy Now in Real Estate Sector
- Equinix (EQIX): 42%
- Crown Castle International (CCI): 22%
- American Tower (AMT): 21%
11. Best Growth Stocks to Buy Now in Utilities Sector
- Sempra Energy (SRE): 12%
- NextEra Energy (NEE): 8%
AlphaProfit's Recommendations of Best Growth Stocks to Buy Now
AlphaProfit recommends attractively valued stocks with favorable near-term prospects in each Premium Service Monthly Report to help you profit from short-term investment opportunities.
To provide you with reliable winning stock recommendations, AlphaProfit evaluates stocks on both fundamental and technical factors.
Fundamental analysis ensures recommended companies are worthy of committing your precious dollars from quality, valuation, and growth perspectives.
Technical analysis provides precise buy & sell price recommendations to lock your gains.
The proof of AlphaProfit's methodology is in the results.
On average, subscribers have netted a 12.2% gain in 2 months from each stock recommendation at a 86% win rate.
AlphaProfit's Investment Selection Process
Selection of sectors with strong earnings growth prospects by itself does not guarantee winning picks.
To increase the odds of selecting winning sector ETFs & selecting winning Fidelity Select Funds, AlphaProfit evaluates sectors on valuation, momentum, and news quality with earnings growth being one of the news quality metrics.
This multi-factor analysis ensures investments in the chosen sector are attractively priced and have the catalysts needed to sustain growth in future.
Fully 75% of investments selected by AlphaProfit have made money ... and this includes the 2008 financial crisis and the dot-com bust at the turn of the millennium.
The high percentage of winning investment selections translates into lower risk and higher return for AlphaProfit Premium Service investment newsletter subscribers.
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