Sick buying high & selling low? Fed up of the fees you pay? Tired researching investments? End your financial pain now. You have the opportunity to If you’re searching for the best growth stocks to buy now, this list of reliable veterans from top sectors deserves a look. First, each boasts robust near-term growth prospects. Second, some offer generous dividends on top of that.
The year 2024 is turning out to be a favorable one for U.S. stocks. The S&P 500 (SPY) is up 21.4% for the year as of September 24, after gaining in each of the quarters.
With the Federal Reserve holding interest rates high and steady in the first half of the year, investors favored large-cap technology companies, known as the “Magnificent Seven.” By June 30, this cohort of companies had essentially lifted the benchmark all by themselves by 15.3%.
The rally broadened in the third quarter as inflation continued to decline and prospects of the Fed lowering interest rates improved.
Stocks with high dividend yields, small-cap stocks, and value stocks led the rally in the third quarter.
The broadening rally has lifted more stocks out of the hole. The percentage of S&P 500 members down year-to-date has dropped from 40% at the mid-year point to 23% on September 24.
The median S&P 500 member is now up 14%, compared to 3% on June 30.
High Growth Sectors for 2025
The U.S. economy continues to grow. The Atlanta Federal Reserve’s GDPNow tool projects the U.S. gross domestic product to expand at a 2.9% annualized rate in the third quarter of 2024.
Although job creation has slowed in 2024, the unemployment rate has remained low.
With core inflation gradually trending lower towards the Federal Reserve’s long-term goal of 2.0%, the central bank’s interest rate policy committee lowered the benchmark federal funds rate by 0.5% to the 4.75-5.00% range this month.
The Fed has effectively defended the sizable reduction in the federal funds rate as a proactive measure to sustain economic growth, rather than a reactive move to stabilize the economy.
Additionally, the Fed has set expectations for more interest rate cuts in 2024.
Investors are convinced that inflation in the U.S. economy will fall without triggering a recession, i.e., achieve a “soft landing.”
Amid this backdrop, analysts are upbeat about the prospects for profit growth in 2025.
Here’s a snapshot of analysts’ earnings growth estimates for S&P 500 companies in 2025, based on FactSet data as of September 20:
Analysts forecast aggregate earnings for S&P 500 companies to grow by 15.2% in 2025.
As shown below, they expect earnings to grow in all eleven sectors.
Analysts expect aggregate earnings for the S&P 500 members to grow by 15.2% in 2025, with profits increasing in all 11 sectors. They predict earnings in health care, communication services, and information technology to grow the most. Analysts forecast earnings in commodity-oriented sectors like energy and materials, as well as defensive sectors like real estate and consumer staples, to grow the least.
Analysts expect companies in the health care sector to deliver the highest earnings growth. They forecast aggregate earnings for the health care sector to grow by 17.8%.
Other sectors expected to outpace the S&P 500’s 15.2% growth include communication services, information technology, and consumer discretionary.
Analysts expect earnings in the real estate sector to expand the least in 2025.
So, what specific companies currently offer above-average earnings growth prospects?
Learn more: How does AlphaProfit make stock investing easy and help subscribers make a bundle?
Best Growth Stocks to Buy Now
Analysts forecast 15.2% earnings growth for S&P 500 companies in 2025.
Their earnings per share (EPS) forecasts reveal a select group of large U.S. companies poised to outpace the market average.
This list showcases the top three growth champions within sectors with multiple high-growth companies. All of them exceed the large-cap market capitalization threshold of $41 billion. The list excludes companies whose profits fell in 2024. Note that asterisks (*) designate stocks offering dividend yields exceeding the S&P 500’s 1.32%.
1. Best Growth Stocks to Buy Now in Communication Services Sector
• Netflix (NFLX): 20%
• T-Mobile US* (TMUS): 19%
2. Best Growth Stocks to Buy Now in Consumer Discretionary Sector
• Amazon.com (AMZN): 23%
• Chipotle Mexican Grill (CMG): 19%
• Royal Caribbean Cruises (RCL): 16%
3. Best Growth Stocks to Buy Now in Consumer Staples Sector
None
4. Best Growth Stocks to Buy Now in Energy Sector
• Schlumberger* (SLB): 17%
5. Best Growth Stocks to Buy Now in Financials Sector
• American International Group* (AIG): 31%
• KKR & Co (KKR): 31%
• Blackstone* (BX): 30%
6. Best Growth Stocks to Buy Now in Health Care Sector
• Eli Lilly and Co. (LLY): 40%
• Merck* (MRK): 21%
• IDEXX Laboratories (IDXX): 16%
7. Best Growth Stocks to Buy Now in Industrials Sector
• Boeing (BA): 184%
• Uber Technologies (UBER): 112%
• GE Vernova (GEV): 102%
8. Best Growth Stocks to Buy Now in Information Technology Sector
• Micron Technology (MU): 656%
• Advanced Micro Devices (AMD): 59%
• NVIDIA Corp (NVDA): 42%
9. Best Growth Stocks to Buy Now in Materials Sector
• Freeport-McMoRan* (FCX): 37%
• Newmont* (NEM): 24%
10. Best Growth Stocks to Buy Now in Real Estate Sector
• Welltower* (WELL): 30%
• Realty Income* (O): 27%
11. Best Growth Stocks to Buy Now in Utilities Sector
• Dominion Energy* (D): 22%
AlphaProfit’s Recommendations of Best Growth Stocks to Buy Now
Although several sectors show promising growth potential, overall stock valuations remain elevated compared to historical averages.
The forward 12-month price-to-earnings (P/E) ratio for the S&P 500 now stands at 21.4, compared to its 5-year and 10-year averages of 19.5 and 18.0, respectively.
In this richly valued market, identifying impactful growth opportunities can be challenging.
That’s where AlphaProfit Premium Service comes in. It equips investors each month with attractively valued stocks poised for explosive growth.
AlphaProfit dives deep, unearthing hidden champions across diverse sectors with the potential to outperform and significantly boost your portfolio performance.
Here are some real-world examples of how AlphaProfit has propelled subscriber portfolios in the last 12 months:
• Alcoa (AA): 21.8% in 1 week
• Ameriprise Financial (AMP): 9.9% in 1 week
• Aptiv PLC (APTV): 18.1% in 1 month
In 2024, our 18 exiting stock recommendations netted subscribers a median gain of 17.7% with one loser, translating into a 94% win rate.
Unlock Explosive Growth Beyond 2024
Imagine consistently earning 12.8% from stocks at a 91% win rate.
That’s not just a dream. It is what countless happy AlphaProfit subscribers have achieved since 2009.
To ensure sustainable growth, we employ a rigorous risk management strategy, including stop-loss targets to limit potential losses.
Our track record reflects our commitment to both profit and protection:
• 452 of our stock recommendations have exited since 2009 with a median gain of 12.8%.
• 411 of them delivered positive returns, translating into a 91% success rate.
See the detailed trade information yourself (registration is required).
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