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Best Growth Stocks to Buy Now in Top Sectors for 2024

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 S&P 500 (SPY) has surged 26% in 2023 and stands just shy of its record high.

Seven large companies poised to benefit from the artificial intelligence boom, known as the “Magnificent Seven,” have fueled the S&P 500’s ascent.

Leading the charge among the “Magnificent Seven” is semiconductor giant NVIDIA (NVDA), which has more than tripled in value this year. Meta Platforms (META) and Tesla (TSLA) have also skyrocketed, doubling in price. Amazon.com (AMZN), Alphabet (GOOG, GOOGL), Microsoft (MSFT), and Apple (AAPL) have each climbed over 50%.

The “Magnificent Seven” have contributed a staggering $6 trillion, or 80%, to the S&P 500’s $7.5 trillion market capitalization gain in 2023. Therefore, their collective weight within the index has risen sharply, from nearly one-fourth at the start of 2023 to about one-third now.

The average U.S. stock has significantly lagged behind the lowest-performing member of the “Magnificent Seven.” The small-cap Russell 2000 (IWM), up 17% in 2023, trails the S&P 500.

High Growth Sectors for 2024

Worries about persistent inflation and the Federal Reserve’s interest rate policy potentially leading to a recession weighed on the average stock for most of 2023.

As the year draws to a close, a slow but sustained decline in inflation and continued economic expansion have boosted investors’ confidence in the central bank’s ability to engineer a “soft landing.”

The yield on the 10-year Treasury note has fallen sharply to 3.9% from its peak of 5.0% on October 19.

Yet, fears of a recession have not disappeared. The yield curve remains inverted, a signal that has historically preceded recessions.

Here’s a snapshot of analysts’ earnings growth estimates for S&P 500 companies in 2024, based on FactSet data as of December 15:

Analysts forecast aggregate earnings for S&P 500 companies to grow by 11.5% in 2024.

As shown below, they expect all eleven sectors to show growth in earnings.

Best Growth Stocks to Buy Now in Top Sectors for 2024

Analysts expect aggregate earnings for the S&P 500 members to grow 11.5% in 2024, with profits increasing in all of the 11 sectors. They forecast earnings in commodity-oriented sectors like energy and materials to grow the least. Analysts predict earnings in healthcare, communication services, and information technology to grow the most.

Analysts expect companies in the healthcare sector to deliver the highest earnings growth. They forecast aggregate earnings for the healthcare sector to grow by 17.8%.

Other sectors expected to outpace the S&P 500’s 11.5% growth include communication services, information technology, and consumer discretionary.

Analysts expect earnings in the energy sector to grow the least in 2024, i.e., by 2.9%.

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 11.5% earnings growth for S&P 500 companies in 2024.

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 three top growth champions within sectors with multiple high-growth companies. All of them exceed the large-cap market capitalization threshold of $42 billion. Note that asterisks (*) designate stocks offering dividend yields exceeding the S&P 500’s 1.5%.

1. Best Growth Stocks to Buy Now in Communication Services Sector

• T-Mobile US (TMUS): 39%
• Netflix (NFLX): 31%
• Meta Platforms (META): 21%

2. Best Growth Stocks to Buy Now in Consumer Discretionary Sector

• Amazon.com (AMZN): 34%
• Tesla (TSLA): 21%
• Chipotle Mexican Grill (CMG): 20%

3. Best Growth Stocks to Buy Now in Consumer Staples Sector

• Estee Lauder* (EL): 78%
• Monster Beverage (MNST): 38%
• Constellation Brands (STZ): 13%

4. Best Growth Stocks to Buy Now in Energy Sector

• Hess Corp. (HES): 86%
• Schlumberger* (SLB): 21%
• Occidental Petroleum (OXY): 14%

5. Best Growth Stocks to Buy Now in Financials Sector

• Travelers* (TRV): 57%
• Goldman Sachs* (GS): 49%
• Progressive (PGR): 47%

6. Best Growth Stocks to Buy Now in Health Care Sector

• Merck* (MRK): 458%
• Eli Lilly and Co. (LLY): 87%
• Pfizer* (PFE): 43%

7. Best Growth Stocks to Buy Now in Industrials Sector

• Uber Technologies (UBER): 203%
• Boeing (BA): 163%
• General Electric (GE): 73%

8. Best Growth Stocks to Buy Now in Information Technology Sector

• Micron Technology (MU): 1332%
• Intel (INTC): 98%
• NVIDIA Corp (NVDA): 67%

9. Best Growth Stocks to Buy Now in Materials Sector

• Newmont* (NEM): 38%
• Ecolab (ECL): 18%
• Freeport-McMoRan (FCX): 12%

10. Best Growth Stocks to Buy Now in Real Estate Sector

• Welltower* (WELL): 63%
• American Tower* (AMT): 23%

11. Best Growth Stocks to Buy Now in Utilities Sector

• Southern Co.* (SO): 12%

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 19.3, compared to its 5-year and 10-year averages of 18.8 and 17.6, 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 propelled subscriber portfolios in 2023:

• Autoliv (ALV): 12.9% in 2 weeks
• Expedia (EXPE): 17.3% in 1 month
• FedEx (FDX): 11.1% in 3 weeks

In 2023, our 23 exiting stock recommendations netted subscribers a median gain of 13.4% with one loser, translating into a 96% win rate.

Unlock Explosive Growth in 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.

Here is our track record:

• 434 of our stock recommendations have exited since 2009 with a median gain of 12.8%.

• 396 of them delivered positive returns, translating into a 91% success rate.

See the detailed trade information yourself (registration is required).

Don’t miss out on the next wave of winners in 2024.

Subscribe to the AlphaProfit Premium Service and let our proven strategies for identifying outperformers without undue risk guide your portfolio toward explosive growth.

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New ETF and Mutual Fund Recommendations

ETF Mutual Fund RecommendationsThe Fidelity and ETF Core and Focus model portfolios have gained at annualized rates of 14.6% and 17.8%, respectively since 1994. The model portfolios will be repositioned with new mutual fund and ETF recommendations on Thursday, March 28. Learn more about AlphaProfit's Free and Premium Service investment newsletters.

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