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 two worries that roiled stocks in the fourth quarter of 2018 have eased in the first quarter of 2019.
Trade negotiations between the U. S. and China appear to be progressing.
The Federal Reserve has backed off on raising interest rates in 2019.
Stocks have rallied in response.
The S&P 500 and the Russell 2000 index of small-cap companies are up 14% and 16%, respectively.
To a large extent, investors have not been concerned by a rise in signs of economic softness.
For one, economic data, particularly from China and Europe, have been largely disappointing.
Analysts have been lowering their 2019 earnings growth expectations for U. S. companies.
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 March 22:
Analysts are forecasting S&P 500 companies to grow earnings by 3.8% in 2019.
That’s down 3.6% from their forecast for 7.4% earnings growth on December 31, 2018.
Analysts have lowered their 2019 earnings growth forecasts for all 11 sectors.
As shown below, analysts now expect earnings to grow year-over-year in 9 of the 11 sectors.
Earnings growth is expected to be strongest in the industrial, consumer discretionary, and financial sectors.
Earnings growth is expected to be less robust in real estate, information technology, and consumer staples.
Energy and materials are the two sectors where earnings are expected to decline year-over-year.
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 3.8% 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): 51%
• Charter Communications (CHTR): 50%
• Comcast (CMCSA): 9%
2. Best Growth Stocks to Buy Now in Consumer Discretionary Sector
• Amazon.com (AMZN): 37%
• Lowe’s Companies (LOW): 19%
• Starbucks (SBUX): 12%
3. Best Growth Stocks to Buy Now in Consumer Staples Sector
• Costco Wholesale (COST): 12%
• Estee Lauder (EL): 12%
• Procter & Gamble (PG): 5%
4. Best Growth Stocks to Buy Now in Energy Sector
• Baker Hughes (BHGE): 59%
• Williams Companies (WMB): 25%
• Kinder Morgan (KMI): 16%
5. Best Growth Stocks to Buy Now in Financial Sector
• Wells Fargo (WFC): 18%
• Citigroup (C): 13%
• Bank of America (BAC): 10%
6. Best Growth Stocks to Buy Now in Health Care Sector
• Anthem (ANTM): 21%
• Celgene (CELG): 21%
• UnitedHealth Group (UNH): 14%
7. Best Growth Stocks to Buy Now Stocks in Industrial Sector
• Boeing (BA): 26%
• Deere & Co (DE): 19%
• Union Pacific (UNP): 15%
8. Best Growth Stocks to Buy Now in Information Technology Sector
• Adobe Systems (ADBE): 42%
• Cisco Systems (CSCO): 18%
• Mastercard (MA): 16%
9. Best Growth Stocks to Buy Now in Materials Sector
• Sherwin-Williams (SHW): 14%
• Ecolab (ECL): 12%
• Linde (LIN): 10%
10. Best Growth Stocks to Buy Now in Real Estate Sector
• Equinix (EQIX): 39%
• American Tower (AMT): 26%
• Crown Castle International (CCI): 24%
11. Best Growth Stocks to Buy Now in Utilities Sector
• NextEra Energy (NEE): 9%
• Sempra Energy (SRE): 8%
• Duke Energy (DUK): 5%
AlphaProfit’s Recommendations of Best Growth Stocks to Buy Now
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