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.
Stock prices have been impacted primarily by U. S. and China trade negotiations and interest rates this year.
Tweets and tidbits have shaped investors’ assessment of the trade talks.
Their assessment has frequently shifted between optimism over a major deal and pessimism over rising hostilities.
Uncertainty on trade has become an obstacle to economic growth, particularly outside the U. S.
Major central banks including the Federal Reserve have altered their monetary policies in response to the trade uncertainty and lowered interest rates.
Stocks have rallied in response.
The S&P 500 and the Russell 2000 index of small-cap companies are up 21% and 17%, respectively.
To a large extent, analysts appear sanguine on the prospects of corporate earnings growth in 2020.
Which sectors do analysts expect to show the highest growth in 2020?
High Growth Sectors for 2020
Here is what FactSet data show as of September 20:
Analysts are forecasting S&P 500 companies to grow earnings by 10.6% in 2020.
That’s considerably higher than the 1.3% growth expected in 2019.
As shown below, analysts now expect earnings to grow year-over-year in each of the 11 sectors.
Earnings growth is expected to be strongest in the energy, industrial, and materials sectors.
Earnings growth is expected to be less robust in real estate, financials, and utilities.
Earnings growth is expected to accelerate in 2020 compared to 2019 in all sectors except financials and utilities.
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 10.6% 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
• Charter Communications (CHTR): 96%
• Netflix (NFLX): 72%
• Facebook (FB): 51%
2. Best Growth Stocks to Buy Now in Consumer Discretionary Sector
• Amazon.com (AMZN): 41%
• Lowe’s Companies (LOW): 18%
• Nike (NKE): 17%
3. Best Growth Stocks to Buy Now in Consumer Staples Sector
• Tyson Foods (TSN): 21%
• Constellation Brands (STZ): 13%
• Estee Lauder (EL): 12%
4. Best Growth Stocks to Buy Now in Energy Sector
• Valero Energy (VLO): 88%
• Marathon Petroleum (MPC): 79%
• ExxonMobil (XOM): 37%
5. Best Growth Stocks to Buy Now in Financial Sector
• Aon PLC (AON): 13%
• American Express (AXP): 11%
• BlackRock (BLK): 11%
6. Best Growth Stocks to Buy Now in Health Care Sector
• Bristol-Myers Squibb (BMY): 42%
• Vertex Pharmaceuticals (VRTX): 35%
• Danaher (DHR): 19%
7. Best Growth Stocks to Buy Now Stocks in Industrial Sector
• Boeing (BA): 459%
• Johnson Controls PLC (JCI): 33%
• General Electric (GE): 22%
8. Best Growth Stocks to Buy Now in Information Technology Sector
• Advanced Micro Devices (AMD): 69%
• Autodesk (ADSK): 63%
• NVIDIA (NVDA): 31%
9. Best Growth Stocks to Buy Now in Materials Sector
• Newmont Goldcorp (NEM): 57%
• Dow Inc. (DOW): 28%
• Ball Corp. (BLL): 18%
10. Best Growth Stocks to Buy Now in Real Estate Sector
• SBA Communications (SBAC): 78%
• Digital Realty Trust (DLR): 27%
• Equinix (EQIX): 25%
11. Best Growth Stocks to Buy Now in Utilities Sector
• Sempra Energy (SRE): 17%
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 (registration required).
On average, subscribers have netted a 12.2% gain in 2.5 months from each stock recommendation at a 92% win rate.