3 high-growth stocks to invest in now
High-growth stocks probably aren’t everyone’s cup of tea right now. With talk of an impending recession, everyone is looking for safer options. Therefore, high growth stocks do not attract much attention. That said, this current market is full of quality choices for sophisticated investors willing to add risk.
Although equity indices have provided mediocre returns, it is essential to anticipate the next bull market, whether imminent or later. Focusing on the future now will allow investors to position a portfolio for success when the market inevitably improves.
The logic of investing in high growth stocks is simple. The markets have been in a cutthroat mood for some time. Many investors have been significantly burned. Therefore, now may be the time to recoup some battered stocks, in preparation for the next bull run.
For those looking to add risk, here are three big names to consider.
Due to the unfavorable macroeconomic environment, disney (NYSE:SAY) the stock fell 44% in 2022.
Bob Iger stepped down as CEO of Walt Disney in February 2020, handing over the reins to his chosen successor, Bob Chapek. Chapek had expressed his intention to continue to follow the path laid out by Iger, which he believed would lead to sustained returns for shareholders in the future.
However, Chapek’s tenure has been plagued with challenges. These included low income, political disputes and a high-profile legal battle with Scarlett Johansson over the release of Black Widow. By the end of November 2022, Chapek was no longer CEO and Iger had taken over the role. Investors were clearly excited about the move; the reaction of the market is proof of this.
Additionally, CEO Bob Iger announced that Walt Disney was seeking savings of $5.5 billion, including $3 billion in non-sports related activities. While not all investors applauded the move, it’s likely a necessary evil, given the uncertain future ahead of us.
Furthermore, another reason for the bullish pivot of this stock is the company’s parks and resorts segment. These companies have been hammered during the pandemic. However, some of the world’s most popular vacation destinations are now on fire as consumers look to get out of their homes and splash the cash.
The company’s long and storied history means that Disney is a solid and stable player in times of volatility. It’s worth its weight in gold right now.
Unlike the broader market, Apple (NASDAQ:AAPL) the stock has done very well this year, so far. Shares of AAPL are up nearly 25% since the start of 2023. This positive sentiment appears to be driven by investor confidence in the company’s prospects in the augmented/virtual reality market and its plans to move its iPhone production outside of China.
Apple’s iPhone segment contributed 52% of its total revenue in fiscal 2022, with services accounting for 19.8%. Therefore, any steps Apple takes to increase profits from its smartphone business will have a positive impact on its bottom line.
According to a report by Bloomberg in January, Apple intends to reduce its reliance on third-party technology companies for iPhone components. Instead, the company intends to increase its in-house production of various parts. Apple also plans to produce a custom Wi-Fi/Bluetooth chip.
Apple has successfully transitioned its manufacturing processes to custom technology components, as seen in its Mac lineup. Thanks to its Mac chips, Apple has improved its profit margin. This decision also allowed the company to significantly improve its technological innovation by supervising each component.
Additionally, Apple is expanding beyond its iPhone business, diversifying its revenue streams and entering new markets. The company plans to launch an AR/VR headset later this year, leveraging its strong brand in this booming market.
According Statisticalthe AR & VR market is expected to reach $31.12 billion in revenue in 2023, with an estimated CAGR of 13.72%, yielding a projected market size of $52.05 billion in 2027.
Talk Amazon (NASDAQ:AMZN) does not seem necessary. The e-commerce giant is a bona fide member of the FAANG club, a collection of five of America’s top-performing tech stocks. As a result, whether it’s e-commerce, streaming or cloud computing, Amazon is a dominant player.
However, this is why it may seem odd that AMZN stock has fallen nearly 20% in the past six months. Much of this drop appears to be related to a recent drop in performance.
Broader macroeconomic fears led the company’s e-commerce segment to report an operating loss of $10.6 billion in fiscal 2022. This despite full year-over-year revenue growth. the other 9.4% to $513.98 billion.
However, Amazon Web Services, the company’s cloud computing arm, is doing very well. In the fourth quarter of last year, Amazon remains the king of this market. It controls 32% of the global market, with Microsoft (NASDAQ:MSFT) Azure and alphabetical (NASDAQ:GOOG) Google Cloud ranks second and third respectively. It is a growing market, and Amazon’s dominance in this area gives investors peace of mind for several years.
Among high-growth stocks, you will rarely find a company as solid as Amazon. The decline in the company’s stock price appears to reflect an overreaction to various high-level macroeconomic factors. It is therefore a quality long-term growth stock that investors can buy at a discount now.
At the date of publication, Faizan Farooque did not hold (directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.