- These growth stocks are receiving buy ratings and significantly higher price targets from analysts.
- Nvidia (NVDA): Use the recent selloff as an opportunity to buy one of the best names in its sector.
- Advanced Micro Devices (AMD): The chipmaker’s dominance in the gaming sector should help offset slowdowns in other verticals.
- Warner Bros Discovery (WBD): If you can look past the short-term debt outlook, the company has an attractive long-term valuation.
- Enphase Energy (ENPH): Despite short-term obstacles, the future looks bright for this solar stock.
- Generac Holdings (GNRC): The company makes products that are always in demand and has a backlog as proof.
- Edwards Lifesciences (EW): This is a company that will be a beneficiary of a resurgence in demand for medical devices.
- Fortinet (FTNT): A portfolio of proven, entrenched products and services will allow the company to deliver strong growth.
It’s never a bad idea for investors to pay attention to what the analyst community has to say about growth stocks. And it’s particularly helpful to do so during times of market volatility. While not the be-all or end-all in terms of an investor’s due diligence, analysts do have access to information that retail investors are not privy to. They also have their own reputations, and in many cases their firm’s assets, on the line. So when a number of analysts offer similar ratings or deliver similar price targets, it becomes significant.
This article covers seven growth stocks that analysts are bullish about. By bullish, I mean that the stock has a consensus buy rating. In some cases, that may be supported by increases in the price target for a stock. Either way, these are growth stocks that analysts love and are worth considering for your portfolio.
|AMD||Advanced Micro Devices||$94.24|
|WBD||Warner Bros Discovery||$17.21|
Nvidia (NASDAQ:NVDA) is down 48% from its 52-week high. That’s not atypical of growth stocks that are being affected by a number of factors including a flight to risk-off assets. However, trading at around $172 a share at the time of this writing, NVDA stock looks like it may be an attractive buying candidate.
The concern about the company’s link to the crypto markets is real, but not the same as it was in 2018. As Louis Navallier explains to InvestorPlace readers, the company has taken steps to isolate the impact of the crypto sector on its business.
That means that investors can pay attention to the company’s core businesses which are doing just fine. In its last quarter, the company reported revenue that was 52% higher than the same quarter in 2021 and it was 7% higher from the prior quarter.
Over 50 analysts give NVDA stock a consensus buy rating with a mean price target of $332.99. Recent price targets come in lower than the consensus, but still suggest a solid buying opportunity.
Advanced Micro Devices (AMD)
Advanced Micro Devices (NASDAQ:AMD) was among the strongest growth stocks in 2020 and 2021. But since the tech selloff began in November 2021, AMD stock is down 55% in total. And the stock is down nearly 35% in 2022 alone. This is despite the company posting strong earnings in early May.
The concern among investors is that the company will not be able to overcome slumping PC sales as well as the hit it’s taking from the major selloff in the crypto markets. But Advanced Micro Devices is one of the leading chip providers in the gaming sector, which remains incredibly popular with the two market segments that will drive consumer demand in the next decade.
For its part, the company gave analysts a bullish outlook, including a revenue increase of over 60% over 2021. AMD has a consensus buy rating with a price target of $140.34.
Warner Bros Discovery (WBD)
Warner Bros Discovery (NASDAQ:WBD) is the newly formed entity created as AT&T (NYSE:T) spun off its Time Warner assets. And many investors who received shares of WBD stock have said thanks but no thanks. That’s one reason that the stock is down to levels not seen since the pandemic began.
Based on the rising subscriber numbers the company posted in the last quarter, WBD stock may look oversold. But the market is always forward looking and the company’s debt load is a concern. Investors may also suspect that the company will not be able to continue its current pace of growth. That could be true, streaming is an incredibly competitive sector. However, many customers who cancel a streaming service eventually come back.
However, analysts are also forward looking and 27 analysts give WBD stock a buy rating with a price target of $35.70. And while it it’s unlikely that the company will see a near-100% gain, it will remain a bargain, even if that forecast comes down by 30%.
Enphase Energy (ENPH)
When investors are looking for growth stocks in this market, the energy sector is a good place to search. Last year, I said Enphase Energy (NASDAQ:ENPH) was the solar stock I would buy if I could only buy one. I feel the same way today.
The company offers products and services that allow traditional solar systems to offer consumers true energy independence. The company’s microinverters convert direct current (DC) power to alternating current (AC) power. And the company offers a complete energy system that includes software solutions that allow consumers to “bank” the energy from solar panels to ensure they have adequate power when needed.
Enphase is benefiting from Russia’s war against Ukraine, which is sparking demand for solar solutions in Europe. And as supply chain issues continue to unwind, the company should resume growth in the United States. Notably, 36 analysts currently give ENPH stock a consensus price target of $230.81.
Generac Holdings (GNRC)
It seems appropriate that a company that specializes in products that help its customers deal with emergencies also has a stock that can help investors ride out the current storm in the market. That’s the case with Generac Holdings (NYSE:GNRC). The company, which is known for its whole house generators, reports a backlog that is valued at over $1 billion.
When you consider that the company’s total revenue in its prior quarter was just over $1 billion, you can see why it made it my list of undervalued stocks. And the company also offers its PWRcell battery storage system that “harnesses power from the sun” to help its customers get backup power during a power outage. 27 analysts give GNRC stock a consensus price target of $428.52, which is almost 90% above its current price.
The current market volatility may act as a headwind for the stock, but in the long term, Generac looks like a strong buy-the-dip opportunity.
Edwards Lifesciences (EW)
Companies that manufacture medical devices saw their stocks devastated in 2020 as demand dried up. Such was the case with Edwards Lifesciences (NYSE:EW). The company develops patient-focused innovations for structural heart disease and critical care monitoring. And as Josh Enomoto pointed out, there may be growing demand for these products since patients with Covid-19 are proving to be “at increased risk of a broad range of cardiovascular disorders.”
EW stock seems to be drawing interest from institutional investors. In the last 12 months, buyers have outnumbered sellers and the amount of money spent on the stock was about twice that of what was sold. 34 analysts have set a mean price target of $132.45 for EW stock which is more than 35% above its current price.
For most of the first four months of this year, Fortinet (NASDAQ:FTNT) was managing to avoid the fate that many tech stocks were suffering. But even a quality cybersecurity stock like Fortinet couldn’t avoid the most recent selloff.
However, the stock is “only” down about 25% from its 52-week high and sitting right in the middle of its 52-week range. That shows how resilient the demand for cybersecurity products and services is likely to be. And Fortinet is one of the leading names in this space. As Tezcan Gecgil wrote recently, the company “provides a broad array of next-generation security and networking functions. Around 500,000 customers rely on its market leader firewall platform Fortigate.”
38 analysts give FTNT stock a mean price target of $373.25 which is more than 30% above its current price.
On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.