There is optimism around the future of the economy with the latest inflation data coming in line with expectations. This has shifted the narrative towards growth stocks and investors are ready for a rate cut which can give a boost to the stocks. The strong jobs report could lead to at least one rate cut in the coming months and while we cannot predict when, it will certainly benefit the stock market.
The Nasdaq and S&P 500 are already hitting new highs and if you want to get in on the ride, consider investing in growth stocks with a strong upside potential. These three growth stocks will take your wealth-building goals into high gear and ensure superior investment returns. As the stock market continues to achieve new highs, it is time to jump in and capitalize on the upside.
Growth Stocks to Buy: Delta Airlines (DAL)
Increased travel spending will directly benefit Delta Air Lines (NYSE:DAL), one of the biggest airlines in the world. The stock is up 25% year-to-date and is trading at $50 today. A hot summer and travel prioritization will benefit the company. It has set a strong momentum for the year and looks undervalued to me.
In the quarterly results, the management seemed optimistic about the summer travel season and speculated that it could set new records. While it has already benefited from the pent-up demand, there is more to come this year.
It reported operating revenue of $12.6 billion, a 6% YOY jump and the EPS came in at $0.45. It went from a loss in the first quarter of 2023 to a profit this year. With an extensive domestic and international route, the company aims for a 5% to 7% growth in the second quarter.
Summer is going to be busy for travel companies and Delta could report impressive numbers. It is already close to the 52-week high and could hit $60 after the second quarter results. With more than 212 million people planning to travel this summer and the Fourth of July being the busiest weekend for travel, Delta Air Lines could be a hot stock to own.
SoFi Technologies (SOFI)
One of the best fintech stocks to buy under $10, SoFi Technologies (NASDAQ:SOFI) has the potential to double your money by 2025. The financial services company offers a one-stop solution for all your financial needs and has impressed investors with strong fundamentals and impressive member growth.
Financial stability is no longer an issue, it reported a 26% jump in net sales in the first quarter to hit $581 million and reported an adjusted EBITDA of $144 million, which is a whopping 91% jump YOY.
Despite the strong numbers, SOFI stock hasn’t been able to move much. It is trading at $7 today and has dropped over the past few months. Investors are only focusing on the lending business. The segment has been under pressure due to the high interest environment.
Due to this, the stock didn’t rally even after a blowout quarter. However, one needs to understand that it is focusing on non-lending products and is aiming to increase revenue in other segments.
The management is aiming to broaden the business and reduce their reliance on interest income. It managed a 37% jump in revenue and a 44% jump in user base, which speaks for the company’s strength. It also reported two straight quarters of profitability showing that the company is on the right path.
SOFI stock is crushed and this is an opportunity for growth investors to make their move.
Taiwan Semiconductor Manufacturing Company (TSM)
A leader in the artificial intelligence race, Taiwan Semiconductor Manufacturing Company (NYSE:TSM) is another growth stock to pounce on. The company provides chips to some of the biggest industry players including Nvidia (NASDAQ:NVDA).
This means it will continue to grow as the AI industry expands. Driven by the massive demand, the company managed to report a revenue of $70 billion in 2023. It is a leader in 3 nanometer (nm) technology and it is working on a 2nm node which could launch next year.
Trading at $172, the stock is up 70% YTD and 18% in the past month. Yes, it is nearing the 52-week high and isn’t cheap but it has the potential to go beyond $200. As the world’s largest semiconductor foundry, Taiwan Semiconductor is dominating the world and has advanced manufacturing facilities that can meet the growing demand. No other company has been able to come close to its market share.
In the first quarter, it saw a 16.5% revenue jump and aims to achieve revenue growth ranging in “the low- to mid-range 20% range.” Wall Street is bullish on the stock and several analysts have a Strong buy rating.
This growth stock will keep growing your money and is an excellent stock to buy now.
On the date of publication, Vandita Jadeja did not hold (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.