Identifying the best growth stocks to outperform the market with is no easy task. Especially ones that can consistently outperform the market year after year.
Odds are that if you are not new to the stock market, you’ve invested in a company that had one or more exceptional years followed by many bad ones. Suddenly your hard-earned cash is lost after what seemed like a sustainable rally. This is why careful selection of growth stocks is paramount to protect your wealth and limit the potential downside risk in a bear market.
While some growth stocks are better than others, investors will always be at the mercy of the stock market and the broader economy. Therefore, it will become increasingly important to have a long-term mindset and select companies with strong financial performance and liquidity. Now, here are the 3 best growth stocks to outperform the market through 2030!
Arista Networks (ANET)
Arista Networks (NYSE:ANET) is without a doubt one of the top growth stocks to outperform the market. Currently at the forefront of the artificial intelligence (AI) boom, its cloud networking solutions are the backbone of AI infrastructure.
Arista Networks has flown under the radar since its initial public offering back in June 2014. It has only been until 2022 that Wall Street began to take notice, as artificial intelligence has been the major talking point. However, the truth is that Arista goes far beyond just an ‘’AI play.’’ Its technology and infrastructure appeal to a variety of different industries including finance, healthcare, education, media and entertainment. Arista’s products deliver both scalability and reliability, which are critical in today’s data-driven world.
Moreover, its EOS (Extensible Operating System) and high-performance data center switches have made it a favorite among hyperscale cloud providers. With the cloud computing market expected to grow exponentially in the coming years, ANET stock is well-positioned to capitalize on this demand.
Fiserv (FI)
Fiserv (NYSE:FI) is a global leader in financial services technology solutions. The company’s comprehensive suite of offerings includes payment processing, risk management, and customer experience solutions for a wide range of merchants and financial institutions.
Fiserv’s strategic focus on digital transformation and its ability to adapt to the evolving needs of financial institutions has been key to its success. Its acquisition of First Data in 2019 significantly expanded its capabilities in payment processing and merchant services. The integration of First Data’s extensive merchant network with Fiserv’s technology infrastructure has created new growth opportunities, particularly in digital payments and e-commerce.
In its latest quarterly earnings results, revenue increased 7% year over year to $4.88 billion. Net earnings rose 30% year over year to $755 million, driven by notable growth in its merchant solutions business. Fiserv’s margins remain strong, and management raised its FY24 earnings per share guidance to between $8.60 – $8.75 per share. This makes Fiserv one of the best growth stocks to outperform in 2024 and beyond.
Fortinet (FTNT)
Fortinet (NASDAQ:FTNT) stands as one of the most notable growth stocks to outperform the market. As a global leader in cybersecurity solutions, Fortinet specializes in firewalls, endpoint security, and threat detection.
Fortinet’s unique approach to cybersecurity, which integrates hardware, software, and cloud-based solutions are extremely valuable to the marketplace. The company’s flagship product, the FortiGate firewall, is recognized for its industry-leading performance and reliability. Additionally, Fortinet’s security fabric platform powered by FortiOS is the industry’s highest-performing cybersecurity mesh platform. It offers security and networking solutions to protect devices, data, and applications.
Moreover, its financial performance has been impressive, with strong revenue growth and profitability over the last several years. In the 2023 fiscal year, Fortinet saw a record revenue of $5.3 billion. Its net earnings eclipsed $1 billion for the first time while delivering a record free cash flow of $1.73 billion. Growth has also accelerated in the first quarter of 2024, showing further signs that it is just getting started.
On the date of publication, Terel Miles 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.