Economists worldwide anticipate slower U.S. economic growth in the coming quarters, with recent indicators suggesting an increased risk of a 2025 recession. Factors such as elevated interest rates, government spending cuts, and broad tariffs could pressure U.S. consumers, making it harder for investors to find reliable growth stocks. However, despite these challenges, growth stocks outperformed value stocks in 2024, and investors expect this trend to continue as the Federal Reserve moves toward interest rate cuts.
Here are four top growth stocks with strong potential:
1) Nvidia Corp. (NVDA)
Nvidia has been one of the most remarkable growth stories of the past 15 years in the stock market. The high-end semiconductor giant continues to deliver exceptional financial performance, with revenue surging 78% year over year in the fiscal fourth quarter and net income rising 80%. Analyst Angelo Zino highlights expanding opportunities in edge devices and software, along with Nvidia’s artificial intelligence advancements, as key growth drivers. CFRA maintains a “buy” rating and a $165 price target for NVDA stock, which closed at $115.74 on March 12.
2) Eli Lilly and Co. (LLY)
Eli Lilly is a leading pharmaceutical company specializing in brand-name prescription drugs for diabetes, cancer, and neurological disorders. The company reported 45% revenue growth in the fourth quarter, with Mounjaro sales climbing 60% and Zepbound revenue skyrocketing 986%. Analyst Sel Hardy believes rising demand for GLP-1 drugs and an aging baby boomer population will fuel long-term growth. CFRA has a “buy” rating and a $1,045 price target for LLY stock, which closed at $821.86 on March 12.
3) Tesla Inc. (TSLA)
Tesla remains the dominant U.S. electric vehicle manufacturer, but its growth has slowed. In the fourth quarter, revenue increased by just 2%, while its core automotive segment declined 8%. However, analyst Garrett Nelson suggests that CEO Elon Musk’s close ties with Donald Trump could expedite regulatory approval for autonomous driving technology. He also predicts Tesla will launch Cybercabs with no steering wheels or pedals by 2027 and sees potential in Tesla’s growing energy business. CFRA maintains a “buy” rating and a $540 price target for TSLA stock, which closed at $248.09 on March 12.
4) Broadcom Inc. (AVGO)
Broadcom is a leading semiconductor and software solutions provider, reporting 43% revenue growth in fiscal 2024 and maintaining a 25% growth rate in the latest quarter. Analyst Angelo Zino sees AI-driven semiconductor revenue expansion as a key driver for the stock over the next three years. He also notes that Broadcom’s software momentum remains strong, especially following its VMware acquisition. With key partnerships among blue-chip tech firms, Broadcom remains a compelling investment. CFRA has a “buy” rating and a $265 price target for AVGO stock, which closed at $194.23 on March 12.
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