Retail sales in the United Statesrecently exceeded forecasts, bolstered by strong manufacturing and robust consumer demand amid this ongoingeconomic recovery. The Federal Reserve Bank of Atlanta projects the strongest GDP growth since late 2021, indicating economic resilience. This is paving the way for several growth stocks.
While the Fed’s stance may remain unchanged in November, the economy’s durability suggests ongoing efforts to cool and restore price stability. This economic backdrop creates an opportune moment for investing in Christmas stocks with high growth potential.
Approaching the 2023 holiday season, investors are eyeing stocks with profit potential. Notably, companies in the video game and console sector are poised for gains due to increased demand for gift ideas. Consider these stocks before prices surge.
Growth Stocks Analysts Are Gushing Over: Realty Income (O)
Realty Income (NYSE:O) achieved a 5.59% yield, showcasing strategic investment with $2 billion in acquisitions. International business contributed $1.4 billion, yielding 6.9% in Q3 2023. Various transaction types, including sale-leaseback deals, demonstrate the company’s flexibility and unique approach in less conventional investments. Realty Income’s competitive advantage lies in identifying and executing transactions uncommon among net lease companies.
If optimistic about impending interest rate decreases, Realty Income emerges as a top S&P 500 stock. Despite previous declines due to rising rates, O stock now boasts an excellent forward annual dividend yield, making it an attractive choice. Though funds from operations may see modest growth, an anticipated accretive REIT merger and potential interest rate drops in 2024 could lead to a favorable market re-rating for O stock.
Moreover, Realty Income solidifies its strategic positioning through the recent acquisition of Spirit Realty Capital, expanding its property portfolio.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) has emerged as a standout in long-term AI stocks, leading in AI chip technology. Robust growth is indicated by a successful revenue forecast, with strategic collaborations, like the alliance with Amazon Web Services, showcasing its pivotal role in AI and cloud computing convergence. Ongoing innovation, exemplified by recent chip releases, underlines Nvidia’s commitment to advancing AI technology.
Nvidia, a front-runner in the AI race, has seen a stellar 226% year-to-date stock increase, exceeding earnings forecasts with $4.02 per share and a 1,259% surge in net income to $9.24 billion reported in its latest quarter. Driven by robust data center and gaming divisions, its impressive revenue of $18.21 billion showcases consistent growth. The success is attributed to its A100 and H100 chips, essential for AI training. Positioned for continued growth, Nvidia promises significant benefits for the company and shareholders.
NVDA landed on the list due to its impact on the crypto market, notably with GPUs in mining rigs. Despite concerns about valuation, forward expectations suggest potential for continued gains, making it a compelling growth stock.
T-Mobile US (TMUS)
T-Mobile (NASDAQ:TMUS), despite being last on the market crash stocks list, stands out as a potential buy. Wall Street projects a remarkable 67% annual earnings growth for the next five years, surpassing competitors AT&T (NYSE:T) and Verizon (NYSE:VZ). T-Mobile recently became the largest prepaid carrier, outpacing Verizon in the third quarter with 21.6 million customers. The pending acquisitions of Mint Mobile and Ultra Mobile may further strengthen its position.
As the third-largest U.S. wireless carrier, the company significantly expanded its customer base, targeting 8 million new customers by 2025. Leading in 5G deployment, the company initiated a $14 billion share repurchase program and introduced its first dividend, garnering positive shareholder response. In Q3, T-Mobile exhibited robust financials, generating $4 billion in free cash flow, a 50% year-over-year increase, attributed to reduced expenditures and increased cash flow from operations. Net income rose to $2.1 billion, reinforcing the company’s financial strength. If you buy any of the growth stocks we have mentioned, start here.
On the date of publication, Chris MacDonald 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.