These are the ONLY 3 Growth Stocks to Consider in August 2023

Stocks to buy

After a lackluster 2022, growth stocks are shimmering with promise this year.

Interestingly, as inflation shows signs of slowing, we can sense a palpable shift in the way investors view the top growth stocks. With the 2023 market rally in full swing, it’s an opportune moment to closely examine the most promising growth stocks to buy.

However, it’s not only about chasing the trends. A discerning eye is paramount. Adopt a long-term perspective and invest in companies with established growth records. Then you can shield your portfolio from temporary market fluctuations and enjoy robust returns.

Moreover, savvy investors are scouting for imminent drivers that could elevate specific companies and their stock valuation. Traditionally, stock markets tend to put on their best show in the year’s final quarter, which further amplifies the appeal of promising growth stocks to buy.

Palantir Technologies (PLTR)

Palantir (PLTR) logo on data network background, imaginary location in the future. Must-Buy Stocks on Major Deals

Source: Spyro the Dragon / Shutterstock.com

Palantir Technologies (NYSE: PLTR) is teeming with limitless potential in the growth stocks domain,  surging an impressive 126% year-to-date. This increase is undoubtedly linked to its ability to onboard new clients and its powerful upselling strategy. For instance, Q1 saw its commercial client base soar by 50%, followed by a notable 35% in the Q2.

Palantir raised its full-year sales forecast after delivering stellar Q2 revenue of $533.32 million, a 13% bump from the prior year. Moreover, let’s factor in the AI industry’s anticipated meteoric rise from $150.20 billion in 2023 to $1,345.20 billion by 2030. Palantir and its peers appear to be just beginning to scratch the surface.

Additionally, Palantir’s recent announcement of a $1 billion buyback program illustrates the commitment to securing long-term investor trust. On top of that, its promising future projections and projected forward revenue growth of 19.48% hint at Palantir’s potential S&P 500 inclusion, making it a sound investment opportunity for savvy investors.

Amazon (AMZN)

Closeup of the Amazon logo at Amazon campus in Palo Alto, California. The Palo Alto location hosts A9 Search, Amazon Web Services, and Amazon Game Studios teams. AMZN stock

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In a stellar comeback, Amazon (NASDAQ: AMZN) is making headlines again, straggling behind its tech titans and the broader market.

This year, AMZN boasts an enviable 58% rise year to date, outflanking both the NASDAQ Composite and S&P 500. Furthermore, its recent Q2 is nothing short of impressive. Earnings per share soared to 65 cents, a leap of 85% over analyst estimates. With revenue ringing in at a staggering $134.38 billion, this surpassed year-over-year predictions by almost 11%. AMZN is redefining the essence of growth stocks with stupendous potential.

Moreover, Amazon Web Services (AWS) takes center stage in Amazon’s triumph. With over 100,000-strong customer base, many AWS users should get funneled into Amazon’s AI ecosystem, leading to other promising AI initiatives.

Additionally, institutional investors seem to echo this upbeat sentiment as the holdings company scooped up more than 333 million AMZN shares in Q2 alone.

Among the enthusiastic investors, T. Rowe Price (NASDAQ:TROW) acquired 27.245 million shares. At the same time, JPMorgan Chase (NYSE:JPM) confidently wagered a hefty $1.9 billion on AMZN stock, indicating a sustained ascent in its trajectory.

Li Auto (LI)

Li Auto (Li Xiang) brand logo and electric car in store. A Chinese EV(electric vehicle) company

Source: Robert Way / Shutterstock.com

Li Auto (NASDAQ:LI) persists in its impressive ascent into the realm of growth stocks. Interestingly, the fluctuations of market sentiment in August present investors with a prime opening to scoop up LI stock on the dip. TipRanks analysts predict a compelling $51.8 per share forecast, signaling a robust 33% upside potential.

Moreover, numbers highlight the automaker’s stellar performance. LI generated a jaw-dropping $3.9 billion in revenue, marking a 228% ascent year over year. Also, it delivered a commendable free cash flow of over $960 million, reflecting a 43.6% surge quarter over quarter.

Furthermore, 2023 has been nothing short of astounding for LI, exemplified by its remarkable delivery of 173,251 vehicles in the first seven months of the year. Notably, 86,533 units were delivered in Q2 alone, a feat that translates to a remarkable 201.6% year-over-year surge. Additionally, it recently introduced the Li L9 Pro, which boasts its cutting-edge in its AD Pro self-driving system technology. And so, the future looks even more promising for this dynamic player.

On the date of publication, Muslim Farooque 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

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

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