7 Growth Stocks to Buy Now: Q2 Edition (2024)

Investing in growth stocks can deliver outsized gains, but investors have to stick with these stocks during volatile stretches. These stocks are more vulnerable to price swings due to macroeconomic factors. These growth stocks to buy now are also held under the microscope each time they report earnings.

Investors pay more attention to these types of stocks because of the potential payoff. Some growth stocks have become giants within their respective industries while others have the potential to become giants.

It’s clear why investors buy growth stocks. They want to outperform the stock market. These seven growth stocks to buy now can give you a chance at achieving that objective.

Amazon (AMZN)

Amazon(NASDAQ:AMZN) offers the world’s most recognizable online marketplace thatlists millions of products on its platform. The company processes more than 4,000 product sales every minute.

The e-commerce segment is Amazon’s main revenue driver, but the company is also seeing plenty of success with its leading cloud computing division. Amazon Web Services has thelion’s share of the cloud computing industry. It has roughly one-third of the total market share and has a big lead over the competition. It’s mostly a duopoly between Amazon andMicrosoft(NASDAQ:MSFT) withAlphabet(NASDAQ:GOOG, NASDAQ:GOOGL) as an honorable mention.

The tech giant is also expanding its advertising, video streaming, and grocery segments. Amazon recently got accused ofattempting to steal Trader Joe’s trade secrets. This isn’t the best look for Amazon, but investors should take note that the company is looking to expand its grocery store footprint through Whole Foods and Amazon Fresh. Advertising and streaming are the bigger segments to monitor, but Amazon seems to be putting more effort into its grocery segment. This makes it one of those growth stocks to buy now.

Sofi (SOFI)

Traditional bank stocks aren’t considered growth stocks. Those corporations have matured and offer dividend payouts to keep shareholders invested. However,SoFi(NASDAQ:SOFI) isn’t your traditional bank.

The fintech company operates entirely online, so you can’t drive to a local branch. The company also has many of thefinancial productsyou would expect from a big institution. Consumers can get personal loans, mortgages, credit cards, checking and savings accounts, investment accounts, and other products. SoFi has also made great strides in getting mainstream appeal through SoFi Stadium and by becoming the official bank of the NBA.

SoFi reported its first profitable quarter inQ4 2023. Net income came to $47.9 million while revenue was $615.4 million. Revenue grew by 35% year-over-year and the company ended up with a 7.9% net profit margin. This helps make it one of those growth stocks to buy now.

SoFi’s P/E ratio can drop quickly and present value to patient investors. However, you will have to contend with a stock that has dropped by 31% over the past five years and is also down by 25% year-to-date. Rising profits can catch a lot of investors by surprise and potentially result in a surge.

Elf Beauty (ELF)

Elf Beauty(NYSE:ELF) is gaining market share in the beauty industry and has generated significant returns for investors. The stock is up by 83% over the past year and has surged by 1,200% over the past five years.

The stock trades at a 73 P/E ratio and has impressive financial growth. Revenue increased by 85% year-over-year inQ3 FY24while net income jumped by 41% year-over-year to reach $26.9 million. The company has double-digit net profit margins.

ELF investors got spooked afterUlta Beauty(NASDAQ:ULTA) warned investors of aslower quarter. However, that may not be bad news for Elf Beauty. The company can be using this opportunity to gain market share while another competitor isn’t doing as well. It’s possible that Elf Beauty is still performing well despite Ulta Beauty’s warning. This is a case of Schrödinger’s cat leading up to Elf Beauty’s earnings report. We’ll learn more about the company’s performance when that report comes out. However, the stock looks like a long-term winner that can reward patient investors.

Intuit (INTU)

Intuit(NASDAQ:INTU) offers financial software like QuickBooks and TurboTax. The stock has generated an impressive 141% gain over the past five years and is rated as a “Strong Buy.” The stock has a projected 16% upside from current levels. The highest price target of $775 per share implies a 27% gain.

Although the stock has been a steady outperformer, shares have been down by roughly 8% since the start of March. It’s entering correction territory and can become more attractive for long-term investors. The stock currently has a 62.5 P/E ratio and a 0.59% dividend yield. The company has anannualized 16.65% dividend growth rateover the past decade.

The fintech firm continues to grow and reported 11% year-over-year revenue growth in Q2 FY24. The company reiterated its full-year guidance in the press release. Its largest segment, “Small Business and Self-Employed Group Revenue,” grew by 18% compared to the same period last year.

ServiceNow (NOW)

ServiceNow(NYSE:NOW) is a software company that helps businesses work more efficiently. The company’s Work Flow technology helps companies stay on top of tasks and create chatbots. ServiceNow generates steady recurring revenue from more than8,100 enterprise customerswith a 99% renewal rate. That customer base includes approximately 85% of the Fortune 500.

The firm generates high cash flow and is expanding its profit margins. The company exceeded guidance inQ4 2023with 26% year-over-year revenue growth and 97% year-over-year net income growth. The company has 1,897 customers with annual contract values above $1 million. ServiceNow added 168 customers to that category in Q4 2023 which is a 33% year-over-year improvement in the number of added $1M+ customers.

The stock currently trades at a56-forward P/E ratioand has outperformed the stock market over several years. Shares have gained 179% over the past five years. The stock is rated as a “Strong Buy” with a projected 15% upside.

Cintas (CTAS)

Cintas(NASDAQ:CTAS) has been beating the stock market for a while. The stock is up by 13% year-to-date and has a 208% gain over the past five years. Investors accumulated more shares after the company’s solidQ3 FY24 earnings report.

The company increased its revenue by 9.9% year-over-year. Meanwhile, net income came in at $397.6 million which was a 22.0% year-over-year increase. Cintas’ profit margins are expanding, and the company still has growth opportunities.

Cintas provides business supplies and safety equipment for more than one million businesses in North America. The company’s revenue is well-diversified due to the large customer base, but Cintas can continue to reach additional businesses in North America.

The company hiked its annual revenue exceptions from a range of $9.48 to $9.56 billion to $9.57 billion to $9.60 billion after the latest earnings report. Higher revenue and diluted EPS expectations have investors excited and spell out a promising long-term opportunity.

Meta Platforms (META)

Meta Platforms(NASDAQ:META) is up by 44% year-to-date and many analysts believe that the stock can march higher. The social media giant has aprojected 9% upsidefrom its current price. Meta Platforms is rated as a “Strong Buy” among 43 analysts. The highest price target of $600 per share suggests a potential 20% gain.

The company continues to achieve impressive revenue growth while delivering substantial profit margin expansion. Revenue jumped by 25% year-over-year inQ4 2023while net income more than tripled compared to the same period last year.

More people continue to create accounts for Meta Platforms’ family of apps. Family daily active users increased by 8% year-over-year while monthly active users jumped by 6% year-over-year. Instagram and WhatsApp are delivering higher growth rates than Facebook.

The corporation is committed to increasing shareholder value based on its $20.03 billion stock buyback in full-year 2023. The recently issued dividend can also attract dividend growth investors who want to get paid for holding onto their favorite stocks. This also makes it one of those growth stocks to buy now.

On this date of publication, Marc Guberti held long positions in AMZN, ELF, and NOW. The opinions expressed in this article are those of the writer, subject to theInvestorPlace.comPublishing Guidelines.

Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.