09 May 4 US Growth Stocks That Can Supercharge Your Portfolio
As the world reopens its borders, numerous economies should see a strong rebound in consumer demand and spending.
With consumer demand returning in a big way, businesses are poised to benefit.
These companies have a strong competitive moat, brand strength and product profile that enable them to forge onwards despite the difficulties.
Here are four US growth stocks that can do wonders for your investment portfolio.
Microsoft (NASDAQ: MSFT)
Microsoft is one of the largest technology companies in the world, with a wide range of products and services that includes cloud computing, word processing software, and personal computers.
The US$2 trillion company has seen its share price rise by nearly 14% in the last year, outperforming the benchmark NASDAQ Composite Index which has dipped close to 8% over the same period.
Microsoft reported a sturdy set of financials for its fiscal 2022’s third-quarter (3Q2022) ended 31 March 2022.
For the first nine months of fiscal 2022 (9M2022), total revenue rose 20.1% year on year to US$146.4 billion while gross margin held steady at 68.4%.
Net profit climbed 25% year on year to US$56 billion.
Free cash flow increased by close to 19% year on year from US$39.9 billion to US$47.4 billion.
In particular, Microsoft’s cloud computing service, Azure, saw its revenue rise by 26% year on year.
LinkedIn, a network for working professionals to connect, recorded a strong 34% year on year jump in revenue.
Demand for Microsoft’s services is expected to rise as more businesses digitalise to prepare themselves for the new hybrid work environment.
Apple (NASDAQ: AAPL)
Apple probably needs no introduction, being one of the most innovative and valuable smartphone companies in the world.
Despite encountering supply chain disruptions due to a global chip shortage, the technology company has managed to report an impressive set of earnings.
For its fiscal 2022’s second quarter (2Q2022), Apple reported revenue rose 9% year on year to a new record for its March quarter.
Services revenue also hit a new record.
For the first six months of FY2022, total revenue increased by 10% year on year to US$221.2 billion while net profit climbed 13.8% year on year to US$59.6 billion.
The company’s Wearables and Services divisions grew at a rapid clip, jumping by 13% and 20.4% year on year, respectively.
Barring unforeseen delays due to supply chains, it appears Apple’s brand equity remains strong and that the company should continue to impress with its financial numbers.
Mondelez International (NASDAQ: MDLZ)
Mondelez is a snack food company that used to be called Kraft Foods Inc (KFI). KFI spun off its North American grocery business Kraft Foods Group in October 2012 and then changed its name to Mondelez.
The company owns a range of popular snack brands such as Cadbury, Chips Ahoy!, Oreo, Ritz and Toblerone.
Throughout 2020 and 2021, Mondelez has displayed resilience as it kept its gross margin consistent at around 39.3%.
Net revenue even grew by 8% year on year in 2021 and net profit jumped by 21% year on year for that year, demonstrating Mondelez’s ability to continue growing.
The revenue momentum has continued into the first quarter of 2022, with revenue rising by 7.3% year on year to US$7.76 billion.
However, the rising prices of raw materials have squeezed the company’s gross margin, leading to a fall in net profit from US$961 million to US$855 million.
Despite this, Mondelez has raised its annual dividend every single year since its spin-off, paying out a total of US$1.33 for 2021.
Lowe’s (NYSE: LOW)
Lowe’s is a home improvement company that has around 2,200 home improvement and hardware stores in the US and Canada serving around 19 million customers a week.
The retailer reported a strong set of earnings for its fiscal 2022 that ended on 28 January 2022.
Net sales rose 7.4% year on year to US$96.3 billion while operating profit jumped 25.4% year on year to US$12.1 billion.
Net profit surged by 44.7% year on year to US$8.4 billion but the prior year saw an exceptional loss of US$1.06 billion on the extinguishment of its debt.
If this item were adjusted for, Lowe’s still reported a respectable 22.4% year on year jump in net profit.
For FY2023, Lowe’s expects sales to come in between US$97 billion to US$99 billion and is targeting a return on invested capital of 36%.
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