3 Great Stocks You Should Buy for Growth Today

Stocks to buy

Investing in the right growth stocks can help make significant gains in the stock market. Many growth stocks show an upward trend today, and they have the potential to gain momentum as the market improves. But finding the right growth stocks can be a challenge. The best ones have a solid cash flow and do not rely on the market for capital. They are also rapidly growing and have a reliable customer base, so they enjoy steady revenue growth. If you want to boost your portfolio this month, here are the three top stocks for growth.

Growth Stocks: First Solar (FSLR)

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The world is moving towards renewable sources of energy, so investing in solar energy is a smart move. First Solar (NASDAQ:FSLR) is one of the best solar companies to invest in. It makes photovoltaic solar panels required for solar energy adoption, and as the adaption rate rises, the demand for these panels will also rise. The company benefits from the Inflation Reduction Act as well as the government subsidies that promote renewable energy.

While many were skeptical about the company’s future, it proved itself in the recent financial results. The company reported sales of $811 million, up 30% year over year, and a net income per share of $1.59. First Solar has the financial stability that investors look for in growth stocks. It has a contract to generate 21.1 gigawatts of solar power this year and expects sales of about 77.8 gigawatts in the near term.

Let’s not forget that the renewable energy industry is fairly new, and government initiatives have led to a certain level of awareness. The company has a long way to go and has solid growth potential. It also has a new manufacturing plant in Louisiana underway. It is a $1.1 billion project and its fifth manufacturing facility that should be ready by 2026.

FSLR stock is trading at $181 today, much lower than the 52-week high of $232. However, the stock is up 24% so far this year and almost 250% in the past five years. The recent dip in the stock is a good chance to add it to your portfolio. The company is on a growth spree, and holding this stock will generate significant gains for investors.

Li Auto (LI)

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As the electric vehicle (EV) adoption increases in the world, the demand for EVs will rise, and Li Auto (NASDAQ:LI) is one company taking giant strides in the industry. I’ve been recommending the stock for a while, as I believe it’s one of the best Chinese EV makers right now. The company has shown impressive performance even when the market was down and inflation was soaring. It delivered 34,134 vehicles in July, a 227% growth from the year ago.

This is also its second month of topping 30,000 vehicle deliveries, and it aims to deliver 40,000 vehicles monthly by the end of this year. Li also impressed the market with better-than-expected earnings. It reported earnings of $3.9 billion in revenue, a 228% rise year-over-year.

The company plans to triple the model lineup by 2025, and its L7 is one of the top-selling models right now. The company has delivered 86,533 vehicles this year, a 202% rise. Li Auto reported a net income much better than the loss reported in the second quarter of 2022. With the strong revenue numbers, the company also reported an impressive free cash flow of $975 million — a significant increase from the previous year.

Li Auto is ready to charge ahead and is finally in a good place. The company has a lot working for it. The stock is exchanging hands at $38 today, up over 85% year to date. It has grown over 60% in the past six months, and it will only move upward from here. This is one growth stock that has the potential to double your money.

Palantir Technologies (PLTR)

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Software company Palantir Technologies (NYSE:PLTR) has been considered highly controversial in the market. Many love the stock, while many do not have the patience to wait for it to grow. The company has software platforms that can build custom software for commercial and government clients. In every business, data is king, and Palantir is making the most of it. However, it has been criticized for focusing on government clients for a very long time. Things are different now.

The company has been expanding its commercial client base, which has become the key to its long-term growth. Palantir saw its commercial client base increase by 50% year-over-year in the first quarter and 35% in the second quarter. Besides the impressive clientele, the company also has strong financials. The revenue came in at $533 million, and PLTR signed new deals that span 30 industries in the second quarter. It generated about $96 million in free cash flow and has zero debt. Management expects revenue between $553 to $557 million in the current quarter.

The company seems to be on the right track, and PLTR stock at $14 looks highly undervalued to me. PLTR is the highest it has been this year, up 125% so far. The stock has the potential to double and go beyond. Ark Invest’s Cathie Wood loves the stock and recently purchased $14 million. PLTR remains one of the best stocks for growth and could be a solid addition to your portfolio.

On the date of publication, Vandita Jadeja did not hold (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.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.