Growth investing has proven to be an effective method to build long-term wealth.
By buying the stocks of companies that report rising profits and cash flows and holding them over the years, you enjoy steady capital appreciation as their share prices rise.
A portfolio of growth stocks can, therefore, help you to build substantial wealth for your retirement.
Luckily, investors have a plethora of choices when it comes to growth stocks.
For one, the US stock market presents attractive opportunities to scoop up shares of global companies with strong brands and solid franchises.
Here are four US growth stocks that could help to give your investment portfolio a strong boost.
Lululemon (NASDAQ: LULU)
Lululemon is a manufacturer and retailer of athletic apparel and footwear for yoga, running, training, and other sports activities.
The apparel company reported a sparkling set of earnings for the second quarter of fiscal 2024 (2Q FY2024) ending 31 July 2023.
For the first six months of FY2024 (1H FY2024), revenue climbed 21% year on year to US$4.2 billion while operating profit jumped 33.1% year on year to US$880.7 million.
Net profit increased by 31.8% year on year to US$632 million.
The good performance continues even after Lululemon reported strong growth over the past three years.
From FY2021 to FY2023, revenue increased from US$4.4 billion to US$8.1 billion.
Net profit went from US$588.9 million to US$854.8 million over the same period.
On the business development front, Lululemon recently announced a five-year strategic global partnership with digital fitness content provider Peloton (NASDAQ: PTON).
Peloton will become the exclusive digital fitness provider for Lululemon, and in turn, the latter will be the primary athletic apparel supplier for Peloton.
This initiative is just one of many as the company embarks on its “Power of Three x2” five-year plan to double its revenue to US$12.5 billion by 2026.
Adobe (NASDAQ: ADBE)
Adobe is a software company that offers digital experiences and tools through its various software-as-a-service platforms for its clients.
It is well-known for its portable document format (PDF) and its popular Document and Experience Clouds.
For the first nine months of FY2023 (9M FY2023) ending 31 August 2023, Adobe reported a record set of results.
Revenue for the quarter hit a record high of US$4.9 billion and for 9M FY2023, was up 9.8% year on year to US$14.4 billion.
Operating profit improved by 6.8% year on year to US$4.9 billion while net profit jumped 10.2% year on year to US$3.9 billion.
The software company also generated a positive free cash flow of US$1.8 billion for 9M FY2023, up 12.9% year on year.
Back in July, Adobe expanded its Firefly generative artificial intelligence product to support text prompts in more than 100 languages, allowing the software to reach millions of new users.
Firefly has also been integrated into Adobe’s flagship Photoshop, Express, and Illustrator products.
Mercadolibre (NASDAQ: MELI)
Mercadolibre is Latin America’s largest e-commerce player and provides payment, logistics, and credit services.
The e-commerce outfit reported a strong finish to 2022 with top-line growth of 40.9% year-on-year to US$3 billion.
Operating profit clocked in at US$349 million while net profit came in at US$165 million, reversing the US$46 million loss in 2021.
The momentum has carried into the first half of 2023 (1H 2023) as revenue leapt 31.5% year on year to US$3.4 billion.
Operating profit surged 123.2% year on year to US$558 million with net profit more than doubling year on year to US$262 million.
Its platform saw unique active users rise from 107 million in 1H 2022 to 135 million in 1H 2023.
Gross merchandise volume rose 23% year on year to US$19.9 billion with total payment volume jumping 42.4% year on year to US$79.1 billion.
A total of four billion payments were transacted through its platform, soaring 70% year on year.
DoorDash (NASDAQ: DASH)
DoorDash operates an online food ordering cum delivery platform.
For the quarter ending 30 June 2023, the company saw a record in total orders and marketplace gross order value (GOV).
Total orders for 2Q 2023 grew 25% year on year to 532 million while GOV jumped 26% year on year to US$16.5 billion.
Revenue for the delivery company jumped 36% year on year in 1H 2023 to US$4.2 billion and it narrowed its net loss from US$430 million to US$331 million over the same period.
Earlier last month, DoorDash announced a slew of new grocery partners to increase its consumer reach.
It partnered with CUB, Eataly, Lowe’s Market and many others, significantly increasing the platform’s consumer base.
The company also expanded its partnership with ALDI, a grocer, to offer responsible alcohol delivery.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
