The purpose of buying growth stocks is to enjoy steady long-term capital appreciation.
As the value of your investment portfolio increases, you are, in effect, building a tidy nest egg for your retirement.
However, you should not buy just any growth stock in the stock market.
It’s important to filter out those growing their revenue, profits, and free cash flows.
Here are five attractive US growth stocks that demonstrated growth in both their top and bottom lines.
Adobe (NASDAQ: ADBE)
Adobe is a software-as-a-service company offering graphics design, document, and video editing tools, among others, catering for graphics designers and users.
Its Creative and Document Clouds offer tools that can help customers create realistic and vibrant graphics and videos for personal and corporate purposes.
Adobe reported record revenue for the first quarter of fiscal 2025 (1Q FY2025) ending 28 February 2025.
Total revenue rose 10.3% year on year to US$5.7 billion, and operating profit jumped 13.4% year on year to US$2.2 billion.
Net profit increased 11.8% year on year to US$1.8 billion.
The numbers above have been adjusted for last year’s acquisition termination fee of US$1 billion paid to Figma as antitrust authorities blocked Adobe’s planned acquisition of the company.
Free cash flow more than doubled year on year from US$1.1 billion to US$2.5 billion.
The company expects to garner revenue of US$23.425 billion (midpoint) for FY2025, representing year-on-year growth of 8.9%.
Just last month, Adobe introduced artificial intelligence (AI) powered video tools in Adobe Express for intuitive content creation.
This software allows a wide range of individuals to easily create and publish content that helps to grow their business and communicate more effectively.
Microsoft (NASDAQ: MSFT)
Microsoft is a software company that is well-known for its Microsoft Office suite of tools for word processing, spreadsheets, and presentations.
The technology company also offers cloud computing services and owns the professional networking website LinkedIn.
Microsoft reported a pleasing set of earnings for the first nine months of fiscal 2025 (9M FY2025) ending 31 March 2025.
Revenue rose 13.8% year on year to US$205.3 billion.
Operating profit improved by 15.6% year on year to US$94.2 billion while net profit increased by 12.9% year on year to US$74.6 billion.
Microsoft’s free cash flow for 9M FY2025 stood at an impressive US$46 billion, though this was down 9.3% year on year because of increased spending on AI.
The company’s cloud computing segment did well, with revenue soaring 20% year on year to US$42.4 billion for its latest quarter.
LinkedIn revenue also grew by 7% year on year during the same period.
PayPal (NASDAQ: PYPL)
PayPal operates a payment processing platform that enables users to move money, sell, and shop securely.
The business is present in around 200 markets and serves both individuals and corporations.
Net revenue for the first quarter of 2025 (1Q 2025) inched up 1.2% year on year to US$7.8 billion.
Operating profit climbed 31% year on year to US$1.5 billion, with net profit soaring 44.9% year on year to US$1.3 billion.
Free cash flow for 1Q 2025 stood at US$964 million.
Total payment volume for the quarter increased by 3% year on year to US$417.2 billion, and active accounts rose 2% year on year to 436 million.
For 2025, PayPal expects its diluted earnings per share to be between US$4.80 to US$4.95, higher than the previous year’s US$3.99.
Lockheed Martin (NYSE: LMT)
Lockheed Martin is a defence technology company with 350 facilities around the world, employing 121,000 employees.
For 1Q 2025, the company saw revenue rise 4.5% year on year to US$17.9 billion while operating profit jumped nearly 17% year on year to US$2.4 billion.
Net profit increased 10.8% year on year to US$1.7 billion.
The business also generated a positive free cash flow of US$955 million for 1Q 2025.
The aerospace company paid out a quarterly dividend of US$3.30 per share, up 4.8% year on year.
Lockheed Martin is also growing through acquisitions. The company announced the purchase of Rapid Solutions from Amentum (NYSE: AMTM), an engineering and technology solutions company.
Rapid Solutions is a multi-domain provider of airborne and space intelligence, surveillance and reconnaissance, and advanced communications.
For 2025, Lockheed Martin expects sales to come in around US$74.5 billion, representing a year-on-year increase of close to 5%.
The company also expects to generate free cash flow of between US$6.6 billion to US$6.8 billion for the year.
WD-40 Co (NASDAQ: WDFC)
WD-40 sells a wide range of maintenance, home care, and cleaning products under brands such as WD-40, 3-In-One, and 2000 Flushes.
For the first half of fiscal 2025 (1H FY2025) ending 28 February 2025, revenue rose 7.2% year on year to US$299.6 million while operating profit increased by 7.3% year on year to US$48.4 million.
Net profit surged by 47.7% year on year to US$48.8 million.
WD-40 also generated a positive free cash flow of US$20.9 million for 1H FY2025.
Management expects sales growth for FY2025 to be between 6% to 11% and operating profit between US$95 million to US$100 million, representing year-on-year growth of between 6% to 12%.
The company also recently upped its quarterly dividend to US$0.94, a 6.8% year-on-year increase from the US$0.88 per share paid out in the previous year.
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Disclosure: Royston Yang owns shares of Adobe.
