It may sound surprising, but investing in growth stocks is one of the most effective ways to grow your wealth and ensure a comfortable retirement.
You need to do two things: select the right companies to own for the long term and have the patience to hold them through market volatility.
When it comes to selecting the right businesses, you should look for those with a robust business moat, a track record of growth, and tailwinds that can help the business to continue growing.
Here are four dependable US growth stocks that could sit well in your long-term portfolio.
Moody’s Corporation (NYSE: MCO)
Moody’s provides data, insights, and technologies to help its customers make analytical decisions and the required information to make actionable decisions.
The company employs around 16,000 staff across more than 40 countries.
Moody’s reported a commendable set of earnings for the first quarter of 2025 (1Q 2025).
Revenue rose 7.7% year on year to US$1.9 billion while operating profit improved by 5.6% year on year to US$846 million.
Net profit stood at US$625 million, 8.3% higher than a year ago.
The company is also a consistent free cash flow generator, churning out US$672 million of free cash flow for the quarter.
The business declared a quarterly dividend of US$0.94, 10.6% higher than the prior year’s US$0.85.
Moody’s outlook for 2025 is for mid-single-digit revenue growth and an adjusted operating margin of between 49% to 50%.
Free cash flow is expected to be in the range of US$2.3 billion to US$2.5 billion.
Last month, Moody’s acquired ICR Chile, a provider of domestic credit ratings in Chile.
This acquisition is in line with Moody’s plan to integrate ICR into its business to strengthen its presence in Chile’s growing debt capital market.
Dycom Industries (NYSE: DY)
Dycom is a provider of speciality contractor services for leading telecommunication providers.
The company’s services include planning, engineering and design, maintenance, and fulfilment services.
For the first quarter of fiscal 2026 (1Q FY2026) ending 26 April 2025, revenue climbed 10.2% year on year to US$1.26 billion.
However, net profit dipped slightly by 2.4% year on year to US$61 million because of higher interest expenses.
Despite this small dip, Dycom has demonstrated healthy growth in the previous fiscal year, with revenue rising 12.6% year on year to US$4.7 billion and net profit increasing by 6.6% year on year to US$233.4 million.
Free cash flow for FY2025 also more than doubled year on year to US$98.5 million.
The company announced a record backlog of US$8.13 billion as of 1Q FY2026, and also repurchased 200,000 shares for US$30.2 million during the quarter.
Management sees healthy industry tailwinds that will be positive for Dycom’s business.
These include multi-year capital commitments for fibre-to-the-home deployments, increasing demand for fibre infrastructure, and wireless network modernisation to meet evolving digital demands.
Parsons Corporation (NYSE: PSN)
Parsons provides innovative solutions for the defence, intelligence, and critical infrastructure sectors.
The company delivers software and hardware products, technical services, and integrated solutions.
For 1Q 2025, Parsons reported a slight 1.2% year-on-year increase in revenue to US$1.55 billion.
Operating profit improved by 7.3% year on year to US$109.2 million.
Net profit, after adjusting for loss on debt extinguishment in 1Q 2024, increased nearly 14% year on year to US$66.2 million.
The company reported a backlog of US$9.1 billion, a record.
Parsons continued to clinch large contracts, with four single-award contracts worth more than US$100 million each.
The company also acquired TRS Group for US$37 million to enhance Parsons’ environment remediation capabilities and boost its remediation solutions segment.
Management has a three-prong growth strategy to enable the business to continue posting higher revenue and profits.
The first is to enhance and optimise its core operations, while the second and third include the extension into adjacent markets and continued acquisition and integration of transformative and disruptive technologies.
Leidos (NYSE: LDOS)
Leidos serves government and commercial customers by providing efficient digital and mission innovations.
The company is headquartered in Virginia, US, and employs around 47,000 global staff.
For 1Q 2025, Leidos reported a 6.8% year-on-year increase in revenue to US$4.2 billion.
Operating and net profit climbed 27.7% and 27.8% year on year, respectively, to US$530 million and US$363 million.
The business also churned out a positive free cash flow of US$36 million for the quarter.
Leidos projects revenue of US$17.1 billion for 2025 (at the midpoint of its guidance), representing a year-on-year growth of 2.6%.
Management continues to implement its “Northstar 2030” long-term strategic plan.
It will conduct US$500 million accelerated share buybacks and is implementing the largest cyber operation across the US federal government.
The company also makes use of acquisitions to grow and scale its capabilities.
In May, Leidos acquired Kudu Dynamics to help Leidos with the rapid scaling of AI-enabled cyber capabilities for defence and homeland security customers.
The company is actively looking at other ideas to grow the business, including next-generation air traffic control systems and a golden dome missile defence system.
Dive into the future of technology with our newest FREE report, “The Rise of Titans.” Discover how the big 7 US tech stocks can be your ticket to huge long-term gains. Download your copy today and see how easy it is to supercharge your portfolio.
Follow us on Facebook, Instagram and Telegram for the latest investing news and analyses!
Disclosure: Royston Yang does not own shares in any of the companies mentioned.
