Investing in growth stocks is the best way to grow your wealth over the long term to better prepare yourself for retirement.
Luckily, there are a plethora of attractive growth stocks out there for the picking.
In particular, the US stock market offers many opportunities to scoop up growth stocks to keep for the long term.
These businesses should possess a strong business franchise and have promising long-term catalysts.
Here are four reliable US growth stocks that you can consider for your buy watchlist.
Monster Beverage (NASDAQ: MNST)
Monster Beverage manufactures and sells energy drinks under famous brand names such as Monster, Predator, Reign, and Fury.
The company also develops and markets craft beers and flavoured malt beverages under brands such as Jai Alai, Dallas Blonde, and Wild Basin.
For the first half of 2024 (1H 2024), Monster reported an encouraging set of financial results.
Sales increased by 6.9% year on year to US$3.8 billion while operating profit rose 6% year on year to US$1.1 billion.
Net profit improved by 6.9% year on year to US$867.4 million.
The business also generated a positive free cash flow of US$722.6 million, up 6.2% from a year ago.
Hilton Schlosberg, co-CEO of Monster, remarked that the energy drink category continues to grow and has demonstrated resilience, with consumers viewing the product as an “affordable luxury”.
The company will be implementing a 5% price increase for its core brands and packages in the US effective 1 November 2024.
In line with its innovative culture, Monster plans to launch Monster Energy Ultra Vice Guava in the US in October.
Predator Energy Gold Strike, which was launched in China in April 2024 in selected provinces, saw a positive response and the product will be rolled out to more markets in China later this year and in 2025.
Lululemon Athletica (NASDAQ: LULU)
Lululemon produces and sells athletic apparel, footwear, and accessories for yoga, running, and training.
The yoga apparel maker reported a good set of earnings for the half year ending 31 July 2024 (1H FY2025).
Revenue rose 8.8% year on year to US$4.6 billion while operating profit climbed 10.5% year on year to US$972.9 million.
Net profit for Lululemon rose 13% year on year to US$714.3 million.
The company also churned out a positive free cash flow of US$294.9 million, up 23% year on year from US$239.8 million.
Lululemon has continued its innovative streak with the launch of new casual and performance styles for its footwear offerings back in February 2024.
New running models beyondfeel and beyondfeel trail were also launched in March and May, respectively.
Management announced a five-year growth plan called “The Power of Three x2” to double its revenue to US$12.5 billion by 2026.
This strategy is predicated on three key pillars: product innovation, customer experience, and market expansion.
Restaurant Brands International (NYSE: QSR)
Restaurant Brands International, or RBI, is one of the largest quick-service restaurant companies with more than 30,000 restaurants in over 120 countries and territories.
The company owns four iconic brands – Burger King, Tim Hortons, Popeyes, and Firehouse Subs.
RBI reported a robust set of earnings for 1H 2024 as revenue rose 13.5% year on year to US$3.8 billion.
Operating profit increased by 9.6% year on year to US$1.2 billion and net profit shot up 18.6% year on year to US$510 million.
The food and beverage giant also generated a positive free cash flow of US$413 million for 1H 2024.
The company saw a small 1.9% increase in comparable store sales for the half year, along with a 4% increase in net restaurants during the period.
Back in September 2022, Burger King announced its “Reclaim the Flame” plan to accelerate sales growth and drive franchisee profitability.
As of 30 June 2024, RBI has funded US$85 million into two components – Fuel the Flame (advertising and digital investments), and Royal Reset (remodelling and relocation of restaurant technology, kitchen equipment, and building enhancements).
Burger King announced its Royal Reset 2.0 programme back in April 2024 and plans to invest an additional US$300 million in remodels from 2025 through 2028.
Doximity (NYSE: DOCS)
Doximity is a leading digital platform used by US medical professionals.
Its platform contains digital tools for medicine and enables members to collaborate with colleagues, stay updated with the latest medical news and research, and streamline documentation and administrative paperwork.
The company is enjoying rapid growth with revenue rising 16.8% year on year to US$126.7 million for the first quarter of fiscal 2024 (1Q FY2024) ending 30 June 2024.
Operating profit surged by 55.1% year on year to US$46.1 million with net profit climbing 45.7% year on year to US$41.4 million.
The business is also free cash flow positive, with US$39.5 million of free cash flow generated for 1Q FY2024.
Doximity also maintains a clean balance sheet with US$750.4 million of cash and investments and zero debt.
During last year’s Investor Day, management believes that it has a significant US$18 billion market opportunity with substantial room to grow with existing customers.
The revenue net retention rate for Doximity’s top 20 customers stood at 124% for fiscal 2023 and the company also authorised US$200 million for share repurchases that will last till 2025.
Attention Growth Investors: Our latest report, “The Rise of Titans,” gives you a front-row seat on the 7 most influential US stocks today. If you’re passionate about tech and growth, you can’t go wrong with our research. Downloading this FREE report could be the most strategic move you make this year. Click here to get started now.
Follow us on Facebook and Telegram for the latest investing news and analyses!
Disclosure: Royston Yang owns shares of Lululemon Athletica.
