Owning solid, well-run growth stocks is one of the best ways to grow your wealth and better prepare yourself for retirement.
The good news is that the US stock markets offer plenty of choices for you to look for dependable growth stocks.
Ideally, these businesses should demonstrate multi-year growth in revenue and net profit while generating healthy positive free cash flow.
They should also possess catalysts to help the business grow to the next level.
Here are four attractive US stocks that you can consider adding to your buy watchlist.
Synopsys (NASDAQ: SNPS)
Synopsys provides comprehensive silicon-to-systems design solutions, from electronic design automation to system verification and validation.
The company works closely with its partners in the semiconductor sector to help them maximise their R&D capability and productivity.
Synopsys posted healthy growth in its top and bottom lines for the first nine months of fiscal 2024 (9M FY2024) ending 31 July 2024.
Revenue rose 16.6% year on year to US$4.5 billion while operating profit jumped 23.1% year on year to US$1 billion.
Net profit climbed nearly 32% year on year to US$1.2 billion.
The business also generated a positive free cash flow of US$725.4 million for 9M FY2024.
Synopsys recently partnered with TSMC (NYSE: TSM) to work on the latter’s most advanced processes and accelerate innovation for artificial intelligence (AI) and multi-die designs.
The company is also developing new backside power delivery capabilities so that TSMC can enjoy efficient power distribution and system performance.
Synopsys recently acquired Ansys, a leader in simulation and analysis, to help enhance and accelerate its silicon-to-systems strategy.
This purchase expanded Synopsys’s total addressable market to around US$31 billion and is growing at a rate of approximately 13% per annum.
Cloudflare (NYSE: NET)
Cloudflare is a global cloud services provider that delivers a range of services to its customers.
These include making their systems more secure, enhancing the performance of their applications, and eliminating the cost and complexity of managing individual hardware components.
Cloudflare saw its revenue for the first nine months of 2024 (9M 2024) rise 29.5% year on year to US$1.2 billion.
Gross profit increased by 32.2% year on year to US$939.7 million.
The business generated a positive free cash flow of US$119.2 million, up 73.3% from a year ago.
Cloudflare has seen a steady increase in its number of large customers with more than US$100,000 in annualised revenue.
This number increased from just 1,908 back in the third quarter of 2022 (3Q 2022) to 3,265 in 3Q 2024.
Its total addressable market is also projected to grow to US$222 billion by 2027 from the current US$176 billion and will be driven by the incremental growth of AI, the Internet of Things, and 5G cellular networks.
Accenture (NYSE: ACN)
Accenture is a global professional services company that helps its clients optimise their operations, accelerate revenue growth, and enhance their service offerings.
The organisation employs around 774,000 people serving clients in more than 120 countries.
Accenture reported a strong set of earnings for its fiscal 2024 (FY2024) ending 31 August 2024.
Revenue inched up 1.2% year on year to US$64.9 billion while operating profit improved nearly 9% year on year to US$9.6 billion.
Net profit stood at US$7.3 billion, 5.7% higher than the previous year.
The professional services firm also generated a positive free cash flow of US$8.6 billion for FY2024, though this was marginally lower than the US$9 billion churned out in FY2023.
The company declared a quarterly cash dividend of US$1.48 per share, a 15% year-on-year increase over the prior year’s dividend.
Management also reported record new bookings of US$81.2 billion for FY2024, representing a 13% year-on-year increase.
Earlier this month, Accenture invested in Cresta, a company that developed an AI-powered platform designed for contact centres.
Accenture plans to integrate Cresta’s AI software capabilities into its fold to help clients build custom AI models that meet their unique business needs.
Crocs (NASDAQ: CROX)
Crocs is a manufacturer and seller of casual footwear that combines comfort and style.
The company’s brands include Crocs and HEYDUDE and its products are sold in more than 80 countries worldwide.
The footwear company released a mixed set of earnings for 9M 2024.
Revenue increased by 3.7% year on year to US$3.1 billion but operating profit dipped slightly to US$822 million from US$827.3 million a year ago.
Net profit, however, rose 7.8% year on year to US$581.1 million.
The business also churned out a positive free cash flow of US$619.7 million, up 25% year on year.
Crocs achieved several of its strategic objectives this year including brand growth investment and paying down US$110 million of debt.
The company also returned capital to shareholders by repurchasing 1.1 million shares.
Management’s priorities include buying back shares and paying down more debt.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
