3 Compelling Growth Stocks to Buy Right Now

3 Compelling Growth Stocks to Buy Right Now

Posted On May 13, 2019 1:56 pm

Here we go again. After a record-setting start to 2019, the stock market is back in turmoil. Don’t sweat the reasons why, though — a breather was long overdue.

In the meantime, there are some high-growth concerns out there worthy of your consideration. Three that our Foolish contributors think are worth your time are Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL)Micron (NASDAQ:MU), and Teladoc (NYSE:TDOC).

Google doesn’t need your worry

Nicholas Rossolillo (Alphabet): In what’s becoming a quarterly trend, Google parent Alphabet’s stock rallied to new all-time highs only to get knocked down again after reporting on first-quarter 2019. The reason? The search and technology giant’s “disappointing” numbers.

After a double-digit tumble, though, this high-growth internet monster is worth another look. It’s true that revenue increased 17% during the first quarter — compared to a 26% year-over-year increase in the first quarter of 2018. However, some of that wide differential had to do with currency exchange rates. Google also alluded to some changes in ad revenue recognition that had an impact, and that Google is not at all concerned with quarterly variability.

Besides, for a company the size of Alphabet, double-digit revenue growth is no small feat. Also, operating income rose 11%. The stock now trades at 29.3 times the last year’s worth of earnings, and just 24.4 times the next 12 months’ expected earnings. That doesn’t make shares cheap, but one could do worse for a high-growth stock.

All the while, the company continues to funnel money into its in-house hardware business, YouTube, and a long list of start-ups ranging from autonomous cars to healthcare data science. Google isn’t going anywhere anytime soon, and has plenty of runway to continue growing for many years to come.

A memory-making cash machine

Anders Bylund (Micron Technology): I understand if you’re a little scared about owning Micron right now. The memory-chip maker has seen chip prices weaken over the last year, resulting in sharp dips in the company’s revenues and free cash flows…

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