3 Growth Stocks to Adopt Today

Think of investing as growth stocks like adopting a pet from an animal shelter because they are great to keep forever. Growth stocks typically perform better when interest rates fall and company earnings rise. They tend to go down when the economy is not doing very well. Does that sound familiar in this unfavorable economic environment?

Contributor Depositphotos.com/Depositphotos.com – MarketBeat

Even during these ups and downs, adopting corporate growth means that earnings or cash flows will see higher earnings gains through upward growth. You may need to have a healthy sense of risk and years on your side. Skip investing in growth stocks if you need the money in just a few years.

Let’s cover how to invest for growth and some stock ideas to grow your portfolio.

What to Consider Before Investing in Emerging Stocks

Consider investing in large, established businesses that adopt positive earnings and profit margins. Look for above-average earnings per share (EPS) growth. You can also look at companies with strong sales growth that are ready to increase their revenue over time, industries and companies you know well and high returns on equity compared to competitors. You can also look at companies with low or manageable debt levels; learn about the company’s liabilities compared to competitors, but remember that it is okay for the company to have debt because it may invest in additional income streams or other positive investments. Look for a high return on invested capital, which shows how efficiently the company spends its money.

Finally, look at stocks that have strong leadership teams, large growth and target markets, and strong sales. A recent annual net loss, a recent CEO change or other change in higher management, a falling or overvalued stock can also raise some red flags. You may see a stock decline because the stock price ultimately reflects its true fundamentals.

A diversified fund may make more sense to ensure you get the most out of your time horizon and set the right risk tolerance, which could mean investing in index funds or mutual funds. Whether you choose to invest in individual growth stocks or choose a growth fund, keep a long-term horizon on your plate.

3 Growth Stocks for Your Portfolio

Take a look at the following growth stocks that we named for a keep forever portfolio.

Nucor Corporation (NYSE:NUE)

Nucor Corporation, headquartered in Charlotte, North Carolina, is the largest steel producer in the US. Nucor manufactures steel and steel products through its steel mill, steel products, and raw materials segments. The company produces carbon and alloy steel in sheets, bars and more through its steel trading business, reinforcing distribution business, and in Nucor’s equity method investment. Its steel products segment produces steel beams and girders, steel decks, fabricated concrete reinforcement, cold-formed steel, steel fasteners, metal building systems and steel gratings. It features a tubular product business, a pile and wire and wire mesh product business and direct reducing ferrous and nonferrous metals and raw materials.

Nucor reported consolidated net income of $2.25 billion, or $7.97 per diluted share, for Q4 2021, up from $2.13 billion, or $7.28 per diluted share, for Q3 2021 and $398.8 million, or $1, 30 per diluted share, for Q4 2020. In 2021, Nucor reported consolidated net income of $6.83 billion, or $23.16 per diluted share, compared to consolidated net income of $721.5 million, or $2.36 per diluted share in year 2020.

Marathon Petroleum Corporation (NYSE: MPC)

Marathon Petroleum Corporation refines, markets, and transports petroleum products in the United States. It operates through refining and marketing, retail and mid-segment, refining crude oil and other feedstocks in the Gulf Coast and Midwest, purchasing ethanol and refined products for resale, and distributing refined products via barge, terminal and truck.

The company sells transportation fuel and convenience products in retail markets throughout the United States through company-owned and operated convenience stores, primarily under the Speedway brand and through long-term fuel supply contracts with direct dealers operating locations primarily under the ARCO brand. It also operates under logistics assets, pipelines, terminals, tugboats and barges and collects, processes and transports natural gas and more.

Marathon reported Q4 2021 net income of $774 million, or $1.27 per diluted share and adjusted net income of $794 million, or $1.30 per diluted share.

The company recovered approximately $3 billion in share repurchases since October 31 and completed approximately 55% of its $10 billion buyback program through January 31 with an additional $5 billion repurchase authorization.

The company also reported a net profit of $774 million for Q4 2021, compared to a net profit of $285 million for the fourth quarter of 2020.

Pioneer Natural Resources Co. (NYSE: PXD)

Pioneer Natural Resources Co., headquartered in Irving, Texas, is an independent oil and gas exploration and production company. It explores hydrocarbon exploration in the Cline Shale and operates the Permian Basin, Eagle Ford Shale, Rockies and West Panhandle projects.

Pioneer reported Q4 net income attributable to common stockholders of $763 million, or $2.97 per diluted share. Cash flow from operating activities for Q4 was $2.2 billion and for the full year 2021, net income attributable to common stockholders was $2.1 billion, or $8.61 per diluted share. Cash flow from operating activities for the full year 2021 is $6.1 billion.

The company repurchased $250 million of stock during Q4 2021 and stepped up its share buyback program with new authorizations of $4 billion. The company also returned 101% of free cash flow to shareholders during Q4.

Consider Growth Stocks for the Long-Term

Stock growth can add volatility to your portfolio, which is why you need to prepare yourself for a long-term investment strategy. However, if you find a stock or fund that shows tremendous upside potential compared to competitors, the growth stock should outperform the market as a whole. In most cases, they are eligible for adoption.