The Growth Stock Grandmasters: 3 Picks That Will Checkmate the Market

Stocks to buy

Growth stocks remain the best way to ensure superior investment returns — and some are killing it right now. Smart management, savvy decision making and long-term catalysts is causing certain stocks to vault higher and outperform the broader market.

The stock market continues to be pushed to all-time highs by artificial intelligence (AI), cryptocurrencies, interest-rate-cut expectations and more. Investors need to spot which companies are capitalizing on these catalysts and ride their stocks to big gains. Many of the stocks rising today can be expected to outperform the market over the near-term.

Here are the grandmasters of growth stocks: three picks that will checkmate the market.

CrowdStrike (CRWD)

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Another great print from CrowdStrike (NASDAQ:CRWD). The cybersecurity firm’s stock is up 7% after it reported first-quarter financial results that beat Wall Street estimates on the top and bottom lines. CrowdStrike reported EPS of 93 cents, which was above the 89 cents expected amongst analysts. Revenue came in at $921 million, up 34% YOY and ahead of estimates calling for $905 million in sales.

The company’s free cash flow stood at $322.5 million at quarter’s end, up 42% from $227.4 million a year ago. Subscription revenue grew 34% to $872.2 million. In terms of guidance, CrowdStrike said that it expects revenue of $958.1 million to $961.2 million in the current second quarter of the year. The guidance is ahead of Wall Street sales forecasts of $955 million. Profits for Q2 are forecast at 98 cents to 99 cents per share, above consensus forecasts of 91 cents.

With its stock having more than doubled (up 123%) over the past 12 months, CrowdStrike has set itself apart from its competitors and established itself as the cybersecurity stock to own.

Hewlett Packard (HPE)

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Hewlett Packard Enterprise (NYSE:HPE) is having its best day in many a moon, and at a 52-week high, after the information technology and computer hardware maker posted better-than-expected financial results. The share price of HPE is up 12% on news that it reported EPS of 42 cents a share, which beat consensus expectations of 39 cents. Revenue came in at $7.20 billion, topping the $6.80 billion forecast on Wall Street. Sales were up 3% from a year earlier.

Best of all, management attributed the strong results to rising demand for artificial intelligence (AI) servers. Hewlett Packard is benefiting from an increased availability of Nvidia’s (NASDAQ:NVDA) H100 microchips used in its servers. Hewlett Packard Enterprise’s, or HPE’s, server segment posted quarterly revenue of $3.90 billion, up 18% YOY and above analyst expectations for $3.46 billion in sales. AI systems revenue at HPE more than doubled sequentially to $900 million.

News of the earning beat, driven by AI demand, was music to the ears of analysts and investors. HPE stock is now up 31% over the last 12 months.

BlackRock (BLK)

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Investment firm BlackRock (NYSE:BLK) has a catalyst brewing with its new iShares Bitcoin Fund (NASDAQ:IBIT). Of the approximately 10 spot Bitcoin (BTC-USD) ETFs currently offered in the U.S., BlackRock has emerged as the sector leader. In fact, BlackRock’s spot Bitcoin ETF just surpassed $20 billion of assets under management (AUM), trouncing all similar funds.

BlackRock reports that its ETF now holds 291,563 Bitcoins valued at $20.15 billion. Flows into spot Bitcoin ETFs are rebounding after slowing since mid-March when the price of BTC peaked at an all-time high of just under $74,000. Since May 16, net inflows into spot Bitcoin ETFs in the U.S. have averaged $140 million per day, led by BlackRock’s IBIT fund, which pulled in $1.10 billion over that period.

BLK stock has risen 16% over the last 12 months and should continue to rise as the rally in cryptocurrencies accelerates and prices for digital assets appreciate.

On the date of publication, Joel Baglole held a long position in NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

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