The 9 Best Growth Stocks to Buy Now in July (2024) | NVDA, Nvidia Stock | My Top Growth Stocks

Summary

In this video, the host reveals their top nine growth stocks to buy in July, including Nvidia, Amazon, and Alphabet, highlighting factors like advertising revenue, asset-light business models, and digital transformation. They discuss the performance of these stocks against market indices and emphasize the importance of doing one's own research rather than relying solely on recommendations. The video aims to inform and engage viewers on investment opportunities in the current market.

Takeaways

• 📈 The presenter shares a list of top nine growth stocks to buy in July, emphasizing they will reveal them early in the video.
• 💡 The presenter will discuss the factors influencing their stock picks and provide a brief analysis without extending the video length.
• 📊 They will also share the performance of these growth stocks, comparing it to the S&P 500 and equal weighted index to demonstrate the performance so far in 2024.
• 👍 The top nine growth stocks mentioned are Nvidia, Amazon, Snap, Fiverr, PayPal, Salesforce, Uber, Alphabet, and Chewy.
• 🆕 Chewy was recently added to the list on March 1st and has seen a significant increase of 41% since then, becoming a 'meme stock'.
• 💻 The presenter highlights the relatively inexpensive valuations of the recommended stocks, with Snap being the most expensive at a forward PE of 37.
• 📐 The presenter is bullish on the advertising industry, particularly digital advertising, and explains why they like Snap and Alphabet for their positions in this space.
• 🚀 The asset-light business model of Fiverr and Uber is praised for its potential to return more profits to shareholders and their significant growth and network effects.
• 🛒 Amazon and PayPal are set to benefit from normalized consumer behavior, shifting back to online spending, with Amazon showing profitability and PayPal offering convenience.
• 💡 Nvidia is valued for its forward PE not increasing as much as its stock price, keeping it a top pick, while Salesforce has pivoted to AI, boosting its appeal.
• 🐶 Chewy, an online pet retailer, has seen its stock price respond positively after management improved efficiencies and became more optimistic about the market.
• 📉 Despite outperforming indices year to date, the presenter warns against overreliance on their stock picks and emphasizes the importance of individual due diligence.

Q & A

What are the top nine growth stocks recommended in the video?

The top nine growth stocks recommended are Nvidia, Amazon, Snap, Fiverr, PayPal, Salesforce, Uber, Alphabet, and Chewy.

What is the significance of the date March 1st mentioned in the script?

March 1st is significant because it is the date when Chewy stock was added to the list of top growth stocks to buy, and since then, it has seen an increase of 41%.

Why is the presenter bullish on the advertising industry?

The presenter is bullish on the advertising industry, particularly the digital advertising sector, as marketers are allocating an increasing share of their budgets to digital advertising.

What makes Snap and Alphabet appealing as growth stocks?

Snap is appealing due to its younger user base and solid cash flow, while Alphabet is attractive because of its dominating position in the advertising industry.

What is the asset-light business model, and why does the presenter like it?

The asset-light business model involves companies that do not require significant physical assets to operate. The presenter likes it because it allows for more profits to be returned to shareholders via dividends or share buybacks, increasing earnings per share.

How has Uber's growth been influenced by its network effect?

Uber has grown significantly and has become a verb, indicating its network effect. The large number of users has made it a go-to service for ride-sharing and food delivery, contributing to its growth.

What is the current forward PE of Fiverr, and why is it considered cheap?

Fiverr's current forward PE is 8.8, which is considered cheap. There are concerns about artificial intelligence's impact on the gig economy, but the presenter believes these concerns are overblown and that the overall impact will be neutral.

What macroeconomic factors are working in favor of Amazon and PayPal?

The normalization of consumer behavior, with a shift towards online spending, is a macroeconomic factor benefiting both Amazon and PayPal. Additionally, both companies are profitable and trading at relatively cheap valuations.

What is Nvidia's forward PE at the start and end of the year, and why is it still considered a top stock to buy?

Nvidia started the year with a forward PE of around 28 and is now at 34. Despite the increase in stock price, the forward PE valuation has not increased proportionally, keeping it on the list of top stocks to buy.

How has Salesforce pivoted its business strategy to stay competitive?

Salesforce has pivoted to artificial intelligence, employing its enterprise resource management system and AI to help enterprises connect with consumers, which has become increasingly sought after as businesses are less fearful of a recession.

What is the year-to-date performance of the presenter's top nine growth stocks, and how does it compare to market indices?

The year-to-date performance of the top nine growth stocks has been strong, with Nvidia at 151%, Alphabet at 31%, and Amazon at 29%. The presenter's portfolio has outperformed the S&P 500 by a significant margin and nearly five times the equal weight index.

Why does the presenter caution against relying too much on their stock recommendations?

The presenter cautions against overreliance on their recommendations to avoid complacency and overconfidence in the early results. They emphasize the importance of doing one's own due diligence before investing in any stocks.

Outlines

00:00

📈 Top 9 Growth Stocks for July

The speaker introduces their top nine growth stocks to invest in for July, promising to reveal them early in the video. They plan to discuss the reasons behind their choices, the performance of these stocks, and compare their portfolio's performance against the S&P 500 and an equal-weighted index. The stocks listed are Nvidia, Amazon, Snap, Fiverr, PayPal, Salesforce, Uber, Alphabet, and Chewy. The speaker emphasizes the relatively low valuations of these stocks and provides a brief rationale for including each one, such as Snap's young user base and Alphabet's dominance in digital advertising.

05:01

🚀 Growth Stocks with Asset-Light Business Models

The speaker elaborates on the appeal of asset-light business models, exemplified by Fiverr and Uber, which allow for greater profit return to shareholders through dividends or buybacks. They discuss the impact of AI on the gig economy, suggesting that fears are overblown and that the overall effect will be neutral. The speaker also covers Amazon and PayPal, noting their benefits from normalized consumer behavior post-lockdowns and the convenience of PayPal for online shopping. They highlight the profitability and attractive valuations of these companies, with Amazon and PayPal trading at forward PE ratios of 30.43 and 12.62, respectively.

10:02

📊 Performance Review and Investment Caution

The speaker reviews the performance of the recommended growth stocks year-to-date in 2024, with Nvidia leading at a 151% return. They compare the performance of their portfolio to the S&P 500 ETF and an equal-weight index, noting that their selection has significantly outperformed these benchmarks. However, they caution viewers against becoming overly reliant on their stock picks, emphasizing the importance of due diligence and a diversified approach to investing. The speaker concludes by appreciating the viewers' time and encourages subscription and engagement for more content.

Keywords

💡Growth Stocks

Growth stocks refer to shares in companies that are expected to grow at an above-average rate compared to the market. In the video, the host discusses their top nine growth stocks to buy in July, which are companies they believe will significantly outperform the market due to their potential for rapid expansion and strong financial performance.

💡Valuation

Valuation in the context of stocks refers to the process of determining the worth of a company based on various financial metrics. The video mentions that the recommended stocks are relatively inexpensive in terms of valuation, indicating that they are considered undervalued by the host, which could imply potential for price appreciation.

💡Advertising Industry

The advertising industry encompasses all the services and activities involved in promoting products, services, or ideas. The script highlights that the host is bullish on this industry, particularly digital advertising, and mentions companies like Snap and Alphabet that generate significant revenue through advertising.

💡Asset Light Business Model

An asset-light business model is a strategy where a company minimizes its reliance on physical assets and maximizes the use of outsourced resources. The video script discusses Fiverr and Uber as examples of companies with this model, which allows for greater profitability and potential for returns to shareholders.

💡Network Effect

The network effect is a phenomenon where a product or service becomes more valuable as more people use it. In the script, Uber is mentioned as having achieved a significant network effect due to its large user base, which has contributed to its success and recognition as a verb in everyday language.

💡Consumer Behavior

Consumer behavior refers to the study of individuals' actions and decision-making patterns in the marketplace. The video discusses how changes in consumer behavior, particularly due to lockdowns and economic reopening, have affected companies like Amazon and PayPal, which have adapted to these shifts to benefit from online spending habits.

💡Forward PE

Forward Price-to-Earnings (PE) ratio is a measure of the price-to-earnings ratio using forecasted earnings for the next year. The script mentions the forward PE of various stocks to illustrate their valuation levels, with lower ratios often indicating that a stock may be undervalued or a good investment opportunity.

💡Artificial Intelligence (AI)

Artificial intelligence refers to the simulation of human intelligence in machines that are programmed to think like humans and mimic their actions. The video mentions AI in the context of Salesforce's pivot to incorporate AI into its enterprise resource planning system to help businesses connect with consumers more effectively.

💡Meme Stock

A meme stock is a term used to describe a stock that has gained popularity and attention on social media, often leading to a rapid increase in its price due to retail investor interest. The script mentions Chewy as a meme stock that has seen its stock price rise significantly since being added to the host's list of top growth stocks.

💡Portfolio Performance

Portfolio performance refers to the measurement of the returns generated by a group of investments over a specific period. The video script shares the year-to-date performance of the host's portfolio of growth stocks, comparing it to the S&P 500 and the equal weight index to demonstrate how the selected stocks have outperformed the broader market.

💡Mean Reversion

Mean reversion is a theory in finance that suggests that prices and returns will eventually move back towards the average or mean. The host warns viewers that while the growth stocks have significantly outperformed the index, it is unrealistic to expect this level of outperformance to continue indefinitely, implying a belief in mean reversion.

Highlights

The presenter shares their top nine growth stocks to buy in July, promising to reveal them early in the video.

The presenter will discuss the factors influencing their stock picks and provide a brief analysis of each.

Performance of the presenter's growth stock portfolio against the S&P 500 and equal weighted index will be shared.

The list of top nine growth stocks includes Nvidia, Amazon, Snap, Fiverr, PayPal, Salesforce, Uber, Alphabet, and Chewy.

Chewy was recently added to the list on March 1st and has seen a 41% increase since then.

Snap and Alphabet are highlighted for their significant revenue generation through advertising.

Fiverr and Uber are praised for their asset-light business models and potential for shareholder returns.

Amazon and PayPal are set to benefit from normalized consumer behavior post-lockdowns.

Nvidia is noted for its consistent performance with a forward PE increase not matching its stock price growth.

Salesforce's pivot to artificial intelligence in its enterprise resource management system is discussed.

Chewy's performance as an online pet retailer during the pandemic and its optimistic outlook for the year is highlighted.

The presenter's growth stocks have significantly outperformed the S&P 500 and equal weighted index year to date.

Nvidia stands out with a 151% return year to date, leading the list of growth stocks.

The presenter cautions viewers against over-reliance on their stock recommendations and emphasizes the importance of due diligence.

A reminder that the presenter's goal is to inform, not to encourage盲目 investment based on early results.

An invitation for viewers to subscribe or like the video to support the creation of more similar content.

Transcripts

all right I'm going to share with you my

top nine growth stocks to buy right now

in July and I'm going to reveal the

stocks uh less than two minutes into the

video so I'm not going to make you wait

all the way to the end to reveal those

stocks but in addition to revealing what

my top nine growth stocks to buy right

now are I'm going to explain and

elaborate the factors that lead me to

like these stocks at current valuations

I'm going to discuss those in a little

bit of detail not too much detail

because that would require a much longer

video but I'll discuss those and then

I'll also reveal the performance of

these growth stocks I'll let you know

how my portfolio of growth stocks has

performed against the S&P 500 and

against the eal weighted index to share

with you my performance so far in 2024

so without further Ado let's take a look

at the the nine growth stocks I have

rated as the top growth stocks to buy

right now I want to thank the mle fool

for sponsoring this video visit full.com

parev for the 10 best stocks to buy now

all right so here are my top nine growth

stocks to buy right now they include

Nvidia Amazon snap Fiverr PayPal

Salesforce Uber alphabet and chewy and

these are the nine growth stocks I have

rated as my top nine growth stocks to

buy now some of them I've had it on the

list all year long others like chewy I

added recently in fact I added chewy

stock March 1st is when I added chewy

stock to my list of top growth stocks to

buy and chewy stock is up

41% since I made that upgrade into my

list of top stocks to buy top growth

stocks to buy in in March so the chewy

recommendation the timing on that has

been really really fortuitous especially

as it's become known as now a meme stock

and that's helped lift and bring more

attention to chewy although the

valuation has not increased by all that

much since it became a meme stock you

see that big jump there and then a big

draw down that's not uh a reason why

I've had it on my list of top growth

stocks to buy now one thing you'll

notice with my list of top growth stocks

to buy is they're relatively inexpensive

valuations the most expensive stock on

my list here is snap at a forward PE of

37 and I guess I'll start here on why I

like the stocks I'm recommending here so

I'll do them uh collectively here so

snap and alphabet these are two

companies that generate significant sums

of Revenue through advertising I'm

bullish on the advertising industry

longer term even more bullish on the

digital advertising industry longer term

marketers are allocating increasing

share of their budgets to digital

advertising snap I like because of its

relatively younger user base it skews

much younger than any of the other

social media apps and it's got hundreds

of millions of daily active users

management has improved profitability

cash flow is solid I like that business

model similarly I like alphabet because

of its dominating position in the

advertising industry again like I

mentioned bullish on the advertising

industry overall and alphabet's market

share and market dominance in that

industry so those are reasons why I like

Snap and alphabet so the next pairing I

want to discuss is Fiverr and Uber now

Fiverr and Uber both employ that asset

like business model that platform

business model that I'm attracted to I

like these asset light business models

because more of those profits can be

sent back to shareholders via dividends

or share Buybacks in the case of these

two companies as they grow as their cash

flow expands more of that can be

returned to shareholders thereby

increasing earnings per share by

reducing the number of shares

outstanding also these two companies

have grown to a significant size

sufficient to command a network effect

in their respective Fields Uber has

become a verb right you Uber it and

that's generating because of the number

of millions of users that use Uber's

food delivery app and the ride sharing

app surprisingly they've both done well

as economies have reopened Fiverr is

trading at a very cheap valuation

forward PE of 8.8 there's a lot of fears

of how artificial intelligence is going

to hurt the gig economy and I think

those are overblown I think there will

be impact but I think the impact will be

bifurcated meaning it won't be an

overall decrease I think it'll be a

decrease in some categories and an

increase in other categories and I think

there will be an offsetting impact

leaving the G economy relatively flat

overall and that's what I've heard from

the management teams of Fiverr and

upwork as well the next pairing I want

to discuss is Amazon and PayPal so

Amazon and PayPal are both benefiting

from consumer Behavior normalizing so if

we zoom out in the Last 5 Years consumer

Behavior has gone through some

unprecedented changes first with the

lockdowns people spent an enormous sum

of money online because they were not

allowed to spend money in person as

economies reopened those behaviors

shifted people Unleashed pent up demand

for away from home experiences and that

was bad news for Amazon and PayPal

Amazon obviously online spending right

e-commerce of course PayPal less

obviously because PayPal benefits When

consumers are spending more money on

online its app is more helpful its

account is more helpful to people that

are shopping online it's more convenient

for people shopping online there's

really no Advantage for PayPal when

you're shopping in person it doesn't

have any distinct Advantage so when

people are shopping in person there's

really no reason to have PayPal or

relatively little reason why PayPal is

any better than any other company but

when you're shopping online and you have

PayPal account it adds convenience

because you can just oneclick log into

PayPal and pay for whatever it is that

you're buying instead of having to take

out your credit card and type in all

that information on a new site so there

is its Advantage so now that consumer

behavior is

normalizing these two will benefit from

that Trend additionally within the

business they are strongly profitable

and trading at relatively cheap

valuations 30 4.43 forward PE for Amazon

forward PE of just 12.62 for PayPal so

good valuations and the macroeconomic

factors consumer Behavior working in

each of their favor and I also need to

discuss Nvidia trading at a forward PE

of

throughout the year Nvidia started the

year trading at a forward PE of around

28 and it's now trading at a forward PE

of 34 so the forward PE valuation hasn't

increased anywhere near where the stock

price has increased thereby keeping it

on my list of top stocks to buy and

finally Salesforce the company has

pivoted to artificial intelligence

employing its enterprise resource

management system and artificial

intelligence to help Enterprises connect

with consumers and that's been

increasingly looked out for now that

businesses are not afraid of a recession

as much as they were in 2023 and

remember in early 2023 Salesforce cut

thousands of jobs and that's boosted

profitability for the business overall

and it's not trading expensively it's

relatively cheap actually at a forward

PE of just

23 so finally chewy forward PE of

23.94 trwy one of those companies

benefited significantly during the

pandemic as online shopping increased

it's an online pet

retailer coming into this year

management was pessimistic about the

overall Market but I thought management

was being overly pessimistic I thought

the economy and people spending on pets

the humanization of pets would lead to

continued growth in the business

and it turns out to be the case after

the first quarter chewy upgraded its

outlook for the rest of the year

becoming more optimistic and the stock

price has responded the company's

management has done a good job improving

efficiencies in the business getting

better at Logistics and fulfillment

which is a critical part of the

company's business and that's boosted

profitability and cash flow so now that

I've highlighted all of these growth

stocks my top nine growth stocks let me

share with you how they've performed so

far so year to date here is the

performance of the nine growth stocks

Nvidia obviously the best performer at

151% return year to date so far in

2024 uh others have done well alphabet

at

31% Amazon at 29.798591

if I were to compare with the S&P 500

ETF the total return is

15.45% but I feel the equal weight index

is more comparable to my list of stocks

because I don't overweight any of my

stocks based on market cap whereas the

S&P 500 Index does overweight higher

market cap stocks so that would mean if

I were to employ the same process that

would mean I place greater weight on

Nvidia Amazon and alphabet which are my

best performing stocks in my list at 150

29 and 31% and I would underweight the

smaller companies like Fiverr which is

my worst performing stock attive

18.37% so comparing to the equal weight

index I think is more comparable to my

comparison and the way I've returned the

list of growth stocks here so at

4.12% you can see my portfolio has

returned

21.73% year to date in 2024 even if you

compare it to the S&P 500 I'm

outperforming these growth stocks are

outperforming the S&P 500 Index by a

meaningful sum 21.73 to

15.45 but if you compare to the equal

weight index at just

4.12 my group of nine growth stocks has

meaningfully outperformed nearly 5x the

equal weight index but as I've said

throughout the year I would not expect

to continue outperforming the index by

this magnitude for a long period of time

maybe for a a few months maybe for half

a year maybe for one year maybe even for

two years but longer term I'm not

confident that I will outperform the S&P

500 Index by this magnitude or

outperform the equal weight index by

this magnitude I think that would be

unrealistic to expect that I think there

will be a mean reversion to the equal

weight index over the longer term I

think uh either the equal weight index

will outperform the rest of the year

meaning its performance will be really

strong or my group of stocks will come

down to match close with the equal

weight index why do I say all of this

because I don't want my viewers to start

to become over reliant on my stock

recommendations and my stock picks I

don't want you to gain too much

confidence in these early results and

think to yourself oh my goodness every

stock that parev recommends is going to

outperform so let me go out and buy

everything he's recommending because

clearly he knows what he's doing and

clearly he's outperforming and this this

is going to continue so let me just go

ahead and go with his picks that's what

I want you to avoid I don't want you to

jump to that conclusion I just share

this with you for informational purposes

I want everyone to follow through and do

their own due diligence before picking

any stocks to buy thank you for watching

this video I truly appreciate it I know

there's a lot you could be doing with

your time and a lot of other videos you

could be watching so I truly appreciate

that you chose to watch this one if you

want to see more videos just like this

hit the Subscribe or the like button

they'll both help me make more videos

just like this one thank you again