In 2023, stocks have generally fared better than the previous year. Yet, some high-growth stocks have slowed down amid uncertainties like a potential recession and higher interest rates.
Despite a strong first half of the year, major indexes have recently retreated. This pullback has created an opportunity to invest in industry-leading companies at reduced prices. Buying these strong companies on sale can be a successful investment strategy.
Here are three growth stocks to consider if you’re looking to become a millionaire over the coming years.
Zoom Communications (ZM)
Zoom (NASDAQ:ZM), while not at its pandemic peak, remains a top choice for digital classrooms. With more than 50% market share in 2022, it’s deeply entrenched in this sector. Despite slower growth, Q2 revenue increased by 3%. Analysts predict gradual growth to 11.7% in 2027 and double-digit earnings per share growth by 2028.
The stock recently received an “outperform” rating from Royal Bank of Canada, with a price target of $95.00, suggesting a potential 46.85% upside from the previous close.
Zoom’s future growth hinges on corporate success and expanding its role as a comprehensive business communication platform. In 2023, its stock has seen a modest 2% gain, trailing other software stocks. Despite this, Zoom holds a robust cash reserve of around $6 billion.
Additionally, the company is integrating AI into products like Zoom IQ for streamlined workplace collaboration, chat summaries and content generation. They’ve also invested in AI-startup Anthropic for their Contact Center platform and improved agent productivity with Zoom Workforce Management.
Shopify (SHOP)
Shopify (NYSE:SHOP) remains a top millionaire-maker stock, for long-term investors looking to ride the structural tailwinds of e-commerce higher. Of course, the pandemic, and the years leading up to the pandemic, were incredibly beneficial for investors in SHOP stock. This is a stock that’s still multiples higher than its IPO price in 2015, remaining the winner in many growth investors’ portfolios for good reason.
Shopify is expected to report its third quarter earnings on Oct. 25, with all eyes on the company’s growth rate. This past quarter, the company provided some impressive growth, with revenue growing 31% year-over-year to $1.7 billion, and the company’s earnings surging 27% to $835 million. That’s reflective of a company that’s performing very well, despite its restructuring-related losses of $1.3 billion seen of late.
I’m particularly intrigued by the company’s recent partnership with Amazon (NASDAQ:AMZN) for the Buy with Prime program. The company president Harley Finkelstein highlighted their focus on global expansion and improving cash flow.
There’s a reason why this stock is on a roll, and I think it’s headed higher from here.
Visa (V)
Visa (NYSE:V) is a payment processing giant, with a significant market share alongside Mastercard (NYSE:MA). In the United States, Visa handles more than 61% of credit card transactions and continues to grow globally. Its stock has risen 24% in the past year, with a $241.78 average analyst target.
Visa, as the leading payment processor, benefits from economic growth and consumer spending. While economic downturns can cause temporary dips, Visa’s long-term trend is upward. Unlike lenders, it’s shielded from credit defaults. Visa is a solid, low-risk long-term investment choice.
Additionally, the stock saw a 9% payment volume increase last quarter. Priced at $231, it’s nearing its 52-week high of $250. With a 0.78% dividend yield and recent $0.45 quarterly dividend, Visa is a strong long-term buy, outpacing competitors.
On the date of publication, Chris MacDonald has a LONG position in AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.