We recently published a list of 10 Stocks with Consistent Growth to Buy. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other stocks with consistent growth to buy.
Currently, financial markets are experiencing a mix of optimism and caution as investors react to changing economic conditions. Many are closely watching trends and data that could impact future growth and stability.
Tom Lee, managing partner and head of research at Fundstrat Global Advisors, recently shared his insights on the current market trends during an interview on CNBC’s ‘Squawk Box’ on October 14. He acknowledged that he underestimated the strength of the market, noting that it has been surprisingly resilient despite expectations of volatility leading up to the 2024 election. Lee highlighted that there is a significant amount of cash—about $6 trillion—sitting on the sidelines, which has contributed to the market’s stability. He observed that many investors had anticipated a recession, but instead, companies have shown strong earnings and resilience.
Lee also mentioned that the Federal Reserve is likely to adopt a supportive stance as inflation data continues to trend toward their 2% target. He believes that regardless of who wins the upcoming election, stocks are likely to perform well in the following year. Lee pointed out that markets tend to thrive on visibility and certainty, suggesting that if one candidate appears to be gaining an advantage, it could lead to a more favorable trading environment before the election. Overall, he remains optimistic about the market’s outlook.
S&P 500 and Dow Reach New Heights Ahead of Election Season
On October 18, both the S&P 500 and the Dow Jones Industrial Average reached new record highs, marking six consecutive weeks of gains for these major indices. As reported by CNBC, the S&P 500 rose by 0.40%, closing at 5,864.67, while the Dow rose by 0.09% and added 36.86 points to close at 43,275.91. The Nasdaq also performed well, increasing 0.63% to close at 18,489.55. This marks the longest winning streak of the year for both the Dow and S&P 500, with notable increases in their overall performance.
As earnings season progresses, over 70 companies in the S&P 500 have reported their results, with about 75% of those companies surpassing expectations. Despite potential market volatility leading up to the upcoming election, some analysts believe that stocks may continue to rise through November.
Rob Williams, a chief investment strategist at Sage Advisory, noted that this trend is unusual for an election year, where markets typically hesitate before improving post-election. He suggested that investors might be optimistic about a possible victory for Republican nominee Donald Trump, whose policies are seen as more favorable for businesses in terms of regulations and taxes.
Methodology
To compile our list of the 10 stocks with consistent growth to buy, we used the Finviz and Yahoo stock screeners. We sorted our results based on market capitalization and picked the top 30 stocks.
Next, we focused on identifying stocks that had demonstrated consistent growth. From the initial list, we narrowed our choices to stocks that have grown their revenue positively over the past 5 years. We further refined our selection to include only those that had positive revenue growth each year in their last five reported annual revenues.
To ensure the reliability of our findings, we consulted reputable sources such as SeekingAlpha, which provided insights into the revenue CAGR over the past five years, and Macrotrends, which offered information on historical annual revenue data. Finally, we have ranked the 10 stocks with consistent growth to buy below in ascending order based on their five-year revenue CAGR.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s database of 912 elite hedge funds as of Q2 of 2024.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
NVIDIA Corporation (NASDAQ:NVDA)
5-Year Revenue CAGR: 56.73%
Number of Hedge Fund Holders: 179
NVIDIA Corporation (NASDAQ:NVDA) is the world leader in accelerated computing. It is best known for its advanced graphics processing units (GPUs) and system-on-a-chip (SoC) solutions. Specializing in graphics, computing, and networking solutions, the corporation offers products and platforms for gaming, professional visualization, data center, and automotive markets.
The company is experiencing remarkable growth, particularly in its data center business, which has now become the company’s main source of revenue. In the second quarter of fiscal 2025, NVIDIA Corporation (NASDAQ:NVDA) reported record revenues of $30 billion, a 15% increase from the previous quarter and a staggering 122% year-over-year rise. The data center segment alone generated $26.3 billion, reflecting a 16% increase from the prior quarter and a 154% jump compared to the same period last year. This surge is largely driven by strong demand for NVIDIA’s Hopper GPU computing platforms and the anticipation surrounding the upcoming Blackwell architecture.
NVIDIA Corporation (NASDAQ:NVDA) is also expanding its product offerings with new technologies like Spectrum-X Ethernet for AI and NVIDIA AI Enterprise software, positioning itself as a comprehensive data center solution provider. The corporation is making significant progress in its enterprise AI efforts, establishing important partnerships and deploying solutions across various industries.
The automotive and healthcare sectors are emerging as key areas of growth for the company, driven by advancements in artificial intelligence and autonomous technologies. These developments present multi-billion dollar opportunities for NVIDIA Corporation (NASDAQ:NVDA) as it continues to innovate and expand its offerings in these high-potential markets.
Additionally, NVIDIA returned $15.4 billion to shareholders in the first half of fiscal 2025 through share repurchases and dividends, demonstrating strong financial health and shareholder value.
Over the past five years, NVIDIA Corporation (NASDAQ:NVDA) has grown its revenue at a compound annual growth rate (CAGR) of 56.73%, while its net income has increased at a CAGR of 80.81% during the same period. It is one of the most aggressive growth stocks to buy.
With these impressive results and ongoing advancements in AI technology, NVIDIA is well-positioned for future growth, making it an attractive stock for investors.
According to Insider Monkey’s Q2 database of over 900 hedge funds, 179 hedge funds held stakes in NVIDIA Corporation (NASDAQ:NVDA).
Overall, NVDA ranks 1st on our list of stocks with consistent growth to buy. While we acknowledge the potential of NVDA, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.
