3 Stocks That Will Have You Laughing All the Way to the Bank

Stocks to buy

Keeping your money in the bank won’t do much good from an investing perspective. Most banks have yields that don’t keep up with the rate of inflation. Even if you end up with a respectable high-yield savings account, all of the interest you receive is treated as ordinary income. That means your true yield will look very different depending on your tax bracket. Consider investing in these growth stocks so you can build strong value for down the road.

Buying and holding onto stocks can help you outperform high-yield savings accounts while deferring your tax payments. It’s even possible to avoid taxes on all of your gains in a Roth retirement account or if you pass the stocks onto your heirs. Investors looking for promising growth stocks may want to consider these top picks.

Growth Stocks to Consider: Nvidia (NVDA)

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Many Nvidia (NASDAQ:NVDA) investors have been laughing their way to the bank in recent years. The stock is up by 86% year-to-date, 245% over the past year, and more than 1,900% over the past five years. 

Nvidia’s success with AI chips has propelled its market cap beyond many tech giants. Nvidia has a shot at catching up to Microsoft (NASDAQ:MSFT) and becoming the world’s most valuable publicly traded corporation. 

Nvidia’s revenue and earnings growth have outpaced its stock gains over the past year. Profit margins have also increased dramatically and are now above 50%. 

The company has established itself as the leader in the AI chip industry, and its newest chips will further establish its position. The stock rallied upon the Blackwell AI chip announcement. Each chip is anticipated to cost between $30,000 and $40,000.

Many corporations are using artificial intelligence to enhance their products and services. They need chips like the ones Nvidia provides to handle the intense computing power of AI tools.

Meta Platforms (META)

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Meta Platforms (NASDAQ:META) has returned to delivering impressive growth rates across the board. Revenue increased by 25% year-over-year in the fourth quarter of 2023 while net income more than tripled. The company has trimmed costs while achieving higher top line growth than it did in the previous year.

The big turnaround gave leadership the confidence to initiate its first quarterly dividend, which started at $0.50 per share. Investors should expect a double-digit dividend growth rate for many years since the company has high-profit margins and just got started. Leadership will want to make some good first impressions with its dividend growth.

The stock is up by 150% over the past year and trades at a 32 P/E ratio. The firm’s dominant position in the social media industry suggests that long-term investors will enjoy more gains. Meta Platforms’ family of apps experienced an 8% year-over-year growth in total users. 

The company also keeps many of its users on social media for numerous hours each week. That means more ad impressions and revenue for Meta Platforms. Meta Platforms has also made investments into artificial intelligence, which has helped its financial growth in recent quarters.

Duolingo (DUOL)

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Many people use online resources to learn new skills, such as school subjects, real-life skills, and languages. Duolingo (NASDAQ:DUOL) has carved a niche for itself and has become the go-to app for learning new languages. 

Duolingo has been around since 2011 and has quickly grown into a $10 billion company. Shares are up by 75% over the past year. Users continue to create accounts in droves, as the company reported a 65% year-over-year increase in daily active users. The company’s 88.4 million monthly active users are a 46% year-over-year increase. 

Strong user growth rates translated into 45% year-over-year revenue growth. Duolingo also has a vast backlog, which suggests that high revenue growth will continue. While the firm hasn’t been profitable for a while, Duolingo broke that trend with multiple quarters of profitability in 2023. The company ended 2023 strong by reporting $12.1 million in net income in the fourth quarter. That showing brought the company’s net profit margin to 8%. Invest now as these growth stocks will have you laughing all the way to the bank.

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

Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.

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