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Finding certainty in investing is challenging, as even seemingly stable assets like cash or CDs may not be entirely immune to factors such as inflation, which can lead to a decline in purchasing power over time. One way for investors to add certainty to their portfolio is by focusing on stocks of companies likely to remain relevant for several decades. These are typically companies that pay dividends, have high profitability, and are large enough to withstand market disruptions. For example, here are three of the most promising top growth stock picks for May that you might want to consider.
Meta Platforms (META)
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One of the top growth stock picks for May is Meta Platforms (NASDAQ:META), which was knocked down by slowing economic growth. It also took a hit on concerns over CEO Mark Zuckerberg’s investment in the metaverse.
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However while the S&P 500 has climbed by less than 13%, Meta’s stock has increased by more than 60% in the past few months. Now, as the Facebook parent prepares to report its Q1 2023 earnings after the market closes on Wednesday, investors wonder if there’s further room for growth. Meta Platforms is in an excellent position to report robust earnings growth as cost savings boost its profitability. And as the digital ad market rebounds.
Alphabet (GOOG, GOOGL)
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Another tech and AI giant, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) has been going through ups and downs recently. The company’s management is taking decisive action to reduce expenses by laying off 6% of its workforce and suspending the development of its next-generation Pixelbook laptop.
These measures are expected to enhance profitability and drive earnings growth over the long run. However, the launch of its AI-powered chatbot earlier this year could have been better received and only added to the company’s challenges. Although Alphabet struggled with missed earnings and negative chatbot feedback, the stock has returned. With a strong foothold in search and cloud computing, Alphabet is poised for significant growth in the AI space.
Sundar Pichai, the CEO of Alphabet, has been regularly talking about AI for several decades, suggesting that Alphabet has given it some serious thought. With Alphabet’s dominance in Google and YouTube, there is optimism that the company will eventually succeed in AI development.