Three Promising Growth Stocks to Consider for Your Portfolio

Investing in growth stocks can be an effective strategy for long-term portfolio growth. However, predicting which stocks will appreciate can be challenging. As a result, diversifying your investments across several growth stocks might be wise to mitigate risk.

Currently, three stocks that show significant long-term potential while being attractively priced are Carnival (NYSE: CCL), AstraZeneca (NASDAQ: AZN), and Block (NYSE: XYZ). Each trades below $100 per share, making them viable candidates for growth investment.

Carnival Corp.

Carnival’s stock is currently priced around $23 per share, a reasonable valuation considering its recent performance. The cruise operator has experienced a surge in demand, resulting in record revenues.

In its latest quarter ending February 28, the company reported revenue of $5.8 billion, a 7% increase year over year. Operating income reached $543 million, nearly double the $276 million from the same quarter last year. Nevertheless, a significant debt burden remains a concern, as interest and debt repayment costs totaled $629 million, contributing to a net loss for the quarter.

The total long-term debt amounts to $25.5 billion. However, the company is taking steps to reduce this debt. With a price-to-earnings ratio estimated at 13 times next year’s profits, Carnival represents a potentially undervalued stock.

AstraZeneca Plc

AstraZeneca shares closed just below $70 and represent a solid healthcare investment due to their diverse portfolio of drugs. The company’s oncology products alone generated over $5.6 billion in sales during the first quarter of the year. Additional revenue streams from cardiovascular, immunology, and rare-disease categories further bolster its market position.

AstraZeneca projects annual sales to exceed $80 billion by 2030, a notable increase from last year’s $54 billion. Its price-to-earnings growth multiple is below 1, indicating it may be undervalued. Additionally, the stock offers a dividend yield of 2.3%, appealing to long-term investors.

Block

Another noteworthy growth stock is Block, currently trading near $60 compared to its 52-week high of just under $100. This stock allows investors to tap into the rising popularity of cryptocurrency alongside overall economic activity.

Approximately 40% of Block’s revenue is linked to Bitcoin. Although profit margins in this sector are slim, the company also benefits from its Cash App, enabling users to transfer money, invest in stocks, and trade Bitcoin—all in a single platform.

Block’s point-of-sale devices provide merchants with the flexibility to accept payments without incurring high terminal rental costs. Given the current trends in cryptocurrency and economic growth, it stands to gain considerably.

Despite a challenging year, with revenue down 3% in the first quarter and stock down over 30%, the company’s three-year revenue growth of 37%—from $17.7 billion in 2021 to $24.1 billion last year—demonstrates strong long-term potential.

Currently, Block’s stock trades at less than 16 times its projected future earnings, a favorable comparison to the S&P 500’s average of 22.

Is Carnival Corp. a Wise Investment?

Before investing in Carnival Corp., take note of expert opinions. According to an analyst team, Carnival was not included in their list of the ten best stocks to invest in now. This implies that there may be other opportunities worth exploring.

Historically, notable stocks highlighted in previous recommendations, like Netflix and Nvidia, have offered substantial returns to early investors. However, Carnival’s short-term outlook may not align with these success stories.

In conclusion, while Carnival Corp. shows potential, you should conduct thorough research and consider recent market performance when making investment decisions.

David Jagielski holds no positions in any of the mentioned stocks. The Motley Fool has positions in and recommends Bitcoin and Block. The Motley Fool also recommends AstraZeneca Plc and Carnival Corp. Please review their disclosure policy for more information.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.