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Three Growth Stocks That Could Boost Your Investment Portfolio
If you’re investing in the stock market and have over 10 years until retirement, growth stocks might be a wise choice. These stocks often provide substantial returns over time, typically exceeding those of safer investments like dividend stocks.
While not every growth stock guarantees success, three notable performers over the past 15 years are Netflix (NASDAQ: NFLX), Axon Enterprise (NASDAQ: AXON), and Broadcom (NASDAQ: AVGO). An investment of $15,000 in any of these companies would have turned into over $1 million within that time frame.
Netflix: A Streaming Leader
Netflix, the streaming powerhouse, has transformed a $15,000 investment made 15 years ago into approximately $1.2 million. The company has consistently sought ways to enhance its business models, including the transition from DVDs to streaming and the production of original films to reduce reliance on licensing deals. Recently, it has ventured into live sports and video gaming as well.
This focus on innovation and consumer value explains why Netflix has excelled as a growth stock for over a decade. In the last fiscal year, Netflix’s revenues reached $39 billion, marking an increase of nearly $10 billion within three years. While its shares trade at over 50 times their trailing earnings, analysts argue that this premium may be justifiable due to Netflix’s robust growth trajectory.
Axon Enterprise: Innovative Security Solutions
Axon Enterprise stands out as the stock with the most significant gains on this list. A $15,000 investment made in 2010 would be worth nearly $2 million today. Formerly known as Taser International, Axon has expanded its offerings to include software and body cameras alongside its well-known electroshock weapons.
The company is well-positioned to benefit from increased government spending on policing and defense. Following President Donald Trump’s emphasis on law enforcement, Axon’s shares surged more than 45% in recent months. Last year, it reported revenue of $2.1 billion, a sharp rise from $860 million in 2021. Axon has also turned a profit, bolstering its appeal despite a high price-to-earnings ratio of 131.
Broadcom: A Key Player in Semiconductor Growth
Broadcom, a leading chipmaker, has also demonstrated strong performance over the past 15 years. An initial investment of $15,000 would have grown to around $1.5 million. The surge in AI spending has significantly benefited Broadcom, positioning it well to serve large technology companies focused on AI-related advancements.
In its most recent fiscal year, which ended in early November, Broadcom reported sales of roughly $52 billion, an impressive 88% increase from $27.5 billion three years prior.
Considerations for Investing in Netflix
Before investing in Netflix, it is essential to review expert insights:
The analyst team from Motley Fool has identified ten stocks they believe are currently better investment options than Netflix. These stocks could potentially deliver significant returns in the coming years.
For perspective, if you’d invested $1,000 in Netflix on December 17, 2004, it would be worth $623,685 today. Alternatively, investing in Nvidia on April 15, 2005, would have turned into $701,781.
Motley Fool Stock Advisor has achieved an average return of 906%, outperforming the S&P 500’s return of 164%. If you’re interested in exploring the latest top ten recommendations, consider joining Stock Advisor.
David Jagielski has no positions in any of the mentioned stocks. The Motley Fool holds positions in and recommends Axon Enterprise and Netflix, and it also recommends Broadcom.
The views expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
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