Growth and value investing are two basic investment strategies. Growth stocks are ownership stakes in businesses that are anticipated to grow much faster than the market as a whole. Value stocks do not pay dividends because the growth model calls for reinvested earnings to increase returns. Some growth stocks beat the market in the last ten years, particularly in the technology industry. Some investors have moved out of growth equities as a result of the Federal Reserve’s sharp increase in interest rates in 2022. Given the lower prices, there may be a chance for long-term investors to purchase high quality stocks.
Insider Monkey highlights the 10 best cheap growth stocks to buy now. According to Finviz, M&T Bank Corporation expects its EPS to grow 22.31% over the next five years. The $206.74 median analyst target price for the company is higher than the present price. The international restaurant company Chipotle Mexican Grill, Inc. operates more than 3000 locations. Over the next five years, analysts anticipate Chipotle’s EPS to increase at an average annual rate of 26.11%. The business reported $2.21 billion in revenue for the second quarter, with a normalized EPS of $9.30. ASML Holding N.V. is a company that makes semiconductors. The business focuses in cutting-edge systems for semiconductor equipment. The business announced its results for the second fiscal quarter of 2022 in July, announcing normalized EPS of $3.60. A multinational company called General Electric Company mostly works in the energy industry. The company’s predicted EPS growth rate for the following five years is 45.9%. Some investors believe that the company is undervalued given its 14.01 forward P/E ratio. The price target for shares of Lululemon Athletica Inc. was increased by JPMorgan analyst Matthew Boss from $396 to $464 while maintaining an Overweight rating. Over the next five years, the company is anticipated to increase profits per share by an average of 21.73% annually. For more details, click the 10 Best Cheap Growth Stocks To Buy Now.