Got $5,000? These Are 2 of the Best Growth Stocks to Buy Right Now

Growth stock Well Health Technologies continues to post soaring revenue, with strong demand driving record results.

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Growth stocks, while they carry more risk, hold the promise of extraordinary returns. This is what keeps us looking for the next best growth stocks to buy. The key thing to remember is that if we buy a basket of growth stocks, it only takes one big winner to more than offset the ones that went wrong.

With this in mind, here are what I think are two of the best growth stocks today.

Growth stock #1: Celestica

Celestica (TSX:CLS) is an electronics manufacturing services (EMS) company. In the past, the company added little value to tech companies beyond parts — a producer of components. Today, Celestica also focuses on the early stages of product design, thereby adding value to customers through innovation. This means higher margins and greater profitability.

Let’s look at the last five years to get an idea of the type of growth this growth stock has been delivering. In the five years ended 2023, annual revenue increased 35%. This translates into a compound annual growth rate (CAGR) of 6.2%. But that’s not it. Net income has increased 248%, for a CAGR of 28%, in the same time period.

In the company’s latest quarterly result, the growth has accelerated. Revenue increased 23% to $2.39 billion, and earnings per share increased 65% to $0.91. This growth is being driven by the company’s industrial and smart energy businesses, which are benefitting from secular growth tailwinds. It is also being driven by the rapid growth in artificial intelligence, which is expected to result in big investments in data centres to support it. This strong momentum in data centre infrastructure will benefit Celestica as it will drive demand for its ethernet-based networking equipment.

Celestica stock has rallied significantly over the last few years (+533%). Demand for Celestica’s products remains strong and should support further gains for this growth stock.

Well Health Technologies

As far as growth stocks go, Well Health Technologies (TSX:WELL) has it all: a solid balance sheet, rapid revenue growth, and rapidly growing demand. The company went public in 2017, and the growth has been phenomenal.

In its latest quarter, Well Health has continued its impressive run, making it one of the best growth stocks to buy right now. In fact, the second quarter saw an acceleration in already very strong growth trends. Revenue increased 42% to $243 million as patient visits soared to record levels once again.

As a result of this strong performance, the company increased its revenue guidance for 2024. It now stands at between $970 million and $990 million for a revenue growth rate of between 25% and 27.5%.

Well Health’s stock price has been showing signs of life recently as the company becomes increasingly profitable. As demand and momentum continue strong, we can expect Well Health to remain a top growth stock.

The bottom line

The two growth stocks that I’ve discussed in this article both benefit from strong momentum in their respective businesses. In my opinion, they are two of the best growth stocks to buy right now.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Karen Thomas has a position is Celestica and Well Health Technologies. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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