The 9 Best Growth Stocks to Buy Right Now

A sharp selloff in growth stocks creates opportunity for keen investors. Here are nine top-rated picks to consider in 2023.

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Investors abandoned growth stocks in 2022 due to higher interest rates and a threat of a recession. However, the third-quarter earnings season suggests the anticipated economic slowdown might not be as bad as Wall Street expected.

FactSet data shows 26% fewer CEOs using the word "recession" in Q3 conference calls compared to the second quarter. Additionally, in Q3 2022, 69% of S&P 500 companies beat earnings estimates, while 71% beat the consensus revenue estimates.

As a result, JPMorgan economists think the U.S. will only encounter a mild recession in the second half of next year. And Goldman Sachs economists believe the U.S. won't see a recession at all in 2023, though they do expect growth to slow.

"The narrative has been honed: if we fall into recession, it's not going to be deep and dramatic," said LPL Financial Chief Economist Jeffrey Roach, as reported by CNN Business (opens in new tab).

Growth stocks through mid-June were badly lagging value stocks, but investors are heading into 2023 with a renewed appetite for riskier assets. Quarter-to-date, the S&P 500 Growth Capped Index is up 7.5% to chip away at its stiff 2022 deficit.

Plus, the turmoil growth stocks have seen this year has many trading at a bargain compared to where they were in January, leaving investors the opportunity to find bargains among some of the higher-quality names.

With that in mind, here are nine of the best growth stocks to buy in 2023. Each of the names featured here boasts one or more of the following: solid growth prospects, attractive valuation and an impressive balance sheet. And each has received top billings from Wall Street's pros.

Data is as of Nov. 25. Dividend yields are calculated by annualizing the most recent payout and dividing by the share price. Analyst ratings courtesy of S&P Global Market Intelligence, unless otherwise noted. Stocks are listed by analysts' consensus recommendation, from lowest to highest.

Will Ashworth
Contributing Writer, Kiplinger.com

Will has written professionally for investment and finance publications in both the U.S. and Canada since 2004. A native of Toronto, Canada, his sole objective is to help people become better and more informed investors. Fascinated by how companies make money, he's a keen student of business history. Married and now living in Halifax, Nova Scotia, he's also got an interest in equity and debt crowdfunding.