4 Large Cap Growth Stocks to Buy With Incredible 10-Year Track Records

Investing

Published: May 12, 2016 8:20 am

Last Updated: January 13, 2020 9:31 am

If there is one thing that investors look for in growth stocks it is consistency. Companies that can continue to put out solid metrics over long periods make good additions to portfolios that have a long-term outlook. Plus, it is also important to remember that solid track records help when the inevitable market sell-off hits, as investors are far less likely to sell stocks that have performed well year in and year out.

A new JPMorgan research report highlights a basket of large cap secular growth stocks that all have passed muster as companies that have shown strong and consistent revenue growth over the past 10 years, even during the recession. The stocks also satisfied strict criteria laid down by JPMorgan that included metrics like high five-year sales compounded annual growth rates and low mergers and acquisitions contributions.

We further screened these stocks for those rated Overweight at JPMorgan and found four outstanding stocks to buy that had the largest upside to their price targets.

Amazon

This company has finally put all the pieces together and has become an earnings juggernaut. Amazon.com Inc. (NASDAQ: AMZN) engages in the retail sale of consumer products in North America and internationally. It operates through the North America, International and Amazon Web Services (AWS) segments.

The company sells merchandise and content purchased for resale from vendors, as well as those offered by third-party sellers through retail websites. It also manufactures and sells electronic devices, including kindle e-readers, fire tablets, fire TVs and echo, as well as fire phones. It provides Kindle Direct Publishing, an online platform that allows independent authors and publishers to make their books available in the Kindle Store.

Amazon also serves developers and enterprises through the aforementioned Amazon Web Services, which provides compute, storage, database, analytics, applications and deployment services that enable virtually various businesses. AWS is the undisputed leader in the cloud now, and analysts see the company expanding and moving up the enterprise information value chain and addressing a larger total addressable market. The company has had numerous recent product announcements, including Aurora for relational database engine, Quicksight for business intelligence and AWS Database Migration Support Service.

The company’s revenue exploded in the first quarter, and top analysts noted that after years of very uneven profitability, they feel the company is really focusing on the bottom line. Amazon absolutely annihilated analysts’ expectations on both its top and bottom lines for the first quarter, thanks mostly to its growing retail business and new cloud services.

The JPMorgan price target for the stock is $915. The Thomson/First Call consensus price target is $801.95. Shares closed Wednesday at $713.23. There is almost 30% upside to the JPMorgan price target.