8 growth stocks to buy at attractive prices

These growth stocks come from Morningstar’s Hare portfolio.

The Morningstar Hare Portfolio includes top picks of growth stocks from rising analysts. Some growth stocks have been hit hard in recent weeks following disappointing earnings reports and forecasts for 2022, so investors in growth stocks are now taking a closer look at valuations. Growth stocks have outperformed the market for more than a decade, but concerns about inflation, tax hikes and the Federal Reserve’s cut could justify a more cautious stance for growth investors ahead. of the end of the year. For investors looking for growth stocks at reasonable valuations, here are the top eight holdings in the Morningstar Hare portfolio.

Alphabet Inc. (ticker: GOOG, GOOGL)

Alphabet, the parent company of Google and YouTube, is the first holding in Morningstar’s Hare portfolio of fastest growing stocks. It is also the second largest holding in its Tortoise portfolio of high value stocks. Analyst Ali Mogharabi says Alphabet has opportunities to further monetize YouTube and Google apps, and is also gaining ground in cloud services. Mogharabi says retail and travel industry ad spending continues to rebound, providing tailwinds for Alphabet to 2022. The more its user base grows, the more leverage it has on the prices of the ads that Alphabet generates will be important. Morningstar has a “buy” rating and a fair value estimate of $ 3,400 for GOOGL stock, which closed at $ 2,957.52 on November 16.

Microsoft Corp. (MSFT)

Microsoft is a market leader in cloud services and enterprise software applications. Even with a market capitalization of over $ 2.5 trillion, analyst Dan Romanoff says Microsoft remains an attractive growth equity investment. Romanoff says Microsoft’s corporate clients are investing heavily in transitioning their businesses to more cloud-based online models. Additionally, Microsoft’s gaming and Windows revenue growth remains strong, even against a backdrop of supply constraints for Surface PCs and tablets. Romanoff says Microsoft continues to impress with its ability to grow and increase margins on a large scale. Morningstar has a “buy” rating and a fair value estimate of $ 345 for the MSFT stock, which closed at $ 338.89 on November 16.

Mastercard Inc. (MA)

High-profile stocks like PayPal Holdings Inc. (PYPL) and Square Inc. (SQ) have garnered a lot of investor attention as they play on the global transition to digital payments. Mastercard might not be as flashy an investment as PayPal or Square, but it’s certainly a great way to invest in the digital payment trend. Analyst Brett Horn says the topic of digital payments still has a lot of growth to come, especially in emerging markets. Horn says Mastercard is diversified to earn credit, debit, and mobile payments charges. Morningstar has a “buy” rating for MA stocks.

IQVIA Holdings Inc. (IQV)

IQVIA is a clinical research company providing healthcare data solutions. In the third quarter, the company recorded more than 20% growth in sales and earnings before interest, taxes, depreciation and amortization. Analyst Rachel Elfman says IQVIA’s new lab in North Carolina will help it maintain its bullish momentum. The company’s contract research backlog grew 13% in the third quarter to more than $ 24 billion, suggesting IQVIA’s business is booming. Elfman says IQVIA’s database of diverse patient information and analysis also gives it a competitive advantage. Morningstar has a “hold” rating and a fair value estimate of $ 276 for the IQV stock, which closed at $ 267.54 on November 16.

Enbridge Inc. (ENB)

Enbridge is one of the largest energy infrastructure companies in North America. Analyst Stephen Ellis says Enbridge is expected to continue to generate long-term annual revenue growth in the range of 5% to 7%. The company’s Line 3 pipeline is finally operational. Enbridge also recently acquired Moda Midstream LLC, owner of North America’s largest oil export hub, for $ 3 billion. Ellis says Moda is a quality asset and the deal has been measured at fair value. Enbridge is also investing for the future, particularly in hydrogen, renewable natural gas and offshore wind projects. Morningstar has a “hold” rating and a fair value estimate of $ 44 for the ENB stock, which closed at $ 40.33 on November 16.

Meta Platforms Inc. (FB)

The “metaverse” is one of the most important and exciting long-term sources of growth in the tech world today. The metaverse is an integrated online environment in which people live, work and play. Facebook recently demonstrated to investors how serious it is to focus on the Metaverse by changing its name to Meta Platforms. Mogharabi says Facebook, Instagram and other Meta platforms will continue to grow their user base and attract advertisers. Additionally, he says Meta has opportunities to significantly expand its e-commerce business. Morningstar has a “buy” rating and a fair value estimate of $ 404 for the FB stock, which closed at $ 342.96 on November 16.

Amazon.com Inc. (AMZN)

Amazon has been one of the world’s top-performing growth stocks for more than two decades. Fortunately, Romanoff says Amazon still has a lot of growth in the tank. He says wage and shipping inflation squeezes Amazon’s margins in the near term, but Amazon remains the leader in e-commerce and public cloud services, two growth trends for the next decade. Romanoff says third quarter revenue growth for Amazon Web Services was “staggering” and believes AWS and advertising will be the main drivers of growth. Morningstar has a “buy” rating and a fair value estimate of $ 4,100 for AMZN stock, which closed at $ 3,540.70 on November 16.

Booking Holdings Inc. (BKNG)

Booking Holdings is one of the world’s largest online travel companies and is the parent company of Priceline.com, Booking.com and Kayak.com. The online travel booking industry has made a significant recovery after being crushed by the pandemic in 2020. Analyst Dan Wasiolek says Booking is relatively well positioned for the recovery, even within the travel industry. competitive online booking. He says companies like Booking that have significant exposure to Europe and China will experience higher relative demand in 2022 than companies focused on non-urban U.S. destinations. Morningstar has a “hold” rating and a fair value estimate of $ 2,650 for BKNG stock, which closed at $ 2,380.33 on November 16.

Growth stocks to buy at attractive prices:

– Alphabet Inc. (GOOG, GOOGL)

– Microsoft Corp. (MSFT)

– Mastercard Inc. (MA)

– IQVIA Holdings Inc. (IQV)

– Enbridge Inc. (ENB)

– Meta Platforms Inc. (FB)

– Amazon.com Inc. (AMZN)

– Booking Holdings Inc. (BKNG)

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8 growth stocks to buy at attractive prices originally appeared on usnews.com