My Favorite Growth Stocks for These Uncertain Times
Growth stocks typically trade at higher valuations because investors are willing to pay a premium for growth. However, fears that the global economy might slow down as the Federal Reserve raises interest rates to fight inflation have weighed on growth stocks over the past few months. That's because many companies might not grow as fast in the future if they can't access the capital they need to expand.
However, that's not an issue for some growth stocks. Companies with ample internal financial flexibility -- free cash flow and cash on their balance sheets -- can continue funding their expansion during these uncertain times. Three of my favorite cash-laden growth stocks are CrowdStrike Holdings (NASDAQ: CRWD), Clearway Energy (NYSE: CWEN)(NYSE: CWEN.A), and Prologis (NYSE: PLD).
CrowdStrike Holdings is a global cybersecurity leader with a cloud-based platform. The company's software-as-a-service business model generates lots of recurring revenue and cash flow. Revenue grew 61% in its fiscal first quarter to $487.8 million, pushing its annual recurring revenue (ARR) total to $1.92 billion.
Source Fool.com
