The stock market has experienced one of its best-performing years in recent history. The S&P 500, Dow Jones and Nasdaq are trading near or at all-time highs. While it feels like there aren’t any bargains left on Wall Street, I still found a short list of the best growth stocks.
The two stocks on my list both offer substantial value to their actual price and I have many reasons to believe they’ll continue to show upside potential that would make even Warren Buffett proud.
While my short list of the best growth stocks might not fit Warren Buffett’s exact criteria for investing, there is a great chance the current value of both companies is actually below fair value. That gives us a potential edge in the current stock market climate.
If you’ve been keeping up with my videos, the first ticker shouldn’t be any surprise…
It’s Caterpillar Inc. (NYSE: CAT)! Caterpillar is an American Fortune 100 company that designs, makes, markets and sells heavy machinery. It happens to be the largest construction equipment manufacturer in the world.
But that’s not the main reason why it’s at the top of my best growth stocks list…
The company is associated with infrastructure and construction. And we all know that President-elect Joe Biden has made it no secret that infrastructure is going to be the central tenet of his presidency.
Caterpillar’s shares have seen a one-year return of about 24%. To put that in perspective, that’s roughly twice the gains we’ve seen from the S&P 500 during the same period of time.
But that’s not all…
The stock has a price-to-earnings (P/E) ratio, which compares a company’s share price to its earnings per share, of about 26 — a figure that’s in line with other stocks in the industrial and construction category.
What about the next stock on my list?
Well, it’s not as popular as Caterpillar; however, it does trade on the Russell 2000. That means it’s far from hitting its full potential, especially since the Russell 2000 remains undervalued in comparison to the overall market right now.
Its three-year return is already over 1,200%! (And no, that is not a typo.)
Check out the video below to get the second ticker on my short list of best growth stocks to buy now and be sure to leave a comment before you go.