Investors who have tilted their portfolios toward growth have certainly done very well for themselves in recent years. Indeed, for the better part of the past two decades, portfolios that have been constructed with a heavier weighting toward companies with market-beating growth rates have vastly outperformed those that held a higher percentage of their portfolios in fixed income securities or value stocks (those with valuations that are relatively attractive compared to the overall market).
Now, it’s generally true that some sort of divergence tends to occur over the long-term, and it’s likely that at some point, value will become more attractive to investors. But for now at least, growth remains in vogue and the primary focus for many investors, for good reason.
There’s certainly strong indications that the catalysts that have driven this bull market in equities may continue, and the so-called “soft landing” outcome many in the market are betting on will materialize. For those looking for top growth stocks to consider buying in December, here are three of my top picks right now.
Key Points About This Article:
- Growth stocks have continued to outperform in recent years, and could certainly see even greater buying activity if revenue and earnings growth trends continue as they have in recent quarters.
- Here are three top growth stocks investors bullish on a soft-landing scenario may want to consider in the month of December.
- If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.
Microsoft (MSFT)
Microsoft Corporation (NASDAQ:MSFT) is among the world’s largest companies in the world by market capitalization, and has remained near the top of these rankings for a long time for a number of reasons. The software and cloud giant has seen incredible growth in recent years, as strong secular tailwinds have provided excellent growth from the company’s core operating segments.
In recent quarters, the company has rolled out massive capital spending plans for the company’s AI ambitions. And given all the hype and excitement around the artificial intelligence revolution, it should be no surprise that Microsoft is seeing incredible interest as a top core portfolio holding from so many investors. Indeed, with innovations such as Azure AI Foundry, Windows 365 Link, advanced data-processing chips, AI agents, SQL Server 2025, and Microsoft Purview for AI-driven data governance, there’s something to like for every growth investor seeking the “next” growth catalyst for Microsoft.
November was a decent month for Microsoft, with the company’s share price rising around 5% for the month. However, momentum into the end of the month could propel an even more solid December, with many expecting a larger-than-typical Santa Claus Rally heading into year-end.
With the company’s $14 billion investment in OpenAI enabling advanced AI integration across its products including Office 365 and Azure, investors are clearly baking in big earnings beats in the coming quarters. I’ll be particularly interested to see what the company reports in its upcoming earnings call, but I do think this is a stock that’s safe to buy heading into the print.
Tesla (TSLA)
I’ve been skeptical of Tesla (NASDAQ:TSLA) as a top growth stock in the past, and there are certainly various fundamental reasons why investors may want to be cautious when considering this EV giant. The leading U.S. electric vehicle maker, Tesla has skyrocketed following the election of Donald Trump to the White House, and continues to see strong buying pressure as investors looking for “Trump trades” to buy heading into the end of the year.
One could argue that this stock has already had its Santa Claus Rally, with Santa coming in the form of Donald Trump this year. Expectations that tax credits may be taken off the table for top automakers (something lobbyists for U.S. auto companies are working to counteract) could disproportionately benefit Tesla in terms of its market share ambitions in its core domestic market.
While prices may rise for consumers as a result, it’s clear investors are pricing in even greater market share and penetration rates in the coming quarters. If the situation materializes as expected, it’s possible that Tesla could not only retain its stranglehold on the U.S. EV market, but become a quasi-monopoly in this space. And that’s to say nothing of improved expectations that the company’s “Full Self Driving” technology could be approved for robotaxi services much sooner than expected, under a Trump presidency.
For now, many of these catalysts do have some speculative characteristics, so again, I’d take caution with determining one’s holding period with Tesla. But for the month of December and the near future, this is a growth stock I think investors have to take a look at, at the very least.
JPMorgan Chase (JPM)
JPMorgan Chase (NYSE:JPM) is among the world’s largest banks and continues to be a core holding of many prominent portfolios, for good reason. The company’s core operations span investment banking, consumer banking, and asset management. Its four main segments (Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking, and Asset & Wealth Management) continue to drive incredible profits the company passes back to investors in the form of dividends and share buybacks over time.
Perhaps not the traditional “growth stock” many investors may look at from a pure revenue growth perspective, the mega bank’s earnings growth in recent years has been impressive. Additionally, with a valuation multiple of just 14-times earnings, it’s hard to find a mega-cap company trading at this valuation which also provides consistent and stable revenue and earnings growth over the long-term.
As deal making activity picks up in the market, and lending activity potentially increases as interest rates come down, this is a top bank investors may want to consider as we head into 2025. Personally, this would be my preferable pick of the three, but I’m a more defensive investor by nature.
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