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SELECT LANGUAGE BELOW

NVIDIA Corporation (NVDA): Why Should You Buy This Growth Stock For The Next 5 Years? – Yahoo Finance

We recently compiled the following list. 15 Best Growth Stocks to Buy in the Next 5 Years. In this article, we'll take a look at how NVIDIA Corporation (NASDAQ:NVDA) stacks up against other growth stocks.

Kevin Mahn, president and CIO of Hennion & Walsh Asset Management, recently appeared on CNBC on January 6 to discuss current market momentum and how investors will see growth opportunities in 2025. emphasized the need to be selective in finding He emphasized that although MAG7 has recently led the market, that leadership may not continue. Looking at historical data, Mahn pointed out that since 1950, there have been nine instances where the market has risen more than 20%, and eight of those times the market has risen. However, he noted that the average increase in the following year was only 3.6%, demonstrating the need for careful selection. He also acknowledged recent market trends, including the potential for a shift in investor sentiment following events such as the S&P 500's poor performance and the Santa Claus Rally.

He predicted a path for interest rates to fall, predicting a 50 basis point (bp) cut in rates this year, instead of the previously expected 100 basis point (bp) cut. Maan suggested this environment would create favorable conditions for stocks and bonds, but urged investors to diversify beyond mega-cap tech stocks into sectors such as biotech and aerospace. Earlier, on January 3, Maan said that after two consecutive years of profits, a third year of strong performance was unlikely. He said it appears the Grinch disrupted this year's Santa Claus rally.

He also cited concerns from investors trying to time the market or sell their holdings. He warned that trying to time the market is often futile. Instead, he advocated rebalancing your portfolio to align with your long-term goals and risk tolerance. He suggested that the economic situation is changing, with interest rates expected to fall and economic growth to stagnate. Maan advised investors to consider taking profits from sectors that have traditionally led the market and reallocating those funds to other areas that are poised for future growth. He highlighted biotechnology as a promising field and cited bipartisan agreement on the need to lower drug prices. This change could make large pharmaceutical companies look for new sources of revenue and make smaller biotech companies more attractive.

methodology

We started by scouring online rankings and internet lists to create a list of the top growth stocks to buy over the next five years. Next, we selected stocks with high five-year earnings growth and high analyst upside potential. We selected 15 stocks that were most popular among elite hedge funds and that were bullish by analysts. Stocks are ranked by the number of hedge funds that own the stock as of Q3 2024.

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