4 US Growth Stocks to Supercharge Your Investment Portfolio

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Investing in growth stocks is the best method to grow your wealth so that you are better prepared for retirement.

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By allocating your money to such stocks, you can enjoy steady capital gains and see the value of your investment portfolio grow over time.

To achieve this, you need to select companies that have strong competitive moats and a track record of increasing their revenue and free cash flows.

These businesses should also possess catalysts and/or sustainable tailwinds that can take them to the next level.

Here are four promising US growth stocks that can help to lift the value of your investment portfolio.

Atlassian (NASDAQ: TEAM)

Atlassian provides a cloud computing platform to help teams to organise, discuss, and collaborate on their work tasks.

With the company’s software, its customers can better manage their time, become more productive, and deliver quality results.

Atlassian reported a strong set of earnings for its fiscal 2024 (FY2024) ending 30 June 2024.

Total revenue climbed 23.3% year on year to US$4.4 billion while gross profit increased by 22.6% year on year to US$3.6 billion.

The business also churned out copious levels of free cash flow to the tune of US$1.4 billion for FY2024, up an impressive 68% year on year.

The collaborative software maker’s good results have continued into the first quarter of fiscal 2025 (1Q FY2025).

Total revenue jumped 21.5% year on year to US$1.2 billion while gross profit improved by 21.3% year on year to US$970.2 million.

Once again, Atlassian churned out a positive free cash flow of US$74.3 million for the quarter.

Customers are also spending more with Atlassian – those with more than US$10,000 in cloud annual recurring revenue jumped 17% year on year to 46,844 for 1Q FY2025.

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Management continues to innovate, recently releasing Rovo, its newest AI-powered product featuring features such as advanced enterprise search capabilities, and agents to help solve complex problems and handle repetitive tasks.

Microsoft (NASDAQ: MSFT)

Microsoft is a trillion-dollar software and hardware manufacturer that is famous for its Microsoft 365 suite of applications that includes Microsoft Word, Excel, and Powerpoint.

The company also owns business networking site LinkedIn and offers cloud computing services for businesses.

Microsoft reported a stellar set of earnings for FY2024 as its revenue jumped 15.7% year on year to US$245.1 billion.

Operating and net profit rose 23.6% and 21.8% year on year, respectively, to US$109.4 billion and US$88.1 billion.

The software company also generated a positive free cash flow of US$74.1 billion for FY2024, up nearly 25% year on year.

AI-driven demand is changing how organisations work, and Microsoft is leaning on this trend to expand its opportunity set and garnering new customers in the process.

For 1Q FY2025, Microsoft’s momentum has continued as the Redmond-based company posted a 16% year-on-year revenue increase to US$65.6 billion.

Net profit increased by 10.7% year on year to US$24.7 billion while free cash flow generated amounted to US$19.3 billion.

Its Microsoft 365 commercial products and cloud revenue increased by 13% year on year while LinkedIn revenue increased by 10% year on year.

DocuSign (NASDAQ: DOCU)

DocuSign is a digital signature company that allows its customers to seal contracts and documentation conveniently and securely.

The company has over 1.6 million customers with more than a billion people in 180 countries using its solutions.

The business reported a commendable set of earnings for the first nine months of fiscal 2025 (9M FY2025) ending 31 October 2024.

Revenue increased by 7.4% year on year to US$2.2 billion while operating profit jumped more than sixfold year on year to US$139.5 million.

DocuSign received a large tax credit that boosted its net profit to US$984.4 million, or around 21 times higher than the US$46.7 million of profit booked in the prior year.

Free cash flow also came in strong at US$640.7 million, fairly constant against the US$638.6 million churned out a year ago.

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The business saw billings grow by 9% year on year to US$752 million for the third quarter of fiscal 2025 (3Q FY2025).

Management believes that it is the market leader with a large untapped opportunity.

The total addressable market for digital signatures stands at US$50 billion, offering DocuSign significant opportunities to grow its top and bottom lines.

Snowflake (NYSE: SNOW)

Snowflake runs a data cloud that helps organisations to unite siloed data and execute analytics to discover insights.

The data cloud also helps to create solutions for applications, collaboration, data engineering, and cybersecurity, among others.

For 9M FY2025, revenue shot up nearly 30% year on year to US$2.6 billion while gross profit increased by almost 28% year on year to US$1.8 billion.

The business also churned out a positive free cash flow of US$468.6 million for 9M FY2025, up 10% year on year.

Snowflake saw total customers increased by 20.3% year on year to 10,618 for 3Q FY2025.

Of this number, Forbes Global 2,000 customers grew by around 7% year on year to 754.

Also, customers with over US$1 million in product revenue climbed 25% year on year to 542 for the latest quarter.

Snowflake believes that its total addressable market will more than double in just five years, going from US$152 billion in 2023 to US$342 billion by 2028.

With this growing market, investors should feel confident that the business can continue to grow its top lines and generate higher free cash flow.

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Disclosure: Royston Yang does not own shares in any of the companies mentioned.

The post 4 US Growth Stocks to Supercharge Your Investment Portfolio appeared first on The Smart Investor.

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