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3 of the Best Growth Stocks to Own

3 of the Best Growth Stocks to Own

Morningstar, Inc.
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Entry is the asset's closing price on the publication date. Current is the last close on record.

  1. 01 AVGO NASDAQ BUY +0.00%
    Entry $346.25 14 Oct 2026
    Current $346.25 14 Oct 2026
    Result +$0.00
    vs. index +0.0% SPY +0.0% over the same days

    Cite this call Watch source segment (38s) *

    Surrounding source transcript
    … wide economic moats. We think companies with wide moats are likely to remain competitive for two decades or more. Dave's stock picks also tend to be from companies that generate reliable cash flows and that pay at least a modest dividend. In today's bonus stock picks segment, we're focusing on three growth stocks that have been among Dave's stock picks in the past. From our perspective, they're some of the best growth stocks to own for the long term. But we think you should only buy them when they're undervalued and trading below our fair value estimates. We think Broadcom is one of the best growth stocks to own. The company's amalgamation of high-value, differentiated, and mody chip and software businesses generate prolific cash flow. Broadcom's wide economic moat stems from intangible ass…

    In today's bonus stock picks segment, we're focusing on three growth stocks that have been among Dave's stock picks in the past. From our perspective, they're some of the best growth stocks to own for the long term. But we think you should only buy them when they're undervalued and trading below our fair value estimates.

    AI-extracted context In today's bonus stock picks segment, we're focusing on three growth stocks that have been among Dave's stock picks in the past. From our perspective, they're some of the best growth stocks to own for the long term. But we think you should only buy them when they're undervalued and trading below our fair value estimates. We think Broadcom is one of the best growth stocks to own.

  2. 02 NVDA NASDAQ BUY +0.00%
    Entry $221.30 14 Oct 2026
    Current $221.30 14 Oct 2026
    Result +$0.00
    vs. index +0.0% SPY +0.0% over the same days

    Cite this call Watch source segment (38s) *

    Surrounding source transcript
    … wide economic moats. We think companies with wide moats are likely to remain competitive for two decades or more. Dave's stock picks also tend to be from companies that generate reliable cash flows and that pay at least a modest dividend. In today's bonus stock picks segment, we're focusing on three growth stocks that have been among Dave's stock picks in the past. From our perspective, they're some of the best growth stocks to own for the long term. But we think you should only buy them when they're undervalued and trading below our fair value estimates. We think Broadcom is one of the best growth stocks to own. The company's amalgamation of high-value, differentiated, and mody chip and software businesses generate prolific cash flow. Broadcom's wide economic moat stems from intangible ass…

    In today's bonus stock picks segment, we're focusing on three growth stocks that have been among Dave's stock picks in the past. From our perspective, they're some of the best growth stocks to own for the long term. But we think you should only buy them when they're undervalued and trading below our fair value estimates.

    AI-extracted context In today's bonus stock picks segment, we're focusing on three growth stocks that have been among Dave's stock picks in the past. From our perspective, they're some of the best growth stocks to own for the long term. But we think you should only buy them when they're undervalued and trading below our fair value estimates. We think Broadcom is one of the best growth stocks to own.

  3. 03 PANW NASDAQ BUY +0.00%
    Entry $375.04 14 Oct 2026
    Current $375.04 14 Oct 2026
    Result +$0.00
    vs. index +0.0% SPY +0.0% over the same days

    Cite this call Watch source segment (38s) *

    Surrounding source transcript
    … wide economic moats. We think companies with wide moats are likely to remain competitive for two decades or more. Dave's stock picks also tend to be from companies that generate reliable cash flows and that pay at least a modest dividend. In today's bonus stock picks segment, we're focusing on three growth stocks that have been among Dave's stock picks in the past. From our perspective, they're some of the best growth stocks to own for the long term. But we think you should only buy them when they're undervalued and trading below our fair value estimates. We think Broadcom is one of the best growth stocks to own. The company's amalgamation of high-value, differentiated, and mody chip and software businesses generate prolific cash flow. Broadcom's wide economic moat stems from intangible ass…

    In today's bonus stock picks segment, we're focusing on three growth stocks that have been among Dave's stock picks in the past. From our perspective, they're some of the best growth stocks to own for the long term. But we think you should only buy them when they're undervalued and trading below our fair value estimates.

    AI-extracted context In today's bonus stock picks segment, we're focusing on three growth stocks that have been among Dave's stock picks in the past. From our perspective, they're some of the best growth stocks to own for the long term. But we think you should only buy them when they're undervalued and trading below our fair value estimates. We think Broadcom is one of the best growth stocks to own.

Full Transcript
Hi, I'm Susan Jabinski, co-host of the Morning Filter podcast. On every episode, Morningstar Chief US Markets Strategist Dave Sekera shares a few stock picks. Dave's picks are always stocks that are trading below what Morningstar thinks they're worth. But besides valuation, what other qualities do Dave's stock picks tend to have in common? For starters, they're often stocks of companies with wide economic moats. We think companies with wide moats are likely to remain competitive for two decades or more. Dave's stock picks also tend to be from companies that generate reliable cash flows and that pay at least a modest dividend. In today's bonus stock picks segment, we're focusing on three growth stocks that have been among Dave's stock picks in the past. From our perspective, they're some of the best growth stocks to own for the long term. But we think you should only buy them when they're undervalued and trading below our fair value estimates. We think Broadcom is one of the best growth stocks to own. The company's amalgamation of high-value, differentiated, and mody chip and software businesses generate prolific cash flow. Broadcom's wide economic moat stems from intangible assets in chip design and switching costs for its software products. Strength in both chips and software allows the company to earn terrific accounting and economic profits. We expect Broadcom to grow rapidly as a result of its skyrocketing AI chip business. We model 46% revenue growth for Broadcom through fiscal 2030, driven predominantly by the growth of its semiconductor revenue, and primarily its AI chip business. We think Nvidia is another must-own growth stock. The company has carved out a wide economic moat thanks to its market leadership in graphics processing units, hardware, software, and networking tools needed to enable the exponentially growing market around artificial intelligence. The investment case for Nvidia is driven by extraordinary data center growth as AI infrastructure spending expands. We expect data center revenue to rise from 194 billion dollars in fiscal 2026 to 385 billion in fiscal 2027 and 672 billion in fiscal 2028. We expect Nvidia to maintain very high margins, too, with gross margins in the mid-70% range in fiscal 2027. Lastly, we think Palo Alto Networks is also among the best growth stocks to own. This cybersecurity standout is a leader in multiple categories spanning network security, cloud security, and security operations. Palo Alto maintains a wide economic moat based on strong customer switching costs and the network effect associated with its offerings. We forecast Palo Alto's revenue growing at an 18% compound annual growth rate over the next 5 years. Palo Alto's business is well-positioned to benefit from multiple secular tailwinds. In fact, we're already seeing robust demand for cyber solutions as companies invest in cyber defense to stave off AI model cyberattacks. For more stock ideas, be sure to tune in to the Morning Filter each week wherever you get your podcasts and visit morningstar.com too.

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