Return Opportunities: Two Growth Stocks for Your Portfolio

Selecting the right stocks for a portfolio and having the patience to let them grow requires time and perseverance. Not every stock will be a winner, and it may be necessary to adjust the portfolio occasionally. Diversification across different stocks and sectors can help benefit from multiple forms of growth and achieve optimal long-term returns. For investors looking to invest $1,000 and seeking top growth stocks, there are two promising options. **Intuitive Surgical** has been a dominant force in the surgical robotics market for decades. With its da Vinci surgical robots, the company holds the lion's share of the market value. Interestingly, the bulk of its revenue doesn't come from the sales of the systems themselves. In the first half of 2024, Intuitive Surgical reported total revenue of nearly $4 billion, a 13% increase compared to the same period last year. Of this, $2.4 billion came from instruments and accessories that need regular replacement. Sales or lease revenue from the systems amounted to $866 million, and the services segment brought in around $631 million. The company has a stable history of profitability. Net income in the first half of 2024 was approximately $1.1 billion, a 37% increase compared to the same period in 2023. In the second quarter of 2024, eleven more da Vinci systems were delivered to customers than in the same period last year, while the volume of procedures performed increased by 17% year-on-year. The installed base grew by 14% to now 9,203 systems. The global market for surgical robotics is expected to expand with a double-digit annual growth rate of about 16% between 2024 and 2032. With Intuitive Surgical's large footprint and its operational systems used in various surgical fields, there is considerable growth potential. **E.l.f. Beauty** is known for its affordable, cruelty-free beauty products and popular social media campaigns often featuring influencers and celebrities. The company's brands include e.l.f. Cosmetics, e.l.f. Skin, Naturium, Well People, and Keys Soulcare, a collaboration with artist Alicia Keys. Distribution is carried out online through the company's website and through partnerships with major retailers like Walmart, Ulta Beauty, and Target, which accounted for 58% of sales in the last fiscal year. In the fiscal year 2024, which ended on March 31, e.l.f. Beauty's net sales increased by 77% to over $1 billion, and the gross margin rose by 330 basis points to 71%. The company is profitable, posting a net income of $127.7 million based on Generally Accepted Accounting Principles (GAAP). At the end of the fiscal year, the company had approximately $108 million in cash and generated about $71 million in operating cash flow over the past 12 months. The e.l.f. Cosmetics brand gained market share for the fifth consecutive year in the fiscal year 2024 and is now ranked first or second in 18 core categories in cosmetics. With an average price of $5 to $6 per product, e.l.f. Beauty has the potential to attract consumers even in economically challenging times. The beauty and personal care market, which is expected to be valued at around $650 billion this year, makes e.l.f. Beauty an attractive option for investors.