Growth stocks are out of favor on Wall Street right now. The prospect of a recession hitting in 2023 has investors worried about declining sales. Rising interest rates threaten to pressure earnings, too, for companies that aren't yet self-funding.

But long-term investors can look beyond those concerns and focus on companies that will be setting new sales and earnings records in five years or longer. So, let's take a closer look at a few profitable growth stocks that are likely to grow through whatever selling environment develops in 2023 and beyond. Read on for some reasons to consider PepsiCo (NASDAQ: PEP), Lululemon Athletica (NASDAQ: LULU), and Chewy (NYSE: CHWY) shares right now.

If you thought PepsiCo was a boring, slow-growth stock, then its 2022 performance should help change your mind. The snack and beverage giant raised its fiscal year outlook after organic sales jumped 16% in the Q3 selling period. Earnings are expanding almost just as quickly, up 14% thanks to the combination of cost cuts and price increases. Consumers aren't shying away from their favorite brands across franchises like Frito-Lay, Quaker Foods, and Pepsi's dozens of popular beverages even as they look to curtail overall spending.

Continue reading

Source Fool.com