2 Brilliant Growth Stocks to Buy Now and Hold for the Long Term

Growth stocks tend to beat the market in the long run.

For example, Vanguard launched the Vanguard S&P 500 (NYSEMKT: VOO) and Vanguard S&P 500 Growth (NYSEMKT: VOOG) index funds on the same day in September 2010. The growth-oriented exchange-traded fund (ETF) has consistently delivered superior total returns ever since:

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VOOG Total Return Price data by YCharts

Don't get me wrong -- the Vanguard S&P 500 ETF is a great portfolio cornerstone, especially if you want to avoid volatility and the occasional sharp price correction. But the growth fund's market-beating gains show the wealth-building power of growth stocks.

On that note, some of my favorite stocks right now fall in the category of brilliant growth stocks. If a broadly growth-oriented ETF can beat the market in the long run, these hand-picked stars should fare even better. I'm not promising fantastic overnight gains, but you should consider buying a few shares of these excellent growth stocks today and hold them for many years -- perhaps alongside an ETF full of growth stocks.

Alphabet spells "success" in capital letters

I keep pounding the table for Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). You probably already know all about the Google parent's flexible business model, the company's dominant position in several industries, and its trillion-dollar market cap.

So let's focus on Alphabet's reliable business growth this time. Powered by these aforementioned qualities, Alphabet has seen revenue growth of approximately 20% a year over the last decade and a half. And the long-term growth rate for free cash flows is almost exactly the same:

GOOGL Operating Revenue (3 Year Growth) data by YCharts

Fellow "Magnificent Seven" companies like Apple and Microsoft can't keep up with Alphabet's long-term performance. Tesla is boosting its top-line revenues faster, but its cash profits are weaker. Even the eternal start-up known as Amazon looks fairly slow next to Alphabet.

And the stock isn't even expensive today. Alphabet's Class A shares (with voting rights) are trading at 26 times trailing earnings and 21.8 times next-year earnings estimates. It is the most affordable Magnificent Seven stock by these metrics and many more.

Combining a low-cost stock with incredibly consistent business growth in the long haul, Alphabet looks like a fantastic investment right now.

Intuitive Surgical is reshaping healthcare

I don't own many healthcare stocks, but Intuitive Surgical (NASDAQ: ISRG) is an important name in my retirement portfolio. It is, in fact, the most profitable investment I've ever made, with a mind-blowing return of 1,740% since October 2010.

It's not a cheap stock today, changing hands at 95 times earnings. But the robotic surgery specialist is trading at historical highs for good reason.

You see, the company's latest generation of da Vinci surgery systems has positioned the company as a serious artificial intelligence (AI) investment. Its computing hardware is several orders of magnitude faster than the last version's, and Intuitive Surgical is putting the extra computing power to work.

The new machine, called da Vinci 5, saw eight installations in last year's first quarter and 70 in the next period. October's third-quarter report showed 110 shipments -- 29% of Intuitive Surgical's overall da Vinci shipments in that period. Preliminary reports had 174 da Vinci 5 installations in the fourth quarter, and this innovative system continues a successful rollout.

I didn't see any of that coming when I bought my Intuitive Surgical shares long ago. What I did see, and continue to see today, was an innovator with patent-protected leadership in an important medical revolution. The vast majority of surgical procedures are still performed without robotic assistance, even though da Vinci operations deliver shorter hospital stays, smaller scars, and better outcomes in general.

Many investors are embracing Intuitive Surgical as a pricey but excellent growth stock. Only 1.2% of its shares are sold short, and the analyst community is overwhelmingly in favor of the stock -- a single sell recommendation stands against 23 firms rating it a buy right now.

So I'm tempted to double down on my Intuitive Surgical investment, as its AI-driven surgery tools pave the way to another era of terrific growth.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Anders Bylund has positions in Alphabet, Amazon, Intuitive Surgical, and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Intuitive Surgical, Microsoft, Tesla, and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.