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Growth stocks are your best bet to increase the value of your investment portfolio over the long term. By buying and holding on to a group of promising growth stocks, you can easily compound your investments over time and enjoy a comfortable retirement. The key is to select the right companies that not only enjoy dominant market share within their respective industries but also possess sustainable tailwinds that allow them to grow over years, if not decades.

Technology isn't the only sector showing huge promise as more people embrace digitalization and generative artificial intelligence (AI). Consumer goods is another industry benefiting from increased consumption as people shake off the effects of the pandemic and open their wallets. Read on to find out which three stocks are posting healthy growth and would constitute a solid inclusion into your portfolio.

Alphabet

Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is the parent company of Google and the video-sharing website YouTube. The company has been busy building AI models into its search engine and other services to drive deeper engagement and better results. Its generative AI tool, Gemini, is paving the way for the next wave of AI innovation, and its results demonstrate the benefits of this shift. For the first quarter of 2024, revenue rose 15.4% year over year to $80.5 billion. Operating income climbed 46.3% year over year to $25.5 billion, while net income surged by 57.2% year over year to $23.7 billion. Alphabet's Google Search and YouTube ads saw year-over-year revenue growth, while its Google Cloud segment once again saw revenue grow further from $7.5 billion to $9.6 billion in Q1 2024. The cloud division is also generating higher operating income of $900 million, versus just $191 million a year ago, with operating margin jumping from 2.6% to 9.4%. Free cash flow dipped slightly to $16.8 billion, but the technology behemoth surprised investors with the declaration of a maiden quarterly dividend of $0.20 per share.

Alphabet intends to continue to invest in AI tools to enhance its products and services, while some of Google's divisions will undergo a restructuring. The business recently announced additional cuts to keep its workforce lean, continuing a trend that started last year. These may include roles that will be shifted abroad to reduce costs. Meanwhile, Alphabet has announced that it will make three versions of Gemini, each of which will use a different amount of processing power. The most powerful version will be equipped in data centers, while the smaller one can run efficiently on mobile devices, and the new Gemini will also be cheaper to roll out than were older models, thereby generating more cost savings for the business.

With the release of Gemini, there is anticipation that Alphabet is now firmly ahead in the AI race after Microsoft's OpenAI introduced generative AI to the masses last year. Investors have much to look forward to as Alphabet continues to double down on AI tools and invests in its large-language models.

Tractor Supply Company

Tractor Supply Company (NASDAQ: TSCO) is the largest rural lifestyle retailer in the U.S., with 2,233 Tractor Supply stores in 49 states. The company also operates 202 Petsense specialty pet supplies stores in 23 states. Tractor Supply enjoys a dominant position in its industry as it increases the "consumer, edible, and usable" (CUE) products on its shelves. This strategy has rewarded the retailer with slow and steady growth. For 2023, Tractor Supply reported a 2.5% year-over-year increase in sales to $14.6 billion, while operating income improved by 3.1% year over year to $1.5 billion. Net income came in slightly higher at $1.1 billion, versus $1.09 billion a year ago, while free cash flow stayed steady at around $580 million for both years. Tractor Supply's annual dividend also rose 12% year over year to $4.12 per share.

This momentum has carried forward into Q1 2024, with sales increasing nearly 3% year over year to $3.4 billion. Operating and net income did even better, rising by 7.6% and 8.2% year over year, respectively, to $2.6 billion and $2 billion. The retailer also reported a positive free cash flow of $100.2 million for the quarter, reversing the negative free cash flow in the prior year. A total of 17 new Tractor Supply and four new Petsense stores were opened during the quarter. The company recently revamped the benefits for its Neighbor's Club loyalty program with more rewards for customers and the ability to accumulate rewards more quickly with lower amounts of spending. It's also constructing its 10th and largest distribution center, in Arkansas. Tractor Supply is maintaining its guidance for around 2.4% year-over-year top-line growth for 2024 and plans to open around 80 new Tractor Supply stores, along with 10 to 15 new Petsense stores.

Meta Platforms (NASDAQ: META) is a dominant player in the social media space with its Facebook product, WhatsApp chat app, and photo- and video-sharing site Instagram. The company served up an impressive set of financial results for 2023, with revenue growing by 16% year over year to $134.9 billion and net income surging 69% year over year to $39.1 billion. Meta Platforms dubbed 2023 its "Year of Efficiency," as the business shrank expenses while growing its top line. The board even initiated Meta's first-ever quarterly dividend of $0.50 per share as a vote of confidence in the company's prospects.

Q1 2024 saw more of the same stellar financial performance that was on full display for last year. Revenue climbed 27% year over year to $36.4 billion, while net income more than doubled year over year from $5.7 billion to $12.4 billion. The social media company's free cash flow also leapt 79% year over year to $12.8 billion. Meta Platforms is no longer disclosing monthly and daily active users but is instead relying on a metric called family daily active people (DAP), which measures activity across all of its services. For Q1 2024, DAP rose 7.3% year over year to 3.24 billion, proving that Meta Platforms can still grow its user base by incorporating new AI elements such as Llama inside them. CEO Mark Zuckerberg has plans for higher spending on AI, which will be a dampener for earnings in the near term but should prove to be a long-term winner when the company generates higher revenue in the future. This new investment cycle promises to infuse more of Meta's products with AI-enabled features, and investors should see the fruits of these initiatives as the company reports higher earnings down the road.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Royston Yang has positions in Alphabet, Meta Platforms, and Tractor Supply. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, and Microsoft. The Motley Fool recommends Tractor Supply and 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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.