These growth stocks will beat the market for two years, William Blair says

Published Thu, Mar 5 202012:56 PM ESTUpdated Thu, Mar 5 20203:05 PM EST

Jesse Pound @/in/jesse-pound @jesserpound

Analysts at William Blair believe now is a great time for investors to buy their favorite growth stocks. The stock market has swung wildly in the last two weeks, and major indexes are still well below their record highs, as the coronavirus outbreak continues to spread around the globe. However, William Blair said in a note to clients that it is standing by its top picks and expects them to perform well over the next two years. "While such uncertainty is troubling to all equity markets investors, including us, it also presents an opportunity for William Blair to reiterate its commitment to the identification of quality growth stocks," the note said. Here are some of the names the firm's analysts are bullish on for the next two years, including two companies that could be hit by the coronavirus epidemic. Pharmaceutical giant Bristol-Myers Squibb is one of William Blair's favorite large cap stocks. The analyst who covers the company said the acquisition of Celgene should help the company grow in the coming quarters. "We believe clinical success with mid- and late-stage assets combined with near-term revenue growth of blockbuster franchises will continue to drive share outperformance, and we find the current valuation attractive," the note said. The drugmaker's stock has gained about 15% over the past year, but is down since the beginning of 2020. Coffee shop chain Starbucks is also one of the firm's favorites, despite the company having to temporarily close some of its stores in China due to the epidemic. Shares of Starbucks have tumbled more than 10% since mid-February, but William Blair said the company could still have a strong quarter. "With consensus having come down significantly in recent days, we are optimistic Starbucks is positioned to at least meet investor expectations," the note said. The firm's analysts are also bullish on specialty retailer O'Reilly Automotive . The company, which has a market cap of just under $30 billion, has a better balance between professional and individual customers than Autozone , one of its chief competitors, the note said. The note said O'Reilly's investments in expanding its inventory should pay off in the near-term. "O'Reilly's best-in-class parts availability and customer service levels are critical competitive advantages that have enabled the company to grow its market share in the past and that should enable further market share gains in the future," the note said. William Blair is also recommending Live Nation Entertainment , which has been one of the worst performing stocks since the coronavirus epidemic slammed the markets. The stock is down more than 16% since the beginning of the year. "While challenging to assess how deeply the virus will affect consumer behavior, show cancelations have been minimal to date and the company has not seen a pullback in fan demand or ticket buying outside of the affected areas," the note said.

Giovanni Caforio, CEO of Bristol-Myers Squibb.

Adam Jeffery | CNBC

Analysts at William Blair believe now is a great time for investors to buy their favorite growth stocks.

The stock market has swung wildly in the last two weeks, and major indexes are still well below their record highs, as the coronavirus outbreak continues to spread around the globe. However, William Blair said in a note to clients that it is standing by its top picks and expects them to perform well over the next two years.

"While such uncertainty is troubling to all equity markets investors, including us, it also presents an opportunity for William Blair to reiterate its commitment to the identification of quality growth stocks," the note said.

Here are some of the names the firm's analysts are bullish on for the next two years, including two companies that could be hit by the coronavirus epidemic.