With three quarters of the year 2016 still ahead of us, it’s probably a right time to reevaluate our investment strategies.

For one thing, we do not want to repeat the mistakes committed in 2015. Ok, I admit 2015 was a rough year for the global economy with several uncertainties stemming from oil price fluctuations, Chinese devaluation and other macroeconomic disruptions across the world. However, all hope is not lost. This year, it seems the situation is looking up.

So why don’t we take a minute to assess the damage done and plan better for the future? Opportunities seem strong with the recent rebound in oil prices, stabilization in some major economies and certain optimistic statistical data from the Fed (rising employment and manufacturing numbers).

Even then, it would be prudent to bet on some power-packed stocks that promise both growth and safety (yes, they do exist!). At such times, we swear by technology stocks as it is one of the few dynamic sectors that remain almost unaffected by oil price volatility.

In fact, stocks like Netflix, Inc. (NFLX - Analyst Report), fared impressively in 2015 despite all the turbulence, returning about 129% through the year. The streaming giant managed to build a vast subscriber base last year with its dual strategy of international expansion and content acquisition.

But now the tides are changing, so what looked like a good investment in 2015 may not be the best choice this year. Netflix is down over 11% year to date. It seems the cost of growth achieved last year is now hitting the company. With such rapid expansion, Netflix has apparently taken too much on its plate with escalating costs (and the resultant impact on profits) being a let-down for investors.
 
How to Navigate the Rough Waters?

With the help of our style score system, we hereby identify three software stocks that bear excellent growth potential and sport a favorable Zacks Rank, and can significantly boost your portfolio.

Our Growth Style Score condenses all the essential metrics from the company’s financial statements to achieve a true sense of quality and sustainability of its growth. Our research shows that stocks with Growth Style Scores of ‘A’ or ‘B’ when combined with a Zacks Rank #1 (Strong Buy) or #2 (Buy) offer the best investment opportunities in the growth investing space.

Here are four growth stocks that retain a strong Zacks Rank and have reported decent gains so far in 2016:

Ellie Mae (ELLI - Snapshot Report): One of the leading processors of mortgage applications in the U.S., the company provides network and technology-enabled solutions that help streamline and automate the mortgage origination process. The company has a unique business model which allows it to not only reduce the cost for consumers but also provide effective solutions that simplify and automate various procedures. In addition, its integrated offerings also minimize errors while ensuring regulatory compliance. Going ahead, the company is planning to enhance its Encompass platform with the addition of a new CRM offering that is expected to be a key growth driver.

Ellie Mae has a Growth Style Score of B and a Zacks Rank #1. Year to date, the company’s shares have surged 38.7%.

Facebook, Inc. (FB - Analyst Report): This social media company has been benefiting from the increase in online and mobile advertising spending, development of engaging apps, strategic acquisitions, a strong user base and a robust balance sheet. Facebook is also seeing a lot of positive momentum owing to its other platforms like Instagram, Whatsapp, Messenger and Oculus. In addition, we believe that the company’s developments in Artificial Intelligence and AR/VR technology will likely prove to be important growth drivers, going ahead.

Facebook that has a Growth Style Score of A and a Zacks Rank #2 has returned approximately 6.9% year to date.

Groupon Inc. (GRPN - Analyst Report): This daily deal company is undergoing a transition to redefine itself as a local marketplace. Since Nov 2015, the company, under its new CEO Rich Williams has been focusing on three key areas namely, marketing, international and shopping. This focus is aimed to tap the potential of the increasing e-commerce spending on mobile devices thus driving growth in a few important international markets. The company is already benefiting from the new strategy as can be seen from the better-than-expected results in the last quarter. Also, it got a boost last month when Alibaba (BABA) disclosed that it has purchased about 33 million shares or a 5.6% stake.
 
This Zacks Rank #2 company with a Growth Style Score of A has already reported gains of 35.5% so far this year.

Shutterfly (SFLY - Analyst Report): This digital personalized products and services provider has made a name for itself. The company has been making investments to develop its offerings to provide an improved customer experience. This, along with its efforts to expand margins, is already boosting its profitability. Such endeavors are supported by the company’s comprehensive business model which brings together a vertically integrated manufacturing process and the customized offerings it develops for its customers.

Shutterfly has a Zacks Rank #2 and a Growth Style Score of A. The stock has returned a modest 2.24% in the year-to-date time frame.

Bottom Line

Time and tide wait for none. So, wait no longer, adapt to the changes, and make the most of the opportunity available right here, right now.