10 Best Growth Stocks to Buy for 2025

Introduction:

As global economists forecast muted U.S. economic growth and the possibility of a mild recession, finding reliable growth stocks may prove challenging for investors. Elevated interest rates could continue to affect U.S. consumers, potentially impacting the broader stock market. However, 2024 demonstrated that growth stocks outperformed value stocks, a trend expected to persist in 2025 as the Federal Reserve pivots towards cutting interest rates.

To help investors navigate the evolving market, CFRA analysts have identified 10 top growth stocks to watch in 2025, each boasting at least 15% annual revenue growth over the past three years.

Summary

1. Nvidia Corp. (NVDA)
2. Alphabet Inc. (GOOG, GOOGL)
3. Meta Platforms Inc. (META)
4. Tesla Inc. (TSLA)
5. JPMorgan Chase & Co. (JPM)
6. Exxon Mobil Corp. (XOM)
7. Mastercard Inc. (MA)
8. Bank of America Corp. (BAC)
9. Salesforce Inc. (CRM)
10. ServiceNow Inc. (NOW)

CFRA's Top Growth Stocks for 2025

Stock Highlights

1. Nvidia Corp. (NVDA)

Nvidia continues to lead the semiconductor market, reporting an astounding 94% year-over-year revenue growth and a 109% surge in net income in its fiscal third quarter. With further opportunities in edge devices like advanced PCs, automobiles, and robotics, CFRA projects 43% revenue growth in fiscal 2026. Target price: $165 (current: $134.25).

2. Alphabet Inc. (GOOG, GOOGL)

Alphabet's innovation in artificial intelligence (AI) underpins its 15% revenue growth in Q3 2024, including a 35% rise in Google Cloud revenue. With AI transforming ad targeting and monetization, CFRA expects Alphabet to sustain 10% revenue growth in 2025. Target price: $220 (current: $189.82).

3. Meta Platforms Inc. (META)

Meta's integration of AI into its ad ecosystem has propelled its growth, with an 18.8% revenue increase in Q3 2024. Analysts predict $50 billion in free cash flow and 14% earnings growth in 2025. Target price: $650 (current: $620.35).

4. Tesla Inc. (TSLA)

While Tesla's revenue growth has slowed to 7.8% in Q3 2024, its Energy Storage segment shows promise. The anticipated launch of Tesla’s Cybercab in 2027 could further boost growth. Target price: $450 (current: $436.23).

5. JPMorgan Chase & Co. (JPM)

Despite a 3% revenue dip in Q3 2024, JPMorgan is poised for growth with a rebound in investment banking. Its acquisition of First Republic Bank further strengthens its market position. Target price: $275 (current: $239.94).

6. Exxon Mobil Corp. (XOM)

Exxon’s acquisition of Pioneer Natural Resources and Guyana development projects are expected to reignite revenue growth in 2025, despite a slight 1.4% revenue decline in Q3 2024. Target price: $133 (current: $110.84).

7. Mastercard Inc. (MA)

With 13% revenue growth in Q3 2024 and potential expansion in China's domestic market, Mastercard is set for continued innovation-driven growth. Target price: $620 (current: $529.00).

8. Bank of America Corp. (BAC)

Bank of America’s trading revenue and investment banking fees have rebounded significantly. Pro-business policies are expected to drive further growth in 2025. Target price: $53 (current: $45.67).

9. Salesforce Inc. (CRM)

Salesforce’s Agentforce AI and other enterprise solutions promise steady growth of 7%-9% annually through 2027. Target price: $418 (current: $354.31).

10. ServiceNow Inc. (NOW)

ServiceNow leverages AI to expand its market share and enhance its subscription-based offerings. Generative AI products like Xanadu are expected to fuel growth in 2025. Target price: $1,231 (current: $1,121.10).

FAQs

Q.1: What are growth stocks?
A.1: Growth stocks are shares of companies expected to grow at an above-average rate compared to other companies in the market, often driven by innovation or industry leadership.

Q.2: Why are interest rates important for growth stocks?
A.2: High interest rates can increase borrowing costs, potentially limiting the growth potential of businesses. Conversely, rate cuts often provide a favorable environment for growth stocks.

Q.3: How do analysts determine a stock’s implied upside?
A.3: Implied upside is calculated by comparing the target price set by analysts to the stock's current price, reflecting the potential return for investors.

Q.4: Are these stocks suitable for all investors?
A.4: Growth stocks can be volatile and may not suit risk-averse investors. It's essential to assess your risk tolerance and financial goals before investing.

Q.5: Where can I learn more about these stocks?
A.5: Consulting with a financial advisor or reviewing detailed analyst reports from firms like CFRA can provide deeper insights into these investment opportunities.

Conclusion:

Despite potential economic headwinds, these growth stocks provide compelling opportunities for investors in 2025. With strong financial performance and forward-looking strategies, these companies demonstrate resilience and innovation, making them strong contenders for sustained growth.

Important Note: Please Read Before You Invest

We're just sharing some helpful tips, but remember, investing comes with risks. We can't promise that these tips will always work or that you'll make money. Everyone's financial situation is different, so it's smart to do your research or talk to a financial advisor before you invest. Using these tips, you agree that you're responsible for your investment decisions and results.