High-quality growth stocks were depressed due to macroeconomic uncertainty.
Now that conditions are starting to improve, they'll skyrocket.
Here are my top 10 growth stocks picks for 2025: 🧵
1. $Hims & Hers Health Inc.(HIMS)$
5-Year Revenue CAGR: 80%
Gross Margin: 77%
Forward P/E: 64
It's rapidly becoming the Amazon of healthcare.
Number of subscribers is skyrocketing but it's not just that, the share of subscribers on a personalized plan is also growing and currently above 50%.
It partnered with $Novo-Nordisk A/S(NVO)$ to sell branded GLP-1 injections and its oral weight-loss segment is also growing at 300% YoY.
It hasn't even launched testosterone and generic liraglitude yet.
Even on conservative growth assumptions, the stock can double from these levels in the next 5 years.
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5-Year Revenue CAGR: 49%
Gross Loss Ratio: 78%
Forward P/S: 2.8
Lemonade is different from other direct-to-consumer insurance companies, it's truly using AI instead of real humans.
98% of all policies are sold and over 55% of all claims instantly settled by its AI models, significantly cutting overhead costs.
This allows it to scale without growing headcount.
It passes some of those cost savings to customers, offering 68% lower prices than the competitors.
It's already free-cash-flow positive and trading at just 2.8 times forward sales.
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5-Year Revenue CAGR: 115%
Medical Loss Ratio: 81.7%
Forward P/E: 23
Direct-to-consumer health insurer.
Focusing on ACA marketplaces but it's also scaling the small business segment very fast since industry veteran Mark Bertolini joined as the CEO.
It's guiding for $2.5 EPS in 2027 without enhanced ACA subsidies and the management is ahead of schedule to deliver that.
Amazing opportunity at just 7 times 2027 earnings.
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4.
$SoFi Technologies Inc.(SOFI)$
5-Year Revenue CAGR: 45%
Net Profit Margin: 17%
Forward P/E: 40
Its financial products are growing very fast while it has slowed down the lending to diversify toward more capital light revenue sources.
It has built a brand new loan platform business and scaled it to $250 million fee based revenue run-rate in 3 quarters.
Crypto and Level 1 options will also be launched before the end of this year.
Management is guiding for $0.80 EPS in 2026, meaning it's currently trading at just 18 times 2026 earnings while management forecast 20% annual growth between 2026-2030.
One of my highest conviction stocks.
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3-Year Revenue CAGR: 194%
Gross Profit Margin: 37%
Forward P/E: N/A
Cloud platform focused on inference heavy AI and ML workloads.
It builds its own servers and locates data-centers in cold countries like Finland to use natural-air cooling to cut costs.
They are quickly scaling, management has around $1.5 billion sales target for the next year, meaning it's currently valued at around just 4 times forward sales.
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6. $TransMedics Group, Inc.(TMDX)$
5-Year Revenue CAGR: 100%
Gross Profit Margin: 60%
Forward P/E: 58
They are a literal monopoly in warm-perfusion organ care systems (OCS).
They also operate their own airplanes to deliver organs safely and quickly to the receiver.
Liver volume is increasing very quickly and they are set to launch Kidney OCS this year, which has way higher volume than liver and lung transplants.
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5-Year Revenue CAGR: 50%
Gross Profit Margin: 13%
Forward P/E: 45
It dominates e-commerce in LatAm and it still has a very long runway for growth.
It's only active in 18 countries. This leaves 15 more countries to expand into in LatAm and international expansion is also possible after that.
Plus, MercadoPago, its fintech business, is also growing very fast and currently generating nearly the same revenue as commerce.
As Pago is a high margin business, $MELI isn't just poised for strong growth for years to come, but also for significant margin expansion.
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5-Year Revenue CAGR: 52%
Net Profit Margin: 13%
Forward P/E: 24
The largest digital bank in the world.
It's currently active only in three countries, Brazil, Mexico and Colombia.
Mexico is growing faster than Brazil was growing at the same stage and it has just acquired a full banking license in Mexico.
Brazilian Real also dipped against the USD in December so it'll also benefit from currency exchange rates.
It's a no brainer at 24 times forward earnings.
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5-Year Revenue CAGR: 36%
Gross Loss Ratio: 59%
Forward P/E: 49
Another insurtech focusing on car insurance.
They are growing very fast since they have been embedding their insurance at checkout interfaces in the websites of used car sellers like Carvana.
They have the best telematics in the industry and the largest data pool. Thus, their gross loss ratio is at 59%, way below industry average.
It's currently fairly valued but the further opportunities for expansion into other insurance lines hasn't been priced in.
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10.
$Advanced Micro Devices(AMD)$ 5-Year Revenue CAGR: 28%
Gross Profit Margin: 53%
Forward P/E: 25
Its data center segment grew 57% YoY but it's just the beginning.
Its hardware is now comparable with that of $NVIDIA(NVDA)$ and its software stack is catching up after the ROCm updates.
Its MI300X series is already performing better than NVDA H200 in inference tasks and MI355 series will be comparable to Blackwell.
It's a bargain at 25 times forward earnings.
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