In this article, we will look at the 10 Best Growth Stocks to Invest in for the Next 10 Years.
On March 8, Ben Snider, Goldman Sachs senior equity strategist, joined CNBC to discuss the state of the economy today. Snider noted that the key struggle has been the market struggle to assess the forward trajectory of the economy. The market entered this year with optimism for the growth trajectory. However, over the past few weeks, we have seen a very sharp downturn. There is good news to extract from the scenario. Snider explained that if we look at where the market is priced today, it seems much more reasonable. Therefore the base case remains the same the economy is in good shape and is growing. He also noted that a confirmation of the growth came in with the jobs report, moreover, earnings are still growing, meaning that the equity market should be moving higher too.
However, the key question that remains unanswered is what sectors investors should look forward to. Most of the sectors have been volatile. Therefore, as per Snider, the best approach would be not to go all in for a single sector. He likes healthcare, which has been one of the best-performing sectors in the market so far. This is because despite the performance the sector is still trading at the lowest valuations compared to the market. Snider mentioned that this may be a good buying period as historical data tells us that when an investor buys the S&P 500 down 5%, it generates a positive return on investment over the next 5 months 85% of the time.
Moreover, Goldman Sachs has anticipated moderate yet resilient global growth in 2025, driven by the strong performance of the United States. The firm expects the US economy to be a primary driver of global growth, supported by a robust labor market, consistent consumer spending, solid credit conditions, sufficient liquidity, and increased capital spending related to AI. In addition, regarding the tariff situation, Goldman Sachs believes that the “Fed Put” will come into play and ease monetary policy, however, terminal rates are expected to be higher than previously anticipated.
With that, let’s take a look at the 10 best growth stocks to invest in for the next 10 years.
Stock market reports printed on a sheet of paper. Photo by RDNE Stock Project on Pexels
Our Methodology
To curate the list of the 10 best growth stocks to invest in for the next 10 years, we looked at various online rankings. Using these rankings we aggregated a list of best growth stocks for the next 10 years. Next, we checked the sales growth of each stock from Seeking Alpha and added only those companies that have grown more than 15% over the past 5 years. Lastly, we ranked the stocks in ascending order of the number of hedge fund holders, sourced from Insider Monkey’s Q4 2024 database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Growth Stocks to Invest in for the Next 10 Years
10. AudioEye, Inc. (NASDAQ:AEYE)
5-Year Sales Growth: 30.01%
Number of Hedge Fund Holders: 15
AudioEye, Inc. (NASDAQ:AEYE) operates as a digital accessibility platform, providing website accessibility compliance solutions to businesses of all sizes. The company utilizes machine learning and artificial intelligence to identify and resolve common accessibility errors, addressing disabilities such as dyslexia, color blindness, and epilepsy.
On January 21, Joshua Reilly from Needham maintained a Buy rating on the stock with a price target of $25. The company during its fiscal third quarter of 2024 grew its revenue from $8.47 million in Q2 to $8.93 million. This was towards the high end of the company’s guidance, reflecting 14% year-over-year. Management noted that both its enterprise and partner channels experienced organic sequential growth of around 21% year-over-year.
AudioEye, Inc. (NASDAQ:AEYE) has expanded its partnership with Finalsite, aiming to penetrate its K-12 school customer base over the next three years. It has also entered into a significant partnership expansion with CivicPlus, a leader in public sector SaaS, which aims to penetrate the local government market. Moreover, the company recently released its full year and fourth quarter results for fiscal 2024. Q4 2024 marked as the thirty sixth consecutive period of record revenue growth. During the quarter the company grew its revenue by 24% year-over-year with adjusted EBITDA margins at 24%. Management expects next year’s revenue to be between $41 million to $42 million, reflecting an 18% growth at the mid-point. It is one of the best growth stocks to invest in for the next 10 years.
9. Beam Therapeutics Inc. (NASDAQ:BEAM)
5-Year Sales Growth: 412.30%
Number of Hedge Fund Holders: 35
Beam Therapeutics Inc. (NASDAQ:BEAM) is a biotechnology company that focuses on creating precision genetic medicines using base editing technologies for genetic disorders. Its base editing technology is designed to make precise and efficient single-base changes at targeted genomic sequences, without making double-stranded breaks in the DNA. Its pipeline products include BEAM-101, BEAM-201, BEAM-301, and BEAM-302, which are used for serious diseases.
On March 10, Beam Therapeutics Inc. (NASDAQ:BEAM) was upgraded to Buy from Hold Jones Research analyst Soumit Roy. The analyst has set a price target of $34. Roy noted that the company announced encouraging preliminary data from its Phase 1/2 trial of BEAM-302 for alpha-1 antitrypsin deficiency (AATD). BEAM-302 is a medication that uses a liver-targeting lipid nanoparticle to deliver a guide RNA and an mRNA that encodes a base editor, which is designed to correct the PiZ mutation that causes AATD. The firm has increased the probability of success against AATD to 35% from 15% and also increased its adjusted peak sales to $1.9 billion in 2036, noting that BEAM-302 could be a one-time treatment for AATD. Jones Research believes that the data de-risks the company’s platform on multiple levels. Beam Therapeutics Inc. (NASDAQ:BEAM) is one of the best growth stocks to invest in for the next 10 years.
