10 Best Growth Stocks Under $100 to Buy Now

4. Block, Inc. (NYSE:XYZ)

Number of Hedge Fund Holders: 81

Expected EPS CAGR in the next 5 years: 28.05%

Block, Inc. (NYSE:XYZ) is a financial technology company that provides payment processing, banking, and digital financial services for businesses and consumers. Its ecosystem includes Square, a platform offering point-of-sale solutions, business loans, and payment hardware for merchants, and Cash App, a mobile app for peer-to-peer payments, banking, and investing. The company also owns Afterpay, a buy-now-pay-later service, and Spiral, which focuses on Bitcoin development. XYZ operates in multiple markets, leveraging data analytics, blockchain technology, and AI to enhance financial accessibility. Its strategy centers on expanding its ecosystem, driving digital payments adoption, and integrating financial services across its platforms.

Block, Inc. (NYSE:XYZ) achieved strong financial performance in 2024, delivering $8.89 billion in gross profit with an 18% YoY growth, driven by Square’s 15% and Cash App’s 21% growth. The company demonstrated robust customer engagement, maintaining gross profit retention above 100% for both Square and Cash App. Profitability metrics showed significant improvement, with Adjusted EBITDA reaching $3.03 billion (up 69% YoY) and Adjusted Operating Income of $1.61 billion, representing a 4.5x increase YoY.

Looking ahead to 2025, Block, Inc. (NYSE:XYZ) expects strong gross profit growth of at least 15% YoY, targeting at least $10.22 billion in gross profit. The company plans to expand Cash App’s capabilities through broader access to Cash App Borrow, the launch of Afterpay on Cash App Card, and increased marketing investments. Management expects improvements in both GPV and gross profit throughout the year, supported by retention and acquisition strategies. The company maintains a disciplined approach to growth and efficiency, operating below its 12,000-person cap and expecting to achieve a Rule of 40 run-rate by the end of 2025. With strong momentum and guidance in place, XYZ is one of the best growth stocks to buy now under $100.