10 Best Performing Growth Stocks in 2025

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1. Okta, Inc. (NASDAQ:OKTA)

YTD-Performance: 33.44%

Number of Hedge Fund Holders: 72

Okta, Inc. (NASDAQ:OKTA) offers a cloud-based identity management platform for businesses. Its platform allows companies to manage and secure user authentication into modern applications and enables developers to build identity controls into applications, websites, web services, and devices.

On March 10, BMO Capital raised the firm’s price target on the stock from $105 to $130, while keeping a Market Perform rating. The firm had been skeptical regarding the performance of the company. However, strong execution in the fourth quarter and management’s forecast for fiscal year 2025 Remaining Performance Obligations growth resulted in an optimistic rating from BMO Capital. Okta, Inc. (NASDAQ:OKTA) grew its revenue by 13% to $682 million during the fiscal fourth quarter of 2024. Notably, its Identity Governance segment reached $100 million in annual recurring revenue (ARR), with 1,300 customers during the quarter. Moreover, the firm noted that the identity market is expected to grow and converge, which will benefit the company. It is the best-performing growth stock in 2025.

White Brook Capital Partners stated the following regarding Okta, Inc. (NASDAQ:OKTA) in its Q4 2024 investor letter:

“Okta, Inc. (NASDAQ:OKTA) was basically unchanged from where we bought it in 2024, although its had a good start to 2025. Okta’s products are used by customers and consumers to manage and secure identities. I believe we acquired shares at an attractive price and look forward to publishing a write up early this year.”

While we acknowledge the potential of Okta, Inc. (NASDAQ:OKTA) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than OKTA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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