In this article, we will explore the 10 stocks with consistent growth to buy.
Currently, financial markets are experiencing a mix of optimism and caution as investors react to changing economic conditions. Many are closely watching trends and data that could impact future growth and stability.
Tom Lee, managing partner and head of research at Fundstrat Global Advisors, recently shared his insights on the current market trends during an interview on CNBC’s ‘Squawk Box’ on October 14. He acknowledged that he underestimated the strength of the market, noting that it has been surprisingly resilient despite expectations of volatility leading up to the 2024 election. Lee highlighted that there is a significant amount of cash—about $6 trillion—sitting on the sidelines, which has contributed to the market’s stability. He observed that many investors had anticipated a recession, but instead, companies have shown strong earnings and resilience.
Lee also mentioned that the Federal Reserve is likely to adopt a supportive stance as inflation data continues to trend toward their 2% target. He believes that regardless of who wins the upcoming election, stocks are likely to perform well in the following year. Lee pointed out that markets tend to thrive on visibility and certainty, suggesting that if one candidate appears to be gaining an advantage, it could lead to a more favorable trading environment before the election. Overall, he remains optimistic about the market’s outlook.
S&P 500 and Dow Reach New Heights Ahead of Election Season
On October 18, both the S&P 500 and the Dow Jones Industrial Average reached new record highs, marking six consecutive weeks of gains for these major indices. As reported by CNBC, the S&P 500 rose by 0.40%, closing at 5,864.67, while the Dow rose by 0.09% and added 36.86 points to close at 43,275.91. The Nasdaq also performed well, increasing 0.63% to close at 18,489.55. This marks the longest winning streak of the year for both the Dow and S&P 500, with notable increases in their overall performance.
As earnings season progresses, over 70 companies in the S&P 500 have reported their results, with about 75% of those companies surpassing expectations. Despite potential market volatility leading up to the upcoming election, some analysts believe that stocks may continue to rise through November.
Rob Williams, a chief investment strategist at Sage Advisory, noted that this trend is unusual for an election year, where markets typically hesitate before improving post-election. He suggested that investors might be optimistic about a possible victory for Republican nominee Donald Trump, whose policies are seen as more favorable for businesses in terms of regulations and taxes.
With this background in mind, let’s take a look at the best stocks with consistent growth to buy.
Stocks
Methodology
To compile our list of the 10 stocks with consistent growth to buy, we used the Finviz and Yahoo stock screeners. We sorted our results based on market capitalization and picked the top 30 stocks.
Next, we focused on identifying stocks that had demonstrated consistent growth. From the initial list, we narrowed our choices to stocks that have grown their revenue positively over the past 5 years. We further refined our selection to include only those that had positive revenue growth each year in their last five reported annual revenues.
To ensure the reliability of our findings, we consulted reputable sources such as SeekingAlpha, which provided insights into the revenue CAGR over the past five years, and Macrotrends, which offered information on historical annual revenue data. Finally, we have ranked the 10 stocks with consistent growth to buy below in ascending order based on their five-year revenue CAGR.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s database of 912 elite hedge funds as of Q2 of 2024.
Why do we care about what hedge funds do? 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Stocks with Consistent Growth to Buy
10. Eli Lilly and Company (NYSE:LLY)
5-Year Revenue CAGR: 12.42%
Number of Hedge Fund Holders: 100
Eli Lilly and Company (NYSE:LLY) is an American multinational pharmaceutical and medicine company that specializes in developing a wide range of medications that address significant health challenges, including diabetes, obesity, Alzheimer’s disease, immune disorders, and various cancers. The company’s products are marketed in approximately 105 countries and are used by millions of people worldwide. The company operates manufacturing plants in nine countries and invests heavily in research and development to advance its portfolio of life-changing therapies, reflecting its mission to improve global health outcomes.
The company is actively pursuing a robust strategy centered on expanding its product offerings and enhancing its manufacturing capabilities. The company is focusing on addressing significant health issues such as obesity and Alzheimer’s disease, with recent milestones including the FDA approval of Kisunla for Alzheimer’s and the submission of tirzepatide in the U.S. and EU for obstructive sleep apnea. Eli Lilly and Company (NYSE:LLY) is also investing heavily in its pipeline, with 11 new molecules in clinical trials aimed at tackling obesity and other chronic conditions. Additionally, the company recently agreed to acquire Morphic Holding, Inc. to enhance its immunology pipeline with oral integrin therapies, which are designed to treat serious chronic illnesses.
In terms of performance, Eli Lilly and Company (NYSE:LLY) reported impressive results for Q2 2024, achieving a 36% increase in revenue compared to the same period last year. This growth was primarily driven by strong sales of Mounjaro, Zepbound, and Verzenio. Earnings per share rose by 68%, reflecting the successful launch and market demand for these new products. With these achievements, the company has raised its full-year revenue guidance by $3 billion, indicating confidence in its continued growth trajectory.
On October 2, Eli Lilly and Company (NYSE:LLY) also announced a significant investment of $4.5 billion to establish the Lilly Medicine Foundry. This new center for advanced manufacturing and drug development will be located in Lebanon, Indiana, within the LEAP Research and Innovation District. The facility will uniquely combine drug research and manufacturing in one place, allowing Lilly to explore new production methods while increasing the capacity for clinical trial medicines.
LLY is one of the top stocks with consistent growth to buy. Eli Lilly and Company (NYSE:LLY) has managed to grow its revenue at a compound annual growth rate (CAGR) of 12.42% over the past five years.
According to Insider Monkey’s database of over 900 hedge funds, as of Q2 2024, Eli Lilly and Company (NYSE:LLY) was held by 100 hedge funds. Baron Funds stated the following regarding Eli Lilly and Company (NYSE:LLY) in its “Baron Health Care Fund” second quarter 2024 investor letter:
“Shares of global pharmaceutical company Eli Lilly and Company (NYSE:LLY) increased on continued investor enthusiasm around GLP-1 drugs for diabetes and obesity. We remain shareholders. Lilly’s Mounjaro/Zepbound not only offers superb blood sugar control for diabetics but can drive 20%-plus weight loss and likely improve cardiovascular outcomes in both diabetic and non-diabetic obese patients. Lilly is developing next generation drugs, including retatrutide, which drives approximately 25% weight loss, and orforglipron, a daily pill that produces approximately 15% weight loss. In the U.S. alone, there are 32 million Type 2 diabetics and an additional 105 million obese patients who we estimate would qualify for GLP-1 drugs. Although supply and access are limited near term, we think GLP-1 drugs will become standard of care for both diabetes and obesity and will become a $150 billion-plus category. We see Lilly setting a high efficacy bar and capturing significant long-term market share. We think the adoption of GLP-1s will drive Lilly to triple total revenue by 2030.”
9. Microsoft Corporation (NASDAQ:MSFT)
5-Year Revenue CAGR: 14.26%
Number of Hedge Fund Holders: 279
Microsoft Corporation (NASDAQ:MSFT) is a leading American technology company that is best known for its software products, including the Windows operating system and the Microsoft 365 suite of productivity applications. In addition to software, the company also develops hardware such as the Xbox gaming consoles and Surface tablets. The company has made significant investments in cloud computing through its Azure platform, which offers various services for businesses and developers. Microsoft continues to expand its offerings in artificial intelligence (AI), gaming, and productivity tools, aiming to enhance both personal and professional experiences for users worldwide.
The company is focusing on significant growth strategies, particularly in cloud computing and AI. In Q4 2024, the company reported accelerated gains in its Azure platform, driven by investments in new data center locations across four continents. This expansion allows Microsoft Corporation (NASDAQ:MSFT) to enhance its cloud services and support a growing number of customers, including major enterprises migrating their critical workloads to Azure. The introduction of advanced AI capabilities, such as Azure OpenAI Service, is also attracting corporations from a diverse range of industries. In the Q4 2024 earnings call, management shared that the corporation now has over 60,000 Azure AI customers, up nearly 60% year-over-year.
Additionally, Microsoft is integrating AI across its product offerings to improve user experience and productivity. Tools like GitHub Copilot and Copilot for Microsoft 365 are transforming how developers and knowledge workers operate, leading to increased adoption and engagement. The company is also prioritizing security through its Secure Future Initiative, ensuring that its solutions remain safe and reliable for customers.
With these strategic investments and innovations, Microsoft Corporation (NASDAQ:MSFT) is well-positioned for sustained growth, making it an appealing stock option for investors looking for long-term value.
Microsoft Corporation (NASDAQ:MSFT) has successfully increased its revenue every year over the last five reported years. During this period, the company achieved a compound annual growth rate (CAGR) of 14.26% in revenue, while its net income grew even faster, with a CAGR of 17.57%. This consistent growth highlights Microsoft’s strong performance and ability to adapt to changing market demands.
As of the second quarter of 2024, MSFT was held by 279 hedge funds, according to Insider Monkey’s database. Mar Vista Investment Partners, LLC stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its “Mar Vista Focus strategy” Q2 2024 investor letter:
“Microsoft Corporation (NASDAQ:MSFT) continues to occupy a strong position, poised to capture market share as businesses, both large and small, navigate the transition to a digital-first landscape and embrace generative AI-driven solutions. The company’s commanding presence in the enterprise arena, combined with its comprehensive product portfolio encompassing Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS), establishes it as a crucial provider of IT solutions for companies of all scales. Microsoft is effectively executing its strategy in a sizable market by offering a roadmap for digital transformation and adoption of innovative, AI-driven solutions, such as ChatGPT, while enhancing productivity and reducing costs. Consequently, we anticipate that Microsoft’s solutions should exhibit resilience even in a more challenging macroeconomic environment, supporting low-double-digit growth in intrinsic value within our investment horizon.”
8. Netflix Inc. (NASDAQ:NFLX)
5-Year Revenue CAGR: 15.54%
Number of Hedge Fund Holders: 103
Netflix Inc. (NASDAQ:NFLX) is an American entertainment company known for its streaming service that offers a wide variety of TV shows, movies, documentaries, and original content. The company has invested heavily in producing original programming, such as popular series like “Stranger Things” and “The Crown,” which have helped attract millions of subscribers worldwide. Netflix boasts more than 270 million paid memberships across more than 190 countries. Subscribers enjoy a vast selection of TV series, films, and games in various genres and languages, making Netflix a popular choice for diverse audiences.
The company is actively enhancing its business and performance, demonstrating strong growth in Q3 2024. Netflix Inc. (NASDAQ:NFLX) reported a 15% increase in revenue year-over-year, driven by a 15% rise in average paid memberships. Its operating income surged by 52%, reaching $2.9 billion. This growth reflects Netflix’s successful strategy of delivering popular new series and films, such as “The Perfect Couple”, “Emily in Paris”, and “Beverly Hills Cop: Axel F,” which have resonated well with audiences.
Looking ahead, Netflix Inc. (NASDAQ:NFLX) is focused on expanding its advertising business, which saw a 35% increase in memberships quarter-over-quarter. The company is working to grow its advertising business and enhance its services for advertisers. Netflix plans to launch its new advertising technology platform in Canada in the fourth quarter of 2024, with a broader rollout expected in 2025.
Netflix is also gearing up for a strong Q4 slate with highly anticipated content like “Squid Game” Season 2, the Jake Paul/Mike Tyson fight, and live NFL games on Christmas Day. With healthy engagement levels and a commitment to improving its offerings, Netflix Inc. (NASDAQ:NFLX) is well-positioned for continued revenue and profit growth, making it an attractive stock option for investors seeking long-term value.
In the last five years, Netflix Inc. (NASDAQ:NFLX) has achieved an average revenue growth rate of 15.54% annually, while its net income has grown at an average rate of 43.86% during the same period. This brings NFLX to the 8th spot on our list of the 10 stocks with consistent growth to buy.
According to Insider Monkey’s Q2 2024 database of over 900 hedge funds, 103 hedge funds held stakes in Netflix Inc. (NASDAQ:NFLX).
7. Broadcom Inc. (NASDAQ:AVGO)
5-Year Revenue CAGR: 16.03%
Number of Hedge Fund Holders: 130
Broadcom Inc. (NASDAQ:AVGO) is an American technology company that designs, develops, and manufactures a wide range of semiconductor, enterprise software, and security solutions. Some of its solutions include service provider and enterprise networking and storage, mobile device and broadband connectivity, mainframe, cybersecurity, and private and hybrid cloud infrastructure. The company’s product portfolio serves the data center, networking, enterprise software, broadband, wireless, storage, and industrial markets.
The company is strategically positioned to capitalize on the growing demand for AI semiconductors. Broadcom Inc. (NASDAQ:AVGO) has developed specialized AI chip designs tailored to meet the specific needs of hyperscale cloud providers, allowing it to cater effectively to their requirements. The company has secured partnerships with major clients like Google, Meta, and ByteDance for its AI application-specific integrated circuits (ASICs), with Microsoft’s OpenAI expected to join this list soon.
In addition to its semiconductor advancements, the company’s acquisition of VMware has significantly boosted its infrastructure software revenue, which saw a remarkable 200% year-over-year increase. Revenue for infrastructure software was $5.8 billion, with VMware contributing $3.8 billion in Q3 alone. This growth reflects the successful integration of VMware’s offerings, as evidenced by the booking of over 15 million CPU cores of VMware Cloud Foundation (VCF) during the quarter.
Overall, Broadcom Inc.’s (NASDAQ:AVGO) strong performance in both semiconductor and software segments positions it well for future growth, making it an attractive stock option for investors.
Over the last five years, Broadcom Inc. (NASDAQ:AVGO) has maintained a steady revenue increase. This consistent performance underscores the company’s strength in its industry.
According to Insider Monkey’s Q2 2024 database of over 900 hedge funds, 130 hedge funds held stakes in Broadcom Inc. (NASDAQ:AVGO). ClearBridge Investments stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its “ClearBridge Large Cap Value Strategy” Q3 2024 investor letter:
“In IT, we bought Broadcom Inc. (NASDAQ:AVGO) as we believe the company has a long runway for growth with its custom silicon business, which should be more durable and less volatile than other components within the AI food chain. We also believe the acquisition of VMware creates another opportunity for steady, subscription-based durable growth that is still in its early innings. We believe the stock has an attractive risk/reward profile given the reasonable visibility toward mid-teens EPS growth at a low-20s P/E multiple.”
6. Novo Nordisk A/S (NYSE:NVO)
5-Year Revenue CAGR: 17.17%
Number of Hedge Fund Holders: 67
Novo Nordisk A/S (NYSE:NVO) is a global healthcare company based in Denmark, primarily focused on developing and manufacturing medicines for chronic diseases. The company is a leader in diabetes care, obesity care, hemophilia care, therapies for rare endocrine disorders, and other treatments that help millions of people around the world. With a strong commitment to research and innovation, Novo Nordisk has research and development centers in five countries and operates production facilities in nine countries. The company offers its products in 170 countries worldwide, allowing it to reach a diverse range of patients and healthcare providers.
The company is focused on expanding its market presence and enhancing its product offerings, particularly in diabetes and obesity care. In the first half of 2024, Novo Nordisk A/S (NYSE:NVO) experienced impressive sales growth of 25% year-over-year at constant exchange rates, driven largely by increased demand for its GLP-1-based diabetes and obesity treatments. With North American operations growing by 36% and international operations growing by 11%, the company is successfully reaching more patients through innovative therapies like Wegovy and Ozempic. Novo Nordisk is also making strides in research and development, with promising results from clinical trials for treatments aimed at conditions such as hemophilia A and cardiovascular risk.
Additionally, Novo Nordisk A/S (NYSE:NVO) is strategically rolling out its weight-loss medication, Wegovy, in international markets while managing supply and demand effectively. The company has also gained significant market share in the diabetes sector, now holding a 34.1% global value market share, surpassing its goal of reaching one-third market share by 2025. With a robust pipeline of products and ongoing clinical trials, the company demonstrates a strong commitment to innovation.
These factors position Novo Nordisk A/S (NYSE:NVO) well for continued growth, making it an attractive stock option for investors looking for long-term potential in the healthcare sector. Analysts are also bullish on NVO. Analysts currently hold a consensus buy rating on the stock and the 1-year median price target of $155.12 set by analysts indicates a potential upside of 31% from current levels.
Over the past five years, Novo Nordisk A/S (NYSE:NVO) has achieved an average annual growth rate of 17.17% in revenue and 19.06% in net income.
According to Insider Monkey’s Q2 2024 database of over 900 hedge funds, 67 hedge funds held stakes in Novo Nordisk A/S (NYSE:NVO). Artisan Partners stated the following regarding Novo Nordisk A/S (NYSE:NVO) in its “Artisan Global Equity Fund” Q1 2024 investor letter:
“In addition, shares of Novo Nordisk A/S (NYSE:NVO) rose after it reported phase 1 clinical trial results for its new experimental obesity drug Amycretin, a single molecule that operates as a GLP-1 receptor agonist, reducing one’s appetite. The new oral treatment achieved a 13.1% average weight loss after 12 weeks, more than doubling the efficacy of Wegovy for the same time span. This result also bested Lilly’s Orfoglipron, another experimental drug that achieved 5%–6% average weight loss earlier in its trials. While the Amycretin data are preliminary, investors were encouraged by the prospects of Novo Nordisk solidifying a best-in-class obesity designation, a desirable status given rising competition. In our view, Novo Nordisk has the best obesity/Type 2 diabetes pipeline in the industry, which should help protect this franchise from competition over the next 10 years.”
5. Alphabet Inc. (NASDAQ:GOOG)
5-Year Revenue CAGR: 17.23%
Number of Hedge Fund Holders: 165
Alphabet Inc. (NASDAQ:GOOG) is a leading technology company that is best known for Google, the world’s largest search engine. The company has expanded its business to include a wide range of services and products, such as online advertising, cloud computing, software, and hardware. Alphabet invests heavily in innovative technologies, including artificial intelligence (AI) and autonomous vehicles through its subsidiary Waymo. The company offers a wide range of products and platforms. These include Gmail, Google Search, YouTube, and Google Maps, as well as hardware like Pixel phones and smartwatches.
The company is actively pursuing growth through its innovative strategies and strong performance in various sectors. In Q2 2024, Alphabet Inc. (NASDAQ:GOOG) reported impressive consolidated revenues of $84.7 billion, marking a 14% increase year-over-year. Search was the largest contributor to revenue growth. A significant milestone was achieved with Google Cloud, which surpassed $10 billion in quarterly revenue and generated $1 billion in operating profit for the first time. Alphabet’s investments in artificial intelligence (AI) are paying off, with over 2 million developers utilizing its AI infrastructure and generative AI solutions, further solidifying its position as a leader in the tech industry.
Alphabet Inc. (NASDAQ:GOOG) is also enhancing its core products, such as Google Search and YouTube, by integrating advanced AI features. For instance, the introduction of a Google Search feature, AI Overviews, has improved user satisfaction and engagement, particularly among younger users. YouTube remains the top streaming platform, with views on YouTube Shorts and Connected TVs more than doubling over the past year.
Alphabet Inc. (NASDAQ:GOOG) ranks among the top 5 on our list of stocks with consistent growth to buy. Over the past five years, the company has grown its revenue at a compound annual growth rate (CAGR) of 17.23%, while its net income has increased at a CAGR of 20.33% during the same period.
These achievements and strategic initiatives make GOOG a compelling stock for investors looking for long-term growth potential. Analysts are bullish on Alphabet Inc. (NASDAQ:GOOG) and the 12-month median price target set by analysts indicates a potential upside of 24% from the current stock price.
4. Amazon.com Inc. (NASDAQ:AMZN)
5-Year Revenue CAGR: 19.11%
Number of Hedge Fund Holders: 308
Amazon.com Inc. (NASDAQ:AMZN), or simply Amazon, is a leading online retailer and technology company that ranks high on our list of the 10 stocks with consistent growth to buy. The company offers cloud computing services through Amazon Web Services (AWS), which provides businesses with scalable computing power and storage solutions. Additionally, Amazon has ventured into digital streaming with services like Prime Video and Amazon Music, further diversifying its business model and enhancing customer experience. The company also specializes in online advertising and artificial intelligence (AI).
The company is strategically positioning itself for future growth by heavily investing in AI and expanding its core services. Amazon.com Inc. (NASDAQ:AMZN) has introduced a variety of AI-powered features, such as the shopping assistant Rufus for US mobile customers. The company has also launched Maestro for music playlist generation and improved search functionalities for Fire TV, indicating a comprehensive integration of AI across its platforms.
Amazon.com Inc. (NASDAQ:AMZN) has also expanded its geographical reach with initiatives like launching its Stores business in South Africa, offering same and next-day delivery. The company is also enhancing its healthcare services through Amazon Pharmacy’s RxPass program, which provides affordable access to essential medications for Prime members on Medicare. These moves reflect the company’s commitment to diversifying its offerings and tapping into new markets.
A key driver of Amazon.com’s (NASDAQ:AMZN) growth is its cloud computing business. In Q2 2024, the Amazon Web Services (AWS) segment saw a remarkable 19% year-over-year increase in sales. Growth was largely driven by the growing demand for cloud services as companies modernize their infrastructure and embrace AI technologies. Recently, the company introduced new AWS Graviton4-based compute instances that offer up to 30% better price performance compared to previous models, enhancing its appeal to businesses looking to optimize costs. Amazon.com Inc. (NASDAQ:AMZN) has also signed new AWS agreements with major organizations, including the Commonwealth Bank of Australia and Eli Lilly.
Financially, Amazon.com Inc. (NASDAQ:AMZN) has shown robust performance with a 10% increase in net sales to reach $148 billion in Q2 2024 compared to the same period last year. Notably, the AWS segment contributed $26.3 billion, highlighting its strength as a leading cloud service provider. With increasing demand for cloud services and AI capabilities, AWS continues to attract major clients and partnerships, reinforcing its position as a critical revenue driver.
In the last five years, Amazon has achieved a revenue growth rate of 19.11% annually, while its net income has grown at an average rate of 29.71% during the same period.
According to Insider Monkey’s database, Amazon.com Inc. (NASDAQ:AMZN) has attracted increased interest from institutional investors, with 308 hedge funds holding stakes in the company as of Q2 2024, up from 302 in Q1 2024.
3. Salesforce Inc. (NYSE:CRM)
5-Year Revenue CAGR: 19.88%
Number of Hedge Fund Holders: 117
Salesforce Inc. (NYSE:CRM) is a cloud-based software company that ranks among the top 3 on our list of the 10 stocks with consistent growth to buy. The company specializes in customer relationship management (CRM) and it offers a comprehensive suite of software and applications for sales, customer service, marketing, and analytics. Salesforce is the world’s leading AI CRM platform and it serves more than 150,000 businesses globally.
The company is revolutionizing enterprise software with its new and innovative Agentforce AI platform that allows organizations to create autonomous agents that automate workflows across various functions. These functions include sales, service, and marketing. This integration of AI into its core services has led to strong demand, with Salesforce signing 1,500 AI-related deals in just the second quarter of fiscal 2025.
In a strategic move to enhance its AI capabilities, Salesforce Inc. (NYSE:CRM) recently announced the acquisition of Tenyx, a developer of AI-powered voice agents. This acquisition aims to improve customer service interactions and enhance the company’s autonomous agent offerings.
Financially, Salesforce Inc. (NYSE:CRM) reported a revenue of $9.33 billion for Q2 2025, reflecting an 8% year-over-year increase. The company also demonstrated strong cash flow and returned $4.3 billion to shareholders through share repurchases.
At the end of the second quarter of fiscal 2025, Salesforce’s remaining performance obligations (RPO) reached $53.5 billion, indicating a robust future revenue stream. Over the past five years, the company has maintained impressive growth rates, with revenue increasing at a compound annual growth rate (CAGR) of nearly 20%. This consistent performance and commitment to leveraging AI for future growth make Salesforce Inc. (NYSE:CRM) a compelling stock to consider for investment.
As of the second quarter of 2024, CRM was held by 117 hedge funds, according to Insider Monkey’s database. Parnassus Investments stated the following regarding Salesforce Inc. (NYSE:CRM) in its “Parnassus Growth Equity Fund” Q2 2024 investor letter:
“Salesforce Inc.’s (NYSE:CRM) growth continues to moderate, and investors question its prospect as it relates to AI. We remain confident that the company, which developed the original salesforce automation product and pioneered the SaaS (software as a service) delivery model, is well positioned to capitalize on emerging AI opportunities.”
2. Tesla Inc. (NASDAQ:TSLA)
5-Year Revenue CAGR: 30.75%
Number of Hedge Fund Holders: 85
Tesla Inc. (NASDAQ:TSLA) is an American multinational corporation focused on electric vehicles and sustainable energy solutions. The company designs, manufactures, and sells high-performance electric cars, including the popular Model S, Model 3, Model X, and Model Y. Beyond vehicles, Tesla also offers energy products like solar panels and battery storage systems through its Energy division.
The company is making significant progress in the electric vehicle (EV) market, as demonstrated at its recent “We, Robot” event where CEO Elon Musk unveiled two innovative vehicles: the Cybercab and the Robovan. The Cybercab, the company’s long-awaited robotaxi, is an autonomous vehicle without a steering wheel or pedals. It is projected to cost under $30,000 and is expected to begin production by 2026. Meanwhile, the Robovan is designed to accommodate up to 20 passengers or transport goods, further expanding Tesla’s (NASDAQ:TSLA) reach into the autonomous transport sector.
In addition to these vehicles, Musk highlighted advancements in Tesla’s humanoid robot, Optimus, which he believes could become a significant product for the company. Optimus is designed to handle various everyday tasks.
Financially, the company achieved record revenues in Q2 2024, driven by strong performance in its energy storage segment and a rebound in vehicle deliveries. With plans for more affordable EV models and ongoing investments in AI and infrastructure, Tesla Inc. (NASDAQ:TSLA) is set to capitalize on the growing demand for electric vehicles and sustainable energy solutions, making it an attractive stock for investors.
In the last five years, Tesla Inc. (NASDAQ:TSLA) has achieved a revenue growth rate of 30.75% annually. This brings TSLA to the 2nd spot on our list of the 10 stocks with consistent growth to buy.
1. NVIDIA Corporation (NASDAQ:NVDA)
5-Year Revenue CAGR: 56.73%
Number of Hedge Fund Holders: 179
NVIDIA Corporation (NASDAQ:NVDA) is the world leader in accelerated computing. It is best known for its advanced graphics processing units (GPUs) and system-on-a-chip (SoC) solutions. Specializing in graphics, computing, and networking solutions, the corporation offers products and platforms for gaming, professional visualization, data center, and automotive markets.
The company is experiencing remarkable growth, particularly in its data center business, which has now become the company’s main source of revenue. In the second quarter of fiscal 2025, NVIDIA Corporation (NASDAQ:NVDA) reported record revenues of $30 billion, a 15% increase from the previous quarter and a staggering 122% year-over-year rise. The data center segment alone generated $26.3 billion, reflecting a 16% increase from the prior quarter and a 154% jump compared to the same period last year. This surge is largely driven by strong demand for NVIDIA’s Hopper GPU computing platforms and the anticipation surrounding the upcoming Blackwell architecture.
NVIDIA Corporation (NASDAQ:NVDA) is also expanding its product offerings with new technologies like Spectrum-X Ethernet for AI and NVIDIA AI Enterprise software, positioning itself as a comprehensive data center solution provider. The corporation is making significant progress in its enterprise AI efforts, establishing important partnerships and deploying solutions across various industries.
The automotive and healthcare sectors are emerging as key areas of growth for the company, driven by advancements in artificial intelligence and autonomous technologies. These developments present multi-billion dollar opportunities for NVIDIA Corporation (NASDAQ:NVDA) as it continues to innovate and expand its offerings in these high-potential markets.
Additionally, NVIDIA returned $15.4 billion to shareholders in the first half of fiscal 2025 through share repurchases and dividends, demonstrating strong financial health and shareholder value.
Over the past five years, NVIDIA Corporation (NASDAQ:NVDA) has grown its revenue at a compound annual growth rate (CAGR) of 56.73%, while its net income has increased at a CAGR of 80.81% during the same period. It is one of the most aggressive growth stocks to buy.
With these impressive results and ongoing advancements in AI technology, NVIDIA is well-positioned for future growth, making it an attractive stock for investors.
According to Insider Monkey’s Q2 database of over 900 hedge funds, 179 hedge funds held stakes in NVIDIA Corporation (NASDAQ:NVDA).
While we acknowledge the potential of NVDA, 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 NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
