This article will look into a list of 11 high-risk, high-reward growth stocks you may be interested in incorporating into your portfolio.
The stock market has an ever-changing environment, leaving investors constantly looking for opportunities that promise substantial returns for their investments. Gaining a consistent placement in the portfolio of such investors is a growth stock. These growth stocks have historically been highly valued among investors seeking high investment returns. However, another essential characteristic of a growth stock is the risk proportional to its level of return. In other words, growth stocks may deliver significant capital appreciation but have heightened volatility.
Changes often influence the volatility of growth stocks in market conditions. In this regard, the U.S. market conditions underwent many changes soon after the new U.S. president entered the Oval Office. The new tariffs brought into practice have created tension between the U.S. and its neighboring countries, including Mexico and Canada. CNBC has reported that owing to the change in tariffs, the price of many commodities, including cars, has risen. It heavily impacted the U.S. stock market. Even the tech industry, which garnered high expectations, saw a decline since the beginning of 2025, though investors still regard many companies in the industry as worthy investments.
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While investors fear a potential rise in inflation and recession in the following months, some growth stocks are performing better while accumulating a high risk level. Compared to other stocks, their performance must be considered before deciding to welcome these stocks into the portfolio.
During the past decade, growth stocks have significantly outperformed their value counterparts. A report by Vanguard stated that during the last 10 years, the U.S. growth stocks have performed better than the U.S. value stocks by an average of 7.8% per year. The upward trend increases the attractiveness of growth stocks for those seeking high returns.
On the other hand, stock markets can be cyclical, with growth and value stocks shifting their leadership roles in the market. The cyclical nature suggests that growth stocks may enjoy periods of dominance, but they are not to be mistaken as immune to market rotations, which may favor value stocks.
A proper approach is necessary when investing in high-risk, high-reward growth stocks. The growth stocks may either belong to companies in emerging industries or be in possession of innovative products or services that could quickly attract the market. Though investors may be attracted to the stocks’ potential for substantial gains, they also need to be cautious of the associated risks, and hence, the approach should involve thorough research and a well-considered investment strategy.
The list we have created here could offer some assistance in an informed decision-making process for investors with respect to growth stocks.
Without further delay, let’s look at our list of 11 high-risk, high-reward growth stocks that investors will be interested in buying. Stick with us as we count down these stocks from 11 to 1. The top six may surprise you.
Our Methodology
We applied a screening approach when curating our list of 11 high-risk, high-reward growth stocks to buy now. The selection criteria primarily focused on companies with strong earnings and sales growth. Since we wanted our list to be comprised of stocks with high historical performance and future potential, we considered only those with an EPS growth rate of 20% in the past five years and as the next five years’ projection. Also, only the companies with a sales growth of more than 20% in the last five years were incorporated into the list. We considered the stocks’ volatility and set the beta threshold at 1.5. Finally, market capitalization was restricted to small-cap and more extensive ($300 million+). Additionally, we looked into the number of hedge funds backing the stocks to understand the institutional interest in the stock. For this purpose, we used the Insider Monkey database of Q4 2024. The stocks are ranked according to analysts’ upside potential.
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).
11. Paymentus Holdings, Inc. (NYSE:PAY)
Beta: 1.64
5-Year Sales Growth: 30.04%
Number of Hedge Fund Holders: 25
Analyst Upside Potential: 7.95%
A cloud-based bill payment platform, Paymentus Holdings, Inc. (NYSE:PAY) serves businesses and financial institutions from its Charlotte, North Carolina headquarters. Unlike traditional payment processors, the company integrates real-time payment solutions across multiple channels, thereby increasing customer engagement. AI-driven automation and omnichannel payment experiences increase the company’s market share against its competitors in the U.S. and Canadian markets.
An increase of 56.5% year-over-year was announced in the fourth quarter results, with the revenue reaching $257.9 million for the quarter. Paymentus Holdings, Inc. (NYSE:PAY) has further surpassed its full-year target, reaching a 41.9% increase, with the total revenue for 2024 standing at $871.7 million. The company’s diverse market reach strategy was the primary contributor behind the increase in revenue. Currently, the customer base is comprised of insurance, government services, and utilities segment customers. However, potential market volatility is expected in 2025, impacting customer payment behaviors.
Paymentus Holdings, Inc. (NYSE:PAY) has a beta of 1.64, indicating moderate volatility compared to some of the other stocks on our list. The five-year sales growth of 30.04% reflects a steady expansion within the digital payments sector. The past EPS growth of 35.18% projects an upward-trending profitability. The forecasted 20.82% increase for the next five years suggests a more tempered outlook.
We recognized a moderate institutional interest, with 25 hedge funds holding stakes. Analysts estimate a modest 7.95% upside from the current price, which makes it one of the aggressive stocks to consider.
10. Celsius Holdings, Inc. (NASDAQ:CELH)
Beta: 1.65
5-Year Sales Growth: 85.37%
Number of Hedge Fund Holders: 33
Analyst Upside Potential: 14.68%
Headquartered in Florida, Celsius Holdings, Inc. (NASDAQ:CELH) is a leading manufacturer of fitness energy drinks formulated with metabolism-boosting ingredients. The company thrives in the beverage market amidst tough competitors like Monster Beverage and Red Bull by targeting health-conscious consumers with functional beverages. It primarily uses proprietary formulations alongside strong brand partnerships to overcome the headwinds. In addition to the U.S., the company serves Canada and Europe. It is among the best aggressive stocks to monitor.
Through strong consumer demand for premium functional beverages, Celsius Holdings, Inc. (NASDAQ:CELH) has achieved a revenue of $1.36 billion in 2024. Part of the increase was owing to a 22% growth in retail sales. The company’s guidance outlook for 2025 anticipates growth arising from the performance of the newly acquired Alani Nu, supporting the company and its commitment to value creation. Headwinds faced by the energy drink category (going negative for the first time in years) may pose challenges to the company’s progress.
Though still lower than some of its peers, Celsius Holdings, Inc. (NASDAQ:CELH)’s beta of 1.65 still points to substantial volatility. The company’s five-year revenue expansion of 85.37% is particularly striking. The high growth indicates a strong consumer demand for energy drink products. EPS growth has also been solid at 54.27% for the past five years, with a forward projection of 45.26%, signaling an almost similar momentum for the next five years.
Institutional interest remains notable, with the Insider Monkey database recognizing 33 hedge funds holding positions as of Q4 2024. Analysts forecast a 1-year upside of 14.68%.
9. AMC Entertainment Holdings, Inc. (NYSE:AMC)
Beta: 1.65
5-Year Sales Growth: 20.06%
Number of Hedge Fund Holders: 20
Analyst Upside Potential: 17.69%
The Kansas-based American movie theatre chain, AMC Entertainment Holdings, Inc. (NYSE:AMC) is engaged in the theatrical exhibition business. The company’s business strategy focuses on delivering exceptional entertainment experiences through innovative cinema technologies. It is among the largest movie exhibition companies in the U.S. As of now, the company owns and operates approximately 900 theatres and 10,000 screens across the globe.
As per AMC Entertainment Holdings, Inc. (NYSE:AMC)’s fourth-quarter report, their revenue went up by 18% in 2024 compared to the previous year, with adjusted EBITDA reaching $164.8 million, a three-time increase compared to the same quarter last year. The success of recent films such as Wicked, Gladiator 2, Moana 2, and Mufasa: The Lion King contributed to this growth in earnings, gaining a positive outlook among investors in the market.
However, AMC Entertainment Holdings, Inc. (NYSE:AMC) has a high beta of 1.65, indicating significant volatility relative to the market. On the other hand, the EPS growth rate of 39.13% for the past five years and a projection of 74.28% for the next five years suggest strong earnings potential. Sales have grown by 20.06% over the last five years, signaling high demand for the services as well as effective sales strategies.
Based on the Insider Monkey database, the number of hedge funds with ownership stakes in AMC Entertainment Holdings, Inc. (NYSE:AMC) remains 20 at the end of Q4 2024, indicating moderate institutional interest in the stock. Analysts have estimated a 17.69% upside potential for the stock one year from now.
8. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Beta: 1.89
5-Year Sales Growth: 33.35%
Number of Hedge Fund Holders: 96
Analyst Upside Potential: 22.97%
Headquartered in California, Advanced Micro Devices, Inc. (NASDAQ:AMD) is a leader in the semiconductor business. The company specializes in high-performance computing, graphics, and AI solutions. Competing with Intel, Advanced Micro Devices thrives in the market through CPU and GPU architectures. The company has a significant gaming, data center, and AI processing market share. The business operations extend beyond the United States, reaching Europe and Asia.
Recent data show a 14% year-over-year increase in revenue, reaching $25.8 billion in 2024. The increase was attributed to the upward trend in the Data Center segment, which had a 69% year-over-year increase in 2024. Following this, the multi-billion-dollar Data Center AI franchise set up by Advanced Micro Devices, Inc. (NASDAQ:AMD) has gained the interest of investors and analysts alike regarding its progression in 2025.
With a beta of 1.89, Advanced Micro Devices, Inc. (NASDAQ:AMD) has significant price fluctuations, reflecting sensitivity to market movements. Over the past five years, sales have expanded by 33.35%, serving as evidence of the company’s competitive positioning in the semiconductor industry. The 5-year past EPS growth of 26.91% and a projected future increase of 33.02% signal steady progress in earnings.
Institutional investors have demonstrated substantial confidence in Advanced Micro Devices, Inc. (NASDAQ:AMD), with 96 hedge funds maintaining positions in the stock. Analysts anticipate a 22.97% upside from the current price for the stock.
7. Chart Industries, Inc. (NYSE:GTLS)
Beta: 1.66
5-Year Sales Growth: 32.63%
Number of Hedge Fund Holders: 47
Analyst Upside Potential: 31.97%
Chart Industries, Inc. (NYSE:GTLS), based in Georgia, is a global manufacturer of cryogenic equipment and process technologies for the industrial gas, energy, and biomedical sectors. Specifically, the company is known for its liquefied natural gas (LNG) and hydrogen infrastructure. It differentiates itself from its competitors by providing specialized proprietary cryogenic storage and transport solutions. In addition to the United States, the company has an international presence in Asia, Australia, Europe, and Latin America. GTLS is among the aggressive stocks on our list.
In the last quarter of 2024, Chart Industries, Inc. (NYSE:GTLS) reported a significant increase of 29.4% in revenue compared to the same period in 2023. The decline in the leverage ratio to 2.8x indicates a strong commitment to the company’s target range of 2x to 2.5x. Because of LNG projects, the company has also recorded strong performance in the Heat Transfer Systems segment. Additionally, $24 billion in potential deals not yet in backlog represents a large growth opportunity.
Chart Industries, Inc. (NYSE:GTLS) displays moderate volatility with a beta of 1.66. The company’s strong demand for cryogenic equipment has driven the sales growth in the past five years to 32.63%. The EPS growth of 25.71% in the past five years, coupled with a projected 29.15% increase, suggests an upward trend in profitability.
Chart Industries, Inc. (NYSE:GTLS) has attracted 47 hedge fund investors tracked by Insider Monkey at the end of Q4 2024 and operates in the market with notable institutional confidence. Analysts project a 1-year upside of 31.97%, suggesting positive sentiment surrounding industrial gas sectors.
6. Atlanticus Holdings Corporation (NASDAQ:ATLC)
Beta: 2.19
5-Year Sales Growth: 24.13%
Number of Hedge Fund Holders: 10
Analyst Upside Potential: 32.60%
Engaged in business under the financial services sector, Georgia-based company Atlanticus Holdings Corporation (NASDAQ:ATLC) specializes in consumer credit and lending solutions. Underbanked customers are the segment targeted by the company. They attract these customers through tailored credit programs. The business strategy of data-driven risk assessment and a diverse lending portfolio allows the company to create a strong customer base in the U.S.
Fourth quarter earnings results showed a 14.4% increase in revenue to $353.2 million in 2024. Additionally, Atlanticus Holdings Corporation (NASDAQ:ATLC) has recorded serving over 3.7 million total accounts, with 368,000 new accounts served during the quarter. In 2025, the revenue growth is expected to surpass portfolio expansion, assuming the favorable interest rates and regulatory changes.
Sporting a beta of 2.19, Atlanticus Holdings Corporation (NASDAQ:ATLC) is subject to substantial risk proportionate to its return potential. The company has maintained a steady 24.13% sales growth over five years, while EPS has increased by 23.59% during the same period. The future earnings outlook appears stronger, with a forecasted 44.07% growth.
Atlanticus Holdings Corporation (NASDAQ:ATLC) has attracted 10 hedge fund investors, listed in Insider Monkey’s Q4 2024 database. Analysts estimate a one-year potential appreciation of 32.60%, indicating a strong confidence in the company’s ability to sustain profit.
5. BrightSpring Health Services, Inc. (NASDAQ:BTSG)
Beta: 2.15
5-Year Sales Growth: 20.12%
Number of Hedge Fund Holders: 29
Analyst Upside Potential: 33.76%
BrightSpring Health Services, Inc. (NASDAQ:BTSG), based in Louisville, Kentucky, is a provider of home and community-based healthcare services. The services include pharmacy and behavioral health. The company’s focus is on integrated care for complex patient populations. The personalized care models of the company enable it to stand out from its competitors and survive the market conditions in the United States.
BrightSpring Health Services, Inc. (NASDAQ:BTSG) reached a revenue of $11.3 billion in 2024 – a 28% increase compared to the previous year. The Pharmacy Solutions segment massively contributed to the revenue increase by incurring a growth of 34% year-over-year, owing to high performance from Infusion and Specialty services. The successful launch of new limited distribution drugs (LDDs) has further increased expectations for the company in 2025.
BrightSpring Health Services, Inc. (NASDAQ:BTSG) has a beta of 2.15, which suggests significant price fluctuations experienced by the company and indicates a higher risk-reward profile. The five-year sales growth of 20.12%, though less compared to many of the other entrants on our list, reflects steady expansion, aligning with the upward trends in the healthcare industry. The past 5-year EPS growth of 60.10% signals high profitability for investors. But the projected 22.12% for the next 5 years suggests a moderate pace.
Moderate investor confidence is recognized with institutional backing standing at 29 hedge fund holders, according to Insider Monkey’s Q4 2024 database. Analysts estimate a 33.76% 1-year upside potential, strengthening expectations of sustained demand for the company’s services.
4. NVIDIA Corporation (NASDAQ:NVDA)
Beta: 1.93
5-Year Sales Growth: 70.88%
Number of Hedge Fund Holders: 223
Analyst Upside Potential: 44.14%
NVIDIA Corporation (NASDAQ:NVDA), based in Santa Clara, California, is a global leader in graphics processing units (GPUs), artificial intelligence, and data center computing. The company dominates the AI and gaming industries with its high-performance GPU architecture. Additionally, the innovations in deep learning and cloud computing solutions allow the company to generate more market share in the U.S. and other regions, including Europe and Asia. NVDA is among the aggressive stocks to monitor.
NVIDIA Corporation (NASDAQ:NVDA) reported a revenue of $39.3 billion for Q4, a 78% year-on-year increase, surpassing its outlook. During the year, the demand for Blackwell and Hopper 200 products has increased, causing the revenue to double in 2024, reaching $115.2 billion. Specifically, the Blackwell product contributed $11 billion in revenue during Q4 alone, gaining a positive outlook for the company’s stocks in 2025.
NVIDIA Corporation’s (NASDAQ:NVDA) beta of 1.93 signifies considerable price fluctuations and reflects its dominant position in the high-growth semiconductor industry. Driven by advancements in AI, gaming, and data center technologies, the company has achieved an impressive five-year revenue growth of 70.88%. The past EPS growth of 91.83% indicates strong earnings momentum. However, the projected 30.32% increase suggests a slowdown in growth.
Institutional investors widely held the stock, with 223 hedge funds, followed by Insider Monkey at the end of Q4 2024, maintaining positions. Analysts foresee a 44.14% upside in a period of 1 year.
3. AppLovin Corporation (NASDAQ:APP)
Beta: 2.31
5-Year Sales Growth: 39.75%
Number of Hedge Fund Holders: 95
Analyst Upside Potential: 63.37%
AppLovin Corporation (NASDAQ:APP), based in California, is a mobile technology company that provides AI-driven advertising solutions for app developers. The company integrates game publishing and analytics, thereby optimizing ad placement for maximum revenue. It differs from competitors like Unity and IronSource by focusing on machine learning algorithms and establishing a vast mobile app ecosystem. The company has a global reach with software platform products like AppDiscovery, MAX, SparkLabs, AppLovin Exchange, Array, Adjust, and Wurl, among others, widely used in the U.S., Asia, and Europe.
AppLovin Corporation (NASDAQ:APP) saw a massive 44% increase in total revenue, reaching $1.37 billion in the fourth quarter of 2024. Expansion of its advertising platform beyond gaming has attracted a broader set of advertisers, including e-commerce, thereby contributing to an increase in revenue. Even with the lack of full self-service capabilities limiting the company’s ability to handle growth at scale, the company has still managed to appeal to investors.
A high beta of 2.31 implies considerable price swings in the stock compared to the market. Sales have an upward trajectory, recording a 39.75% expansion over five years. Strong profitability trends are seen in the company’s past 5-year EPS growth of 84.28%. The 5-year forward projection of 38.61% suggests a moderate pace ahead.
Our Insider Monkey database noted 95 hedge funds holding positions at the end of Q4 2024, pointing to high institutional interest. Analysts predict a substantial 63.37% upside in one year, reflecting strong market sentiment.
2. Novavax, Inc. (NASDAQ:NVAX)
Beta: 3.09
5-Year Sales Growth: 516.28%
Number of Hedge Fund Holders: 24
Analyst Upside Potential: 147.07%
Novavax, Inc. (NASDAQ:NVAX) is a Maryland-based biotechnology company engaged in the business of developing vaccines for infectious diseases, including COVID-19 and influenza. The company utilizes recombinant nanoparticle technology to create protein-based vaccines, which gives it a competitive edge against some of its peers in the market. The adjuvant technology and scalable production capabilities further add value to the business operations. Regions served by the company include the United States, Europe, and Asia.
Novavax, Inc. (NASDAQ:NVAX) achieved revenue of $682 million for the full year of 2024. The company also announced the initiation of the Phase 3 trials for its COVID-19 influenza combination vaccine and standalone influenza vaccine, targeting adults 65 years and older. Debts have also been reduced by $1.3 billion over the last two years. These results collectively contribute to the positive outlook for the company, though uncertainties prevail regarding the approval and commercialization timeline of its COVID-19 vaccine.
Novavax, Inc. (NASDAQ:NVAX) exhibits an exceptionally high beta of 3.09, making it one of the most volatile stocks on our list. The past five-year sales growth has reached a remarkable 516.28%. The sales growth was largely fuelled by demand for its vaccine offerings during COVID-19. The company’s EPS has grown at a rate of 25.88% in the past five years, with an ambitious 67.92% forecast for future earnings expansion.
Institutional interest remains moderate, with 24 hedge funds holding positions in the company’s shares at the end of Q4 2024. The company has garnered strong expectations in the biotechnology sector, with analysts predicting a 147.07% potential upside.
1. Gevo, Inc. (NASDAQ:GEVO)
Beta: 2.59
5-Year Sales Growth: 329.13%
Number of Hedge Fund Holders: 11
Analyst Upside Potential: 246.15%
Headquartered in Englewood, Colorado, Gevo, Inc. (NASDAQ:GEVO) is engaged in the renewable fuels business. The company specializes in sustainable aviation fuel (SAF), renewable gasoline, and other low-carbon biofuels. It also reduces carbon by utilizing agricultural feedstocks for fuel production. The company pushes through heavy market competition with its patented isobutanol-based technology in the U.S., Canada, and Europe.
Colorado, Gevo, Inc. (NASDAQ:GEVO) anticipates a financially profitable 2025, with the acquisition of Red Trail Energy’s low-carbon ethanol and carbon capture sequestration assets, which are expected to close by the first quarter of 2025 and contribute heavily towards the company’s revenue. Additionally, the $1.63 billion conditional loan commitment received from the U.S. Department of Energy for the Net-Zero 1 SAF project adds credibility to the project, garnering the interest of substantial investors in the market.
Colorado, Gevo, Inc. (NASDAQ:GEVO) has a high beta of 2.59, indicating substantial market volatility. The company has recorded an exceptional five-year revenue growth of 329.13%, the highest compared to other entrants on our list. The past 5-year EPS growth stands at 45.44%, with an even stronger projected increase of 49.07% in the coming years. Investors translate it positively to mean continued financial improvement.
Despite its niche focus, the stock has garnered interest from 11 hedge funds from the Insider Monkey database. Analysts anticipate an extraordinary 246.15% upside to the stock in a period of 1 year. It is among the aggressive stocks to buy.
Overall, Gevo, Inc. (NASDAQ:GEVO) ranks first on our list of 11 high-risk, high-reward growth stocks to buy now. While we acknowledge the potential for GEVO as an investment, our conviction lies in the belief that some 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 GEVO but trades at less than 5 times its earnings check out our report about the cheapest AI stock.
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