In this article, we will take a look at the 12 best growth stocks to buy and hold in 2025.
The Future of Rate Cuts in 2025
The latest data from the job market in the United States came out on Friday and that has made the future of rate cuts even more uncertain. Lauren Sanfilippo, senior investment strategist at Bank of America, joined Market Domination on Yahoo Finance to discuss her market thesis and how the easing cycle is expected to play out in 2025.
Sanfilippo believes that the market has been basing its decisions on the easing cycle, but the job data, which has been particularly good, has allowed investors to pivot their investment approach away from rate cuts. She added that she is not looking at more rate cuts this year and is expecting a hike amid inflation concerns. She suggested that the market must not overreact to one piece of data and wait for more data to come out before any decisions are made.
Speaking of the commencement of the easing cycle, Sanfilippo believes the Fed was in the right to start the much-awaited easing cycle. However, she did share her concerns about the 100 basis point rate cut being executed over a very short time. She added that while the job market is in good shape and inflation is not that much of a problem yet, the stock market’s performance may also be influenced because of yields and how stocks are “thinking about yields.” She also suggested that previously stocks have been very tolerant of higher yields, and is interested to see how it changes going forward.
Sanfilippo also shared her views on inflation and emphasized the importance of viewing the bigger picture more holistically. She added there is a much larger widening opportunity in the market but is waiting to see how the Q4 2024 earnings pan out.
The market may be uncertain, however, some stocks in the market have a promising outlook making them a solid buy. These stocks have been pouring into solid growth opportunities and are popular among analysts and investors. That said, let’s take a look at the 12 best growth stocks to buy and hold in 2025.
Stock market data on a laptop screen. Photo by Alesia Kozik
Our Methodology
We used Finviz to look for companies operating in growth sectors such as technology, financials (fintech), biotech, and communication services. We only focused on companies with a market cap of at least $2 billion and that gained more than 50% over the past 2 quarters. We then examined the analyst upside surrounding 25 stocks and picked the 12 stocks with the highest upside as of January 10, 2025. We have also included the hedge fund sentiment around each stock.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
12 Best Growth Stocks to Buy and Hold in 2025
12. Coupang, Inc. (NYSE:CPNG)
Analyst Upside as of January 10, 2025: 39%
Number of Hedge Fund Holders: 56
Coupang, Inc. (NYSE:CPNG) is a technology company that provides retail, restaurant delivery, video streaming, and fintech services to customers around the world under brands Coupang, Coupang Eats, Coupang Play, and Farfetch. The online retail company sells beauty, skincare, snacks, electronics, and clothing items on its platform, Coupang Marketplace. The company has a strong e-commerce infrastructure, with over 100 unique fulfillment centers covering 47 million square feet.
The company leverages technology to predict unexpected spikes in demand, allowing it to meet customer demand no matter the conditions. In addition to that, Coupang’s (NYSE:CPNG) proprietary robots can manage and sort orders in seconds, without having to carry and lift items. The company is committed to making the jobs of employees easier with its automation technologies and interventions.
Its AI-powered management system is highly efficient, allowing CPNG to deliver cost savings, reduce wastage, and predict demand. This coupled with its solid financial performance over the past few months, makes it one of the best growth stocks to buy and hold in 2025.
Appalaches Capital stated the following regarding Coupang, Inc. (NYSE:CPNG) in its Q3 2024 investor letter:
“A new core holding of the portfolio that may appear confusing is Coupang, Inc. (NYSE:CPNG). Coupang mainly provides a first-party marketplace in South Korea and Taiwan that is similar to Amazon here in the U.S. Coupang additionally has other digital services such as Coupang Play (streaming), Coupang Eats (food delivery), and Coupang Pay (payments). Coupang has a dominant position in South Korean e-commerce, with nearly half of the population represented as an active customer on the platform. At first glance, the company appears marginally profitable and very expensive against current earnings, so it certainly appears to be an outlier against the rest of the portfolio.
A couple of months ago, I shared an article addressing this very subject. As a value investor, I aim to buy shares in businesses trading at a discount to their intrinsic value. This intrinsic value is simply the present value of future cash flows, which can be materially different from the cash flows of the business today. Clearly, I believe this is the case with Coupang…” (Click here to read the full text)
11. Uber Technologies, Inc. (NYSE:UBER)
Analyst Upside as of January 10, 2025: 39%
Number of Hedge Fund Holders: 136
Uber Technologies, Inc. (NYSE:UBER) is one of the best growth stocks to buy and hold in 2025. The ride-hailing company is expected to become a completely electric and zero-emission platform by 2040, which is a factor contributing to its position. As a result of this, Uber (NYSE:UBER) grew its gross bookings by nearly 16% in Q3 2024.
Over the past few months, the company has launched EV-only ride options to more markets, AI assistants to help drivers with EV-related questions, and mentorship programs. In 2025, UBER plans to transition hundreds and thousands of drivers to electric vehicles and intends to make 80% of restaurant deliveries more environmentally friendly by using recyclable packing options.
It is safe to say that Uber Technologies, Inc. (NYSE:UBER) is expected to benefit from the autonomous driving wave and the easing regulations, so it is no surprise that investors are bullish on the stock.