In this article, we will discuss the 12 High Growth Low Debt Stocks to Invest in Now.
The global financial markets are experiencing heightened volatility, influenced by a confluence of economic and geopolitical factors. The broader market has entered correction territory, reflecting investor apprehension regarding escalating trade tensions and potential economic slowdowns.
The recent imposition of tariffs by the United States has been a significant catalyst for market fluctuations. In response, major indices such as the broader market and Nasdaq Composite have experienced notable declines. This environment has led to a reassessment of investment strategies, with a growing emphasis on asset quality and financial resilience.
While debt can be a useful tool for fueling growth, excessive debt levels can pose significant risks. High debt-to-equity (D/E) ratios indicate that a company is heavily reliant on borrowed funds, which can lead to financial strain, especially during economic downturns. Companies with D/E ratios exceeding 2.0 are generally considered risky, as they may face challenges in meeting their debt obligations, potentially leading to insolvency.
Conversely, companies with low debt levels enjoy several advantages. They have greater financial stability, as they are less burdened by interest payments and have a reduced risk of bankruptcy. This financial flexibility allows them to invest more in growth opportunities, such as research and development, marketing, or capital expenditures, without the constraints of significant debt obligations. Moreover, these companies are often more attractive to investors, as they present a lower risk profile.
Investing in High-Growth, Low-Debt Stocks
In the current climate, focusing on high-growth companies with low debt levels can be a prudent strategy. These companies typically exhibit robust earnings growth and the ability to navigate economic headwinds effectively. Financial advisors are also increasingly recommending investments in quality stocks characterized by strong earnings, low debt, and reliable management. This approach focuses on identifying firms that are expanding without overleveraging, thereby maintaining financial stability and operational flexibility.
The Appeal of High Growth
High-growth companies are characterized by their ability to increase revenues and earnings at a rate significantly above the market average. This rapid expansion often leads to substantial capital appreciation for investors. For instance, companies with low debt have historically outperformed their high-debt counterparts. Over a 23-year period, low-debt growth companies achieved annualized returns of 17.1%, compared to just 7.5% for high-debt firms. Notably, low-debt stocks outperformed high-debt stocks in 19 of those 23 years, equating to an 83% beat rate. Given this, we will take a look at some of the best high growth stocks with low debt.
A financial analyst looking through a microscope at stocks to determine their market value.
Our Methodology
To identify high-growth, low-debt stocks, we screened for companies with strong competitive advantages and an estimated average annual EPS growth rate of over 15% for the next five years, based on data from FINVIZ.com. Additionally, we filtered for companies with a debt-to-equity ratio below 0.5. The EPS Next 5 Year growth rate was used as the primary ranking metric. The final list of stocks is ranked in ascending order of EPS growth rate, prioritizing companies with the strongest earnings expansion potential.
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12. Ichor Holdings Ltd. (NASDAQ:ICHR)
EPS Growth Rate (Next 5 Years): 107.79%
Ichor Holdings Ltd. (NASDAQ:ICHR) designs, engineers, and manufactures critical fluid delivery subsystems and components for semiconductor capital equipment.
Ichor Holdings Ltd. (NASDAQ:ICHR) recently participated in the 27th Annual Needham Growth Conference. This reinforces its position as a leader in critical fluid delivery subsystems for semiconductor capital equipment. The company’s management hosted a fireside chat on January 14, 2025, providing insights into its strategic direction and industry outlook. The webcast and accompanying presentation materials were made available on Ichor’s investor relations website.
Ichor Holdings Ltd. (NASDAQ:ICHR) delivered solid fiscal year 2024 results, with revenues reaching $849 million, a 5% year-over-year increase, reflecting strengthening customer demand. GAAP EPS came in at -$0.64, while non-GAAP EPS stood at $0.18. CEO Jeff Andreson highlighted a strong start to 2025, with sequential revenue growth in Q4 exceeding 10% and further growth anticipated in Q1. With a recovering memory market and strong foundry investments, Ichor expects significant gross margin expansion and earnings leverage in 2025. This positions the company to outperform wafer fab equipment (WFE) industry growth.
11. Outbrain Inc. (NASDAQ:OB)
EPS Growth Rate (Next 5 Years): 110.48%
Outbrain Inc. (NASDAQ:OB) is a technology platform that connects media owners and advertisers with engaged audiences to drive measurable business results.
Outbrain Inc. (NASDAQ:OB) has acquired Teads, marking a transformative merger that creates one of the largest omnichannel advertising platforms on the open internet. The acquisition, valued at approximately $900 million, positions the new Teads to reach 2.2 billion consumers globally, while offering unparalleled access to exclusive media environments and 50 billion CTV monthly ad opportunities. Outbrain CEO David Kostman will lead the combined company, with a strong leadership team from both organizations steering the vision for future growth.
Outbrain Inc. (NASDAQ:OB) reported its full-year 2024 financial results, posting revenue of $889.9 million, a 5% decrease from the prior year. Despite the revenue decline, gross profit increased 4% to $192.1 million. Adjusted net income turned positive at $4.1 million, reversing last year’s adjusted net loss of $3.9 million. Adjusted EBITDA also showed growth, rising 31% to $37.3 million.
10. Protalix BioTherapeutics Inc. (NYSE:PLX)
EPS Growth Rate (Next 5 Years): 110.55%
Protalix BioTherapeutics Inc. (NYSE:PLX) is a biopharmaceutical company specializing in developing and commercializing recombinant therapeutic proteins.
Protalix BioTherapeutics Inc. (NYSE:PLX) participated in the 2025 BIO CEO & Investor Conference, which took place on February 10-11, 2025, at the New York Marriott Marquis. The company’s management presented a corporate overview and engaged in one-on-one meetings with investors and industry stakeholders, reinforcing its position in the biotech sector.
Protalix BioTherapeutics Inc. (NYSE:PLX) delivered a good financial performance in Q3 2024, reporting a 75% year-over-year revenue increase to $17.8 million, driven by higher sales to Chiesi Farmaceutici and Pfizer. The cost of goods sold rose 71% to $8.4 million, reflecting the increased sales volume. Research and development expenses declined 19% to $3.0 million, primarily due to the completion of the Fabry clinical program and regulatory processes for Elfabrio.