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.
9. SentinelOne Inc. (NYSE:S)
EPS Growth Rate (Next 5 Years): 115.17%
SentinelOne Inc. (NYSE:S) is an AI-driven cybersecurity provider that secures endpoints, cloud workloads, and connected devices with real-time threat detection, prevention, and response. It is one of the best high growth stocks to buy.
SentinelOne Inc. (NYSE:S) and CyberArk have integrated their AI-powered cybersecurity solutions to enhance endpoint and identity security. This collaboration combines SentinelOne’s Singularity™ platform with CyberArk’s Endpoint Privilege Manager, strengthening threat detection, prevention, and response against credential theft and privileged access misuse. The partnership reinforces a defense-in-depth strategy, helping enterprises combat ransomware, accelerate response times, and simplify security operations.
SentinelOne Inc. (NYSE:S) reported strong FY 2025 results, with revenue rising 32% YoY to $821.5 million. Free cash flow margin turned positive at 1%, up from -13%, demonstrating stronger financial discipline. With $1.1 billion in cash and investments, SentinelOne is positioned for continued growth, aiming to surpass $1 billion in revenue in FY 2026. For Q1 FY 2026, the company expects $228 million in revenue, continuing its growth trajectory.
8. GeneDx Holdings Corp. (NASDAQ:WGS)
EPS Growth Rate (Next 5 Years): 119.03%
GeneDx Holdings Corp. (NASDAQ:WGS) is a genomics company specializing in personalized health insights to improve diagnosis, treatment, and drug discovery.
GeneDx Holdings Corp. (NASDAQ:WGS) is driving the push for newborn genetic testing, using whole genome sequencing to diagnose rare diseases like epilepsy and cystic fibrosis early for timely intervention. CEO Katherine Stueland highlighted strong parental interest, with over 70% enrollment in studies focused on clinically actionable conditions. While insurance coverage remains a challenge, GeneDx’s initiative positions it as a leader in genomic diagnostics, aiming to revolutionize pediatric healthcare.
GeneDx Holdings Corp. (NASDAQ:WGS) delivered strong FY2024 results, with revenue growing 56% YoY to $302.3 million, driven by an 88% increase in exome and genome test revenue to $233.5 million. The company achieved an adjusted net income of $6.7 million, while the GAAP net loss was $52.3 million. Operating expenses declined 14% YoY to $185.9 million, highlighting cost discipline. With $142.2 million in cash, GeneDx is well-positioned for continued growth, supported by strong demand for its genomic testing solutions. WGS is one of the best high growth stocks.
7. Ramaco Resources Inc. (NASDAQ:METC)
EPS Growth Rate (Next 5 Years): 126.01%
Ramaco Resources Inc. (NASDAQ:METC) is a metallurgical coal company focused on mining and developing coal reserves in southern West Virginia and southwestern Virginia. It is among the best high growth stocks to invest in.
On December 04, 2024, Ramaco Resources Inc. (NASDAQ:METC) announced a major milestone for its Brook Mine rare earth and critical minerals project, with an independent interim report from Fluor Corporation. The Brook Mine is set to become the world’s only primary source mine for gallium, germanium, and scandium, key materials used in technology and defense applications. With China restricting exports of gallium and germanium, Ramaco’s project gains strategic importance.
Ramaco Resources Inc. (NASDAQ:METC) reported strong Q4 2024 results, achieving Adjusted EBITDA of the year at $29.2 million, a 24% increase from Q3 2024. Despite a 6% drop in metallurgical coal prices, the company maintained cash margins of $33 per ton. Net income surged to $3.9 million, up from a loss of $0.2 million in Q3 2024, with EPS rising to $0.06 from -$0.03.
6. QuinStreet Inc. (NASDAQ:QNST)
EPS Growth Rate (Next 5 Years): 143.85%
QuinStreet Inc. (NASDAQ:QNST) is a digital performance marketing company specializing in customer acquisition for the financial services and home services industries.
QuinStreet Inc. (NASDAQ:QNST) participated in Susquehanna’s 14th Annual Technology Conference on February 27, 2025, in New York, reinforcing its commitment to engaging with investors and showcasing its market momentum and business strategy. As a leader in performance marketplaces for financial services and home services, QuinStreet continues to drive customer acquisition.
QuinStreet Inc. (NASDAQ:QNST) reported record Q2 FY2025 revenue of $283 million, marking a 130% YoY increase, driven by a 615% surge in auto insurance revenue and 15% growth in non-insurance verticals. Despite a GAAP net loss of $1.5 million, adjusted net income reached $11.9 million, reflecting strong operational improvements. Adjusted EBITDA came in at $19.4 million, reinforcing profitability momentum.
5. ACV Auctions Inc. (NASDAQ:ACVA)
EPS Growth Rate (Next 5 Years): 155.06%
ACV Auctions Inc. (NASDAQ:ACVA) operates a digital marketplace for wholesale vehicle transactions, providing transparent and data-driven solutions for buyers and sellers.
ACV Auctions Inc. (NASDAQ:ACVA) has announced its transfer to the New York Stock Exchange (NYSE), with trading set to begin on March 24, 2025, under its existing ticker symbol “ACVA”. The move is aimed at enhancing market visibility, liquidity, and global investor reach, reinforcing ACV’s position as a leading digital automotive marketplace. CFO Bill Zerella highlighted the strategic benefits of the NYSE’s infrastructure, aligning with the company’s mission to expand its presence in the wholesale vehicle and data services market.
ACV Auctions Inc. (NASDAQ:ACVA) reported strong FY2024 results, with revenue rising 32% YoY to $637 million, driven by a 36% increase in Marketplace and Service revenue. The company achieved a turnaround in profitability, with Adjusted EBITDA improving to $28 million from a loss of $18 million in 2023. Marketplace GMV grew to $9.5 billion a 7% increase year over year, while marketplace units sold increased 24% to 743,008. Looking ahead, ACV expects FY2025 revenue of $765-$785 million, reflecting 20-23% YoY growth.
4. Flywire Corporation (NASDAQ:FLYW)
EPS Growth Rate (Next 5 Years): 158.8%
Flywire Corporation (NASDAQ:FLYW) is a global payments enablement and software company that streamlines complex transactions across industries such as education, healthcare, travel, and B2B. With an expected EPS growth rate of nearly 160%, FLYW is one of the best high growth stocks to buy.
Flywire Corporation (NASDAQ:FLYW) has acquired Sertifi for $330 million, expanding its travel payments business into the hospitality sector, including major hotel brands like Marriott, Hilton, and Hyatt. Sertifi’s platform, which serves 20,000 hotel locations, digitizes event bookings, group sales, and payments through deep integrations with leading Property Management Systems like Oracle’s OPERA Cloud and Salesforce. The acquisition is expected to add $35-$40 million in revenue in FY2025.
Flywire Corporation (NASDAQ:FLYW) reported strong Q4 2024 results, with revenue increasing 17% YoY to $117.6 million, driven by 27.6% growth in total payment volume to $6.9 billion. Adjusted EBITDA surged to $16.7 million, more than doubling from $7.7 million in Q4 2023. The company added 180 new clients in the quarter, contributing to 16% YoY client growth. Despite a net loss of $15.9 million, Flywire continued to optimize operations, including a 10% workforce reduction, while positioning itself for long-term growth with its recent Sertifi acquisition.
3. Oscar Health Inc. (NYSE:OSCR)
EPS Growth Rate (Next 5 Years): 161.23%
Oscar Health Inc. (NYSE:OSCR) is a technology-driven health insurance company that provides individual, family and small group plans through its proprietary +Oscar platform.
On 18 Nov 2024, Oscar Health Inc. (NYSE:OSCR) announced that CEO Mark Bertolini’s Anahata Foundation purchased 933,333 shares in the open market, signaling strong insider confidence in the company’s future. Bertolini emphasized his belief in Oscar’s technology, talent, and products to revolutionize healthcare, reinforcing the company’s growth potential and long-term strategy. The purchase highlights executive commitment to Oscar’s mission of expanding its footprint in the individual insurance market.
Oscar Health Inc. (NYSE:OSCR) delivered a record FY2024, achieving its first-ever net income and Adjusted EBITDA profitability. Revenue surged 56.5% YoY to $9.2 billion, driven by strong membership growth. The company reported a net income of $25.4 million a $296.2 million YoY improvement, and an Adjusted EBITDA of $199.2 million, up $244.5 million YoY. Looking ahead, Oscar expects FY2025 revenue of $11.2-$11.3 billion and Earnings from Operations of $225-$275 million, signaling continued profitability and disciplined cost management.
2. Talkspace Inc. (NASDAQ:TALK)
EPS Growth Rate (Next 5 Years): 166.84%
Talkspace Inc. (NASDAQ:TALK) is a behavioral healthcare company that provides online psychotherapy and psychiatry services through its digital platform.
On January 06, 2025, the company reported that it has expanded its in-network coverage to 9.5 million active-duty and retired military personnel and their families through partnerships with TRICARE East and West region contractors. This move addresses a critical need, as 23% of active-duty service members experience depression, and suicide rates have surged over 40% in recent years. Through its digital therapy and psychiatry services, Talkspace Inc. (NASDAQ:TALK) eliminates barriers like cost, geography, and childcare constraints. It is among the best high growth stocks to buy now.
Talkspace Inc. (NASDAQ:TALK) delivered a strong FY2024, with revenue rising 25% YoY to $187.6 million, driven by a 54% surge in Payor revenue. The company achieved net income of $1.1 million, a significant turnaround from a $19.2 million loss in 2023, and Adjusted EBITDA of $7.0 million, up from a $13.5 million loss. Operating expenses declined 7% YoY, reflecting improved efficiency. Looking ahead, FY2025 revenue is projected at $220-$235 million, with Adjusted EBITDA expected to more than double to $14-$20 million, reinforcing Talkspace’s path to profitability and sustainable growth.
1. DoorDash Inc. (NASDAQ:DASH)
EPS Growth Rate (Next 5 Years): 168.85%
DoorDash Inc. (NASDAQ:DASH) is a leading local commerce platform that connects merchants with consumers through its DoorDash Marketplace and Wolt Marketplace.
DoorDash Inc. (NASDAQ:DASH) has expanded its non-restaurant retail offerings through a new partnership with The Home Depot. This has enabled on-demand delivery of home improvement essentials from over 2,000 locations nationwide. The collaboration enhances DoorDash’s growing presence in the retail sector, allowing DIY enthusiasts and professionals to receive tools and supplies in as little as an hour. With more than 115,000 non-restaurant stores now in its marketplace, DoorDash continues to diversify its platform beyond food delivery.
For Q4 2024, DoorDash Inc. (NASDAQ:DASH) had a revenue growth of 25% YoY to $2.9 billion, driven by a 19% increase in total orders to 685 million and a 21% rise in Marketplace GOV to $21.3 billion. The company achieved GAAP net income of $141 million, a turnaround from a $154 million loss in Q4 2023, while Adjusted EBITDA surged 56% YoY to $566 million. Operating cash flow reached $518 million, contributing to $420 million in free cash flow for the quarter.
Overall, DoorDash Inc. (NASDAQ:DASH) ranks first on our list of the 12 High Growth Low Debt Stocks to Invest in Now. While we acknowledge the potential for DASH 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 DASH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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