In this article, we will look at the 12 High Growth Non-Tech Stocks That Are Profitable in 2025.
What to Expect From the Market in Q2 2025?
On March 27, David Sekera, CFA, chief US market strategist at MorningStar released his Q2 2025 market outlook. He highlights that the market was priced to perfection at the start of the year, trading at a rare premium to its fair value. He advised investors at the start of the year to overweight value stocks, which were attractively priced while underweighting growth stocks that were significantly overvalued. This advice proved prescient as the Morningstar US Market Index fell by 1.74% through March 24, with losses concentrated in growth and core stocks. This was particularly true for stocks linked to artificial intelligence, which dropped by 3.79% and 3.52%, respectively. In contrast, value stocks gained 4.59%, showcasing their resilience.
Sekera noted that as of March 24, the US equity market had declined to a price/fair value ratio of 0.95, representing a 5% discount to Morningstar’s fair value estimates. Moreover, growth stocks experienced a sharp correction, reducing their premium from 24% at the start of the year to just 3%. On the other hand, despite their recent gains, value stocks became even more undervalued, trading at a 13% discount to fair value. He emphasizes that this has made value stocks the most attractive investment category for the year. His outlook also addresses market dynamics by capitalization. He recommends overweighting small-cap stocks due to their significant undervaluation at an 18% discount to fair value. However, he cautions that small-cap performance might not materialize until later in the year when economic conditions improve and monetary policy becomes more accommodative. Conversely, large-cap and mid-cap stocks are less appealing as they are trading at similar discounts to the overall market.
Moreover, monetary policy plays a central role in Sekera’s analysis. Morningstar’s economics team forecasts three federal funds rate cuts in 2025 and anticipates a gradual economic rebound starting in early 2026. While long-term interest rates are expected to remain stable initially, they are projected to enter a multiyear downward trend later in 2025. He also addressed misconceptions about market sell-offs being driven by tariffs. Instead, he attributed much of the downturn to a concentrated sell-off in AI-related stocks. According to Morningstar’s analysis, losses from just ten highly AI-correlated stocks outweighed overall market declines, with seven of these being among the top-performing stocks in 2024.
With that let’s take a look at the 12 high-growth non-tech stocks that are profitable in 2025.
A stock market graph. Photo by Alesia Kozik on Pexels
Our Methodology
To curate the list of 12 high-growth non-tech stocks that are profitable in 2025, we used the Finviz stock screener, Seeking Alpha, and Yahoo Finance as our sources. Using the screener we aggregated a list of non-tech stocks that have grown their revenue and net income by more than 15% over the past 5 years. Next, we cross-checked the 5-year sales growth and net income from Seeking Alpha. We also checked for TTM net income from Yahoo Finance and only added companies that had a TTM net income of more than $500 million. Lastly, we ranked the stocks in ascending order of the number of hedge fund holders, sourced from Insider Monkey’s Q4 2024 database. Please note that the data was recorded on March 28, 2025. Also note that for some companies the TTM net income was mentioned in foreign currencies, in such cases it was manually converted to USD. The conversion rates are as of March 28, 2025.
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).
12 High Growth Non-Tech Stocks That Are Profitable in 2025
12. Woodside Energy Group Ltd (NYSE:WDS)
5-Year Sales Growth: 22.02%
5-Year Net Income Growth: 59.79%
TTM Net Income: $2.25 Billion (AUD 3.57 Billion)
Number of Hedge Fund Holders: 10
Woodside Energy Group Ltd (NYSE:WDS) is a global energy company that specializes in the exploration, production, marketing, and trading of oil and natural gas. It operates through three main segments including Australia, International, and Marketing. The company ranks as one of the high-growth non-tech stocks that are profitable in 2025.
In fiscal 2024, Woodside Energy Group Ltd (NYSE:WDS) achieved record-breaking performance, driven by operational excellence and strategic project execution. The company produced 193.9 million barrels of oil equivalent, which is equivalent to 530 Mboe/day. This was supported by the high reliability of 98% from its LNG assets and the strong performance of the Sangomar project. As a result, its net profit after tax surged by 115% year-on-year, reaching $3.57 billion, reflecting robust financial health and operational efficiency. On March 23, Adrian Prendergast from Morgan Stanley maintained a Buy rating on the stock, with a price target of A$30.10.
11. RenaissanceRe Holdings Ltd. (NYSE:RNR)
5-Year Sales Growth: 22.86%
5-Year Net Income Growth: 20.09%
TTM Net Income: $1.81 Billion
Number of Hedge Fund Holders: 25
RenaissanceRe Holdings Ltd. (NYSE:RNR) is an international provider of reinsurance and insurance solutions, primarily operating through intermediaries. The company specializes in property, casualty, and specialty reinsurance and insurance. It operates through two key segments including Property and Casualty and Speciality Segment.
On March 12, Joshua Shanker from Bank of America Securities reaffirmed a Buy rating on the stock with a price target of $437. Shanker highlighted RenaissanceRe Holdings Ltd.’s (NYSE:RNR) robust financial foundation, which has enabled it to manage challenges such as the California wildfires effectively. The financial impact of the wildfires led to revisions in catastrophe estimates and management fees, but these adjustments did not hinder the company’s overall valuation. The analyst also noted that to manage the challenges the company has already repurchased a significant amount of shares, demonstrating confidence in its valuation and growth prospects.
During fiscal 2024, RenaissanceRe Holdings Ltd. (NYSE:RNR) delivered a net income of $1.8 billion driven by strong underwriting performance, particularly in the Property segment, which achieved a combined ratio of 57.2%. Additionally, increased net investment income reached $1.7 billion driven by higher average invested assets and improved yields. It is one of the high-growth non-tech stocks that are profitable in 2025.
