12 Most Profitable Growth Stocks To Invest In

10. Block, Inc. (NYSE:SQ)

5-Year Revenue CAGR: 42.87%

TTM Net Income: $681 million

Number of Hedge Fund Holders: 59

Block, Inc. (NYSE:SQ), formerly known as Square, Inc., is building a network of ecosystems that cater to distinct customer groups, including sellers, consumers, artists, fans, and developers. These interconnected ecosystems are designed to foster economic empowerment through a suite of integrated tools and services that work together to address diverse needs. It is one of the most profitable growth stocks to invest in.

Its two primary ecosystems are Square, which offers solutions for businesses, and Cash App, focused on consumer financial services. Cash App started as a money transfer service but has grown into a full financial ecosystem that offers a variety of tools to help users store, send, invest, borrow, and save money.

Block (NYSE:SQ) is also investing in emerging ecosystems like TIDAL, which empowers artists and connects them with fans, and its Bitcoin ecosystem, which includes platforms and tools aimed at decentralizing financial systems.

The company’s approach focuses on developing resilient connections between these ecosystems, which promotes innovation and addresses market inefficiencies, with an emphasis on AI and financial empowerment.

On October 5, The Fly reported that BMO Capital lowered its price target for Block from $93 to $92 while maintaining an Outperform rating. The firm highlighted fintech stocks’ underperformance compared to the Financial Select Sector SPDR Fund (XLF) and the S&P 500 this year, though it remains optimistic about the sector’s medium-term prospects.

BMO expects investors to reward consistent execution and growth, especially in gross profit acceleration. For Block (NYSE:SQ), the firm anticipates that ongoing efforts to address product, reliability, and distribution challenges will pave the way for an increase in gross payment volume (GPV) in 2025, despite ongoing macroeconomic concerns.