15 Best Growth Stocks to Buy for the Next 5 Years

10. Block Inc. (NYSE:SQ)

Number of Hedge Fund Holders: 64

5-Year Revenue CAGR: 40.67%

Upside Potential as of January 15: 18.26%

Block Inc. (NYSE:SQ) is a fintech company that offers commerce and financial services through its Square and Cash App platforms. Cash App provides mobile financial tools which include peer-to-peer payments, Bitcoin, stock investments, tax services, and buy now, pay later options. The company also owns subsidiaries for decentralized finance, Bitcoin wallets, and open-source Bitcoin projects.

Its stock surged 5% on January 3, following an upgrade by Raymond James to Outperform. The bank anticipates Seller GPV (gross payment volume) for Block Inc. (NYSE:SQ) to surge at least 10% in 2025. While Cash App growth has slowed, Raymond James anticipates continued gross profit expansion. With an attractive valuation, the bank set a $115 price target above the price of $91.20.

Cash App drove the company’s Q3 2024 performance. Cash App’s gross profit surged by 21% year over year, reaching $774 million. The platform witnessed an increase in active monthly users, which now exceeds 57 million. It’s expanding its financial ecosystem. The integration of Afterpay into the Cash App Card has proven to be a game-changer and has transformed it into an alternative to traditional credit cards. It provides users with a convenient buy-now, pay-later option. Resultantly, Cash App’s Seller GPV also grew due to its increasing adoption as a payment solution for businesses. This expansion of Cash App’s seller ecosystem solidifies Block Inc.’s (NYSE:SQ) position as a leader in the fintech industry.