Markets have rebounded fast from drawdowns earlier this year. As Lori Calvasina of RBC Capital Markets noted in a CNBC interview, “We have done in three months what we typically do in nine months in terms of rebounding off of an extreme low.” Yet despite the recovery, many investors are recalibrating expectations amid macro uncertainty, including inflation, tariffs, and slower growth.
Calvasina said, “We don’t think the world is the same as where we were back in January. Consensus GDP forecasts were above 2% for the year at the beginning of the year. Right now, the numbers are like 1.5% for this year, 1.6% for the next year.” Inflation remains a concern, too. “If you have higher inflation levels, that’s going to pressure your P/E multiples.”
Meanwhile, valuations in the largest stocks are stretched. “The market cap-weighted P/E is above 25 times” for the S&P 500 Index. In contrast, “Russell is probably your best barometer for how cheap things got,” offering potential value opportunities. With that, let’s take a look at the best growth stocks to buy according to analysts.
A portfolio manager wearing a suit and tie, looking at a graph representing the growth of the business development company.
Our Methodology
To identify the 10 Best Growth Stocks to Buy According to Analysts, we utilized Finviz’s screener with the following set of criteria: forward EPS growth greater than 25%, trailing EPS growth above 20%, and an upside potential of at least 15%. The final list was then sorted in ascending order based on upside potential.
Note: All data was recorded on August 14, 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).
10 Best Growth Stocks to Buy According to Analysts
10. Amazon.com, Inc. (NASDAQ:AMZN)
Upside Potential: 15.02%
TTM EPS Growth: 56.77%
Forward EPS Growth: 37.5%
Number of hedge fund holders: 328
Amazon.com, Inc. (NASDAQ:AMZN) is one of the best growth stocks to buy according to analysts. Amazon.com, Inc. (NASDAQ:AMZN) announced on August 13 that it will be expanding its same-day delivery service to include fresh and frozen grocery items for its Prime members. The company did not reveal the cities included in the rollout.
Starting this week, Prime subscribers in select cities will be able to receive items such as strawberries, milk, meats, and frozen dinners within hours of placing an order. This will intensify competition for same-day deliveries for perishable items, with other retail giants like Walmart. What is likely to work in the e-commerce giant’s favor is its improving logistics and Whole Foods’ infrastructure. Same-day grocery delivery is a massive battleground in e-commerce, with customers spoiled for choice and expecting faster delivery.
The tech behemoth has already been offering grocery delivery through its Amazon Fresh and Whole Foods platforms. However, the latest move indicates a deeper commitment by the company to improve its share in the perishable item segment. If the company can capture a share of the same-day delivery for perishable items and scale up, its impact in the grocery sector is likely to grow; it is likely to put pressure on the traditional grocers and delivery rivals, given Amazon’s scale and delivery moat.
9. Applovin Corporation (NASDAQ:APP)
Upside Potential: 15.37%
TTM EPS Growth: 204.11%
Forward EPS Growth: 135.62%
Number of hedge fund holders: 96
Applovin Corporation (NASDAQ:APP) is one of the best growth stocks to buy according to analysts. On August 7, Oppenheimer maintained its Outperform rating on Applovin Corporation (NASDAQ:APP), while also maintaining its $500 price target for the company. That represents a 15.15% implied upside from the current market price of $434.2.
The firm also called Applovin a “top pick”. Oppenheimer sees rising confidence in the scale-up of e-commerce advertising, which is now expected to exceed 10% of total ad revenue this year. The firm’s outlook is also reinforced by the company’s global rollout of AXON Ad Manager’s self-service portal, which is expected to roll out in October. AppLovin’s AXON 2, is an AI-powered ad engine that optimizes targeting and placement to improve return on investment for advertisers. AXON has been a major growth driver for the company.
According to Wall Street analysts, Applovin Corporation (NASDAQ:APP) is also likely to benefit from the reactivation of its e-commerce advertisers through a new referral program, improving its global network, and extended availability for smaller companies.
8. Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM)
Upside Potential: 15.84%
TTM EPS Growth: 54.31%
Forward EPS Growth: 28.76%
Number of hedge fund holders: 187
Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM) is one of the best growth stocks to buy according to analysts. On August 15, Bernstein reiterated its Outperform rating on Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM), with a price target of $249.00. That represents an implied upside of only 4.1% from the current price of $239.1.
However, Bernstein cited the Taiwanese company’s strategic importance in the global semiconductor landscape, emphasizing that it accounts for roughly 15–25% of the worldwide wafer fab equipment (WFE) market. That is massive, especially considering the whole of China’s share of 30–40%.
Bernstein also cited that a significant share of the company’s capital expenditures is allocated beyond just traditional wafer fabrication. According to the firm, TSMC is increasingly investing higher amounts in infrastructure, packaging, and testing technologies. These are critical components in advanced chip production.
Last month, the company delivered a stellar Q2 2025 performance, with revenue climbed to NT$933.79 billion (US $30.07 billion), up 38.6 % year-over-year; while net income reached NT$398.27 billion (about US $13.53 billion), and diluted EPS came in at NT$15.36 (US $2.47 per ADR), a whopping 60.7 % jump year-over-year.
7. Exelixis, Inc. (NASDAQ:EXEL)
Upside Potential: 17.51%
TTM EPS Growth: 81.76%
Forward EPS Growth: 65.07%
Number of hedge fund holders: 38
Exelixis, Inc. (NASDAQ:EXEL) is one of the best growth stocks to buy according to analysts. On August 12, H.C. Wainwright analyst Robert Burns maintained a Buy rating on Exelixis, Inc. (NASDAQ:EXEL), while trimming the company’s price target from $53 to $46. However, despite the cut, the price target is nearly 21% above the current market price of $38.12.
Burns cited the company’s decision not to go ahead with the Phase 3 portion of the STELLAR-305 trial for the target cut. Phase 3 of Stellar 305 was considered important because it could have been a critical milestone in validating the full system performance, mission-readiness, and scalability of the Stellar 305 platform.
STELLAR-305 is a clinical trial investigating the use of zanzalintinib, an investigational, oral, third-generation tyrosine kinase inhibitor (TKI) being developed by the company, along with pembrolizumab, a medication used in cancer immunotherapy, as an immune checkpoint inhibitor, for treating recurrent or metastatic head and neck squamous cell carcinoma (HNSCC).
6. Carvana Co (NYSE:CVNA)
Upside Potential: 17.96%
TTM EPS Growth: 104.96%
Forward EPS Growth: 106.7%
Number of hedge fund holders: 90
Carvana Co (NYSE:CVNA) is one of the best growth stocks to buy according to analysts. On August 14, Carvana Co (NYSE:CVNA) announced that it is expanding its same-day vehicle delivery service to the greater Chicago area. Carvana offers an online car-buying platform, where customers can browse vehicles, complete financing, and finalize their purchase without having to go to a dealership.
With same-day delivery, buying a car through Carvana could become incredibly convenient. The company said that this is just one of the many steps it has been taking to expand faster delivery options across the country.
For example, Carvana has been using some of the ADESA (an acquisition it made a few years ago) locations as places where cars get cleaned up, inspected, and made ready for sale, among other things. This is helping improve efficiency at the company. The company said that as of the end of second quarter of 2025, it had fully integrated 12 ADESA locations into its network. It said that these moves have helped them grow their ability to recondition more cars and offer a wider selection of vehicles to their clients.
5. Vertiv Holdings (NYSE:VRT)
Upside Potential: 19.62%
TTM EPS Growth: 64.05%
Forward EPS Growth: 38.96%
Number of hedge fund holders: 90
Vertiv Holdings (NYSE:VRT) is one of the best growth stocks to buy according to analysts. On August 10, Morgan Stanley maintained its Overweight rating on Vertiv Holdings (NYSE:VRT), while increasing the company’s price target from $125 to $165.
Morgan Stanley remains positive on the firm after its Q2 earnings, calling the company’s financial performance during the first half of the year “phenomenal”. Morgan Stanley cited the backlog of $1.3 billion as demand remains strong. However, the bank is getting a little cautious about the stock’s valuation.
Vertiv Holdings (NYSE:VRT) reported strong Q2 2025 earnings on July 30, driven by burgeoning demand in the data center and AI infrastructure divisions. The company reported an EPS of $0.95 per share, a whopping 42% increase from the previous year, while beating Wall Street estimates of $0.83 per share. The company generated revenue of $2.64 billion, a solid 35% year-over-year growth and exceeding Wall Street estimates of around $2.35 billion.
However, the company’s operating margin dipped slightly to 18.5%, down 1.1 percentage points from the same quarter last year. This decline was mainly attributed to tariffs and increased transition costs. Still, adjusted operating profit rose 28% to $489 million. Vertiv also reported a healthy order book, with over $3 billion in new orders during the quarter.
4. AppFolio, Inc. (NASDAQ:APPF)
Upside Potential: 27.22%
TTM EPS Growth: 64.55%
Forward EPS Growth: 54.85%
Number of hedge fund holders: 38
AppFolio, Inc. (NASDAQ:APPF) is one of the best growth stocks to buy according to analysts. On August 6, DA Davidson maintained its Buy rating on AppFolio, Inc (NASDAQ:APPF), while increasing its price target from $350 to $375. That represents a whopping 41.3% implied upside according to DA Davidson.
The firm’s analysts met with the company’s VP of Finance, Bill Schroeder, post which DA Davidson seemed confident about AppFolio’s ability to monetize the value it provides to residents and property managers through its apps and websites.
The firm thinks that AppFolio will be able to capture even more market share through product innovation, pricing and packaging. In 2025, the company is pioneering AI-powered solutions that empower teams to work smarter and build stronger communications. With leasing becoming more complicated, the company launched AppFolio Leasing CRM on May 30, 2025. This is helping streamline the leasing process and improve team communication for property managers.
Earlier this month, the stock galloped over 20% after it reported earnings on July 31. AppFolio reported a revenue of $235.57, growing 19.3% year-over-year, while beating estimates. It surprised Wall Street by reporting an EPS of $1.38 per share, which is 7.5% more than the analysts’ estimates of $1.28 per share.
3. Eli Lilly and Company (NYSE:LLY)
Upside Potential: 30.82%
TTM EPS Growth: 88.31%
Forward EPS Growth: 68.7%
Number of hedge fund holders: 119
Eli Lilly and Company (NYSE:LLY) is one of the best growth stocks to buy according to analysts. On August 14, Eli Lilly and Company (NYSE:LLY) said that it would increase the list price of its diabetes and weight-loss drug Mounjaro in the UK, effective from September 1. The company is increasing the prices from the current range of roughly £92-£122 to £133-£330, a hike of up to 170%, according to a report by CNBC.
This strategy aims to lower U.S. drug prices relative to those in countries where medicines are typically cheaper, such as the United Kingdom. By raising prices overseas, drugmakers like Eli Lilly may be attempting to mitigate pricing pressure at home. As of the end of 2024, Europe made up about 14% of the company’s total revenue. The company does not disclose its sales from the UK alone.
Eli Lilly’s stocks jumped by 2.68% on August 15, following the news. The market viewed the bold, albeit controversial move positively, as the company will be protecting the margin on a product with relatively non-elastic demand. However, the hike is not without risks. Novo Nordisk, which is a key rival in the GLP-1 drug space, is expected to hold its UK pricing steady. That could pull price-sensitive customers away from Mounjaro, which could cause a shakeup in the market share in the high-growth therapeutic category.
2. The Trade Desk, Inc. (NASDAQ:TTD)
Upside Potential: 47.20%
TTM EPS Growth: 62.73%
Forward EPS Growth: 45.41%
Number of hedge fund holders: 61
The Trade Desk, Inc. (NASDAQ:TTD) is one of the best growth stocks to buy according to analysts. On August 7, Needham analyst Laura Martin maintained her Buy rating on The Trade Desk, Inc. (NASDAQ:TTD) with a price target of $84. The recent decline post earnings means that that represents a solid 61.1% implied upside.
The digital advertising company generated $694.04 million in revenue during Q2, an 18.7% growth from the same quarter last year, beating Wall Street estimates of $685.47. The Trade Desk, Inc. (NASDAQ:TTD) reported an EPS of $0.18 per share, eking past the Wall Street estimate of $0.178.
Despite solid growth, that was the lowest growth rate the company has seen since the Covid pandemic. That, and a soft guidance for Q3, are probably why the stock fell over 35%. The company is also facing added competition from Amazon and Roku. While Martin acknowledged the decline in the fall, she remains confident in the company’s ability to navigate the present challenging landscape and expects it to deliver value in the long term.
1. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)
Upside Potential: 70.66%
TTM EPS Growth: 154.69%
Forward EPS Growth: 37.84%
Number of hedge fund holders: 59
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is one of the best growth stocks to buy according to analysts. On August 4, BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) released its Q2 2025 earnings. The company reported a 16% year-over-year increase in revenue, which stood at $825 million for the quarter. The company also reported a significant rise in EPS, a stark improvement from the EPS of $0.55 per share it reported for the same quarter during the previous year. It reported an EPS of $1.23, versus $0.861, a comprehensive beat. BioMarin raised its full-year guidance for total revenues and operating margin.
BioMarin reported that its revenue from VOXZOGO jumped 20% thanks to rising demand across international markets. Sales from its enzyme therapies also saw healthy growth, increasing 15% year-over-year. The recent acquisition of Inozyme brought in a new enzyme replacement therapy candidate, further strengthening BioMarin’s rare disease portfolio.
The company continues to make huge strides in rare disease research. BioMarin is making progress in the diagnosis of hypochondroplasia, a rare genetic disorder that affects bone growth and leads to short stature. The company is currently focusing on reclassifying genetic “variants of uncertain significance”, a common obstacle in genetic testing that leaves doctors and patients without clear answers.
While we acknowledge the potential of BMRN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BMRN and that has 100x upside potential, check out our report about this cheapest AI stock.
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