Growth stocks are companies that are expected to report above-average earnings and revenue growth. These companies continue to witness higher growth as they often reinvest profits into innovation, market expansion, and better technology. For investors who are looking for long-term gains, understanding the key drivers behind growth stocks is key amid the volatility from macroeconomic uncertainties and a high-interest rate environment.

Market valuations and future trends have been central to recent discussions, with investors prioritizing selectivity. Companies with durable competitive advantages and strong cash flows continue to attract interest.

In a CNBC interview on June 13, 2025, Dubravko Lakos, Head of Global Markets Strategy at JPMorgan, reaffirmed his year-end S&P 500 target of 6,000, noting that the market may remain range-bound at current levels following a strong rally. While tactically bullish since late April, he expects the short-term upside to continue but cautions that volatility could return in July, especially if payroll data disappoints or tariff risks intensify.

Despite these concerns, Lakos remains constructive over the longer term. He believes any growth scare is likely to be temporary and could lead to renewed upside if the Fed eases policy earlier than expected. His strongest conviction lies in the long/short momentum trade, particularly in AI, big tech, and data center-related equities, which he expects to outperform regardless of broader market movements.

In a separate CNBC interview on June 13, 2025, Stephanie Link characterized the recent market pullback as a natural and temporary reaction following a 21% rally since April. She views the current weakness as a buying opportunity, and advocates for selective investments across both outperformers and undervalued names.

Link favors stocks she considers structural winners and also sees potential in beaten-down companies. In her view, as long as geopolitical uncertainty persists, strong earnings growth and economic stability justify a “buy-the-dip” approach for long-term investors.

With that in mind, let’s take a look at the 10 best growth stocks to buy according to billionaires.

Our Methodology

To compile this list, we began by screening stocks with a market capitalization of over $2 billion from Insider Monkey’s database of billionaire holdings. From this universe, we filtered companies that have achieved revenue growth of over 30% in the past five years and are projected to deliver revenue growth exceeding 20% in both the current and upcoming fiscal years. We then ranked the top 10 stocks in ascending order based on the number of billionaire investors holding positions, as of Q4 2024. Additionally, we also provide data to assess hedge fund sentiment surrounding these stocks, utilizing data from Insider Monkey’s Q1 2025 hedge fund database to offer deeper insights into institutional investor trends.

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 Billionaires

10. TransMedics Group Inc. (NASDAQ:TMDX)

Rev. Growth Current Year/ Next Year: 31% / 20%

Number of Billionaire Investors: 8

Number of Hedge Fund Holders: 23

TransMedics Group Inc. (NASDAQ:TMDX) is one of the 10 best growth stocks to buy according to billionaires. The stock has had a tremendous year so far, with share price gains of 129%, leading other stocks in this list by a considerable margin, as none of the other stocks here have even reached 100%.

In 2024, the company’s revenue surged a robust 83%, and the street expects it to post a solid 31% growth in FY 2025. The company is also likely to experience significantly improved profitability, as consensus EPS forecasts a 77% growth this year and a 38% growth next year.

On June 9, Canaccord Genuity analyst William Plovanic reaffirmed a Buy rating on TransMedics Group Inc. (NASDAQ:TMDX) with an unchanged price target of $129. This reaffirmation follows the company’s June 9 presentation at the Goldman Sachs Global Healthcare Conference, where the company reaffirmed the strategy behind its industry-leading position in organ transplantation. Its execution continues to support a positive outlook, with management sharing tangible progress toward its long-term targets.

At the centre of the story is the National OCS Program (NOP), which now drives nearly all company revenue, enabling TransMedics to offer a full-service, end-to-end transplant logistics and technology solution. This model has not only boosted transplant volumes but also established a critical advantage that competitors have yet to replicate.

The company is targeting $1.2 billion in revenue and a 30% operating margin by 2028, driven by the expanded adoption of its Organ Care System and the upcoming next-generation platforms. Notably, its leadership in the DCD (donation after circulatory death) heart category, which now makes up about half of all U.S. heart donors, reflects its role in expanding the donor pool.

TransMedics Group Inc. (NASDAQ:TMDX) is well-positioned to introduce new platforms for heart, lung, and kidney care in the coming years, including a Gen 3 system designed for greater portability and scalability. With strong clinical data and operational depth, the company appears well-positioned to hit its 10,000 annual transplants milestone by 2028 and continue growing from there. Management expects its kidney platform to launch by 2027 and aims to achieve 20,000 to 30,000 transplants over the next three to five years.

TransMedics Group Inc. (NASDAQ:TMDX) is a commercial-stage medical technology company offering organ transplant therapy for patients with end-stage organ failure across multiple disease states.

9. DraftKings Inc. (NASDAQ:DKNG)

Rev. Growth Current Year/ Next Year: 32% / 20%

Number of Billionaire Investors: 9

Number of Hedge Fund Holders: 70

DraftKings Inc. (NASDAQ:DKNG) is one of the 10 best growth stocks to buy according to billionaires. On June 10, Jefferies analyst David Katz released a note discussing the impact of the Illinois legislature’s approval of a new betting transaction tax on all in-state wagers announced in the first week of June. As a result of the higher tax, operators are expected to adjust their fees accordingly.

The new transaction tax, effective from July 1, requires operators to be charged $0.25 for each bet up to 20 million bets and $0.50 for each additional bet thereafter.

On June 10, Flutter Entertainment plc (NYSE:FLTR), another player in the space, announced a $0.50 fee for each bet made on its FanDuel platform, effective September 1, to offset the added cost. According to Jefferies analyst David Katz, this move is likely to set a precedent across the industry.

Following the development, Katz believed that DraftKings is likely to adopt a similar surcharge model, given its practicality in directly addressing the tax burden. While such a fee could be passed through to consumers, the analyst views the development as moderately positive for the stock. He maintained a Buy rating on DraftKings, with a $60 price target, reflecting continued confidence in the company’s ability to navigate evolving regulatory frameworks.

Notably, two days after the analyst’s note, on June 12, DraftKings also announced that it would implement a $0.50 transaction fee on all mobile and online bets placed in Illinois, effective September 1. While the company CEO, Jason Robins, shared his disappointment over the tripling of the company’s tax rate in the state over the past two years, he offered to remove the fee immediately if the new legislation is repealed.

DraftKings Inc. is a Boston, Massachusetts-based gambling company that offers sportsbook and daily fantasy sports (DFS) services.