On August 11, Jeff Mills, Bessemer Trust CIO, joined CNBC’s ‘The Exchange’ to discuss his opinion on the markets. Mills emphasized on portfolio diversification and stated that the current situation is fundamentally different from the dot-com bubble of 2000. He explained that investors have an insatiable demand for both quality and growth, seeking out companies with high free cash flow and fast-growing earnings. Capital is consistently finding its way to these companies because they are largely insulated from typical economic cycles, which provides a sense of security in an uncertain macroeconomic environment.
Mills emphasized that the focus on quality is not limited to the tech sector; it works in every sector. He suggested that investors seeking to diversify outside of tech should look for highly profitable companies with high interest coverage ratios in sectors like discretionary and industrials. He also pointed out that investors are not buying tech indiscriminately but are instead focusing on companies with a clear strategy for executing on the AI theme. He concluded that being an active investor is now more important than ever.
That being said, we’re here with a list of the 10 best growth stocks to buy for the next 2 years.
Our Methodology
To identify the 10 best growth stocks to buy for the next 2 years, we included only those stocks that have an average expected EPS growth of at least 20% over the next 3 to 5 years, according to Wall Street estimates. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q2 2025, which was sourced from Insider Monkey’s database.
Note: All Data was Sourced on September 1.
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 for the Next 2 Years
10. Ares Management Corporation (NYSE:ARES)
EPS Forward Long Term Growth (3-5 Year CAGR): 25.07%
Number of Hedge Fund Holders: 42
Ares Management Corporation (NYSE:ARES) is one of the best growth stocks to buy for the next 2 years. On August 18, Ares Management Corporation announced the launch of Ares Core Infrastructure Fund/AUT, which is an Australian-domiciled unit trust. The new fund is designed to give wholesale and advised retail clients in Australia access to the Ares Core Infrastructure Fund/ACI, which is a US-regulated business development company.
Since its launch in 2024, ACI has grown to ~A$1.8 billion in assets under management as of July 1 this year. The fund focuses on a portfolio of operating infrastructure assets and is structured to provide enhanced transparency and quarterly liquidity to investors. This is the fourth wealth offering from Ares in Australia and New Zealand.
The company had previously introduced the Ares Private Markets Fund/AUT in December 2024, along with the Ares Global Credit Income Fund and Ares Diversified Credit Fund. Since it entered into the region in 2020, Ares has raised ~A$2.0 billion across its private wealth products.
Ares Management Corporation (NYSE:ARES) is an alternative asset manager in the US, Europe, and Asia.
9. Exelixis Inc. (NASDAQ:EXEL)
EPS Forward Long Term Growth (3-5 Year CAGR): 22.43%
Number of Hedge Fund Holders: 43
Exelixis Inc. (NASDAQ:EXEL) is one of the best growth stocks to buy for the next 2 years. On August 29, Exelixis Inc. announced the appointment of Dana T. Aftab, Ph.D., as its new Executive Vice President, Research & Development. In this role, he will oversee all aspects of the company’s drug discovery, translational research, product development, and medical affairs.
Dr. Aftab has been with Exelixis for more than 25 years, having joined the company in 1998. Most recently, he served as Executive Vice President, Discovery & Translational Research & Chief Scientific Officer since December 2022. He has been a key figure in the discovery and development of the company’s flagship medicine, CABOMETYX (cabozantinib), which is a leading tyrosine kinase inhibitor in the US for treating advanced renal cell carcinoma and advanced neuroendocrine tumors.
This appointment follows the departure of Amy Peterson, M.D., who had served as Executive Vice President, Product Development & Medical Affairs, and Chief Medical Officer since August 2023.
Exelixis Inc. (NASDAQ:EXEL) is an oncology company that discovers, develops, and commercializes new medicines for difficult-to-treat cancers in the US.
