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.
8. Gilead Sciences Inc. (NASDAQ:GILD)
EPS Forward Long Term Growth (3-5 Year CAGR): 21.97%
Number of Hedge Fund Holders: 71
Gilead Sciences Inc. (NASDAQ:GILD) is one of the best growth stocks to buy for the next 2 years. On August 22, Gilead Sciences, through its subsidiary Kite, announced its acquisition of Interius BioTherapeutics, which is a specialist in in vivo cell therapy, for $350 million in cash.
The acquisition will integrate Interius’s in vivo platform into Kite’s existing cell therapy framework to develop a new approach to CAR T-cell therapy where the cells are generated directly inside the patient’s body through a single intravenous infusion. This eliminates the need for the traditional ex vivo process, as well as the need for preconditioning chemotherapy.
Gilead’s acquisition of Interius aims to build upon its two existing FDA-approved CAR T-cell therapies, Yescarta (axicabtagene ciloleucel) and Tecartus (brexucabtagene autoleucel), which are used for certain types of blood cancer. Interius was spun out of the University of Pennsylvania and was the first biotech to advance an in vivo CAR T-cell therapy into a clinical trial.
Gilead Sciences Inc. (NASDAQ:GILD) is a biopharmaceutical company that discovers, develops, and commercializes medicines in the areas of unmet medical need in the US, Europe, and internationally.
7. Blackstone Inc. (NYSE:BX)
EPS Forward Long Term Growth (3-5 Year CAGR): 24.64%
Number of Hedge Fund Holders: 72
Blackstone Inc. (NYSE:BX) is one of the best growth stocks to buy for the next 2 years. On August 21, Blackstone’s energy-focused arm, called Blackstone Energy Transition Partners, announced a definitive agreement to acquire Shermco Industries for ~$1.6 billion, including debt. The acquisition is the 12th investment from the firm’s latest energy transition fund and aligns with Blackstone’s strategy to invest in businesses that support the increasing electrification of the economy and the reliability of the power grid.
Shermco, which was founded in 1974 and is based in Irving, Texas, is one of North America’s largest electrical testing and maintenance firms, employing over 600 NETA-certified technicians and 200 engineers across more than 40 locations in the US and Canada. The company provides services to critical sectors such as data centers, utilities, and commercial and industrial markets.
The deal follows a series of other strategic moves by Blackstone in the energy transition space. Earlier in August, the firm announced an over $6 billion acquisition of energy analytics platform Enverus. Other recent acquisitions by Blackstone include Potomac Energy Center, Sediver, Westwood, and Trystar. These investments are part of a broader, diversified portfolio that Blackstone believes will be resilient through the ongoing energy transition.
Blackstone Inc. (NYSE:BX) is an alternative asset management firm specializing in private equity, real estate, hedge fund solutions, credit, secondary funds of funds, public debt, equity, and multi-asset class strategies.
6. Amphenol Corporation (NYSE:APH)
EPS Forward Long Term Growth (3-5 Year CAGR): 26.21%
Number of Hedge Fund Holders: 81
Amphenol Corporation (NYSE:APH) is one of the best growth stocks to buy for the next 2 years. On August 19, Baird raised the firm’s price target on Amphenol to $127 from $118, while maintaining an Outperform rating on the shares. Before this announcement, the company also announced record-breaking results for Q2 2025.
Sales reached $5.7 billion, which was a 57% increase year-over-year. This was attributed to strong organic growth across all its end markets, with a notable contribution from the IT datacom sector, and strategic acquisitions. The company’s profitability also saw significant gains. GAAP diluted EPS increased by 110% to $0.86, while adjusted diluted EPS rose by 84% to $0.81.
Amphenol generated $1.4 billion in operating cash flow and $1.1 billion in free cash flow, and it returned ~$360 million to shareholders through dividends and stock repurchases. During the quarter, the company also completed the acquisition of Narda-MITEQ, which designs and manufactures advanced radiofrequency and microwave components, complementing Amphenol’s offerings in the defense market.
Amphenol Corporation (NYSE:APH) designs, manufactures, and markets electrical, electronic, and fiber optic connectors in the US, China, and internationally. It has 3 segments: Harsh Environment Solutions, Communications Solutions, and Interconnect & Sensor Systems.
5. Vertiv Holdings Co. (NYSE:VRT)
EPS Forward Long Term Growth (3-5 Year CAGR): 28.63%
Number of Hedge Fund Holders: 104
Vertiv Holdings Co. (NYSE:VRT) is one of the best growth stocks to buy for the next 2 years. On August 26, Vertiv Holdings Co. announced the acquisition of Waylay NV. Waylay was founded in 2014 and is based in Belgium. It is a leader in hyperautomation and GenAI software platforms. The acquisition is part of Vertiv’s strategy to invest in AI-driven monitoring and control technologies for its power and cooling systems to help customers increase uptime and optimize energy usage.
The integration of Waylay’s technology is expected to strengthen Vertiv’s ability to provide intelligent, adaptive infrastructure for high-density, high-performance computing environments, which are essential for the growing demand from AI workloads. Waylay’s software can analyze real-time machine data, identify operational trends, and suggest predictive actions to minimize downtime and improve system performance.
According to Vertiv’s CEO, Giordano Albertazzi, this acquisition will accelerate the company’s vision of intelligent infrastructure that is “data-driven, proactive, and optimized for the world’s most demanding environments.”
Vertiv Holdings Co. (NYSE:VRT) designs, manufactures, and services critical digital infrastructure technologies & life cycle services for data centers, communication networks, and commercial & industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa
4. AppLovin Corporation (NASDAQ:APP)
EPS Forward Long Term Growth (3-5 Year CAGR): 53.40%
Number of Hedge Fund Holders: 109
AppLovin Corporation (NASDAQ:APP) is one of the best growth stocks to buy for the next 2 years. On August 28, Scotiabank raised the firm’s price target on AppLovin to $575 from $450, while maintaining an Outperform rating on the shares. The firm expects to see margin improvements as management optimizes its cost structure in the long term.
Prior to this, AppLovin Corporation reported a revenue of $1.259 billion, which was a 77% increase compared to the $711 million reported in the same quarter of 2024. For the first 6 months of 2025, revenue was $2.418 billion, which was a 74% increase from the $1.389 billion in H1 2024. The company’s net income saw an increase of 164% year-over-year, reaching $820 million, up from $310 million in Q2 2024.
During Q2 2025, AppLovin completed the sale of its Apps business to Tripledot Studios for $400 million in cash and a 20% equity stake in Tripledot. The company also demonstrated strong cash flow and shareholder returns, with net cash from operating activities reaching $772 million and free cash flow at $768 million for the quarter.
AppLovin Corporation (NASDAQ:APP) engages in building a software-based platform for advertisers to enhance the marketing and monetization of their content in the US and internationally. It operates through 2 segments: Advertising and Apps.
3. Tesla Inc. (NASDAQ:TSLA)
EPS Forward Long Term Growth (3-5 Year CAGR): 20.23%
Number of Hedge Fund Holders: 115
Tesla Inc. (NASDAQ:TSLA) is one of the best growth stocks to buy for the next 2 years. On September 2, Tesla began delivering its China-built, six-seat Model Y L to customers in China. This is the first Tesla product specifically designed for families in the Chinese market.
The Model Y L, with a starting price of 339,000 yuan (~$47,446), has a length of 4,997 mm, a width of 1,920 mm, and a height of 1,668 mm, with a wheelbase of 3,040 mm. It has a range of 751 kilometers (467 miles) on a single charge and can accelerate from 0 to 62 mph in 4.5 seconds, with a top speed of 125 mph. This is in contrast to the standard, five-seat Model Y, which is smaller with a length of 4,797 mm, a width of 2,129 mm, a height of 1,624 mm, and a wheelbase of 2,890 mm.
The launch comes as Tesla faces increasing competition from local EV startups like Xpeng, Nio, and Xiaomi. According to the China Passenger Car Association, shipments from Tesla’s Shanghai plant fell 14% year-over-year to ~432,000 units in the first 7 months of 2025. Tesla also cut the price of its long-range rear-wheel-drive Model 3 variant by 10,000 yuan (~$1,400) on September 1. The variant was initially priced at $37,747 when it went on sale on August 12 and now sells for $36,347.
Tesla Inc. (NASDAQ:TSLA) designs, develops, manufactures, leases, and sells EVs, and energy generation & storage systems in the US, China, and internationally.
2. MercadoLibre Inc. (NASDAQ:MELI)
EPS Forward Long Term Growth (3-5 Year CAGR): 31.66%
Number of Hedge Fund Holders: 116
MercadoLibre Inc. (NASDAQ:MELI) is one of the best growth stocks to buy for the next 2 years. On August 18, Citi lowered the firm’s price target on MercadoLibre to $2,850 from $2,900, while keeping a Buy rating on the shares. Before this announcement, the company also announced its Q2 2205 earnings report, which demonstrated record-breaking growth in both its commerce and fintech segments.
The company’s revenue increased by over 30% year-on-year, and it achieved a record income from operations of $825 million. This growth was supported by a strategic decision to lower the free shipping threshold in Brazil, which successfully attracted new users, boosted engagement, and accelerated Gross Merchandise Volume/GMV growth.
MercadoLibre’s advertising business demonstrated significant momentum, with revenue growing by 38% year-on-year. The company’s fintech arm, Mercado Pago, also saw robust performance. Its monthly active users reached 68 million, and the credit portfolio surpassed $9.3 billion, a remarkable 91% year-on-year increase.
MercadoLibre Inc. (NASDAQ:MELI) operates online commerce platforms in Brazil, Mexico, Argentina, and internationally. The company operates an online commerce platform called Mercado Libre Marketplace and a financial technology solution platform called Mercado Pago.
1. Eli Lilly and Company (NYSE:LLY)
EPS Forward Long Term Growth (3-5 Year CAGR): 33.56%
Number of Hedge Fund Holders: 119
Eli Lilly and Company (NYSE:LLY) is one of the best growth stocks to buy for the next 2 years. On August 27, Eli Lilly and Company announced that its drug, Verzenio (abemaciclib), combined with endocrine therapy/ET, significantly improved overall survival/OS in patients with hormone receptor-positive/HR+, HER2-negative, high-risk early breast cancer.
The results came from the primary OS analysis of the Phase 3 monarchE trial, which enrolled 5,637 adults across 38 countries. The study specifically focused on a high-risk population. The trial found that a 2-year course of Verzenio plus ET provided a statistically significant and clinically meaningful improvement in OS compared to ET alone.
A 7-year landmark analysis also showed sustained benefits in invasive disease-free survival/IDFS and distant relapse-free survival/DRFS, reinforcing the drug’s effectiveness. The safety profile of Verzenio remained consistent with previous reports, with all patients having completed or discontinued the two-year treatment regimen.
Eli Lilly and Company (NYSE:LLY) discovers, develops, and markets human pharmaceuticals in the US, Europe, China, Japan, and internationally.
While we acknowledge the potential of LLY 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 LLY and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
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