In this article, we will discuss 10 Best Growth Stocks to Buy with Low P/E Ratios.
Growth stocks remain some of Wall Street’s most sought-after investments as billionaire investors and hedge fund managers race to identify the next generation of market leaders in AI, cloud computing, software, healthcare, and digital infrastructure.
Legendary hedge fund manager Stanley Druckenmiller has repeatedly argued that the biggest stock-market winners often emerge from powerful secular growth trends where revenues and earnings compound far faster than the broader economy. Druckenmiller has aggressively invested in AI-related and semiconductor companies, believing technological revolutions can create multi-year growth supercycles.
Similarly, Peter Lynch famously emphasized investing in companies capable of sustained expansion before Wall Street fully recognizes their potential. Lynch’s growth-investing philosophy centered on identifying businesses with rapidly expanding sales, scalable business models, and strong competitive advantages. His Magellan Fund reportedly generated annualized returns of roughly 29% during his tenure.
Recent studies and market research strongly support the bullish case for growth stocks. Research highlighted by Goldman Sachs found that so-called “Rule of 10” growth companies (businesses capable of sustaining roughly 10% annual revenue growth over five years) may be poised for a major comeback as investors seek companies with durable expansion regardless of economic uncertainty.
Institutional investors are increasingly shifting toward growth-oriented strategies. A recent Bank of America survey found that global hedge-fund industry assets reached a record $5 trillion, while equity long/short hedge-fund strategies delivered approximately 18% returns in 2025.
The investment case for growth stocks is straightforward: companies with high revenue growth often benefit from scalable business models, expanding market share, pricing power, and long-term compounding.
With this context in mind, here are some of the best growth stocks to buy with low P/E ratios.
Our Methodology
We used stock screeners to identify a list of stocks with an average revenue growth rate of at least 30% over the last five years and with a forward P/E ratio below 25. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. To make the list easier to navigate, we ranked the stocks in descending order of their forward P/E ratios.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10 Best Growth Stocks to Buy with Low P/E Ratios
10. Paymentus Holdings, Inc. (NYSE:PAY)
Forward P/E Ratio: 22.92
Revenue Growth Rate: 31.72%
On May 5, Wedbush analyst Daniel Ives raised the firm’s price target on Paymentus Holdings, Inc. (NYSE:PAY) to $36 from $32 while maintaining an Outperform rating on the shares. The firm stated that Paymentus delivered first-quarter results that exceeded expectations across key metrics and also raised its fiscal 2026 guidance. Wedbush noted that the company continues to benefit from the ongoing digitization of bill payment systems, supported by increasing transaction volumes across its broad and diversified customer base.
On the same day, Baird increased its price target on Paymentus Holdings, Inc. (NYSE:PAY) to $34 from $30 while reiterating an Outperform rating on the stock. The firm updated its financial model following the company’s stronger-than-expected first-quarter performance, reflecting growing confidence in Paymentus’ operational momentum and long-term growth trajectory.
Paymentus Holdings, Inc. (NYSE:PAY) operates within the fintech and software-as-a-service (SaaS) industry, providing cloud-based electronic bill presentment and payment (EBPP) solutions that enable consumers and businesses to securely manage and pay bills through multiple digital channels. Founded in 2004, the company is headquartered in Charlotte.
9. Crexendo, Inc. (NASDAQ:CXDO)
Forward P/E Ratio: 18.73
Revenue Growth Rate: 32.99%
On May 6, Needham raised its price target on Crexendo, Inc. (NASDAQ:CXDO) to $12 from $9 while maintaining a Buy rating on the shares. The firm noted that the company delivered a particularly strong first quarter, highlighted by organic telecom services revenue growth of 18%, significantly exceeding the broader industry growth rate of 6% to 9%. According to the analyst, the outperformance was primarily driven by the addition of two major deals during the quarter. Needham also stated that Crexendo continues to gain market share across key Unified Communications as a Service (UCaaS) segments and believes demand could accelerate further if macroeconomic conditions improve.
On the same day, Eric Martinuzzi of Lake Street raised the firm’s price target on Crexendo, Inc. (NASDAQ:CXDO) to $11 from $9 while reiterating a Buy rating on the stock. The firm expressed satisfaction with the company’s first-quarter outperformance and subsequently increased its financial estimates following the earnings report.
Crexendo, Inc. (NASDAQ:CXDO) was founded in 1995 and is headquartered in Tempe. Operating within the telecommunications and software technology industry, the company provides cloud communication platform software, Unified Communications as a Service (UCaaS) solution, and managed IT services designed to deliver enterprise-grade communication infrastructure to businesses of varying sizes.
8. NVIDIA Corporation (NASDAQ:NVDA)
Forward P/E Ratio: 17.67
Revenue Growth Rate: 66.90%
On May 21, Raymond James raised its price target on NVIDIA Corporation (NASDAQ:NVDA) to $330 from $323 while maintaining a Strong Buy rating on the shares. The firm stated that Nvidia delivered stronger-than-expected first-quarter results alongside robust second-quarter guidance, driven primarily by accelerating inference-related demand and continued market share gains. Raymond James also highlighted the company’s enhanced shareholder return initiatives, including an $80 billion share repurchase authorization and a dividend increase from $0.01 to $0.25 per share.
On the same day, RBC Capital raised its price target on NVIDIA Corporation (NASDAQ:NVDA) to $270 from $250 and reiterated an Outperform rating on the stock. The firm noted that Nvidia’s quarterly results and forward outlook significantly exceeded consensus expectations, supported by sustained demand for its Blackwell platform, expected Rubin product ramp-ups in the third quarter, and growing traction for the Vera CPU platform. RBC Capital added that the company now has approximately $20 billion in revenue visibility tied to Vera, while its updated segmentation disclosures indicate increasing confidence in growth beyond hyperscale customers.
NVIDIA Corporation (NASDAQ:NVDA) operates within the technology sector and semiconductor industry, where it pioneered accelerated computing and invented the graphics processing unit (GPU). The company currently develops advanced semiconductors and full-stack software solutions powering global artificial intelligence, gaming, data center infrastructure, and autonomous vehicle technologies. Founded in April 1993, the company is headquartered in Santa Clara.
7. Legacy Education Inc. (NYSEAMERICAN:LGCY)
Forward P/E Ratio: 13.99
Revenue Growth Rate: 31.33%
On May 15, Mike Grondahl of Northland raised the firm’s price target on Legacy Education Inc. (NYSEAMERICAN:LGCY) to $14.50 from $14 while maintaining an Outperform rating on the shares. The firm revised its estimates following the company’s fiscal third-quarter earnings report. On the same day, Ladenburg also increased its price target on Legacy Education to $15.40 from $14.60 and reiterated a Buy rating on the stock.
On May 14, Legacy Education Inc. (NYSEAMERICAN:LGCY) reported third-quarter revenue of $21.4 million, exceeding consensus estimates of $20.51 million. Commenting on the results, Chief Executive Officer LeeAnn Rohmann stated that the company continues to experience strong demand for healthcare career training programs across its markets, supported by stable enrollment trends and sustained student interest. Management also emphasized its focus on disciplined execution, operational enhancements, and expanding access to workforce-aligned educational programs, while highlighting the company’s strong balance sheet and growing student population as key drivers of scale and long-term growth.
Legacy Education Inc. (NYSEAMERICAN:LGCY) operates within the education and training services industry, providing career-focused academic programs primarily in the healthcare sector. It offers a range of accredited programs designed to prepare students for healthcare and vocational careers. Founded in 2009, the company is headquartered in Lancaster.
6. KKR & Co. Inc. (NYSE:KKR)
Forward P/E Ratio: 12.83
Revenue Growth Rate: 35.78%
On May 21, KKR & Co. Inc. (NYSE:KKR) and CIRCOR International announced a definitive agreement to sell CIRCOR Aerospace to Parker Hannifin Corporation for $2.55 billion. KKR originally acquired CIRCOR for $1.8 billion in 2023 and will retain ownership of the company’s Naval and Industrial businesses. The transaction highlights KKR’s continued focus on defense modernization and supply chain resilience, while also reflecting the firm’s strategy of scaling high-value industrial assets. The deal is expected to close in the second half of 2026, subject to regulatory approvals and customary closing conditions.
On the same day, KKR & Co. Inc. (NYSE:KKR) announced an $80 million growth investment in Fresha, valuing the beauty and wellness technology platform at more than $1 billion. The investment underscores KKR’s continued focus on backing high-growth, technology-driven businesses with scalable global expansion opportunities. KKR’s capital and operational expertise are expected to support Fresha’s international growth initiatives and accelerate the development of AI-driven solutions aimed at modernizing operations across the beauty and wellness industry.
KKR & Co. Inc. (NYSE:KKR) was founded in 1976 and is headquartered in New York City. Operating within the diversified financial services and alternative asset management industry, KKR manages investments across private equity, credit, infrastructure, and real estate markets globally.
While we acknowledge the potential of KKR as an investment, 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 KKR and that has 100x upside potential, check out our report about the cheapest AI stock.
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