10 Hot Growth Stocks To Buy Now

Published March 6, 2023 at 6:09 pm EST Updated August 19, 2026 at 9:32 am EDT

In this article, we take a look at the 10 hot growth stocks to buy now.

Global stock markets fell in 2022, with the S&P 500 index declining over 19.4% by year’s end. One of the main reasons for the S&P 500’s drop in 2022 was the increase in interest rates to fight inflation. However, it’s equally crucial to understand that equities rise more frequently than they fall and they usually don’t decline two years in a row. The S&P 500 increased by 4% so far in 2023.

When interest rates are low and the economy is growing, growth stocks tend to perform well. They outperformed value stocks and the S&P 500 significantly from the end of the global financial crisis until recently. However, the era of low-interest rates and increasing stock prices has come to an end. As a consequence, growth stocks suffered losses in 2022, with the S&P 500 growth index dropping around 30.1%, compared to a 7.4% decline in the value index (.IVX).

10 Hot Growth Stocks To Buy Now

Among the greatest losers in the S&P 500 growth index (.IGX), down between 28% and 66% in 2022, are Alphabet Inc. (NASDAQ:GOOG), Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), Amazon.com, Inc. (NASDAQ:AMZN), and Tesla, Inc. (NASDAQ:TSLA). Investors have turned away from growth equities and towards value stocks due to rising interest rates. The previously exorbitant values of growth companies have decreased, creating excellent buying opportunities for long-term investors who are willing to seize them.

In 2023, growth stocks have been the go-to investment, with many of them experiencing significant gains since the start of the year. These stocks are popular among investors due to their impressive returns and exceptional financial growth, which often place them in rapidly expanding sectors such as technology, e-commerce, and biotechnology. As a result, growth companies have the potential to generate substantial profits, with certain stocks showing particular promise. To capitalize on this opportunity, here are ten growth stocks that are currently hot and worth considering for purchase.

Our Methodology

Keeping all these points in mind, let’s start our list of the 10 hot growth stocks to buy now. For this article, we have picked the stocks with at least a 20% revenue growth rate over the last 12 months and sorted them by their 3 month returns. In addition, we have excluded companies smaller than $500 million in market cap and $2 million in daily trading volume.

Hot Growth Stocks To Buy Now

10. The Walt Disney Company (NYSE:DIS)

Revenue Growth Rate over Last 12 Months: 22.70%

3 months return: 11.30%

Number of Hedge Fund Holders: 112

The Walt Disney Company (NYSE:DIS) is a media and entertainment conglomerate. It creates and acquires television shows, live-action films, and animated films. Shares of the company rallied 17.45% in the last month, resulting in a 203.41 billion market capitalization. Walt Disney’s current price-to-earnings ratio (TTM) is 63.31x, based on the company’s most recent financial reports and stock price. In addition, the company’s P/E ratio was 91.1x at the end of 2021.

As part of the company’s Q4 media networks overview, Macquarie analyst Tim Nollen increased his price objective on The Walt Disney Company from $110 to $122, maintaining an Outperform rating on the stock. In addition, the firm predicted that fiscal Q2, the first quarter of results following CEO Bob Iger’s comeback, would be crucial, with a particular focus on an update on the decline in direct-to-consumer losses.

Overall, hedge funds are loading up on The Walt Disney Company, as 112 out of the 920 funds tracked by Insider Monkey held stakes in the media giant up from 109 funds a quarter earlier. Ric Dillon’s Diamond Hill Capital is the company’s biggest stakeholder, with 2.88 million shares worth $250.52 billion.

In its Q4 2022 investor letter, Madison Funds highlighted a few stocks, and The Walt Disney Company was one of them. Here is what the fund said:

“The Walt Disney Company reported a disappointing fourth quarter with revenue and earnings below consensus which was followed by the board replacing then-CEO Bob Chapek and the return of Bob Iger as CEO. Parks remained a bright spot while losses at direct-to-consumer increased and linear networks continued to be challenged by cord cutting.”

9. Performance Food Group Company (NYSE:PFGC)

Revenue Growth Rate over Last 12 Months: 59.65%

3 months return: 15.77%

Number of Hedge Fund Holders: 33

Performance Food Group Company (NYSE:PFGC) is one of North America’s top food and food-service distribution firms. PFG employs over 30,000 employees who operate in more than 150 sites around the country to supply over 300,000 national and branded food goods to over 300,000 client locations. In the third quarter, 33 hedge funds monitored by Insider Monkey were bullish on Performance Food Group Company. The stakes of these funds are valued at $607.87 million.

In 2023, PFGC stock increased marginally, from $57 to about $60 per share. Performance Food Group Company’s revenue increased 8.3% YoY to $13.89 billion in Q2 FY ’23. Furthermore, the company’s gross profit increased by 17% to $1.5 billion. Net sales increased 8.3% year on year to $13.9 billion in the second quarter of fiscal 2023. Net sales increased largely due to an increase in selling price per case as a result of inflation and channel mix.

As part of a larger research note on Restaurants resulting from the ICR Conference presentations, Truist analyst Jake Bartlett boosted his price objective on Performance Food Group Company to $75 from $72 and maintained a Buy rating on the shares on January 12. According to the analyst, the conference verified that restaurant demand is still strong. This supports his bullish outlook for equities in the restaurant and foodservice distribution sectors.

Here is what ClearBridge Investments had to say about Performance Food Group Company in its Q4 2021 investor letter:

“Performance Food Group is another example of a quality franchise bought during a depressing period for the food service industry that has flexed its balance sheet to make acquisitions of weaker players and continues to consolidate its leading market share.”

8. Salesforce, Inc. (NYSE:CRM)

Revenue Growth Rate over Last 12 Months: 21.26%

3 months return: 18.06%

Number of Hedge Fund Holders: 117

Salesforce, Inc. (NYSE:CRM) offers customer relationship management software that connects businesses and customers globally. With more than 150,000 users across 150,000 companies, Salesforce holds a 33% market share as the most popular CRM system. With 22%, Microsoft’s Dynamics platform is second, and Oracle completes the top three with 11%. According to data on Salesforce application development, the reason for Salesforce’s popularity is that it provides a variety of capabilities that are difficult to find in a single CRM program. Although Salesforce’s stock has been up 17.78% so far in 2023, it was still down a staggering 45% from its all-time high in November 2021.

Salesforce has witnessed an unprecedented revenue increase over the last decade, with revenue topping $26.49 billion for the fiscal year 2022, a 25% increase over the previous year’s period. In 2012, the company’s sales was $2.27 billion.

Although Salesforce’s growth has slowed, the situation is not as dire as the markets have suggested. Salesforce anticipates sales to increase by 17% to around $31 billion for the fiscal year 2023, which ends on January 30. In addition, Salesforce aims for $50 billion in revenue and consistent profit expansion by the fiscal year 2026. Moreover, Elliott Management, an activist investor, just acquired a sizeable investment in Salesforce. Because other activists also have stakes in the business, they’ll all urge Salesforce to increase its profitability.

At the end of Q3 2022, 117 hedge funds owned a stake in Salesforce, Inc., up from 116 in the preceding quarter. On January 30, Morgan Stanley analyst Keith Weiss maintained an Overweight rating on Salesforce and increased his price objective to $236 from $228, contending that the current valuation considerably underpriced future profitability potential.

Oakmark Funds mentioned Salesforce, Inc. in its Q3 2022 investor letter. Here’s what the firm said:

“Salesforce, Inc. has become a dominant global player in sales, customer service, commerce and marketing software over the past 20 years. The company earns 80% gross margins and grows 20% organically. Plus, virtually all of its revenue is recurring. We see Salesforce as a great business that we’ve admired from afar for a long time. More recently, the organization has made some changes at the top that prompted us to take a closer look at the stock. New CEO Bret Taylor and CFO Amy Weaver are bringing a culture of financial discipline. We believe this renewed focus on profitability and capital return, combined with Salesforce’s strong underlying business characteristics, will yield strong results. The current valuation of 3.9x next year’s revenues represents a significant discount compared to publicly traded peers and recent private market values in the software space that have similar growth profiles. We view this discount as an opportunity to invest in a great business at a good value.”

7. Airbnb, Inc. (NASDAQ:ABNB)

Revenue Growth Rate over Last 12 Months: 50.97%

3 months return: 21.89%

Number of Hedge Fund Holders: 58

Airbnb, Inc. (NASDAQ:ABNB) runs a vacation marketplace that links visitors with rental units listed by over 4 million hosts worldwide. Currently, 20% of the holiday rental market is controlled by Airbnb. In contrast to the P/E of 21.05x for the Internet – Content industry, Airbnb, Inc.’s trailing-twelve-months P/E is 49.87x.

Since its Nasdaq debut in December 2020, Airbnb stock has mesmerized and piqued the interest of investors in growth stocks. The price of ABNB stock from its initial public offering of $68 per share rose as much as 223%, reaching an all-time high of 219.94 on February 11, 2021. Airbnb, Inc. stock is undoubtedly off to a very strong start in 2023. The company shares have offered investors more than 30.39% in returns over the past month.

On January 25, Justin Post, a BofA analyst, increased his price objective on Airbnb from $125 to $130 while maintaining a Neutral rating for the stock. At the end of the third quarter of 2022, 58 hedge funds in the database of Insider Monkey held stakes worth $ 2.02 billion in Airbnb, Inc., up from 57 in the preceding quarter worth $1.79 billion. Beech Hill Partners is the company’s largest shareholder, with shares worth $1.50 billion.

In its Q2 2022 investor letter, Brick By Brick Capital highlighted a few stocks, and Airbnb, Inc. was one of them. Here is what the fund said:

What is millennial tech?

It is a term I have coined to describe the type of companies I research. It is a disruptive technology that is changing the status quo of a given industry. For example, Airbnb with the lodging industry. This definition casts a wide net in terms of what sectors I look at, but it is very specific in terms of what type of companies I look at. I also believe focusing on these companies gives me an inherent edge over Wall St. as they are often older and disconnected from what is truly innovative (…Click here to read more).”

6. Advanced Micro Devices, Inc. (NASDAQ:AMD)

Revenue Growth Rate over Last 12 Months: 43.61%

3 months return: 30.32%

Number of Hedge Fund Holders: 89

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a Santa Clara, California-based maker of industry-leading processors, graphics processing units (GPUs), and other hardware, software, and tools. Shares of this chipmaker have returned 22.28% over the past month.

In the fourth quarter, Advanced Micro Devices, Inc. reported $5.6 billion in sales, a +16% year-over-year gain largely driven by growth across the Embedded and Data Center sectors, somewhat offsetting reduced revenue in the Client and Gaming segments. This is remarkable given that all major cloud providers, including Amazon.com, Inc., Microsoft Corporation, and Alphabet Inc., have issued warnings about declining demand for their cloud services as a result of corporate budget cuts and a growing emphasis on cost-cutting.

Advanced Micro Devices, Inc. has consistently outperformed consensus EPS forecasts over the past four quarters. Over this time, the firm three times outperformed consensus sales projections. However, hyper scalers increasingly employ EPYC processors in high-performance computing since they outperform the competition in terms of performance and energy efficiency. As a result, the business is well positioned to take a sizable chunk of the supercomputer industry, which is expected to be worth $21 billion in 2026, as it powers 101 of the 500 fastest supercomputers in the world.

Based on 15 buy, 7 hold, and 0 sell opinions, the consensus rating for Advanced Micro Devices, Inc. is ‘Moderate Buy.’ At the end of the third quarter, 89 hedge funds in Insider Monkey’s database held stakes in Advanced Micro Devices, Inc., up from 87 in the preceding quarter.

Baron Funds mentioned Advanced Micro Devices, Inc. in its Q2 2022 investor letter. Here is what the fund said:

“Advanced Micro Devices, Inc. is a global fabless semiconductor company focusing on high-performance computing technology, software, and products. AMD designs leading high-performance central and graphics processing units (known as CPUs and GPUs) and integrates them with hardware and software to build differentiated solutions for customers……. (Click here to read the full text).”

5. Uber Technologies, Inc. (NYSE:UBER)

Revenue Growth Rate over Last 12 Months: 95.71%
3 months return: 33.01%
Number of Hedge Fund Holders: 142

Uber Technologies, Inc. (NYSE:UBER), a ride-sharing and food delivery firm, has great growth prospects for the upcoming year. In 2023, Uber (UBER 5.53%) may have both business areas working at full capacity. Uber has a 71% share of the ride-sharing industry in the United States as of 2022. The company shares have offered 33.54% returns to investors over the past month. Uber reported a 49% increase in revenue to $8.6 billion for the fourth quarter. With the ride-hailing mobility category seeing an even sharper 31% growth rate, gross bookings increased by 19% year over year.

The fundamentals of Uber also appeared stronger. The number of active platform users every month increased by 11% to 131 million. Over 2.1 billion journeys were made in total, up from 1.77 billion in the same time last year. Additionally, the firm now has access to the freight transportation market thanks to the acquisition of Transplace, which gave overall revenues a modest but quickly-rising boost.

After Uber’s Q4 earnings beat expectations, Goldman Sachs analyst Eric Sheridan increased his price target for the company to $47 from $45 on February 8 while maintaining a Buy rating for the shares. In addition, fund managers added to their Uber holdings in the third quarter. There were 142 hedge funds in our database that held stakes in Uber Technologies, Inc.’s at the end of the third quarter, compared to 129 funds in the third quarter. First Pacific Advisors LLC is the company’s most significant stakeholder, with 2.62 million shares worth $64.74 billion.

RiverPark Funds shared its outlook on Uber Technologies, Inc. in its Q3 2022 investor letter. Here’s what the firm said:

“Uber was our top contributor for the quarter on better-than-expected 2Q results, and 3Q EBITDA guidance that was well ahead of Street estimates. The company reported 33% Gross Bookings growth from both the continued recovery of Mobility Gross Bookings, up 55% year over year, and the continuation of Delivery Gross Bookings growth, up 7% year over year. Overall, revenue grew 105% year over year to $8 billion, generating $364 million of adjusted EBITDA, up $873 million year over year. Management guided to 25%-30% gross bookings growth and adjusted EBITDA of $440-$470 million for 3Q. Significantly, FCF was positive at $382 million, up $780 million year over year, and remains on track to be positive for the year allowing the company to self-fund future growth…..(Click to read the full text).”

4. Cloudflare, Inc. (NYSE:NET)

Revenue Growth Rate over Last 12 Months: 51.87%
3 months return: 47.25%
Number of Hedge Fund Holders: 53

Cloudflare, Inc. (NYSE:NET) offers an expanding set of application, network, and security services that help to expedite and safeguard mission-critical software and infrastructure. The company’s variety of products and services make it the ideal option for companies wishing to improve the performance, dependability, and security of their website. Many websites employ Cloudflare’s security defences against DDoS assaults and Content Delivery Network (or CDN) to guarantee quick loading times, which are crucial for SEO.

Although facing economic challenges, Cloudflare, Inc. produced a stellar third-quarter earnings report. Its client base increased by 18% to 156,000, and over the previous year, the typical consumer spent 24% more money. The result was a 47% rise in revenue to $254 million. Regarding the future, Cloudflare, Inc. is well-positioned to keep up with or even pick up speed. More than 20% of the internet uses at least one Cloudflare service, yet the business has just 1% of the $125 billion addressable market.

Cloudflare, Inc. is also getting the attention of the smart money, as 53 hedge funds tracked by Insider Monkey reported owning stakes in the company at the end of the third quarter, up from 41 funds a quarter earlier. Catherine D. Wood’s ARK Investment Management is the leading shareholder of the company with 294,962 shares of Cloudflare, Inc., worth over $13.34 billion.

Here is what Baron Funds had to say about Cloudflare, Inc. in its third-quarter 2022 investor letter:

“We continued to build our position in Cloudflare, Inc. during the quarter as the shares declined with the overall software space and the long-term risk/ reward balance became more compelling. The company reported a strong second quarter, with revenue growth accelerating to 54%, as well as better gross and operating margins. Third quarter guidance was also ahead of Wall Street expectations …… (Click here to read the full text).”

3. Li Auto Inc. (NASDAQ:LI)

Revenue Growth Rate over Last 12 Months: 86.29%
3 months return: 47.40%
Number of Hedge Fund Holders: 20

Li Auto Inc. (NASDAQ:LI) creates, develops, produces, and distributes premium smart electric SUVs. It offers families safe, convenient, and cost-effective mobility alternatives. Li Auto, which began mass production in November 2019, has so far given out 257,334 automobiles. That is a great lift for a new electric vehicle startup. Annual deliveries at Li Auto Inc. increased by 47% in 2022. The six-seat Li L8 and the six-seat Li L9 luxury SUVs sold more than 10,000 units each in December.

Li Auto recorded monthly deliveries of 15,141 automobiles in January 2023, increasing 23.4% year over year, indicating overall strength. By the end of January, there had been 272,475 total deliveries. By the end of January, there had been 272,475 total deliveries. Li Auto is investing significantly in technology to make its SUVs more appealing to the luxury market. It wants to stand out from rivals by delivering something different. Li Auto intends to introduce three new products in 2023, including flagship models with longer ranges built on the brand-new high-voltage platform for pure battery electric vehicles (BEVs). The initial medium-sized car is anticipated to cost between 200,000 and 300,000 RMB (29,700-44,600 USD).

On February 9, Citi analyst Jeff Chung maintained a Buy rating on the shares while increasing his price objective on Li Auto to $51.50 from $48. In addition, the analyst increased Citi’s 2023 sales prediction from 210,000 to 235,000 units in response to recent new product introductions. At the end of Q3 2022, 20 hedge funds owned a stake in Li Auto Inc., down from 28 in the preceding quarter.

2. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Revenue Growth Rate over Last 12 Months: 42.61%
3 months return: 50.22%
Number of Hedge Fund Holders: 87

The chipmaking company, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), has generated 16.11% returns in the past month. Comparing the 14.06x P/E ratio of TSM to the significantly larger multiples of its peer group, this ratio is appealing. Nvidia is trading at 57.96x, while Advanced Micro Devices is trading at 101.85x.

Taiwan Semiconductor Manufacturing Company Limited is diversifying and boosting production internationally to ease worries about future supply-chain challenges and the geopolitical danger from China’s invasion of Taiwan. For instance, Taiwan Semiconductor Manufacturing Company Limited is doubling, or more than tripling, the amount it will invest in its new manufacturing in Arizona. Once fully operational, it is projected that the new chip factory will generate $10 billion in revenue.

Based on 5 buy ratings, 1 hold rating, and 0 sell ratings, Taiwan Semiconductor Manufacturing Company Limited has a consensus rating of ‘Strong Buy.’ At the end of Q3 2022, 87 hedge funds held stakes in Taiwan Semiconductor Manufacturing Company Limited. The total value of these stakes was estimated at $13.24 billion. As of December 31, Cantillon Capital Management is the dominant investor in the company and has a position worth $242.11 billion.

Here is what Baron Funds had to say about Taiwan Semiconductor Manufacturing Company Limited in its third-quarter 2022 investor letter:

“Semiconductor giant Taiwan Semiconductor Manufacturing Company Limited detracted from performance due to the global macroeconomic slowdown and softening demand for consumer electronics. We retain conviction that Taiwan Semi’s technological leadership, pricing power, and exposure to secular growth markets, including high-performance computing, automotive, and IoT, will allow the company to deliver strong revenue growth over the next several years.”

1. Shopify Inc. (NYSE:SHOP)

Revenue Growth Rate over Last 12 Months: 24.59%
3 months returns: 51.34%
Number of Hedge Fund Holders: 62

Shopify Inc. (NYSE:SHOP), an e-commerce company, is also on our list of the top 10 hot growth stocks to buy. The company’s stock has risen dramatically in 2023. Shares of the company have returned 36% in the last month, compared to 4.14% for the S&P 500 composite. Shopify Inc. recorded revenues of $1.37 billion in the third quarter, a year-over-year increase of +21.6%. EPS of -$0.02 for the same period surpassed expectations by $0.05. Shopify has outperformed consensus earnings per share projections twice in the previous four quarters. During this time, the firm exceeded consensus sales projections twice.

Even if increasing profits are probably the strongest indicator of a company’s financial health, nothing happens in the traditional sense if a business cannot increase sales. For this reason, understanding a company’s potential for revenue growth is essential. On February 15, Shopify Inc. is scheduled to release its Q4 FY22 earnings. For Shopify, the average sales forecast of $1.64 billion for the upcoming quarter indicates an increase of +18.9% from the same period last year. In addition, estimates of $5.51 billion and $6.62 billion for the current and following fiscal years show changes of +19.5% and +20.2%.

Based on 9 buy recommendations, 13 hold ratings, and 2 sell ratings, Shopify Inc. has a consensus rating of ‘Moderate Buy.’ The company is also getting the attention of the smart money, as 62 hedge funds tracked by Insider Monkey reported owning stakes in the company at the end of the third quarter, up from 60 funds a quarter earlier. ARK Investment Management is the leading shareholder of Shopify Inc., with a stake worth over $460.92 billion.

Artisan Partners, an investment management company, mentioned Shopify Inc. in its third-quarter 2022 investor letter. Here is what the fund said:

“Shopify Inc. is a leading e-commerce platform supporting over 2 million merchants with software, online storefronts and payments technology. Like Uber, Shopify returned to mid-cap territory during Q2 as the company’s profit cycle and share price have faced significant pressure. Earlier this year, the company began a phase of investments to support a range of future growth drivers, including Shopify Plus for larger brands, logistics services, international expansion, point-of-sale payments and social media-based commerce. With high inflation putting pressure on consumer spending, and with e-commerce activity normalizing after a massive pandemic spike, Shopify’s earnings have fallen sharply. While we have outstanding questions about the likelihood of success for the company’s capital-intensive logistics investments, we decided to take advantage of the stock’s >75% YTD decline and initiate a GardenSM position at a deep discount to our PMV estimate. Our thesis is predicated on our belief there is still a long runway for commerce to move online, and Shopify is well-positioned to win share of this market. The company has created an ecosystem of products (payment processing, financing, shipping, customer engagement tools, etc.), partners (TikTok, Google, Meta), sales channels and over 6,000 apps to help its merchants sell online and establish direct relationships with customers.”