In this article, we will discuss the 10 Most Profitable Growth Stocks to Buy.
On May 26, Michael Dehal, Senior Portfolio Manager at Dehal Investment Partners of Raymond James Ltd., appeared on BNN Bloomberg to discuss the outlook for the markets. The US economy currently exhibits resilience, significantly supported by robust investment led by AI. However, investors are confronting challenges such as re-accelerating inflation, rising energy prices linked to tensions in the Middle East, and the potential for interest rates to remain higher for a longer period. Dehal confirmed that the 2% growth seen in the US economy during Q1 was heavily driven by business investment, specifically AI infrastructure and investments.
He highlighted that the 26% year-over-year earnings growth observed in Q1 was largely tied to this AI build-out within tech companies, positioning AI as a current tailwind for the economy. While business spending and investment remain high, consumer spending is beginning to slow. Dehal explained that consumers are cautious and noted that recent consumer sentiment numbers in the US reached their lowest point in 3 to 4 decades. This caution stems from the ongoing war, higher prices, and increased oil and gasoline costs, which are particularly notable as the summer months approach and demand for travel and road activity typically rises. Consequently, while businesses remain somewhat upbeat, they are also exercising caution heading into the summer and the third quarter.
Dehal also observed that the S&P 500 has seen a significant rally since the March 30 lows. However, he expresses concern that the market is becoming increasingly narrow, as this rally is powered by only a handful of stocks, primarily within the tech and AI sectors. He emphasized that a broadening market is healthier, and the current narrowness is worrisome because those specific stocks could shift, potentially leading to negative market moves.
Our Methodology
We used screeners to identify stocks that have grown their revenue by at least 30% over the past 3 years, as well as reported high TTM net income (at least $500 million) and TTM net income margin (at least 15%). We then 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. The stocks are ranked in ascending order of their net income.
Note: All data was sourced on June 5.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10 Most Profitable Growth Stocks to Buy
10. Kinsale Capital Group Inc. (NYSE:KNSL)
TTM Net Income: $527 million
Kinsale Capital Group Inc. (NYSE:KNSL) is one of the most profitable growth stocks to buy. On April 29, Kinsale Capital Group announced that the company is realigning its Analytics and Technology departments under the unified leadership of Salmaan K. Allibhai, who has been promoted to Executive VP, Chief Analytics & Technology Officer. This organizational shift is designed to eliminate operational silos and better integrate data and technology strategies to drive the company’s quantitative approach to profitability and efficiency.
Concurrent with this change, Nicholas J. Kunkle has been promoted to VP, Chief Actuary to manage the Analytics and Actuarial department. These leadership updates follow the retirement of Diane Schnupp, the former Executive VP and CIO, who will remain in a consulting role to facilitate a smooth transition after 7 years of service.
CEO Michael P. Kehoe expressed gratitude for Schnupp’s contributions while noting that Allibhai’s extensive experience within the firm makes him well-suited to oversee the company’s end-to-end systems. By consolidating these critical functions, Kinsale aims to enhance its ability to harness data for faster, smarter decision-making in an evolving business environment.
Kinsale Capital Group Inc. (NYSE:KNSL) is a US specialty insurance company focused on the excess and surplus lines market, underwriting complex or hard‑to‑place commercial property and casualty risks that standard insurers avoid. It operates nationwide through independent brokers, emphasizing disciplined underwriting, proprietary technology, and strong risk selection to drive consistent profitability and growth.
9. FTAI Aviation Ltd. (NASDAQ:FTAI)
TTM Net Income: $536 million
FTAI Aviation Ltd. (NASDAQ:FTAI) is one of the most profitable growth stocks to buy. On May 22, FTAI Aviation successfully priced its inaugural asset-backed securitization, FTAI MRE 2026-1, totaling $612 million. The offering is backed by aircraft currently on lease to 23 global airlines and consists of two classes of investment-grade notes.
The transaction, which serves as a milestone for the company’s Strategic Capital vehicle, saw significant oversubscription due to strong investor demand. This success underscores FTAI Aviation Ltd.’s (NASDAQ:FTAI) leadership in the narrowbody aircraft market and its ability to integrate engine maintenance expertise with aircraft ownership.
ATLAS SP Partners and Deutsche Bank acted as joint lead bookrunners, supported by a broad group of financial institutions. The company highlighted that this initiative effectively diversifies its financing sources while strengthening its position within the capital markets.
FTAI Aviation Ltd. (NASDAQ:FTAI) is a leading provider of aviation leasing and maintenance services, specializing in CFM56 and V2500 engine aftermarket support.
