On Wednesday, August 13, stocks went up and continued their recent strong trend. Investors expect the US Federal Reserve to lower interest rates, which is driving the major indexes to new record highs.
The Dow Jones Industrial Average rose by 1.04%. The S&P 500 went up 0.32%, and the Nasdaq Composite gained 0.14%. Both the S&P 500 and Nasdaq Composite reached new record closing highs for the second day in a row.
According to trading data from the CME’s FedWatch Tool, traders believe there is almost a 100% chance that the Federal Reserve will cut rates at its September meeting.
Ross Mayfield, investment strategist at Baird, noted that strong earnings reports from companies in the second quarter are also helping the market. Although the speed of earnings reports has slowed down these past few days, many big retail companies are set to report their earnings next week.
With this background in mind, let’s take a look at the 11 best revenue growth stocks to buy now.
A portfolio manager studying various stocks and other securities on a tablet.
Our Methodology
To compile our list of the 11 best revenue growth stocks to buy now, we looked for companies with a compound annual growth rate (CAGR) in revenue exceeding 25% over the past 5 years. To ensure the reliability of our findings, we consulted Seeking Alpha to confirm the 5-year revenue growth rate for each company. Next, we focused on the top revenue growth stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q1 2025 database of 1,000 elite hedge funds. Finally, the 11 best revenue growth stocks to buy now were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q1 2025.
Why do we care about what hedge funds do? 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).
11 Best Revenue Growth Stocks to Buy Now
11. PDD Holdings Inc. (NASDAQ:PDD)
5-Year Revenue CAGR: 65.80%
Number of Hedge Fund Holders: 87
PDD Holdings Inc. (NASDAQ:PDD) is one of the best revenue growth stocks to buy now. On August 8, Temu, PDD Holdings Inc.’s (NASDAQ:PDD) fast-growing global e-commerce platform, announced a new partnership with the FITI Testing & Research Institute as part of its ongoing efforts to improve product quality oversight. Temu operates in over 90 markets around the world.
Temu signed a memorandum of understanding (MOU) with the FITI Testing & Research Institute. FITI will provide third-party testing services for the textile and clothing products sold on Temu. This means that an independent organization will help ensure compliance with technical standards and support sellers in improving the consistency and reliability of their products.
This partnership adds an extra layer to Temu’s existing quality assurance framework.
FITI joins a growing group of global testing and certification partners that work with Temu to help confirm products sold on the platform meet certain safety and regulatory standards.
PDD Holdings Inc. (NASDAQ:PDD), formerly Pinduoduo Inc., is a multinational commerce group best known for its e-commerce platforms, Pinduoduo and Temu.
10. KKR & Co. Inc. (NYSE:KKR)
5-Year Revenue CAGR: 74.93%
Number of Hedge Fund Holders: 88
KKR & Co. Inc. (NYSE:KKR) is one of the best revenue growth stocks to buy now. On July 30, KKR & Co. Inc. (NYSE:KKR) announced that it has completed its acquisition of a majority ownership stake in HealthCare Royalty Partners (HCRx), which is a middle-market biopharma royalty acquisition company.
This deal will help KKR & Co. Inc. (NYSE:KKR) enhance its capabilities in biopharma royalty and credit investing. It will also add about $3 billion to the company’s assets under management.
HCRx’s team and KKR’s health care team will work together closely to offer a range of financing solutions across the biopharma sector.
KKR & Co. Inc. (NYSE:KKR) has a long history of supporting health care companies around the world. Since 2004, the company has invested over $20 billion of equity capital in the sector.
KKR & Co. Inc. (NYSE:KKR) is a global investment firm focused on alternative asset management, capital markets, and insurance solutions.
9. Carvana Co. (NYSE:CVNA)
5-Year Revenue CAGR: 29.81%
Number of Hedge Fund Holders: 90
Carvana Co. (NYSE:CVNA) is one of the best revenue growth stocks to buy now. On July 31, JPMorgan increased the price target for Carvana Co. (NYSE:CVNA) from $350 to $415 while keeping an Overweight rating.
This decision came after the company reported Q2 2025 results, which JPMorgan said were “well ahead of expectations.” Carvana Co. (NYSE:CVNA) reported an adjusted EBITDA of $601 million, which was above the firm’s estimate of $530 million and the consensus estimate.
Carvana Co. (NYSE:CVNA) sold more than 143,000 retail units in Q2 2025, which is a year-over-year increase of 41%. JPMorgan pointed out that this growth was about 35 percentage points higher than the industry average.
Due to this strong Q2 performance, the firm increased its EBITDA estimates for Carvana Co. (NYSE:CVNA) to $2,245 million for 2025 and $2,975 million for 2026.
Carvana Co. (NYSE:CVNA) operates a platform for buying and selling used cars. It allows customers to browse, research, and purchase vehicles online. The company offers services like financing, trade-ins, and delivery.
8. Snowflake Inc. (NYSE:SNOW)
5-Year Revenue CAGR: 63.38%
Number of Hedge Fund Holders: 94
Snowflake Inc. (NYSE:SNOW) is one of the best revenue growth stocks to buy now. On July 18, Citizens JMP increased the price target for Snowflake Inc. (NYSE:SNOW) from $245 to $260 while maintaining an Outperform.
The analyst told investors in a research note that private company checks by Citizens JMP showed that Snowflake Inc.’s (NYSE:SNOW) performance improved from the first quarter to the second quarter.
Citizens JMP asked 13 customers about their future spending plans over the next 12-18 months. Out of these, 12 said they expect to increase their spending.
With the new price target of $260 for Snowflake Inc. (NYSE:SNOW), Citizens JMP implies a calendar year 2026 estimated enterprise value to revenue multiple of 16.3 times, which is higher than the previous estimate of 15.3 times.
The firm noted that this valuation represents a significant premium to the company’s peer group. According to Citizens JMP, this premium is justified because Snowflake Inc. (NYSE:SNOW) has a large total addressable market and a strong leadership team.
Snowflake Inc. (NYSE:SNOW) is an American cloud-based data platform company. It offers an AI Data Cloud platform, which enables thousands of organizations to build, use, and share data, applications, and AI.
7. AppLovin Corporation (NASDAQ:APP)
5-Year Revenue CAGR: 36.49%
Number of Hedge Fund Holders: 96
AppLovin Corporation (NASDAQ:APP) is one of the best revenue growth stocks to buy now. On August 7, BTIG increased its price target for AppLovin Corporation (NASDAQ:APP) from $483 to $547 while keeping a Buy rating.
This decision came after AppLovin Corporation (NASDAQ:APP) reported Q2 2025 results, which were slightly better than BTIG’s expectations and in line with market consensus.
However, the firm noted that the more important news was the confirmation of the launch and expansion date for AppLovin Corporation’s (NASDAQ:APP) self-serve advertising tool, called AXON Ads Manager.
BTIG noted that the company is launching AXON Ads Manager during the seasonally strongest quarter, when about 45% of annual advertising budgets are deployed. Additionally, AppLovin Corporation (NASDAQ:APP) is growing its marketing customers through a referral program and expanding into new international markets.
The firm also pointed out that AppLovin Corporation (NASDAQ:APP) has started to explore non-gaming supply partnerships, which could increase supply starting in the first half of 2026.
AppLovin Corporation (NASDAQ:APP) is an American technology company that provides end-to-end software and AI solutions for businesses of all sizes to reach, monetize, and grow their global audiences.
6. Advanced Micro Devices, Inc. (NASDAQ:AMD)
5-Year Revenue CAGR: 31.09%
Number of Hedge Fund Holders: 97
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the best revenue growth stocks to buy now. On August 6, UBS reaffirmed its Buy rating for Advanced Micro Devices, Inc. (NASDAQ:AMD) with a price target of $210.
This decision came after Advanced Micro Devices, Inc. (NASDAQ:AMD) reported results for the second quarter of 2025, which showed revenue beat and guidance above consensus.
UBS analyst Timothy Acuri pointed out that while Advanced Micro Devices, Inc. (NASDAQ:AMD) beat revenue expectations and gave guidance above consensus, the results were mostly in line with investor expectations heading into the announcement.
The revenue beat was mainly supported by the gaming segment. In the second half of the year, the company’s data center GPU business is expected to deliver a strong performance.
Even though hyperscaler capital expenditure increased, Advanced Micro Devices, Inc. (NASDAQ:AMD) did not increase its full-year forecast for its data center GPU business. However, UBS noted that excluding sales in China, the company’s data center GPU business is growing at a rate similar to NVIDIA Corporation’s (NVDA) in the second half of 2025.
Additionally, UBS is optimistic about Advanced Micro Devices, Inc.’s (NASDAQ:AMD) market share growth potential in both server and desktop CPU segments. These segments make up about 35% of the company’s revenue and accretive to margins. UBS noted the outlook in these areas is especially strong because Intel Corporation (INTC) continues to face challenges.
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company that specializes in graphics processing units (GPUs), microprocessors, and high-performance computing solutions. The company serves a range of high-growth industries like gaming, data centers, and AI.
5. Flutter Entertainment plc (NYSE:FLUT)
5-Year Revenue CAGR: 32.55%
Number of Hedge Fund Holders: 100
Flutter Entertainment plc (NYSE:FLUT) is one of the best revenue growth stocks to buy now. On August 8, Bernstein SocGen Group increased its price target for Flutter Entertainment plc (NYSE:FLUT) from $325 to $340 while keeping a Market Perform rating.
This decision to increase the price target came after Flutter Entertainment plc (NYSE:FLUT) reported its Q2 2025 results, which the research firm said delivered a “clean beat, clean raise.” FanDuel continues to be a key driver of growth for the company.
Bernstein pointed out that Flutter Entertainment plc (NYSE:FLUT) has shown that it can grow its platform even as sales and marketing intensity normalizes. Additionally, the company managed to absorb regulatory challenges without disrupting its broader profit and loss outlook.
Flutter Entertainment plc (NYSE:FLUT) is the parent company of some of the biggest and most popular sports betting and iGaming brands in the world. It operates FanDuel, Sky Betting & Gaming, Sportsbet, PokerStars, Paddy Power, Sisal, tombola, Betfair, TVG, Junglee Games, and Adjarabet.
4. Tesla, Inc. (NASDAQ:TSLA)
5-Year Revenue CAGR: 29.25%
Number of Hedge Fund Holders: 104
Tesla, Inc. (NASDAQ:TSLA) is one of the best revenue growth stocks to buy now. On July 24, TD Cowen increased its price target for Tesla, Inc. (NASDAQ:TSLA) from $330 to $374 while keeping a Buy rating.
This decision came after the company reported Q2 2025 results, which TD Cowen said were mostly solid and in line with expectations.
Although Tesla, Inc.’s (NASDAQ:TSLA) management gave cautious comments about the company’s near-term earnings, TD Cowen pointed out that this was not surprising.
The firm highlighted that Tesla, Inc.’s (NASDAQ:TSLA) recent progress in autonomous vehicle technology and other upcoming catalysts are “too significant to ignore.” According to TD Cowen, these factors outweigh the near-term earnings challenges, which are already “well-recognized” by the market.
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that is known for its electric vehicles and energy generation and storage systems. The company leverages advanced AI in its autonomous driving technology and robotics initiatives.
3. MercadoLibre, Inc. (NASDAQ:MELI)
5-Year Revenue CAGR: 53.72%
Number of Hedge Fund Holders: 108
MercadoLibre, Inc. (NASDAQ:MELI) is one of the best revenue growth stocks to buy now. On August 7, JPMorgan increased its price target for MercadoLibre, Inc. (NASDAQ:MELI) from $2,600 to $2,700 while keeping a Neutral rating.
This decision came after the company reported its results for the second quarter of 2025. JPMorgan modestly raised its estimates for the company’s gross merchandise volume (GMV) because of higher growth projections in Brazil and Mexico.
Despite the increased GMV forecast, JPMorgan lowered its estimates for MercadoLibre, Inc.’s (NASDAQ:MELI) profitability. The firm highlighted new shipping policies in Brazil and tougher competition in the market.
JPMorgan analyst Marcelo Santos said that the company is “entering a phase of higher competition following two years of relatively calm markets in Brazil.” This stronger competition could impact future margins.
MercadoLibre, Inc. (NASDAQ:MELI) is the leading e-commerce and financial technology company in Latin America. The company has a presence in 18 countries.
2. Uber Technologies, Inc. (NYSE:UBER)
5-Year Revenue CAGR: 31.81%
Number of Hedge Fund Holders: 145
Uber Technologies, Inc. (NYSE:UBER) is one of the best revenue growth stocks to buy now. On August 7, RBC Capital increased its price target for Uber Technologies, Inc. (NYSE:UBER) from $94 to $100 and kept an Outperform rating.
RBC analysts were positive about the company’s Q2 2025 results and highlighted key performance indicators in both the Mobility and Delivery segments. RBC also noted that Uber Technologies, Inc.’s (NYSE:UBER) competitive position in the US ride-hailing market has improved compared to the previous quarter.
The firm highlighted that Uber Technologies, Inc. (NYSE:UBER) is using autonomous vehicles (AVs) more strongly, with comments from partners supporting the idea that the company is gaining an advantage in the AV space.
RBC also slightly increased its estimates for Uber Technologies, Inc. (NYSE:UBER) and highlighted the company’s newly authorized $20 billion share buyback program as an indication that management is confident in the company’s future prospects.
Uber Technologies, Inc. (NYSE:UBER) is a global transportation technology company that focuses on ride-hailing, courier services, food delivery, and freight transport.
1. NVIDIA Corporation (NASDAQ:NVDA)
5-Year Revenue CAGR: 66.01%
Number of Hedge Fund Holders: 212
NVIDIA Corporation (NASDAQ:NVDA) is one of the best revenue growth stocks to buy now. On July 15, William Blair reiterated an Outperform rating on NVIDIA Corporation (NASDAQ:NVDA) while noting that the company could see potential earnings upside from renewed access to the China market.
William Blair sees an opportunity for NVIDIA Corporation (NASDAQ:NVDA) to increase its EPS for fiscal year 2026 by an additional $0.30. This is based on the idea that the company will see about $20 billion in revenue from China for the full year.
In the first quarter, NVIDIA Corporation (NASDAQ:NVDA) made $5.5 billion in revenue from the China market. William Blair expects another $14.5 billion in revenue from China, concentrated in the second half of fiscal 2026.
The investment firm also highlighted potential gross margin tailwinds in the second half as NVIDIA Corporation (NASDAQ:NVDA) might sell H20 chips that were previously written off with a low cost of goods sold. This could help the company achieve its target of a mid-70% gross margin on a non-GAAP basis.
NVIDIA Corporation (NASDAQ:NVDA) is an American multinational technology company that is known for its graphics processing units (GPUs), AI hardware and software, and high-performance computing (HPC) solutions.
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