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.
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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.