On July 9, Chris Hyzy, CIO at Merrill and Bank of America Private Bank, appeared on CNBC to suggest that the markets are in a wait-and-see phase, but rising profits are expected to drive future upside. He explained that investors are currently constantly surveying their surroundings for confirmation of the current bullish market trend that has been in place since the April lows. This search for confirmation encompasses everything from economic data to market internals. However, when such confirmation fails to materialize, the wedge is removed from the market, leading to an upward trend in trading. Despite the recent and potential tariff implementations, Hyzy anticipates profit revisions to continue rising and noted that the US is currently leading in profit revisions. While the profit cycle has stalled out for now, it remains positive. He also highlighted that most investors will begin to discount 2026 earnings by the fall. Regarding the Fed, he confirmed that it is currently in holding mode. Still, he expects a little bit more dovish speak soon due to emerging soft patch signs in the economy, which could become evident before the September and October jobs reports.
Given the expectation of increased dovishness from the Fed, the analyst was queried about his view on cyclical sectors, specifically industrials, financial, and small caps. He emphasized that diversification will be a theme in the coming years, extending to international markets relative to the US. He advocated for a diversified portfolio across company size, geography, and investment style, as well as considering rotation within the market. While he believes some beaten-down cyclicals offer value, he maintained that cyclical growth areas like financials, industrials, and even the tech sector are expected to continue leading the market. He addressed consumer discretionary, acknowledging recent pressure due to concerns over consumer spending, but viewed this as a temporary stalled-out period that will resume growth. For small caps, he admitted his firm had been on the wrong side slightly, having raised them to a slight overweight over a year ago. While this overweight remains tiny, he anticipates the long-standing valuation gap in small caps to narrow. However, he stressed that the rotation towards high-quality, large-cap stocks within the market is just getting going.
That being said, we’re here with a list of the 12 best growth stocks to buy and hold for 3 years.
Photo by Roberto Júnior on Unsplash
Our Methodology
We sifted through the Finviz stock screener and financial media reports to compile a list of the top growth stocks to buy and hold for the next 3 years. We then selected 13 stocks with a 3-year revenue CAGR of over 15%. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q1 2025.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12 Best Growth Stocks to Buy and Hold For 3 Years
12. CrowdStrike Holdings Inc. (NASDAQ:CRWD)
3-Year Revenue CAGR: 36.21%
Number of Hedge Fund Holders: 64
CrowdStrike Holdings Inc. (NASDAQ:CRWD) is one of the best growth stocks to buy and hold for 3 years. On July 24, Jefferies increased its price target for CrowdStrike to $530 from $520 and reiterated a Buy rating on the shares. The firm expects cybersecurity spending to continue, while maintaining a consistent percentage of software budgets in the coming years due to the increasing importance of the security sector.
In FQ1 2026, the company reported a net new ARR of $194 million and an ending ARR of $4.44 billion, which showed a 22% year-over-year increase. The company reported a subscription gross margin of 80%, a robust gross retention rate of 97%, and free cash flow of $279.4 million, which is 25% of revenue.
Total revenue reached $1.10 billion, which was up 20% year-over-year, with subscription revenue at $1.05 billion (also up 20% year-over-year) and professional service revenue at $52.7 million. However, there is a temporary divergence between ARR and subscription revenue due to the Customer Commitment Program/CCP, which is expected to have a near-term impact of $10 million to $15 million on subscription revenue per quarter.
CrowdStrike Holdings Inc. (NASDAQ:CRWD) provides cybersecurity solutions internationally. Its unified platform provides cloud-delivered protection of endpoints, cloud workloads, identity, and data through a SaaS subscription-based model.
11. Toast Inc. (NYSE:TOST)
3-Year Revenue CAGR: 38.68%
Number of Hedge Fund Holders: 64
Toast Inc. (NYSE:TOST) is one of the best growth stocks to buy and hold for 3 years. On July 22, Truist raised its price target for Toast to $50 from $48, while keeping a Buy rating on the shares. The firm is optimistic for the FinTech sector and expects solid overall earnings results while noting the group’s recent underperformance.
In Q1 2025, Toast reported booking Applebee’s, which marked its largest deal in company history, and added 6,000+ net new locations during the quarter. In that quarter, the Annualized Recurring Run-rate grew 31% year-over-year to $1.7 billion. Toast achieved a net income of $56 million and Adjusted EBITDA of $133 million.
In Q1, the company experienced a 25% year-over-year increase in total locations, which reached ~140,000. Gross Payment Volume/GPV rose 22% year-over-year to $42.2 billion. In this quarter, Toast also renewed its credit facility, closing a $350 million revolving credit facility, which amends and restates its previous $330 million facility established in 2021. The company also introduced ToastIQ, an intelligence engine designed to enhance restaurant operations.
Toast Inc. (NYSE:TOST) is a cloud-based digital technology platform for the restaurant industry in the US, Ireland, India, and internationally.
10. Monday.com Ltd. (NASDAQ:MNDY)
3-Year Revenue CAGR: 42.61%
Number of Hedge Fund Holders: 64
Monday.com Ltd. (NASDAQ:MNDY) is one of the best growth stocks to buy and hold for 3 years. Earlier on June 17, Morgan Stanley initiated coverage of Monday.com while assigning an Equal Weight rating and setting a price target of $330. The firm acknowledged the inherent risks associated with Monday.com’s move towards larger enterprise markets, expanding its multi-product offerings, and shifting to a sales-led growth model.
Monday.com’s net income improved to $58.4 million in Q1 2025, which was up from $31.7 million year-over-year. Additionally, the total employee headcount increased to 2,695, which showed an addition of 187 employees from the previous quarter.
Notably, the adoption of AI features saw growth at the company, which is evident from users performing over 26 million AI actions, which is also an increase of over 150% since the end of 2024. However, the full-year 2025 guidance reflects a conservative approach given potential macroeconomic challenges.
Monday.com Ltd. (NASDAQ:MNDY) develops software applications internationally. It provides Work Operating System (Work OS), which is a cloud-based visual work OS that consists of modular building blocks used and assembled to create software applications and work management tools.
9. CyberArk Software Ltd. (NASDAQ:CYBR)
3-Year Revenue CAGR: 28.43%
Number of Hedge Fund Holders: 64
CyberArk Software Ltd. (NASDAQ:CYBR) is one of the best growth stocks to buy and hold for 3 years. On July 14, Barclays raised its price target on CyberArk to $440 from $405 and maintained an Overweight rating on the shares. The adjustment was part of a broader earnings preview for the security, design, and vertical SaaS sectors.
In Q1 2025, the company achieved a total ARR of $1.215 billion, with Net New ARR at $46 million. Total revenue reached $318 million. CyberArk showed robust financial health with an 18% operating margin and generated $96 million in free cash flow. Subscription ARR accounted for $1.028 billion, or 85% of total ARR, contributing $250.6 million to total revenue, which is 79% of the total.
The company’s cash balance was $776 million, and it signed approximately 200 new logos, with a global employee count of around 3,930. There is significant demand for solutions that secure human, machine, and AI identities.
CyberArk Software Ltd. (NASDAQ:CYBR) develops, markets, and sells software-based identity security solutions and services in the US, Israel, the UK, Europe, the Middle East, Africa, and internationally.
8. Cloudflare Inc. (NYSE:NET)
3-Year Revenue CAGR: 34.31%
Number of Hedge Fund Holders: 65
Cloudflare Inc. (NYSE:NET) is one of the best growth stocks to buy and hold for 3 years. On July 28, Citizens JMP increased its price target on Cloudflare to $225 from $180, while maintaining an Outperform rating on the shares. The firm cited positive data points ahead of the earnings report, such as strong attainment data. Citizens JMP views Cloudflare as the earliest beneficiary of the AI opportunity within its coverage.
In Q1 2025, Cloudflare’s total revenue for the quarter reached $479.1 million, which was a 27% increase year-over-year. Cloudflare also achieved its highest year-over-year growth in net new Annual Contract Value/ACV in 3 years. Free cash flow was $52.9 million, or 11% of revenue, which was also an improvement from $35.6 million in Q1 2024.
For Q2, Cloudflare expects total revenue between $500 and $501 million. For the full fiscal year 2025, the company expects total revenue of $2,090 to $2,094 million.
Cloudflare Inc. (NYSE:NET) is a cloud services provider that delivers services to businesses worldwide. It provides an integrated cloud-based security solution to secure a range of combination of platforms, such as public cloud, private cloud, on-premises, SaaS applications, and IoT devices.
7. HEICO Corporation (NYSE:HEI)
3-Year Revenue CAGR: 27.17%
Number of Hedge Fund Holders: 65
HEICO Corporation (NYSE:HEI) is one of the best growth stocks to buy and hold for 3 years. On July 17, Morgan Stanley analyst Kristine Liwag increased the firm’s price target on Heico to $330 from $305, while maintaining an Equal Weight rating on the shares. The adjustment reflects the strong performance of aerospace stocks, which are currently trading at record valuation multiples. Morgan Stanley believes this multiple expansion indicates the sector’s resilience and expects positive industry trends to continue.
Heico achieved record consolidated operating income and net sales in Q2 2025, with increases of 19% and 15% respectively, year-over-year. Cash flow from operating activities increased by 45% to $204.7 million. Breaking down by segment, the Flight Support Group reported a 19% increase in net sales, reaching $767.1 million. The Electronic Technologies Group saw a 7% increase in net sales to $342.2 million.
However, the potential reductions in defense, space, or homeland security spending by the US and/or foreign customers could impact sales at the company. The company is also exposed to increasing competition from both existing and new market entrants, which could reduce sales. Product development or manufacturing difficulties could lead to increased costs and delayed sales as well.
HEICO Corporation (NYSE:HEI) designs, manufactures, and sells aerospace, defense, and electronics-related products and services in the US and internationally.
6. Okta Inc. (NASDAQ:OKTA)
3-Year Revenue CAGR: 22.34%
Number of Hedge Fund Holders: 65
Okta Inc. (NASDAQ:OKTA) is one of the best growth stocks to buy and hold for 3 years. On July 24, Jefferies analyst Joseph Gallo lowered the firm’s price target on Okta to $105 from $130, while maintaining a Hold rating on the shares. The adjustment came despite Jefferies’ belief that cybersecurity spending will constitute a steady percentage of software budgets in the coming years.
In FQ1 2026, the company reported total revenue of $688 million, which was an increase of 12% year-over-year, with subscription revenue also growing 12% to $673 million. Net cash provided by operations was $241 million, and free cash flow was $238 million. As of April 30, cash, cash equivalents, and short-term investments totaled $2.725 billion.
The company added 70 customers with $100,000+ in Annual Contract Value/ACV, bringing the total to 4,870, which was over 80% of the total ACV. Customers with over $1 million in ACV grew 20% to 480. Okta is actively innovating with new products such as Identity Security Posture Management and Okta Privileged Access, designed to address evolving cyber threats. The company is also well-positioned in the US public sector.
Okta Inc. (NASDAQ:OKTA) is a global identity partner. It offers Okta’s suite of products and services used to manage and secure identities, such as Single Sign-On, Adaptive Multi-Factor Authentication, API Access Management, Access Gateway, Workforce Identity Cloud, and Okta Device Access.
5. Atlassian Corporation (NASDAQ:TEAM)
3-Year Revenue CAGR: 24.00%
Number of Hedge Fund Holders: 82
Atlassian Corporation (NASDAQ:TEAM) is one of the best growth stocks to buy and hold for 3 years. On July 16, Mizuho adjusted the price target for Atlassian to $265, down from $290, while maintaining an Outperform rating on the shares. The revision followed the Q2 earnings preview for the software sector. Mizuho’s overall checks for the quarter were positive, noting healthy cybersecurity demand and strong AI adoption.
In FQ3 2025, the company reported total revenue of $1.4 billion for the quarter, driven by a 25% year-over-year growth in cloud revenue. Over 1.5 million monthly active users of AI across its platform show significant adoption of its AI capabilities. Furthermore, Atlassian received FedRAMP moderate authorization for its US federal government customers, expanding its cloud platform with the Atlassian Government Cloud.
However, it’s important to note that enterprise deals concluded later than expected in FQ3, which impacted cloud revenue growth for the quarter. The company is experiencing elongated deal cycles due to larger and more complex deals, which could affect future revenue timing.
Atlassian Corporation (NASDAQ:TEAM) designs, develops, licenses, and maintains various software products worldwide.
4. Datadog Inc. (NASDAQ:DDOG)
3-Year Revenue CAGR: 33.43%
Number of Hedge Fund Holders: 84
Datadog Inc. (NASDAQ:DDOG) is one of the best growth stocks to buy and hold for 3 years. On July 25, BTIG raised its price target for Datadog to $169 from $136, while maintaining a Buy rating on the company’s stock. The adjustment is based on positive field checks that revealed encouraging competitive displacements and successful new product initiatives by Datadog.
In Q1 2025, the company reported revenue of $762 million, which was a 25% increase year-over-year. Free cash flow for the quarter was $244 million, with a free cash flow margin of 32%. Datadog’s customer base expanded to ~30,500 customers, up from about 28,000 a year ago. Notably, customers with an ARR of $100,000 or more increased to 3,770, up from about 3,340 a year ago, with these larger customers contributing around 88% of total ARR.
The company also saw an increase in large deals, signing 11 deals with a total contract value of $10 million or more in Q1, which was a substantial rise from just one in the same quarter last year. Datadog experienced strong growth in its AI-native customer cohort, which now accounts for 8.5% of Q1 ARR, up from 3.5% a year ago.
Datadog Inc. (NASDAQ:DDOG) is an observability and security platform for cloud applications in the US and internationally.
3. Snowflake Inc. (NYSE:SNOW)
3-Year Revenue CAGR: 39.55%
Number of Hedge Fund Holders: 94
Snowflake Inc. (NYSE:SNOW) is one of the best growth stocks to buy and hold for 3 years. On July 28, Cint, which is a leader in research and measurement technology, announced the launch of Cint Verified Audiences on Snowflake Marketplace. The collaboration with Snowflake aims to empower joint users by providing secure and privacy-focused access to self-reported consumer data from the Cint Exchange, which is described as the world’s largest global research marketplace.
The integration of Cint Verified Audiences into the Snowflake platform simplifies the activation of customer data and allows for seamless integration with existing first-party data. Snowflake users will gain quick access to demographic data directly from consumers.
The collaboration expands the accessibility of Cint Verified Audiences through a platform designed for data privacy protection and usage control.
Snowflake Inc. (NYSE:SNOW) provides a cloud-based data platform for various organizations internationally. The company’s platform includes AI Data Cloud, which enables customers to consolidate data into a single source to drive meaningful business insights, build data applications, and share data and data products, as well as apply AI for solving business problems.
2. Adobe Inc. (NASDAQ:ADBE)
3-Year Revenue CAGR: 10.60%
Number of Hedge Fund Holders: 111
Adobe Inc. (NASDAQ:ADBE) is one of the best growth stocks to buy and hold for 3 years. The English Premier League recently solidified its commitment to enhancing fan engagement through AI through deals with both Adobe and Microsoft Inc. (NASDAQ:MSFT). These partnerships offer advanced AI-powered tools and personalized digital experiences to the Premier League’s massive global fan base.
On July 9, at Adobe Summit London, Adobe and the Premier League announced a multi-year partnership designating Adobe as the Premier League’s Official Creativity Partner and Official Digital Fan Experience Partner. The collaboration will use Adobe’s creativity, marketing, and AI technology, including Adobe Express and Firefly GenAI, to transform the fan experience.
Fans will be able to use Firefly to design unique badges and kits for their Fantasy Premier League teams and create social media content using Premier League templates. Adobe’s marketing and data platforms will enable the Premier League to gain a deeper understanding of its 1.8 billion global fans.
Adobe Inc. (NASDAQ:ADBE) is a technology company that operates through 3 segments: Digital Media, Digital Experience, and Publishing and Advertising.
1. Uber Technologies Inc. (NYSE:UBER)
3-Year Revenue CAGR: 28.46%
Number of Hedge Fund Holders: 145
Uber Technologies Inc. (NYSE:UBER) is one of the best growth stocks to buy and hold for 3 years. On July 28, Mastercard announced an extended partnership with Uber to enhance payment solutions for drivers, couriers, and Mastercard users globally. The collaboration will see Uber using a suite of Mastercard’s products and services, such as Mastercard Move for real-time disbursements, Mastercard One Credential for a streamlined payment experience, and Mastercard Gateway capabilities for collections and fraud prevention.
A key element of the partnership is the renewal and extension of the Uber Pro Card. Currently supported by Mastercard in the US and Canada, the Uber Pro Card will now be introduced to new regions, which include the UK. This card allows Uber drivers and couriers to receive instant and fee-free payments after each trip or delivery, along with benefits such as cash-back rewards on fuel purchases.
The Uber Pro Card will also integrate Mastercard One Credential, a single digitally connected credential designed to offer greater payment flexibility and control for earners. Furthermore, Uber’s global customer base will gain access to Mastercard’s consumer payment products and services, including its Offers Platform.
Uber Technologies Inc. (NYSE:UBER) develops and operates proprietary technology applications in the US, Canada, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. It operates through three segments: Mobility, Delivery, and Freight.
While we acknowledge the potential of UBER to grow, 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 UBER and that has 100x upside potential, check out our report about this cheapest AI stock.
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