In this article, we will discuss the 12 Best Growth Stocks to Invest In for the Next 2 Years.
On May 1, Chris Harvey, CIBC, joined CNBC’s ‘Closing Bell’ to discuss the surprising speed of the market’s recovery, noting that while he expected equities to rise and saw a buying opportunity, the move to new intraday highs for both the S&P 500 and the NASDAQ happened faster than anticipated. Despite this success, Harvey expressed a shift toward a more conservative stance, stating that his team does not want to be greedy and believes that the market now needs to digest these gains. He pointed to several lingering uncertainties, including the need for Kevin Warsh to be officially seated at the Fed and the fact that peace in the Middle East has not yet been achieved.
While the market appears to have looked past Middle East turmoil to focus on an undeniably strong earnings story, Harvey noted a divergence in guidance. Companies that are AI beneficiaries are providing very good outlooks, whereas general cyclical companies are offering uncertain or unclear guidance, which gives him pause. Additionally, he observed that recent Fed activity suggests that some members are becoming more hawkish than expected, a factor the market will eventually have to confront.
Harvey emphasized that while underlying fundamentals and mega-cap tech guidance are strong, the rate situation remains a critical missing piece. He believes that the market needs to understand the new Fed’s forward guidance to determine the actual cost of funds. He also anticipates a forthcoming wave of M&A activity. Still, he suggests that more time and space are needed between the current Middle East turmoil and such corporate actions to allow for proper planning.
Our Methodology
We used screeners to identify stocks that have a track record of delivering earnings growth as well as positive growth expectations. We looked for companies that have grown their EPS by at least 20% over the past 3 years and are expected to grow their earnings by at least 20% over the next 5 years. We 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.
Note: All data was sourced on May 4.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
12 Best Growth Stocks to Invest In for the Next 2 Years
12. Ares Management Corporation (NYSE:ARES)
Number of Hedge Fund Holders: 51
Ares Management Corporation (NYSE:ARES) is one of the best growth stocks to invest in for the next 2 years. On April 29, Ares Management acquired a 32.4% stake in the Rover Pipeline from funds managed by Blackstone Energy Transition Partners. The 700-mile natural gas transmission pipeline provides critical connectivity from the Appalachian Basin to key markets across Pennsylvania, West Virginia, Ohio, and Michigan. With a capacity of 3.425 Bcf/d, the asset is substantially contracted under long-term agreements and continues to be operated by an affiliate of Energy Transfer LP.
The acquisition aligns with Ares Infrastructure Opportunities’ strategy to expand its portfolio of essential energy infrastructure. Management noted that Rover is positioned to benefit from three major trends: the surge in US power demand, the rising global requirement for American LNG, and the reshoring of domestic manufacturing. By securing this stake, Ares Management Corporation (NYSE:ARES) aims to support the reliable supply of cost-competitive energy to high-growth demand centers across North America.
Blackstone, which originally acquired its interest in 2017 to support the pipeline’s development and 2018 completion, highlighted the asset’s growing importance in the era of electrification and AI-related power generation. While financial terms were not disclosed, the transaction involved several major advisors, including Kirkland & Ellis for Ares, and RBC Capital Markets and Vinson & Elkins for Blackstone. This divestment marks the conclusion of Blackstone’s successful nine-year involvement in the project’s construction and early operational phases.
Ares Management Corporation (NYSE:ARES) is an asset management company that invests in healthcare, services, energy, industrials, and consumer sectors. The firm targets investments of $1 to $500 million in companies with $10 to $250 million in EBITDA and $10 to $100 million in debt.
11. Cloudflare Inc. (NYSE:NET)
Number of Hedge Fund Holders: 70
Cloudflare Inc. (NYSE:NET) is one of the best growth stocks to invest in for the next 2 years. On April 14, Cloudflare and Wiz, now a part of Google Cloud, announced a partnership to secure AI-powered applications against emerging threats like shadow AI. The collaboration integrates Cloudflare’s AI Security for Apps with the Wiz Security Graph, providing organizations with a unified map of their AI footprint.
This integration allows security teams to identify unprotected AI endpoints and implement real-time guardrails to prevent prompt injections, data exfiltration, and other vulnerabilities without increasing latency. The partnership focuses on eliminating blind spots by autonomously discovering LLM endpoints across an organization’s web properties. While Cloudflare inspects AI traffic in real time to mitigate risks and protect sensitive data at the edge, Wiz maps the underlying data flows and identifies security gaps.
By combining these capabilities, CISOs can prioritize remediation based on actual exploitability, ensuring that high-risk AI workloads are secured first. This model-agnostic solution is designed to work across any cloud provider or LLM, requiring no custom workflows or additional agents. It enables businesses to accelerate AI adoption and innovation by providing full visibility and runtime controls over their AI infrastructure.
Cloudflare Inc. (NYSE:NET) is a leading connectivity cloud company that specializes in improving the security, performance, and reliability of websites and applications.
