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 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 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. is a leading connectivity cloud company that specializes in improving the security, performance, and reliability of websites and applications.
10. Howmet Aerospace Inc. (NYSE:HWM)
Number of Hedge Fund Holders: 71
Howmet Aerospace Inc. (NYSE:HWM) is one of the best growth stocks to invest in for the next 2 years. On April 13, Howmet Aerospace appointed Jonathan Arena as its new Executive Vice President, Chief Legal & Compliance Officer, and Secretary. In this role, Arena joins the company’s Executive Leadership Team, where he will contribute to setting the strategic direction for the organization. He will be based at the company’s global headquarters located in Pittsburgh, Pennsylvania.
Arena brings extensive legal experience from both the private and public sectors, having most recently served as Vice President and Chief Counsel at Huntington Ingalls Industries’ Newport News Shipbuilding Division. His professional background also includes senior legal positions at The Boeing Company and NASA.
An alumnus of several prestigious institutions, Arena holds degrees from The Ohio State University, Washington University in St. Louis, and William & Mary Law School. His appointment is expected to strengthen Howmet Aerospace Inc.’s (NYSE:HWM) senior leadership as the company continues to navigate its strategic objectives in the aerospace industry.
Howmet Aerospace Inc. provides advanced engineered solutions for the aerospace and transportation industries. The company’s primary business focus is on providing components for aircraft engines, airframe structures, and fastening systems.
9. Celestica Inc. (NYSE:CLS)
Number of Hedge Fund Holders: 71
Celestica Inc. (NYSE:CLS) is one of the best growth stocks to invest in for the next 2 years. On April 29, Celestica announced that its DS6000-series 1.6TbE switches are now available for order, marking a transition from development to market-ready status. These switches are designed to serve as the high-speed backbone for GenAI and ML infrastructure, addressing the intense bandwidth demands of modern data centers. Powered by the Broadcom Tomahawk 6 silicon, the series provides a non-blocking switching capacity of up to 102.4 Tbps, the highest density currently available.
The DS6000-series is offered in two distinct form factors to accommodate different cooling and rack requirements. The 3RU DS6000 is an air-cooled model designed for standard 19-inch racks, while the 2OU DS6001 is a hybrid-cooled version tailored for 21-inch OCP ORv3 environments. Both models feature 64 ports of 1.6TbE connectivity and support both high-speed copper and advanced optical interconnects, ensuring architectural flexibility for scaling AI training clusters.
By using open networking standards such as SONiC and adhering to specifications from the Ultra Ethernet Consortium/UEC and the Open Compute Project/OCP, Celestica aims to future-proof the AI fabric for global customers. These switches are engineered to eliminate bottlenecks in the backend networks of AI factories, facilitating more efficient scale-up and scale-out operations.
Celestica Inc. operates as a supply chain solutions provider across North America, Asia, and globally. The company operates in the Connectivity & Cloud Solutions and Advanced Technology Solutions segments. It provides a range of product manufacturing and related supply chain services, as well as hardware platform solutions and hardware and software design solutions and services.
8. MasTec Inc. (NYSE:MTZ)
Number of Hedge Fund Holders: 71
MasTec Inc. (NYSE:MTZ) is one of the best growth stocks to invest in for the next 2 years. On April 30, MasTec reported record Q1 2026 revenue of $3.8 billion, a 34% increase compared to the same period last year. This growth was driven by double-digit gains across all operating segments, most notably a 91% surge in Pipeline Infrastructure and a 45% increase in Clean Energy & Infrastructure. The company achieved record Q1 GAAP net income of $69.7 million and adjusted EBITDA of $283.6 million, while diluted EPS rose significantly to $0.77.
The company’s 18-month backlog reached a record $20.3 billion as of March 31, marking a $4.4 billion increase year-over-year. This momentum was led by a 65% growth in the Clean Energy & Infrastructure segment, reflecting robust demand for renewables and infrastructure projects. Management attributed the strong performance to operational discipline and improved efficiencies in the Pipeline Infrastructure and Power Delivery segments, which helped offset costs associated with exiting certain markets in the communications sector.
Following the strong start to the year, MasTec Inc. raised its full-year 2026 financial guidance. The company now expects annual revenue to reach ~$17.5 billion, representing 22% growth over the previous year. Additionally, guidance for adjusted diluted EPS was increased to $8.79, and adjusted EBITDA is now projected to grow by 30% to $1.5 billion.
MasTec Inc. is a US infrastructure construction company providing engineering, building, and maintenance services for energy, communications, and utility sectors across North America.
7. DexCom Inc. (NASDAQ:DXCM)
Number of Hedge Fund Holders: 71
DexCom Inc. (NASDAQ:DXCM) is one of the best growth stocks to invest in for the next 2 years. On April 30, DexCom reported Q1 2026 revenue of $1.192 billion, representing a 15% year-over-year increase on a reported basis. Growth was driven by an 11% rise in US revenue and a 26% jump in international sales. The company also saw margin expansion, with GAAP operating income reaching $255.3 million, or 21.4% of revenue, an 850 basis point increase compared to Q1 2025.
Strategic highlights for the period included the expanded launch of the Dexcom G7 15-day CGM system and the introduction of enhanced features for the Stelo platform. Furthermore, clinical data presented at ATTD 2026 demonstrated that the Dexcom G7 significantly improved A1C levels for people with type 2 diabetes not using insulin.
Following the quarterly performance, DexCom Inc. raised its full-year 2026 guidance for non-GAAP operating margin and adjusted EBITDA margin, now projecting 23% to 23.5% and 31% to 31.5%, respectively. The company reiterated its annual revenue forecast of $5.16 billion to $5.25 billion, reflecting 11% to 13% growth. As of March 31, Dexcom maintained a strong liquidity position with $2.42 billion in cash, cash equivalents, and marketable securities.
DexCom Inc. is a medical device company that manufactures CGM systems to allow real-time health management control. It offers various medical devices and products, including Dexcom G6, Dexcom G7, Dexcom Stelo, Dexcom Share, Dexcom Real-Time API, and Dexcom ONE.
6. Fair Isaac Corporation (NYSE:FICO)
Number of Hedge Fund Holders: 81
Fair Isaac Corporation (NYSE:FICO) is one of the best growth stocks to invest in for the next 2 years. On April 28, FICO reported total revenue of $691.7 million for FQ2 2026, marking a 39% increase compared to $498.7 million in the prior year. GAAP net income for the period rose to $264.5 million, or $11.14 per share, up from $162.6 million, or $6.59 per share, a year ago. On a non-GAAP basis, net income reached $296.8 million with EPS of $12.50, while free cash flow saw a substantial increase to $214.3 million.
Performance was largely driven by the Scores segment, where revenue climbed 60% to $475.0 million. This growth was primarily fueled by a 72% surge in B2B scoring solutions, which benefited from higher mortgage origination unit prices and increased volume. The Software segment also contributed to the results with a 7% year-over-year revenue increase to $216.7 million, supported by a 49% rise in platform ARR and a total dollar-based net retention rate of 109%.
Following these strong results, Fair Isaac Corporation raised its full-year FY2026 guidance across all key financial metrics. The company now anticipates total annual revenue of $2.45 billion, up from its previous estimate of $2.35 billion. Additionally, the forecast for GAAP EPS was increased to $35.60, while non-GAAP EPS is now projected to reach $40.45.
Fair Isaac Corporation is an analytics software company that provides credit scoring services and decision management solutions. Its business is divided into the following segments: Software and Scores.
5. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 88
Bloom Energy Corporation (NYSE:BE) is one of the best growth stocks to invest in for the next 2 years. On April 28, Bloom Energy reported a record Q1 2026, with total revenue reaching $751.1 million, a 130.4% increase compared to the $326.0 million reported in the same period last year. This performance was fueled by a 208.4% surge in product revenue, which climbed to $653.3 million. The company also achieved a positive GAAP operating income of $72.2 million, a significant turnaround from the operating loss recorded in the first quarter of 2025.
Profitability metrics showed notable improvement, with GAAP gross margin rising to 30% and non-GAAP gross margin reaching 31.5%. Service gross margins also saw a substantial year-over-year increase, jumping 12 percentage points to 13.3%. On a non-GAAP basis, operating income rose to $129.7 million, while the company generated $73.6 million in cash flow from operating activities, representing a $184.3 million improvement over the prior year’s first quarter.
Following these results, Bloom Energy Corporation raised its full-year 2026 financial guidance, now projecting annual revenue between $3.4 billion and $3.8 billion. This updated outlook anticipates a revenue growth midpoint of ~80%, up from the previous estimate of 60%. Additionally, the company increased its non-GAAP operating income guidance to a range of $600 million to $750 million and expects non-GAAP EPS to fall between $1.85 and $2.25 for the fiscal year.
Bloom Energy Corporation is an electrical equipment & parts company that specializes in solid oxide fuel cell systems for on-site power generation. The company also provides the Bloom Energy Server to convert fuel into electricity.
4. Quanta Services Inc. (NYSE:PWR)
Number of Hedge Fund Holders: 90
Quanta Services Inc. (NYSE:PWR) is one of the best growth stocks to invest in for the next 2 years. On April 30, Quanta Services delivered an exceptional performance for Q1 2026, setting multiple records across its financial metrics. Consolidated revenues reached a record $7.87 billion, a significant increase from $6.23 billion in the prior-year period. Net income attributable to common stock rose to $220.6 million, resulting in record Q1 GAAP diluted EPS of $1.45. On an adjusted basis, diluted EPS reached $2.68, while adjusted EBITDA climbed to $686.4 million.
The company’s project pipeline and liquidity remain at historic levels, with a record total backlog of $48.5 billion and RPO of $26.2 billion. Quanta’s cash position was equally strong, generating $391.7 million in cash flow from operations and $184.4 million in free cash flow during the quarter. CEO Duke Austin highlighted that this success is driven by the company’s unique positioning at the intersection of utility, generation, and large-load markets, which represent a massive addressable market of $2.4 trillion through the end of the decade.
For these reasons, Quanta Services Inc. increased its full-year 2026 financial expectations. The company now projects annual revenues to range between $34.7 billion and $35.2 billion, with adjusted diluted EPS forecasted between $13.55 and $14.25. Management expects to maintain this momentum despite potential economic headwinds such as inflation and interest rate fluctuations, remaining on track to deliver another consecutive year of double-digit earnings growth.
Quanta Services Inc. offers specialized infrastructure solutions to the broader utility, power generation, load center, communications, pipeline, and energy industries.
3. ASML Holding (NASDAQ:ASML)
Number of Hedge Fund Holders: 101
ASML Holding (NASDAQ:ASML) is one of the best growth stocks to invest in for the next 2 years. On May 4, ASML released a regular update regarding the execution of its current share buyback program, which was originally announced on January 28. The latest report details a series of transactions conducted between April 27 and May 1. These disclosures are made in accordance with the Market Abuse Regulation to ensure transparency for investors and regulatory authorities.
During this specific period, the company actively repurchased shares over four consecutive trading days, while no transactions were recorded on May 1. The daily volume remained steady, ranging from a low of 12,895 shares on April 27 to a high of 13,383 shares on April 29. The total value of the shares repurchased each day was remarkably consistent, with each daily expenditure totaling ~€15.87 million.
The weighted average price for these buybacks fluctuated throughout the week, starting at a high of €1,230.88 on April 27 before dipping to a low of €1,186.05 on April 29. By April 30, the average price saw a slight recovery to €1,199.81. These activities reflect ASML Holding’s (NASDAQ:ASML) ongoing commitment to its capital return strategy as outlined at the start of the 2026 fiscal year.
ASML Holding is the world’s leading manufacturer of photolithography machines, which are critical, high-tech systems used by semiconductor companies (like TSMC, Intel, and Samsung) to print tiny circuit patterns onto silicon wafers, effectively creating microchips.
2. Amphenol Corporation (NYSE:APH)
Number of Hedge Fund Holders: 103
Amphenol Corporation (NYSE:APH) is one of the best growth stocks to invest in for the next 2 years. On April 29, Amphenol delivered record-breaking results for Q1 2026, with sales reaching $7.6 billion. This represents a 58% increase in US dollars and 33% organic growth compared to the prior year, driven largely by exceptional demand in the IT datacom market. The company also reported record orders of $9.4 billion, resulting in a strong book-to-bill ratio of 1.24:1. Profitability remained high, with an adjusted operating margin of 27.3% and adjusted diluted EPS of $1.06, which rose 68% year-over-year.
Strategic expansion played a key role in the quarter’s success, highlighted by the completed acquisition of CommScope’s CCS business. CEO R. Adam Norwitt attributed the performance to the company’s expanded high-technology interconnect portfolio and its ability to capitalize on the accelerating electronics revolution. During the quarter, Amphenol returned ~$485 million to shareholders through the repurchase of 1.3 million shares and the payment of $307 million in dividends. The company maintained a strong cash position, generating $831 million in free cash flow.
For Q2 2026, Amphenol Corporation provided an optimistic outlook, expecting sales between $8.1 billion and $8.2 billion. This forecast represents a projected increase of 43% to 45% over the same period in 2025. Adjusted diluted EPS is anticipated to fall within the range of $1.14 to $1.16, marking a significant expected increase of 41% to 43%.
Amphenol Corporation is an electric components company that deals in electrical, electronic, and fiber optic connectors through the Communications Solutions, Harsh Environment Solutions, and Interconnect & Sensor Systems segments.
1. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 137
Eli Lilly and Company (NYSE:LLY) is one of the best growth stocks to invest in for the next 2 years. On April 30, Eli Lilly delivered a powerful performance for Q1 2026, with revenue surging 56% to $19.8 billion. This growth was fueled by a 65% increase in volume, led by the strong demand for the metabolic treatments Mounjaro and Zepbound, which saw worldwide revenues reach $8.7 billion and $4.1 billion, respectively. Despite lower realized prices, the company’s GAAP EPS rose by 170% to $8.26, while non-GAAP EPS reached $8.55.
The quarter was marked by regulatory and clinical milestones, most notably the FDA approval of Foundayo (orforglipron). As the only approved GLP-1 pill without food or water restrictions, Foundayo is expected to broaden patient access to obesity treatments. Lilly also advanced its pipeline with positive Phase 3 results for Jaypirca and retatrutide, and expanded its therapeutic reach through the acquisitions of Orna Therapeutics, Centessa Pharmaceuticals, Kelonia Therapeutics, and Ajax Therapeutics.
Reflecting this strong early-year momentum, Eli Lilly and Company increased its full-year 2026 financial guidance. The company now expects annual revenue to range between $82.0 billion and $85.0 billion, a $2 billion increase from previous estimates. Non-GAAP EPS guidance has also been raised to a range of $35.50 to $37.00.
Eli Lilly and Company is a healthcare company that develops human pharmaceutical products, including cardiometabolic health, oncology, and immunology products.
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