On July 2, Abby Yoder, JPMorgan Private Bank’s chief equity strategist, joined CNBC’s ‘Closing Bell’ to discuss the market’s momentum in the second half of 2025. Yoder observed that the IPO market had picked up and that M&A were expected to increase. She clarified that their previous bullish scenario had focused on negative policies and overlooked positive growth policies that were still in the pipeline. With markets nearing all-time highs, the IPO market’s resurgence was further evidence of improving market conditions. She stressed that the return of IPOs was significant, and these IPOs were showing strong follow-through in terms of performance, which in turn supported better sentiment.
Yoder also revisited the widespread adoption of AI. She noted an increase in AI usage among enterprises, with adoption almost doubling from ~5% of companies last year to ~9% currently, showing a clear inflection point in H1 2025. She believes that as companies realize the potential for both revenue increases and cost-cutting through AI, this will greatly benefit the market.
That being said, we’re here with a list of the 12 best young stocks to buy and hold for 5 years.
An investor with a portfolio of stocks, highlighting the importance of diversified indexing investment approach.
Methodology
We used the Finviz stock screener to compile a list of the top stocks that went public in the last 3 years and had a 3-year revenue CAGR of over 15%. We then selected the 12 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q1 2025.
Note: All data was collected on July 11.
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 Young Stocks To Buy and Hold For 5 Years
12. Ascentage Pharma Group International (NASDAQ:AAPG)
3-Year Revenue CAGR: 227.53%
Number of Hedge Fund Holders: 1
Ascentage Pharma Group International (NASDAQ:AAPG) is one of the best young stocks to buy and hold for 5 years. On July 10, Ascentage Pharma announced that China’s National Medical Products Administration/NMPA approved its novel Bcl-2 selective inhibitor, called lisaftoclax (APG-2575).
It treats adult patients with chronic lymphocytic leukemia/CLL and small lymphocytic lymphoma/SLL, particularly those who have previously received at least one systemic therapy, which includes Bruton’s tyrosine kinase (BTK) inhibitors. Lisaftoclax is the first Bcl-2 inhibitor to receive conditional approval and marketing authorization for CLL/SLL in China, and the second Bcl-2 inhibitor approved globally.
Lisaftoclax is an orally administered small-molecule drug designed to treat malignancies by selectively blocking the antiapoptotic protein Bcl-2, thereby restoring the normal apoptosis process in cancer cells. Clinical trials have demonstrated its therapeutic potential in various hematologic malignancies and solid tumors, particularly CLL/SLL, both as a monotherapy and in combinations.
Ascentage Pharma Group International (NASDAQ:AAPG) is a clinical-stage biotechnology company that develops therapies for cancers, chronic hepatitis B virus, and age-related diseases in Mainland China.
11. XCHG Limited (NASDAQ:XCH)
3-Year Revenue CAGR: 47.48%
Number of Hedge Fund Holders: 1
XCHG Limited (NASDAQ:XCH) is one of the best young stocks to buy and hold for 5 years. On June 24, XCharge North America announced the deployment of two dual-dispenser GridLink chargers at a new EV charging depot in Riverside, California. This depot was developed and is operated by Gateway Fleets, which is an electrification platform designed specifically for last-mile delivery.
The new site aims to provide reliable and cost-effective charging for Gateway’s customers, which include medium-duty fleets and independent FedEx operators. The development follows a recent acquisition by Partners Group, which is a global private markets firm, of a controlling stake in Gateway Fleets to fund an accelerated rollout of EV-ready depot infrastructure.
Despite uncertainties surrounding California’s clean energy policies, the state remains dedicated to its Zero-Emission Vehicle/ZEV mandates and targets 100% ZEVs by 2040 for medium and heavy-duty vehicles. To address the strain on the electrical grid as utilities struggle to meet increasing power demands, many EV charging sites are adopting battery microgrids. XCharge North America’s GridLink technology charges its 430 kWh battery during off-peak hours to avoid higher peak demand charges, then uses this stored energy for charging during the day.
XCHG Limited (NASDAQ:XCH) designs, manufactures, and sells EV chargers under the X-Charge brand name in Europe, China, the US, and internationally.
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