In this article, we will be looking at 12 high-risk high-reward growth stocks to buy right now.
The Federal Reserve has cut its benchmark lending rate to 4.00%-4.25%. According to CNBC, following this decision, some stocks are reaching their record highs, while longer-term Treasury yields have moved higher. The 10-year yield climbed as high as 4.145% and the 30-year yield was trading near 4.76%. In this phenomenon, traders are seen weighing short-term monetary easing against persistent inflation concerns. It creates an environment where risk-taking can be rewarding and, at the same time, volatile.
Investors pursuing growth stocks, at times like this, are not surprising, since these stocks have historically proven their performance capabilities in the market. The Fed’s risk management move, though primarily aimed at supporting a softening labor market, also green-lights growth-focused strategies, even as higher yields pressure valuations. With the possibility that the easing labor-market pressures and stable rates can support select high-growth companies despite elevated risks, investors are motivated to look for a balanced growth stock that inherits high-risk while offering high-reward.
In this regard, we have put together a list of 12 of the best growth stocks with a reward that could make the risk worth taking.
Stick with us as we unveil them from 12 to 1. You might find the top 5 surprising.
Image by Alexsander-777 from Pixabay
Our Methodology
We put together our list of 12 high-risk high-reward growth stocks to buy right now by following a few criteria. Primarily, we have included only those stocks with a beta of more than 1 and an upside potential of greater than 5%. These filters ensure a balance between the volatility inherited and the rewards offered by the stocks in our list. For ranking the stocks, we have used the consensus upside potential reported on CNN. All the data used in the article was taken from financial databases and analyst reports, with all information updated as of September 24, 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. Howmet Aerospace Inc. (NYSE:HWM)
Beta: 1.45
Upside Potential: 6.98%
Howmet Aerospace Inc. (NYSE:HWM) secures a spot in our list of 12 high-risk high-reward growth stocks to buy right now. The company’s top executive makes a bold move following a strong second quarter.
Howmet Aerospace Inc. (NYSE:HWM) reported strong Q2 2025 earnings on July 31, 2025. The results highlighted a revenue of $2.05 billion, a 9% year-over-year increase. The growth was attributed to significant performance in core markets. Commercial aerospace, for instance, gained 8% in revenue while defense aerospace revenue went up by 21%, and the industrial and other market grew by 17%.
Following the strong growth, the company’s Executive Vice President, Chief Legal & Compliance Officer, and Secretary, Lola Felice Lin, sold 13,102 shares on August 6, 2025, in a transaction valued at $2,365,04. The sales occurred approximately a week before she announced her resignation, which came into effect on September 5, 2025.
Howmet Aerospace Inc. (NYSE:HWM)’s beta of 1.45 signifies a high risk on the stock, while the upside potential as recorded by analysts stands at 6.98%, thus balancing the reward with risk for investors.
Howmet Aerospace Inc. (NYSE:HWM) is a leading global provider of advanced engineered solutions for the aerospace and transportation industries. The company was formed in 2020, following a spin-off from its predecessor, Arconic Inc. Its headquarters are located in Pennsylvania.
11. Arista Networks Inc (NYSE:ANET)
Beta: 1.48
Upside Potential: 12.17%
Arista Networks Inc (NYSE:ANET) finds its way into our list of 12 high-risk high-reward growth stocks to buy right now. The company’s price target is raised amid a strong Q2 performance and while facing headwinds.
Released on August 5, 2025, Arista Networks Inc (NYSE:ANET)’s Q2 earnings report revealed a revenue of $2.2 billion, a 30.4% year-over-year increase. At the same time, operating expenses during the quarter increased to $370.6 million. The company also saw a rise in its inventory to $2.1 billion, signaling headwinds such as global tariffs and supply chain management.
However, with the acquisition of SD-WAN leader VeloCloud on July 1, 2025, the company anticipates increased performance in its branch solutions and its presence with managed service providers. Additionally, the company’s price target was raised from $150 to $175 by Evercore ISI, indicating the analyst’s confidence in the stock’s growth prospects.
Arista Networks Inc (NYSE:ANET) balances its high risk of 1.48 beta with a high reward of 12.17% upside potential, thus attracting investors who desire balanced growth stocks in their portfolio.
Founded in 2004, Arista Networks Inc (NYSE:ANET) is a computer networking company that specializes in designing and selling multilayer network switches. Headquartered in California, the company is a leader in providing software-driven cloud networking solutions.
10. Autodesk, Inc. (NASDAQ:ADSK)
Beta: 1.50
Upside Potential: 14.37%
Autodesk, Inc. (NASDAQ:ADSK) holds a rank in our list of 12 high-risk high-reward growth stocks to buy right now. The stock’s price target sees a rise following a positive Q2 2026 and announcements of partnerships.
Autodesk, Inc. (NASDAQ:ADSK) reported its Q2 2026 earnings on August 28, 2025, where it highlighted a year-over-year growth in revenue of 17. The company also announced taking up the position as the Official Design and Make Platform for the New England Patriots, working with the Kraft Group on upgrades at Gillette Stadium. Also, it entered a partnership with Eaton to enhance building lifecycle management through digital twin solutions. With these agreements, the company earns a strong foothold in the market.
The stock’s price target was raised among analysts amid these developments. Berenberg, for instance, moved the price target from $365 to $370 while keeping a Buy rating. And Morgan Stanley raised the price target from $370 to $385 while maintaining an Overweight rating on the shares.
Despite these increases in price targets projecting a positive outlook, the company’s stocks are volatile with a beta of 1.50. Meanwhile, the risk is balanced by a consensus upside potential of 14.37%.
Based in California, Autodesk, Inc. (NASDAQ:ADSK) is a multinational software corporation that provides software products and services for a wide range of industries. The company was founded in 1982, and it is particularly known for its flagship product, AutoCAD, a computer-aided design (CAD) software.
9. Urban Outfitters, Inc. (NASDAQ:URBN)
Beta: 1.26
Upside Potential: 15.17%
Urban Outfitters, Inc. (NASDAQ:URBN) makes an entry into the list of 12 high-risk high-reward growth stocks to buy right now. Following positive results in Q2 2025, analysts are raising the target price on the stock.
On August 27, 2025, the company released its Q2 earnings results, reporting an EPS of $1.58 on revenue of $1.50 billion. Both the EPS and the revenue significantly surpassed the analyst consensus estimate of $1.44 and $1.48 billion, respectively. The report also highlighted a significantly high 11.3% year-over-year revenue increase.
On August 28, 2025, Urban Outfitters, Inc. (NASDAQ:URBN) witnessed an increase in its price target from $90.00 to $93.00. Later on September 2, 2025, UBS also raised its price target from $78 to $79, reflecting a positive interpretation of the Q2 2025 results.
Urban Outfitters, Inc. (NASDAQ:URBN) is more volatile than the broader market, with a beta of 1.26, indicating that it may experience larger price swings. And analysts project a potential upside of 15.17% from its current trading price.
Urban Outfitters, Inc. (NASDAQ:URBN) is a multinational lifestyle retail corporation founded in 1970. The company’s headquarters is located in Pennsylvania. The company focuses on apparel, accessories, home goods, and other lifestyle products through a portfolio of brands, including Urban Outfitters, Anthropologie, Free People, BHLDN, and Terrain.
8. Power Solutions International, Inc. (NASDAQ:PSIX)
Beta: 1.55
Upside Potential: 14.55%
Power Solutions International, Inc. (NASDAQ:PSIX) takes a spot in our list of 12 high-risk high-reward growth stocks to buy right now. Following significant Q2 sales, the company secures a new credit facility while insider sales rise.
On August 7, 2025, Power Solutions International, Inc. (NASDAQ:PSIX) reported its financial results for the second quarter of 2025. The company has recorded sales of $191.9 million, up 74% from a year earlier. Diluted EPS for the quarter stands at $2.22, a 136% increase compared to the year prior. The company also secured a new $135 million credit facility on July 30, 2025. With a term till July 30, 2027, this new facility is anticipated to improve its balance sheet and gain access to capital for future growth.
However, the recent insider activities are concerning. Including the company’s Directors, its CEO, and significant shareholders have sold a considerable portion of the company’s shares since August 14, 2025. The total transaction value stands at over $110 million.
Alongside these insider transactions, the high volatility represented by a beta of 1.55 projects a negative outlook for Power Solutions International, Inc. (NASDAQ:PSIX). But the analysts are confident about the stock’s potential growth in the future, as reflected in the stock’s consensus upside potential of 14.55%.
Founded in 1985, the Illinois-based company, Power Solutions International, Inc. (NASDAQ:PSIX), designs, engineers, and manufactures a wide range of industrial and on-road engines and power systems. It specializes in providing integrated, turnkey power solutions to OEMs for various markets, including industrial, construction, and transportation.
7. Netflix, Inc. (NASDAQ:NFLX)
Beta: 1.60
Upside Potential: 17.95%
Netflix, Inc. (NASDAQ:NFLX) climbs into our list of 12 high-risk high-reward growth stocks to buy right now. After raising the full-year revenue guidance, the company reported anticipating a decline in operating margins in the second half of 2025.
Netflix, Inc. (NASDAQ:NFLX) announced sales of $11.08 billion in its Q2 2025 earnings report, a 15.9% year-over-year increase that met analyst expectations. The company also provided a strong vote of confidence by raising its full-year revenue guidance to $45 billion at the midpoint, an increase from its previous forecast of $44 billion.
However, Netflix, Inc. (NASDAQ:NFLX) reported that the operating margins for the second half of 2025 will be lower than those for the first half. The decline is owing to increased content amortization and sales and marketing costs. The company is heavily investing in content, including major original productions and licensed content, and supports it with large marketing expenses, leading to reduced margins.
The weekly performance of the company as of September 09, 2025, dropped by 2.28%. Accordingly, the company’s beta stands at 1.60, signaling strong volatility. However, with a six-month performance of 23.51% and a consensus upside potential of 17.95%, it gains a positive perception as a high-reward growth stock.
Netflix, Inc. (NASDAQ:NFLX) is a global entertainment company, founded in 1997 and known for its subscription-based streaming model, which was pioneered in 2007. Headquartered in California, the company is one of the world’s leading providers of on-demand streaming content.
6. NVIDIA Corporation (NASDAQ:NVDA)
Beta: 2.12
Upside Potential: 19.51%
NVIDIA Corporation (NASDAQ:NVDA) makes an entry into our list of 12 high-risk high-reward growth stocks to buy right now. The company announces investment in the UK AI market amid new partnerships and a positive Q2.
The company reported revenue of $46.74 billion in Q2 2025, achieving a 56% year-over-year growth. Blackwell Data Center revenue, in particular, saw an increase of 17% quarter-over-quarter.
Following the positive quarterly results, on September 18, 2025, NVIDIA Corporation (NASDAQ:NVDA) announced a collaboration with Intel to jointly develop custom data center and PC products. The partnership involves the integration of NVIDIA’s AI and accelerated computing with Intel’s x86 CPU technologies. As part of the deal, NVIDIA Corporation (NASDAQ:NVDA) will invest $5 billion in Intel, buying common stock at $23.28 per share and acquiring approximately 5% stake in the company. It increases the company’s competitiveness by strengthening its ecosystem.
Additionally, the company has also announced an investment of £2 billion in the U.K. market’s AI startup ecosystem to shape the future market. Its Founder and CEO made the following statement.
“With new capital and advanced infrastructure, we are doubling down to empower the U.K. to lead the next wave of AI innovation.”
The company matches its high volatility, represented by a significant beta value of 2.12, with an immensely rewarding upside potential of 19.51%.
NVIDIA Corporation (NASDAQ:NVDA) is a multinational technology company, founded in 1993 and headquartered in California. The company pioneered the graphics processing unit (GPU). It is currently a global leader in designing GPUs for the gaming and professional markets.
5. Amazon.com, Inc. (NASDAQ:AMZN)
Beta: 1.29
Upside Potential: 19.89%
Amazon.com, Inc. (NASDAQ:AMZN) ranks among our list of 12 high-risk high-reward growth stocks to buy right now. Amid a positive second quarter and the announcement of Prime Big Deal Days, the company faces pressure with the new fee on H-1B visas.
In its Q2 earnings results, reported on July 31, 2025, the company announced a 13% year-over-year increase in net sales, reaching a revenue of $167.7 billion. Sales in the North America Segment alone increased 11% year-over-year to $100.1 billion. By the end of the quarter on June 30, 2025, the company introduced DeepFleet, an AI model that coordinates movements between Amazon.com, Inc. (NASDAQ:AMZN)’s robots to find optimal paths and reduce bottlenecks.
Amazon.com, Inc. (NASDAQ:AMZN) has officially announced that Prime Big Deal Days will take place on October 7-8, 2025. With this, the company kicks off the holiday shopping season with exclusive deals for Prime members. However, the new fee of $100,000 imposed on H-1B visas has created new challenges. The Wall Street Journal has stated that tech giants like Amazon, Google, and Microsoft warned H-1B holders not to leave the country. (NASDAQ:AMZN).
With a beta of 1.29 reflecting the company’s high volatility, the consensus upside potential of 19.89% boosts the company’s outlook among investors looking to invest in growth stocks.
The multinational technology company, Amazon.com, Inc. (NASDAQ:AMZN) was founded in 1994 by Jeff Bezos. Headquartered in Washington, Amazon specializes in e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence.
4. Microsoft Corporation (NASDAQ:MSFT)
Beta: 1.02
Upside Potential: 23.49%
Microsoft Corporation (NASDAQ:MSFT) earns a rank among our list of 12 high-risk high-reward growth stocks to buy right now. The company announces its biggest investment outside the U.S. after surpassing the analyst estimates with its Q2 results.
With a revenue of $76.44 billion, Microsoft Corporation (NASDAQ:MSFT) beat the analyst estimates for the second quarter of 2025. The company’s EPS has also surpassed the analyst estimates by 8%, projecting a positive outlook on the company.
On September 16, 2025, the company also announced a $30 billion investment in the UK’s AI infrastructure. The investment would also cover the company’s ongoing operations in the country. Strategically split, $15 billion is aimed at covering the capital expenditures for AI infrastructure. This includes the construction of the UK’s largest AI supercomputer, with more than 23,000 NVIDIA GPUs, in partnership with Nscale. The remaining $15 billion will be directed toward operational expansion.
The company’s weekly performance, following the investment announcement, saw an uptick of 0.03%, signaling bullish activity towards the stock. The beta of 1.02 signifies volatility in the stock. However, the high upside potential of 23.49% increases the attractiveness of the stock among those looking to invest in growth stocks.
Microsoft Corporation (NASDAQ:MSFT) was founded in 1975 by Bill Gates and Paul Allen. Operating from Washington, the multinational technology corporation is known for developing, manufacturing, licensing, and supporting computer software, consumer electronics, personal computers, and related services.
3. Boot Barn Holdings, Inc. (NYSE:BOOT)
Beta: 1.62
Upside Potential: 29.62%
Boot Barn Holdings, Inc. (NYSE:BOOT) secures a spot in the list of 12 high-risk high-reward growth stocks to buy right now. The company’s top executives make a bold move following the strong Q1 2026 results.
Boot Barn Holdings, Inc. (NYSE:BOOT)’s Q1 2026 earnings call, released on July 31, 2025, reported an increase in revenue of 19%, reaching $504 million. During the quarter, the company opened 14 new stores and announced its plans to open 65 to 70 new stores by the end of the year. Alongside these expansion efforts, the company is also witnessing growth in its E-commerce platform, with the revenue for the first quarter through online shopping achieving 9.3% growth.
Following the reporting of its Q1 results, the company’s top executives were seen engaged in major sales. On August 25, 2025, Director Brenda Morris made a sale of 1,500 shares amounting to a transaction value of $255,000. Later, on August 26, 2025, the company’s Chief Merchandising Officer, Laurie Marie Grijalva, sold 7,487 shares of the company in a transaction valued at $1,288,812.
With a beta of 1.62 reflecting the stock’s high volatility, Boot Barn Holdings, Inc. (NYSE:BOOT)’s value is anticipated to grow by 29.62% on average in a period of 1 year.
Boot Barn Holdings, Inc. (NYSE:BOOT) founded in 1978, is a specialty retail company primarily focused on Western and work-related footwear, apparel, and accessories. Headquartered in California, the company operates a growing chain of stores across the U.S.
2. Carpenter Technology Corporation (NYSE:CRS)
Beta: 1.47
Upside Potential: 30.68%
Carpenter Technology Corporation (NYSE:CRS) is placed on our list of 12 high-risk high-reward growth stocks to buy right now. Major insider sales at the company following a positive Q4 2025 and price target raises.
Carpenter Technology Corporation (NYSE:CRS) reported an Adjusted Operating Income of $151 million, a 21% increase year-over-year. The company’s SAO segment achieved an operating income of $167 million. Additionally, in the Aerospace and Defense, Medical, and Energy sectors, the company managed to see sequential sales growth in all the key end-use market sectors.
After the announcement of these results on July 31, 2025, various analysts raised the stock’s price target. BTIG, for instance, elevated the price target $275 to $305, while keeping a Buy rating on the stock. Additionally, there were frequent insider sales in the company. The most significant among them is the selling of 19,000 shares by the company’s President and CEO, Tony R. Thene, in a transaction valued at $4.6 million.
Carpenter Technology Corporation (NYSE:CRS)’s beta of 1.47 warns of the stock’s high volatility, while the upside potential of 30.68% signifies the reward that the new investors may receive in a year.
Carpenter Technology Corporation (NYSE:CRS) is a producer and distributor of specialty alloys and materials, including titanium, nickel, and cobalt alloys, as well as specialty stainless steels. Founded in 1889, the Pennsylvania-based company primarily serves the aerospace, defense, energy, and medical industries.
1. Morningstar, Inc. (NASDAQ:MORN)
Beta: 1.01
Upside Potential: 37.07%
Morningstar, Inc. (NASDAQ:MORN) ranks at the top among our list of 12 high-risk high-reward growth stocks to buy right now. The company launched a new benchmark and announced the acquisition of CRSP, following significant revenue growth.
On July 30, 2025, Morningstar, Inc. (NASDAQ:MORN) reported its Q2 2025 financial results, highlighting a revenue increase of 5.8% year-over-year to $605.1 million. The growth was primarily attributed to the strong performance of its PitchBook and Morningstar Direct platforms.
Later, on September 10, 2025, Morningstar, Inc. (NASDAQ:MORN) announced the launch of the Morningstar PitchBook US Modern Market 100 Index. This benchmark, created in collaboration with PitchBook, is the first of its kind to track public and private market companies in a single index. With this launch, the company gains a stronger foothold as a research and data pioneer in the investment environment. In addition to this, the company also announced that it had agreed to acquire the Center for Research in Security Prices from the University of Chicago. With this $375 million acquisition, Morningstar, Inc. (NASDAQ:MORN) will have access to the CRSP Market Indexes, which are the benchmarks for more than $3 trillion in U.S. equities.
Though the company’s beta of 1.01 raises concerns about its sensitivity to the market, the consensus upside potential of 37.07% remains attractive, making Morningstar, Inc. (NASDAQ:MORN)a significant contender for the best growth stocks.
Based in Illinois, Morningstar, Inc. (NASDAQ:MORN) is a global financial services company that provides a wide range of investment research and investment management services. Founded in 1984, the company has become an influential source of independent analysis for individual investors, financial advisors, and institutional clients.
While we acknowledge the potential of MORN 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 MORN and that has 100x upside potential, check out our report about this cheapest AI stock.
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