On July 28, Peter Boockvar, CIO at One Point BFG Wealth Partners, joined Worldwide Exchange on CNBC to warn that high tariffs, weak earnings beyond tech, and inflated valuations may limit market upside despite record highs. In response to concerns about whether tariffs in the market might have been exaggerated, Peter Boockvar disagreed and stated that these concerns were not overblown. He explained that if the technology and communication sectors were excluded from the S&P, earnings growth would be less than 1%, with revenue growth around 3%, which is roughly in line with nominal GDP. He further supported his view by pointing to recent CPI data, which showed annualized gains in core goods prices, specifically on imported items, within just 1 month. He anticipated that the impact of tariffs would continue to play out for several more months. While acknowledging that reaching deals to potentially end the whole tariff thing in terms of eventual rates was positive, Boockvar stressed that the market still had to contend with the highest tariff rates seen in over a century.
Boockvar also explained that almost all of the current earnings growth was concentrated in just 2 sectors, with the rest of the S&P experiencing no earnings growth, and roughly half of the S&P actually seeing declines in earnings growth. Therefore, for the index to maintain its strength, continued dominance from large-cap tech companies was crucial, as earnings growth outside of this area was more reflective of the presently subdued nominal GDP growth. He concluded by stating that what the market was essentially witnessing was another expansion in the P/E multiple. For context, he pointed out that in March 2000, the forward 12-month P/E ratio was ~24.5x, whereas it was currently around 23x forward.
That being said, we’re here with a list of the 12 most profitable growth stocks to buy according to billionaires.
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Our Methodology
We sifted through the Finviz stock screener and financial media reports to compile a list of the top companies with a TTM net income greater than $1 billion. We then screened 12 growth stocks with a market capitalization of over $1 billion from Insider Monkey’s database of billionaire holdings. These stocks are ranked in ascending order based on the number of billionaire investors holding positions, as of Q4 2024. We’ve also added the hedge fund sentiment for each stock, which was sourced from Insider Monkey’s database, as of Q1 2025.
Note: All data was collected on August 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12 Most Profitable Growth Stocks to Buy According to Billionaires
12. Arista Networks Inc. (NYSE:ANET)
TTM Net Income as of August 4: $3.03 billion
Number of Hedge Fund Holders: 75
Dollar Value of Billionaire Holdings: $1.64 billion
Number of Billionaire Investors: 17
Arista Networks Inc. (NYSE:ANET) is one of the most profitable growth stocks to buy according to billionaires. On July 17, JPMorgan increased its price target for Arista Networks from $110 to $130 while maintaining an Overweight rating. The revision is based on the firm’s belief that strong spending in the cloud sector will drive growth for the company through H2 2025.
In Q1 2025, Arista Networks’ revenue reached ~$2 billion, which was a 27.6% increase year-over-year. Deferred revenue stood at $3.1 billion, which was a sequential increase from $2.8 billion. For Q2, Arista Networks provided revenue guidance of ~$2.1 billion. Earnings per share grew by 30% to $0.65. As of the end of the quarter, cash and investments totaled ~$8.15 billion.
Arista Networks also secured significant new customer wins across various sectors in Q1. However, the increase in product deferred revenue points to potential volatility in customer deployment schedules. Later on July 31, Samik Chatterjee from JP Morgan also maintained a Buy rating on Arista Networks, with a price target of $130.
Arista Networks Inc. (NYSE:ANET) develops, markets, and sells data-driven, client-to-cloud networking solutions for AI, data center, campus, and routing environments in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific.
11. Boston Scientific Corporation (NYSE:BSX)
TTM Net Income as of August 4: $2.51 billion
Number of Hedge Fund Holders: 108
Dollar Value of Billionaire Holdings: $3.16 billion
Number of Billionaire Investors: 17
Boston Scientific Corporation (NYSE:BSX) is one of the most profitable growth stocks to buy according to billionaires. On July 24, Oppenheimer raised its price target for Boston Scientific from $110 to $118, while maintaining a Perform rating on the shares. The adjustment followed the release of the company’s Q2 2025 financial results.
In Q2, Boston Scientific generated a revenue of ~$5.1 billion, which was a 22.8% increase year-over-year. Adjusted EPS for the quarter was $0.75, compared to $0.62 in Q2 2024. The company’s Cardiovascular division saw the strongest growth with a 26.8% increase in net sales, while the MedSurg segment grew by 15.7%.
Boston Scientific also received US FDA approval for its FARAPULSE Pulsed Field Ablation/PF System to treat symptomatic persistent atrial fibrillation. It also commenced enrollment in the ReMATCH IDE clinical trial for its FARAWAVE and FARAPOINT PFA Catheters. Internationally, the company received CE mark approval for its WATCHMAN FLX Pro Left Atrial Appendage Closure Device.
Boston Scientific Corporation (NYSE:BSX) develops, manufactures, and markets medical devices for use in various interventional medical specialties. It has two segments: MedSurg and Cardiovascular.
