In this article, we will take a look at the 12 Stocks with Best Earnings Growth for the Next 5 Years.
US equities rose to record highs on October 28 as investors processed the latest round of earnings and watched the Federal Reserve meeting to see if interest rate cuts are underway. Meanwhile, the Fed began its two-day policy meeting the same day, with traders expecting a second consecutive rate cut at its conclusion on October 29.
According to CFRA chief investment strategist Sam Stovall, should tech results show that AI-related productivity is increasing faster than expected, the Fed might be forced to cut more than they indicated wanting to.” He added that any impending price uncertainty may eventually present traders with an attractive buying opportunity, noting that October is usually the most volatile month of the year.
In terms of indices, the tech-heavy Nasdaq reversed losses, closing 0.6% higher to set a closing record, while the benchmark S&P 500 ended slightly lower and the blue-chip Dow Jones settled down 0.2%. All three indices had hit intraday records for the fourth straight session shortly after markets opened and rose following the Fed’s announcement.
Our Methodology
For this list, we sifted through stock screeners to come up with a list of equities with an average expected EPS growth rate of at least 20% over the next 5 years. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q2 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
12. Roblox Corporation (NYSE:RBLX)
5-Year EPS Growth Estimate: 21.15%
Number of Hedge Fund Holders: 75
Roblox Corporation (NYSE:RBLX) ranks among the stocks with the best earnings growth for the next 5 years. Piper Sandler reaffirmed its Overweight rating for Roblox Corporation (NYSE:RBLX) on October 25. Given Roblox’s capacity to introduce consumers to new content, the firm said it has grown more optimistic about the platform’s long-term prospects. Piper Sandler also pointed out that, in terms of visits per day, “Steal a Brainrot” has overtaken “Grow a Garden” as the top experience on record.
The firm believes that Roblox’s growing content ecosystem and discovery methods are the reason for the company’s recent success with viral hits on its platform.
According to Piper Sandler, bookings will increase by over 60% year-over-year in the third quarter of 2025. The firm also anticipates $1.67 billion in bookings, 127 million daily active users, and $395 million in EBITDA.
Roblox Corporation (NYSE:RBLX) is an interactive entertainment company. It operates an immersive platform that enables users to create, share, and experience 3D virtual worlds and games.
11. ASML Holding N.V. (NASDAQ:ASML)
5-Year EPS Growth Estimate: 22.47%
Number of Hedge Fund Holders: 78
ASML Holding N.V. (NASDAQ:ASML) ranks among the stocks with the best earnings growth for the next 5 years. Deutsche Bank reaffirmed its Buy rating on ASML Holding N.V. (NASDAQ:ASML) after the company’s third-quarter results, while raising its price target from EUR900 to EUR1,000 on October 16.
The semiconductor equipment manufacturer reported third-quarter bookings of EUR5.4 billion, which exceeded the EUR4.9 billion consensus estimate. This success was driven by EUV technology for DRAM memory chips.
According to the bank, ASML Holding N.V. (NASDAQ:ASML) has upgraded its forecast for 2026 and no longer expects a fall in that year, despite the fact it had previously projected a “significant decline” in its China business. The more bullish 2026 estimate reflects greater confidence in low NA EUV volumes, with Deutsche Bank now estimating 54 units for 2026 vs 46 units expected to ship in 2025.
ASML Holding N.V. (NASDAQ:ASML) is a Dutch multinational company that designs, manufactures, and sells advanced equipment systems, primarily lithography machines, which are essential for the mass production of semiconductor chips used in all modern electronic devices.
10. Charles Schwab Corporation (NYSE:SCHW)
5-Year EPS Growth Estimate: 26.06%
Number of Hedge Fund Holders: 100
Charles Schwab Corporation (NYSE:SCHW) ranks among the stocks with the best earnings growth for the next 5 years. On October 17, TD Cowen maintained its Buy rating on Charles Schwab Corporation (NYSE:SCHW) and increased its price target from $129 to $134. The company cited to the October 16 release of Charles Schwab’s third-quarter 2025 results as a “favorable pivot point” for the stock.
According to the firm, Charles Schwab Corporation (NYSE:SCHW) is expected to target the high end of an adjusted Tier 1 leverage ratio of 6.75% to 7%, with a projected return on tangible common equity (ROTCE) of 38% for 2026 projections and 40% for 2027 estimates.
TD Cowen calls Charles Schwab Corporation (NYSE:SCHW) “defensive and offensive,” claiming that the company has “enough balance sheet levers to offset further rate cuts.” The firm added that the stock remains one of its top picks.
The Charles Schwab Corporation (NYSE:SCHW), together with its subsidiaries, provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services in the U.S. and abroad.
9. DoorDash, Inc. (NASDAQ:DASH)
5-Year EPS Growth Estimate: 175.65%
Number of Hedge Fund Holders: 100
DoorDash, Inc. (NASDAQ:DASH) ranks among the stocks with the best earnings growth for the next 5 years. While retaining a Hold rating on DoorDash, Inc. (NASDAQ:DASH), Stifel boosted its price target on the company’s shares from $239 to $255 on October 24. The firm also maintained its estimates while it waits for more information regarding the impact and pace of the October 2 completion of the Deliveroo deal.
Prior to taking Deliveroo’s contribution into account, Stifel plans to acknowledge the acquisition’s impact during DoorDash’s upcoming earnings report, recognizing any potential upside to its 2026 projections.
Notably, the price target rise is based on Stifel’s forward-looking valuation model, which now extends next-twelve-months forecasts forward to the fourth quarter of 2025.
DoorDash, Inc. (NASDAQ:DASH) is a local commerce platform. It operates the DoorDash Marketplace and Wolt Marketplace, which connect merchants, consumers, and independent contractors across more than 30 countries.
8. Sea Limited (NYSE:SE)
5-Year EPS Growth Estimate: 49.10%
Number of Hedge Fund Holders: 102
Sea Limited (NYSE:SE) ranks among the stocks with the best earnings growth for the next 5 years. On October 16, Bank of America upgraded Sea Limited (NYSE:SE) to Buy from Neutral and increased its price target to $215 from $206, noting stronger-than-expected momentum in gaming and e-commerce, with fintech offering further upside.
Recent gains in ad yields and commissions have contributed to Shopee’s growing gross merchandise volume, and the platform is also gaining market share in Brazil thanks to its cheaper prices and quicker delivery.
Free Fire has also gained more traction, with growth expected to be sustained by new partnerships and expansion into emerging markets.
From on-platform payments to off-platform services and secured loans, Sea’s fintech division is growing in markets like Brazil. If loan growth can be accomplished without increasing non-performing assets, BofA views this area as an optional upside driver.
Sea Limited (NYSE:SE) is a leading internet and technology company based in Singapore. It operates through three main business segments, including Digital Entertainment, E-commerce, and Digital Financial Services.
7. Vertiv Holdings Co. (NYSE:VRT)
5-Year EPS Growth Estimate: 30.41%
Number of Hedge Fund Holders: 104
Vertiv Holdings Co. (NYSE:VRT) ranks among the stocks with the best earnings growth for the next 5 years. On October 22, RBC Capital reaffirmed its $191 price target and Outperform rating on Vertiv Holdings Co. (NYSE:VRT) shares, pointing to the company’s third-quarter earnings that surpassed analyst projections and its positive impacts for other data center thermal and electrical companies.
The company reported an impressive 28.4% organic revenue growth, with the Americas segment bringing in a notable 43% organic increase. Orders increased by nearly 60% year-over-year in the quarter, with a book-to-bill ratio of 1.4x, while inventory hit $9.5 billion, up about 30% from a year earlier.
Following its performance, Vertiv Holdings Co. (NYSE:VRT) boosted its full-year EPS expectations by about 8% at the midpoint, putting it 7% above market estimates. In addition, the company raised its organic sales estimates to 26%-28%, above the average projection of 25.4%.
Vertiv Holdings Co. (NYSE:VRT) designs, manufactures, and services critical digital infrastructure technologies & life cycle services for data centers, communication networks, and commercial & industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa.
6. ServiceNow, Inc. (NYSE:NOW)
5-Year EPS Growth Estimate: 20.07%
Number of Hedge Fund Holders: 106
ServiceNow, Inc. (NYSE:NOW) ranks among the stocks with the best earnings growth for the next 5 years. UBS retained its Buy rating on ServiceNow, Inc. (NYSE:NOW) on October 14 ahead of the company’s third-quarter earnings report, though it decreased its price target from $1,100 to $1,075.
The target adjustment follows UBS’s evaluation of ServiceNow’s progress in the third quarter of 2025 through discourse with customers and partners. The adoption of artificial intelligence, however, was deemed “somewhat disappointing,” according to UBS. Similar remarks have been made during the firm’s probes into other Software-as-a-Service (SaaS) providers.
According to UBS, the SaaS and apps industry is already experiencing cautious sentiment, calling it “perhaps the worst in years.”
ServiceNow, Inc. (NYSE:NOW) is an American software and technology company. It provides an AI platform that helps organizations digitize, automate, and manage workflows for enterprise operations.
5. AppLovin Corporation (NASDAQ:APP)
5-Year EPS Growth Estimate: 59.31%
Number of Hedge Fund Holders: 109
AppLovin Corporation (NASDAQ:APP) ranks among the stocks with the best earnings growth for the next 5 years. With an Outperform rating and a $700 price target, RBC Capital Markets began coverage of AppLovin Corporation (NASDAQ:APP) on October 14 owing to the company’s platform positioning in performance advertising and marketing technologies.
Analysts emphasized AppLovin’s focus on attribution and return on ad spend (ROAS), claiming that this enables advertisers to redirect their expenditures from general marketing budgets to quantifiable results. RBC dubbed this an “unlimited total addressable market,” adding that as long as ROAS requirements are met, spending is expected to continue.
The company’s split of its apps business has pushed its platform beyond mobile games into e-commerce, notably direct-to-consumer (DTC) companies. RBC claimed this diversification should support greater pricing and revenue durability, while the mostly fixed-cost approach allows top-line gains to trickle through to profitability and free cash flow.
AppLovin Corporation (NASDAQ:APP) is a software-based advertising and app monetization company. It operates through two segments, Advertising and Apps. The company also develops and publishes free-to-play mobile games through its studios and partners.
4. Spotify Technology SA (NYSE:SPOT)
5-Year EPS Growth Estimate: 40.27%
Number of Hedge Fund Holders: 111
Spotify Technology SA (NYSE:SPOT) ranks among the stocks with the best earnings growth for the next 5 years. Benchmark kept its $800 price target and Buy rating on Spotify Technology SA (NYSE:SPOT) as of October 16 as the streaming giant gets ready to move some of its video podcast content from YouTube to Netflix.
Through the partnership, Netflix will provide a selection of Spotify Studios and The Ringer podcasts, including well-known series like The Bill Simmons Podcast, The Ringer F1/NFL/NBA, and The Rewatchables. That said, important aspects of the agreement, such as the contract period, the integration specifics, and the monetization strategy, are yet unknown.
Benchmark thinks that the agreement is beneficial for both sides. It lets Spotify Technology SA (NYSE:SPOT) reach more creators while lowering direct competition with YouTube, and it allows Netflix to add more content to boost subscriber retention.
Spotify Technology SA (NYSE:SPOT) is a global audio streaming company. The platform serves more than 600 million monthly active users worldwide, making it the largest music streaming service by market share. Spotify generates revenue from subscriptions, advertising, and partnerships.
3. Eli Lilly & Company (NYSE:LLY)
5-Year EPS Growth Estimate: 41.42%
Number of Hedge Fund Holders: 119
Eli Lilly & Company (NYSE:LLY) ranks among the stocks with the best earnings growth for the next 5 years. Cantor Fitzgerald reaffirmed its Overweight rating and $925 price target for Eli Lilly & Company (NYSE:LLY) on October 17 following the exclusion of the company’s oral GLP-1 treatment, orforglipron, from the first group of medications to be granted Commissioner’s National Priority Vouchers (CNPV).
Following the decision, Eli Lilly’s stock was under pressure in after-hours trading, which Cantor Fitzgerald ascribed to “recent unrelenting speculation of a potential CNPV for orforglipron and some overly optimistic hopes for approval by YE25.”
The firm stated that the news coincided with “vague and at times contradictory GLP-1 pricing commentary,” which seemed to be a reference to ongoing negotiations over semaglutide pricing under the Inflation Reduction Act, which could be as low as $150 per month.
Eli Lilly & Company (NYSE:LLY) is a major global pharmaceutical company that develops, manufactures, and distributes a wide range of drugs. Founded in 1876, it has grown to become one of the world’s largest pharmaceutical companies.
2. Oracle Corporation (NYSE:ORCL)
5-Year EPS Growth Estimate: 21.84%
Number of Hedge Fund Holders: 124
Oracle Corporation (NYSE:ORCL) ranks among the stocks with the best earnings growth for the next 5 years. Following Oracle Corporation (NYSE:ORCL)’s AI World conference and Analyst Day in Las Vegas, TD Cowen maintained its Buy rating on the company and increased its price target from $375 to $400 on October 17.
The firm referenced Oracle’s revised view for its Oracle Cloud Infrastructure (OCI) business and its fiscal year 2030 revenue targets, which came in more than $25 billion higher than street predictions, while EPS guidance surpassed projections by more than $2.50.
TD Cowen observed that Oracle’s OCI AI margins of 30 to 40% were better than anticipated, indicating that the company’s AI operations are more profitable than initially thought.
Oracle Corporation (NYSE:ORCL) provides products and services that address enterprise information technology environments across the globe.
1. Netflix, Inc. (NASDAQ:NFLX)
5-Year EPS Growth Estimate: 25.56%
Number of Hedge Fund Holders: 133
Netflix, Inc. (NASDAQ:NFLX) ranks among the stocks with the best earnings growth for the next 5 years. After Netflix, Inc. (NASDAQ:NFLX) released its third-quarter 2025 results on October 22, BMO Capital reaffirmed its Outperform rating and $1,425 price target.
Netflix’s revenue for the third quarter fell in line with forecasts, with a strong 14.84% year-over-year gain, though the company’s operating income faced challenges. Supported by what the firm calls a strong upcoming programming slate, Netflix’s fourth-quarter 2025 guidance comes in line with BMO Capital’s projections.
Although Netflix’s advertising business is still in its infancy, BMO Capital predicted that it will more than double its revenue in 2025. Strong U.S. forward commitments are credited with this growth, which should improve performance in 2025 and 2026.
Netflix, Inc. (NASDAQ:NFLX), a global streaming platform, offers TV shows, films, and original content to subscribers through internet-connected devices.
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