13 Most Profitable Growth Stocks to Buy Now

4. Diamondback Energy, Inc. (NASDAQ:FANG)

Net Profit in the latest fiscal year: $3.56 billion

Revenue CAGR last 5 years: 34.65%

Number of Hedge Fund Holders: 53

​Diamondback Energy, Inc. (NASDAQ:FANG) is an independent oil and natural gas company focusing on the acquisition, development, and production of unconventional, onshore oil and natural gas reserves in the Permian Basin of West Texas and New Mexico. The company’s operations primarily involve horizontal drilling and midstream activities such as gathering, compression, and water handling.

Diamondback Energy, Inc. (NASDAQ:FANG) demonstrated strong capital efficiency in its 2025 plan, with the ability to produce the same free cash flow at $67 per barrel compared to $76 last year, showing improved operational performance. The company is executing a significant DUC (Drilled but Uncompleted wells) drawdown plan, which is expected to generate approximately $200 million in capital savings for the year. Additionally, they have committed to at least a 50% return of free cash flow to shareholders while maintaining flexibility to increase this based on market conditions.

Diamondback Energy, Inc. (NASDAQ:FANG) is actively pursuing $1.5 billion in non-core asset sales, primarily focusing on equity method investments and midstream assets, without selling operated acreage. Following the Double Eagle acquisition, which represents one of the last meaningful opportunities in the core Midland Basin, FANG is shifting focus towards share repurchases and reducing enterprise value. At $70 oil, the company projects generating $20 per share in free cash flow for 2025, representing a 12.5%-13% yield at current prices. Besides attractive valuations, FANG generated more than $3.5 billion in net profit in its latest fiscal year, making it one of the most profitable growth stocks to consider.