Equity markets remain volatile amid geopolitical uncertainties. Interest rates seem to be settling at elevated levels, which investors used to ultra-low interest rates in the previous decade don’t like. Right now, capital is not cheap, which is why it is all the more important today to look at companies that can fund their own growth through profits rather than external funding.
The above approach was recommended by none other than BlackRock for 2026, when the investment firm posted the following on its blog:
It is, in many ways, the best opportunity we’ve seen since the Global Financial Crisis to play both sides of the distribution: to own high-quality income and durable growth.
Durable growth in a high-interest environment comes from companies that have healthy profitability. In search of these companies, we decided to look at the most profitable growth stocks to buy right now, aiming to shortlist those expected to grow at a healthy rate without needing high-interest financing.
Only a handful of companies across multiple industries are successfully executing this playbook. While some come from the tech sector, our list also includes companies from the energy and biotech industries.
Our Methodology
To come up with our list of the 13 most profitable growth stocks to buy right now, we first compiled a list of stocks with a market cap of at least $2 billion that were expected to grow their revenue by at least 30% over the next year. We then looked at their net profit and sorted them in ascending order. These stocks are also popular among hedge funds, according to our Q4 2025 hedge fund holdings data.
Why do we care about what hedge funds do? 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).
Note: All share price data in the article is as per market close on March 5.
13. ARMOUR Residential REIT, Inc. (NYSE:ARR)
ARMOUR Residential REIT, Inc. (NYSE:ARR) posted its Q4 fiscal 2025 financial results on February 19. The company reported a GAAP net income available to common stockholders of $208.7 million, translating to $1.86 per share. Net interest income for the quarter totaled $50.4 million.
During the quarter, ARMOUR Residential REIT, Inc. (NYSE:ARR) raised $3.8 million of capital through the issuance of preferred stock and an additional $138 million through common stock as part of its at-the-market program. This involved the issuance of approximately 7.5 million shares of common stock and around 230,000 shares of preferred stock. The company distributed dividends of $0.24 per common share each month, resulting in a total of $0.72 per share for the quarter.
The management said that the market remains attractive due to lower rate volatility and easing funding costs. These trends are supported by the Federal Reserve’s efforts to lower interest rates and maintain ample liquidity in the banking system.
ARMOUR Residential REIT, Inc. (NYSE:ARR) CEO Scott Ulm highlighted confidence in the company’s dividend outlook, commenting that:
Our approach remains unchanged: stress test our liquidity, buy systematic hedging and deploy capital when opportunities present themselves. Overall, we’re confident in our positioning, our strategy and our ability to deliver value for shareholders in 2026.
ARMOUR Residential REIT, Inc. (NYSE:ARR) engages in the investment in residential mortgage-backed securities (MBS) across the United States. The company was founded by Marc H. Bell in 2008 and is based in Vero Beach, Florida.
12. TG Therapeutics, Inc. (NASDAQ:TGTX)
Alec Stranahan of Bank of America reaffirmed a Sell rating on TG Therapeutics, Inc. (NASDAQ:TGTX) with a price target of $15, based on the report released on February 27. The firm’s price target is the lowest among Wall Street analysts, based on 8 analysts covering the stock, and it reflects a 49% downside from the current levels.
The rating came after TG Therapeutics, Inc. (NASDAQ:TGTX) reported its fourth-quarter financial results on February 26. Net income for the quarter reached $23 million, bringing full-year net income to $447.2 million. The company generated total global revenue of $616 million for 2025, including $594 million from U.S. BRIUMVI net product sales and $12.8 million from Neuraxpharm.
Operating expenses for the year reached about $328 million. For 2026, operating expenses are projected at $350 million, plus an additional $100 million for subcutaneous manufacturing and start-up activities.
TG Therapeutics, Inc. (NASDAQ:TGTX) Chief Commercial Officer, Adam Waldman, commented on the outlook:
Turning to the first quarter … We expect U.S. revenue to grow sequentially over Q4 levels to approximately $185 million to $190 million.
TG Therapeutics, Inc. (NASDAQ:TGTX) is a commercial-stage biopharmaceutical company. The company focuses on the development, commercialization, and acquisition of novel treatments for B-cell-mediated diseases across the United States and globally. It is based in Morrisville, North Carolina.
11. Gildan Activewear Inc. (NYSE:GIL)
According to a report released on February 27, Stifel Nicolaus analyst Martin Landry reiterated a Buy rating on Gildan Activewear Inc. (NYSE:GIL) with a price target of $80.
In addition to Stifel Nicolaus, TD Cowen Securities also kept its Buy rating on Gildan Activewear Inc. (NYSE:GIL) on February 27. The firm raised its price target on the stock from $77 to $80. It revised its price target after updating its model based on the company’s fourth-quarter earnings.
Gildan Activewear Inc. (NYSE:GIL) posted its fourth quarter results on February 26. The company reported Non-GAAP EPS of $0.96, slightly above estimates by $0.01. Revenue for the quarter came in at $1.08 billion, reflecting a 31.4% year-over-year increase and beating consensus estimates by $20 million. Operating cash flows rose 59.8%, marking a 20.9% increase from the last year. While free cash flows jumped 46.4% year-over-year.
During the quarter, the company returned $33 million to shareholders through dividends and share repurchases. Additionally, it announced a 10% dividend increase for 2026.
Gildan Activewear Inc. (NYSE:GIL) operates as a manufacturer and seller of a range of apparel products. It offers several activewear products, such as sports shirts, tank tops, T-shirts, polos, and fleece tops and bottoms. The company was incorporated in 1946 and is based in Montreal, Canada.
