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.
10. Reddit, Inc. (NYSE:RDDT)
On March 5, Bernstein analyst Mark Shmulik maintained his Hold rating and a $190 price target on Reddit Inc. (NYSE:RDDT). Prior to that, on February 19, RBC Capital analyst Brad Erickson maintained his Hold rating on RDDT with a price target of $250. The firm’s price target implies an additional 74% upside from the current levels. This upside is equal to the median of Wall Street analysts’ upside estimates, based on 33 analysts’ estimates.
Moreover, on February 19, Reddit, Inc. (NYSE:RDDT) announced that it had begun testing a new AI-driven search feature with a limited group of users across the United States. The update aims to enhance the shopping experience by offering product recommendations directly within search results.
During the test phase, users searching for household electronics will see a product carousel at the bottom of the results page. The carousel will feature pricing information, images, and direct links showing where the products can be purchased. The feature is currently being rolled out on a trial basis to select U.S.-based Reddit users who search for shopping-related electronic products.
The company commented:
This feature surfaces top-recommended products directly from discussions, giving Redditors instant information about any product.
Founded in 2005, Reddit, Inc. (NYSE:RDDT) operates a digital community across the United States and globally. Its platform allows users to research new hobbies, engage in conversations, create new communities & experiences, explore passions, exchange goods & services, find belongings, and share laughs.
9. SM Energy Company (NYSE:SM)
According to a report released on February 26, Siebert Williams Shank & Co analyst Gabriele Sorbara reiterated a Hold rating on SM Energy Company (NYSE:SM) along with the price target of $25. The firm’s price target is consistent with the median Wall Street analyst price target of $29, based on estimates from 16 analysts.
On the same day, another update came from Mizuho Securities. William Janela from Mizuho Securities lowered the firm’s price target on SM Energy Company (NYSE:SM) from $34 to $31 while reaffirming an Outperform rating.
Both rating updates were issued after SM Energy Company (NYSE:SM) reported its fourth-quarter results on February 25. The company reported fourth-quarter revenue of $705 million, which was below the consensus estimate of $760.57 million. Net production reached 75.5 MMBoe, or 206.8 MBoe/d, reflecting a 21% year-over-year increase. Oil accounted for 53% of total output. According to the President and CEO, Beth McDonald, the company delivered record cash flow from operations and record production in 2025. The performance has created momentum heading into 2026.
SM Energy Company (NYSE:SM) President and CEO Beth McDonald pointed out:
In 2025, we delivered record cash flow from operations and record net production. We’ve built great momentum for 2026 with expanded scale and a clear strategic plan to create differentiating value. We’re rapidly integrating the combined business and unlocking meaningful synergies. With our recently announced $950 million South Texas asset divestiture at an accretive valuation, we are well on our way to achieving our $1.0 billion divestiture target to bolster the balance sheet and enhance return of capital.
SM Energy Company (NYSE:SM) is an energy company engaged in the acquisition, exploration, development, and production of oil, gas, and natural gas liquids. The company is based in Denver, Colorado, and was founded in 1908.
8. Celestica Inc. (NYSE:CLS)
TD Cowen analyst John Shao maintained his Hold rating and $330 price target on Celestica Inc. (NYSE:CLS) on March 4. Shares of CLS have come under pressure due to concerns around AI-related disruptions, but on February 20, BNP Paribas analyst Karl Ackerman said the recent pullback presents a potential buying opportunity for investors. The firm highlighted the company’s strong engineering expertise and original design and manufacturing capabilities. These strengths have led to a sharp increase in customer orders in 2025. The momentum could continue into 2026.
New orders typically take about three years to translate into meaningful revenue. As a result, Celestica’s (NYSE:CLS) planned $1 billion in capital spending this year is expected to support growth from 2027 through 2029. Additional growth drivers, according to the analyst, include potential ramp-ups in Google’s tensor processing unit programs, expansion among digital native customers, large-scale 1.6 trillion networking switch deployments by hyperscalers, and growing AI-driven data center investment. The firm expects these factors to drive strong revenue growth and margin expansion through 2028.
Following a meeting with Celestica Inc.’s (NYSE:CLS) CFO and investor relations team, BNP analyst Karl Ackerman shared his views:
We believe Celestica’s growing capacity and engineering capabilities widens the company’s [Original Design Manufacturer] networking opportunity and margin expansion potential. CLS remains a top idea.
Celestica Inc. (NYSE:CLS) operates as a supply chain solutions provider across North America, Asia, and globally. The company operates in the Connectivity & Cloud Solutions and Advanced Technology Solutions segments. It provides a wide range of product manufacturing and related supply chain services, as well as hardware platform solutions and hardware and software design solutions and services.
7. Franco-Nevada Corporation (NYSE:FNV)
After revising its 2026 metal price forecasts, Bank of America updated its price targets for the North American Metals & Mining stocks under its coverage. As part of that review, the firm increased its price target on Franco-Nevada Corporation (NYSE:FNV) from $262 to $280 while maintaining a Neutral rating on February 26.
On February 23, Franco-Nevada Corporation (NYSE:FNV) announced a A$220 million (approximately US$155 million) funding agreement with Minerals 260 Ltd. to fast-track the development of the Bullabulling gold project in Western Australia. The deal represents the company’s largest royalty investment in Australia to date.
As part of the agreement, Franco-Nevada Corporation (NYSE:FNV) will obtain an A$170 million gross royalty from Minerals 260 Ltd. to advance the Bullabulling project and invest A$50 million in the company’s shares. The deal increases its royalty from 1% to an effective 2.45% across a broader land package. The company will buy shares at A$0.45 each, securing a 4.9% stake. Bullabulling ranks among Australia’s larger short-term gold development projects. It holds 3 million ounces in indicated resources and 1.5M ounces inferred.
Based in Toronto, Canada, Franco-Nevada Corporation (NYSE:FNV) operates as a royalty and stream company. It is focused on precious metals, including silver, gold, and platinum group metals. The company operates in the Precious Metals, Other Mining, and Energy segments.
6. Wheaton Precious Metals Corp. (NYSE:WPM)
Lawson Winder from Bank of America reiterated a Buy rating on Wheaton Precious Metals Corp. (NYSE:WPM) on February 26. The firm also raised its price target on the stock from $160 to $188. The firm has updated its 2026 forecasts for metal prices. Following that revision, it is adjusting its price targets for North American Metals & Mining companies under its coverage, according to the analyst.
Earlier, on February 16, Wheaton Precious Metals Corp. (NYSE:WPM) had signed a long-term silver streaming deal with BHP. The agreement includes an upfront payment of US$4.3 billion at closing. The company will also pay 20% of the spot silver price for all delivered ounces.
Under the deal, Wheaton Precious Metals Corp. (NYSE:WPM) will receive silver from BHP’s 33.75% stake in Peru’s Antamina mine. After closing, the company’s share of silver production at Antamina will rise to 67.5%, up from 33.75% under its existing stream with Glencore.
Wheaton Precious Metals Corp. (NYSE:WPM) CEO Randy Smallwood commented:
Quality silver production is becoming increasingly difficult to source while demand continues to rise for both critical industrial uses and for silver’s safe haven qualities in today’s economic environment.
Wheaton Precious Metals Corp. (NYSE:WPM) operates as a seller of precious metals across Europe, South America, North America, and Africa. It mainly produces and sells silver, gold, Platinum, palladium, and cobalt deposits. The company was incorporated in 2004 and is based in Vancouver, Canada.
5. argenx SE (NASDAQ:ARGX)
On March 2, James Gordon of Barclays maintained his Buy rating on argenx SE (NASDAQ:ARGX), along with a €900 price target. On February 27, Robert W. Baird increased its price target on argenx SE while reaffirming a Neutral rating. Analyst Colleen M. Kusy raised the firm’s price target on the stock from $858 to $867. The firm revised its financial model after reviewing the company’s fourth-quarter earnings report. The Q4 results reflected continued strength in revenue performance as well as an updated outlook pointing to higher operating expenses.
In contrast to Baird, Stifel Nicolaus reduced its price target on Argenx following the company’s Q4 fiscal 2025 results. On February 26, Stifel Nicolaus analyst Alex Thompson lowered the firm’s price target on the stock from $1,248 to $1,227 while maintaining a Buy rating.
The analyst highlighted that the Vyvgart launch continues to perform well, with the franchise now generating more than $5 billion in annual global revenue. The firm said that the management’s steady outlook for 2026 and the years ahead suggests the current consensus forecast of $5.7 billion could be too low, even with growing competition and typical first-quarter seasonality.
argenx SE (NASDAQ:ARGX) operates as a commercial-stage biopharma company. The company focuses on developing several therapies for the treatment of autoimmune diseases in the Netherlands, Japan, the United States, China, and globally. It offers VYGART HYTRULO and VYGART.
4. Palantir Technologies Inc. (NASDAQ:PLTR)
On February 26, Palantir Technologies Inc. (NASDAQ:PLTR) was initiated at Rosenblatt Securities with a Buy rating. John McPeake from Rosenblatt Securities assigned a price target of $150 to the stock.
The firm described Palantir Technologies Inc. (NASDAQ:PLTR) as a market-disrupting and uniquely positioned leader in AI software. It highlighted that the stock was down 33% from its October high. The analyst said the company offers a sustainable growth path along with strong margin expansion potential. In less than a week, the stock rallied back to Rosenblatt’s price target, when the firm raised it to $200 in another update on March 3.
In addition to Rosenblatt, UBS also upgraded Palantir Technologies Inc. (NASDAQ:PLTR) from Neutral to Buy on the same day. However, analyst Karl Keirstead left the firm’s price target for PLTR unchanged at $180. The upgrade was driven by the stock’s valuation, with the firm advising investors to consider buying following the dip from its peak. The analyst called Palantir a leading growth company in software, benefitting from both Data trends and AI. He pointed to the company’s projected 70% revenue growth in 2026 and said shares are attractive.
Analyst Karl Keirstead said:
Our latest checks support a view that Palantir is facing a very strong demand backdrop as it sits at the intersection of AI and data spend. As one partner said, ‘demand is exceptional. This investment ramp in AI models and data is occurring right now, with Palantir a clear AI winner.
Palantir Technologies Inc. (NASDAQ:PLTR) is a software company that develops and deploys data integration and analytics platforms for government agencies, defense organizations, and enterprise clients. Its notable products include Palantir Gotham, Foundry, and Apollo.
3. Nu Holdings Ltd. (NYSE:NU)
On March 4, Thiago Batista of UBS lowered Nu Holdings’s (NYSE:NU) price target from $18.4 to $17.2. Prior to that, on February 26, NU reported its fourth-quarter FY 2025 results, posting a net income of $895 million, reflecting a 50% increase from a year earlier. Return on equity for the quarter reached 33%. Quarterly revenue rose 45% year-over-year to $4.9 billion. Gross profit rose 38% to nearly $2 billion. Under a new methodology, the efficiency ratio fell below 20% for the first time, coming in at 19.9%. Total deposits climbed 29% to $41.9 billion.
With record originations of $4 billion during the quarter, unsecured lending balances exceeded $8 billion. Supported by the strongest quarterly growth in credit cards since 2023, the company’s credit portfolio expanded to $32.7 billion. The results include one-time items, with a $58 million tax-related gain partially offset by $29 million in charges linked to return-to-office costs and a levy in Mexico.
Founder, Chairman & CEO at NU, David Velez-Osomo, said 2026 will mark a key transition year as the company works to position itself as a global digital banking platform. He commented:
As we enter 2026, we see this as an inflection year. The year we begin transitioning from a Latin American leader to a global digital banking platform.
Nu Holdings Ltd. (NYSE:NU) operates as a digital banking platform provider across the United States, Mexico, the Cayman Islands, Colombia, and Brazil. The company provides spending solutions, including Nubank+ Tier, Nu credit and prepaid card, Ultraviolet credit and prepaid card, mobile payment solutions, and Nu Shopping. It also offers transactional solutions and savings & investing solutions.
2. Advanced Micro Devices Inc. (NASDAQ:AMD)
On March 2, UBS analyst Timothy Arcuri reiterated a Buy rating on Advanced Micro Devices Inc. (NASDAQ:AMD) while lowering the firm’s price target. He reduced the firm’s price target on the stock from $330 to $310.
The analyst continues to express confidence in the company’s long-term outlook, supported by AI-driven data center expansion and rising demand. He expected revenue growth to accelerate in 2027. Advanced Micro Devices Inc. (NASDAQ:AMD) also suggested it may add a third large gigawatt-scale customer, in addition to Meta Platforms and OpenAI. Timothy Arcuri believes that the customer could potentially be Microsoft.
Moreover, the company rejected concerns that warrant agreements and 10% equity deals are required for gigawatt-scale contracts. Advanced Micro Devices Inc. (NASDAQ:AMD) described these structures as unique to large AI model developers that control much of the ecosystem. It views such equity partnerships as a long-term benefit. The company believes the partnerships can help speed up market share gains in accelerators.
In addition, Advanced Micro Devices Inc. (NASDAQ:AMD) remains confident in its CPUs (central processing units) business. It projects growth to exceed its modeled 18% annual rate, supported by stronger pricing and higher volumes. The analyst views the stock as an attractive opportunity in the second half of 2026.
Advanced Micro Devices Inc. (NASDAQ:AMD) is a leading semiconductor company specializing in high-performance computing and graphics solutions. Its broad product portfolio includes microprocessors, graphics processors, and system-on-chip (SoC) solutions designed for data centers, gaming, and embedded systems.
1. Broadcom Inc. (NASDAQ:AVGO)
On February 26, Broadcom Inc. (NASDAQ:AVGO) said it is targeting sales of at least 1 million chips by 2027, using its stacked or 3D chip design technology. The update was reported by Reuters, which cited Harish Bharadwaj, Broadcom’s vice president of product marketing.
The technology places two chips on top of each other and tightly connects them to improve data transfer speeds. This new product target could create a potential multi-billion-dollar revenue opportunity for the company.
Broadcom Inc. (NASDAQ:AVGO) has spent about 5 years developing the technology. Fujitsu is the first company to adopt it and is currently producing engineering samples. The firm plans to start full production later this year. The one-million-chip target includes multiple designs beyond Fujitsu’s. The company expects to launch two additional stacking-based products in the second half of 2026. Additionally, it also plans to provide samples of 3 more designs in 2027. Future versions could include up to eight stacked pairs of chips.
On the same day as the above announcement, Oppenheimer analyst Rick Schafer maintained a Buy rating on Broadcom Inc. (NASDAQ:AVGO) and set a price target of $450, confirming the bullish sentiment around the stock.
Broadcom Inc. (NASDAQ:AVGO) operates as a developer, designer, and supplier of a range of semiconductor devices and infrastructure software solutions globally. It operates through the Infrastructure Software and Semiconductor Solutions segments. The company was incorporated in 1961 and is based in Palo Alto, California.
While we acknowledge the potential of AVGO as an investment, 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 AVGO and that has 100x upside potential, check out our report about the cheapest AI stock.
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