In this article, we will take a look at some of the best growth stocks to invest in for the next 5 years.
Before making any decision, whether big or small, we instinctively weigh its long-term impact, and this is particularly true in the case of stocks. We have all asked at some time: How much return can I expect in the years ahead?
As the legend of investment, Warren Buffett, says,
“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
We often hear that we should invest in a stock and then forget about it. But the real condition lies in the growth prospects of the stock. By definition, a growth stock is a company’s share that is expected to outperform the general market. The common features of such a stock are above-average earnings growth, higher risk, higher reward, and reinvestment of dividends. Given this, we will take a look at some of the best growth stocks.
A close-up of an investor pointing to a chart featured on a projector, conveying a message of growth.
Our Methodology
We have compiled a list of 15 stocks using the Finviz stock screener, filtering for upside potential of at least 50% and revenue growth of at least 20% in the last five years. After selecting the stocks, we ranked them according to their upside potential, from highest to lowest.
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).
15. Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX)
Upside potential as of June 24, 2025: 51.52%
Gautam Patel, the director of Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX), sold 94,906 shares of Class A Common Stock, worth around $761,146, on June 16, 2025. The prices fluctuated between $8.00 and $8.05 per share, while the current trading price stands at $7.92.
As a result of the transaction, Patel’s stake now amounts to 1,609,144 shares of Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX). The sale was executed automatically in accordance with a pre-determined trading plan adopted on August 15, 2024, and in compliance with Rule 10b5-1(c). In general, analysts remain optimistic regarding the stock, with price targets ranging between $11 and $12 per share.
Just recently, analysts at Goldman Sachs reviewed the generic drug industry and initiated coverage on Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX) with a positive outlook. The reasons cited were many, from current portfolio changes favoring higher-value products to the company’s track record of business execution. With a 12-month price target of $12, the analyst supported the potential upside of over 50%.
Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX), headquartered in Bridgewater, New Jersey, is a leading biopharmaceutical company that develops and markets generics, injectables, biosimilars, and specialty branded pharmaceutical products. Founded in 2002, the company operates through three main segments: Affordable Medicines, Specialty, and AvKARE. The giant is committed to advancing innovation in healthcare.
14. Assembly Biosciences, Inc. (NASDAQ:ASMB)
Upside potential as of June 24, 2025: 71.12%
In the wake of its recent Annual Meeting of Stockholders, Assembly Biosciences, Inc. (NASDAQ:ASMB) has unleashed a wave of major approvals and shifts. While accepting two amendments to the company’s Amended and Restated 2018 Stock Incentive Plan (the “2018 Plan”), the stockholders elected Jeanette M. Bjorkquist as the chief financial officer.
As mentioned earlier, the 2018 Plan has been amended in two distinct ways: Amendment 1 raises the number of common stock shares for issuance to 1,478,333 from 1,103,333, whereas Amendment 2 reserves an additional 225,000 shares for issuance contingent upon performance-based vesting to strengthen an extensive supplemental retention grant program.
During the meeting, all director nominees were appointed to serve until the 2026 annual meeting of stockholders, and in the management change, Jeanette M. Bjorkquist, the principal executive officer of Assembly Biosciences, Inc. (NASDAQ:ASMB), will also serve as the CFO. These adjustments are a testament to the company’s efforts to incentivize performance and retain talent, positioning ASMB to perform well in the times ahead.
Assembly Biosciences, Inc. (NASDAQ:ASMB) is a California-based biotechnology company that develops therapeutic products for treating viral diseases. Incorporated in 2005, the company collaborates with Gilead Sciences, Inc. for the research and development of virology therapies. The giant is dedicated to delivering high-quality treatments.
13. Apellis Pharmaceuticals, Inc. (NASDAQ:APLS)
Upside potential as of June 24, 2025: 89.54%
The General Counsel of Apellis Pharmaceuticals, Inc. (NASDAQ:APLS), David O. Watson, sold 5,000 shares of common stock for $18.77, higher than the current trading price of $17.62. This transaction, worth $93,850, although it follows a challenging period, implies the current undervaluation of the stock.
This reduction of the stake means that Watson now owns 133,730 shares of Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) directly and 80,136 shares indirectly through a custodial account for his minor children and the David O. Watson Irrevocable Trust of 2023. With that being said, the execution of the sale was under a pre-arranged 10b5-1 trading plan.
Some analysts believe that if you hold this stock, you need to have some patience. They argue that the significant FCF potential of SYFOVRE and EMPAVELI can’t be overlooked, with the market for SYFOVRE anticipated to exceed $1 billion in annual sales by 2028. EMPAVELI, on the other hand, is undergoing trials for additional indications and is expected to contribute to EBITDA positivity by 2026.
Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) is a Massachusetts-based commercial-stage biopharmaceutical company that discovers and commercializes novel therapeutic compounds for underserved diseases. Incorporated in 2009, the company has a license agreement with Swedish Orphan Biovitrum AB (publ) and Beam Therapeutics Inc.