We recently compiled a list of the 12 Best Growth Stocks to Buy and Hold for the Long Term. In this article, we are going to take a look at where argenx SE (NASDAQ:ARGX) stands against the other growth stocks.
What’s the Bull Case for US Equities?
The market closed last week mostly lower, however, the S&P 500 has been up more than 7% since April 11, indicating a returning positive sentiment. On May 10, David Lefkowitz, Equity Strategist at UBS Global Wealth Management, joined CNBC to discuss his bull case for the US equities. Lefkowitz acknowledged the volatility that has been around since the tariff announcement; however, he believes that backdrop remains fairly constructive. He elaborated that the market has had some significant buy signals since early April, characterised by the volatility index giving one of the highest readings, investor sentiment being cautious, and investor positioning has been depressed. Historically speaking, whenever these things have happened in the past, the US equities have performed exceptionally well in the preceding 6 to 12 months. Lefkowitz noted that he is not too concerned with the day-to-day news and volatility, as the market will get choppy on trade negotiation deals. Rather, he is more focused on the bigger picture, which indicates that stocks will ultimately end up higher over the next 12 months.
While answering a question regarding the recent rebound in the market, Lefkowitz highlighted that when the volatility index comes down, as it has over the past few weeks, history tells us that the market does not make new lows. Although the market will still be chopping a little. However, it is anticipated to stay within the historic average of 5%. Moreover, the equity strategist is also not concerned about the valuations and believes that as soon as the companies start posting earnings growth, the backdrop will help the market reach its next high.
While talking about his most convicted sectors, Lefkowitz noted that he likes secular growth stocks. He elaborated that growth as a sector was hit earlier this year due to doubts regarding AI trends and its ability to generate a return on investment. This has resulted in the sector being at the bottom of the market. However, Lefkowitz believes that the demand for AI products and the sophisticated infrastructure will keep growing for at least the next few years, thereby generating sustainable earnings growth.
Our Methodology
To compile the list of 12 best growth stocks to buy and hold for the long term, we used the Finviz stock screener, Seeking Alpha, and Insider Monkey’s Q4 2024 hedge fund database. Using the screener, we aggregated a list of growth stocks that have grown their sales by at least 30% over the past 5 years. Next, we cross-checked the 5-year sales growth for each stock from Seeking Alpha and ranked the stocks in ascending order of the number of hedge fund investors.
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).
A lab setting filled with scientific equipment and researchers in lab coats working together to develop new therapies for autoimmune diseases.
argenx SE (NASDAQ:ARGX)
5-Year Sales Growth: 105.96%
Number of Hedge Fund Holders: 47
argenx SE (NASDAQ:ARGX) is a commercial-stage biotechnology company that focuses on developing antibody therapeutics for autoimmune diseases and cancer. It uses its proprietary discovery platform to leverage unique characteristics of the llama immune system and engineer antibody medicines. Its lead products, VYVGART and VYVGART HYTRULO, are approved in the United States, Europe, and Japan.
On May 9, Douglas Tsao, an analyst at H.C. Wainwright, reiterated a Buy rating on the stock with a price target of $720. The analyst noted the company grew net product sales for VYVGART, which exceeded market expectations. The company reported its fiscal first quarter results for 2025 on May 8. Management noted that it generated a total operating income of $807 million, driven primarily by $790 million in product net sales, which represents a 99% increase compared to the same quarter in the previous year. The product sales of argenx SE (NASDAQ:ARGX) were geographically diversified, with the majority of sales coming from the US.
The analyst, Tsao, noted that the upcoming launch of Vyvgart’s prefilled syringe (PFS), expected to improve patient accessibility and convenience. Management of the company also expects that the self-injection is expected to further expand patient access by enabling easier self-administration and reaching new patient populations. argenx SE (NASDAQ:ARGX) ranks as one of the best growth stocks to buy and hold for the long term.
Artisan Small Cap Fund stated the following regarding argenx SE (NASDAQ:ARGX) in its Q4 2024 investor letter:
“We ended our investment campaigns in argenx SE (NASDAQ:ARGX), Tyler Technologies and Interparfums. Shares of Argenx have continued their year-to-date ascent due to multiple positive developments, including FDA approval to promote VYVGART® for chronic inflammatory demyelinating polyradiculoneuropathy (CIDP) and strong sales execution of VYVGART®’s first approved indication in myasthenia gravis. While we continue to have high conviction, the company has outgrown our small-cap mandate, and we exited our position after a successful multiyear investment campaign.”
Overall ARGX ranks 9th on our list of the best growth stocks to buy and hold for the long term. While we acknowledge the potential of ARGX as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ARGX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
