10 Best Growth Stocks for the Next 5 Years

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Technology stocks went from celebration to rout within two sessions this month. On Wednesday, November 4, equities rallied after Democrats swept Congress in the midterm elections. By Thursday, the S&P 500 had fallen 4.36% and the Dow had lost 3.44%, while the Nasdaq Composite closed 5.52% lower, its worst day since April 2025. The drop pushed the tech-heavy index into correction territory, at least 10% below its October 6 record close.

The selling did not stop there, and the S&P 500 went on to post its worst week since June. Truist chief markets strategist Keith Lerner called the action “something of a buyers’ strike” in technology. Breadth was thin, with only about one in seven S&P 500 stocks rising on the day of the steepest decline.

A Midterm Shock Rattles the Market’s Growth Engine

The election result mattered for reasons that go beyond party control. eToro market analyst Jakub Rochlitz said rising electricity prices turned data-center construction into a political issue during the campaign. In his view, markets now assume that the artificial intelligence buildout will be slower and more expensive, which rewrites growth expectations for every company along the supply chain.

The damage was sharpest in semiconductors. The Philadelphia Semiconductor Index plunged 12% and the Nasdaq-100 fell 6.4%, the biggest one-day declines for both gauges since March 2020. Readers following the group can find more names in our list of the most promising technology stocks to buy right now.

Rising Rates and Heavy Debt Put Growth Valuations to the Test

Anxiety about AI spending had been building well before the vote. Bloomberg reported that interest rates were climbing, borrowing to fund the buildout was growing, and public backlash against data centers was spreading. Investors are now demanding higher yields from heavily indebted data-center builders, which raises the cost of every new project.

The numbers show how quickly sentiment turned. An October 30 sell-off erased more than $1 trillion of tech market value, and chipmakers surrendered more than $1.5 trillion on November 5 alone. Analyst-driven picks from the same corner of the market are collected in our list of the best aggressive growth stocks to buy according to Wall Street analysts.

Not everyone read the move as a break in the trend. Argent Capital Management portfolio manager Jed Ellerbroek told Reuters that the selling felt like capitulation among the beneficiaries of data-center spending, though the size of the move looked outsized to him. His comment shows that even investors who saw capitulation in data-center names questioned the scale of the decline.

Our Methodology

To compile this list, we reviewed rankings of the best growth stocks to own over the next five years from financial websites over the past 12 months. From the stocks that came up, we kept the companies with a five-year EPS growth rate above 25%. We then ranked them by their average upside potential, in ascending order, as of November 11, 2026. We also list each stock’s number of hedge fund holders as of Q2 2026, from our database of 1,006 hedge funds.

At Insider Monkey, we are obsessed with 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. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 612% since May 2014, beating its benchmark by 375 percentage points (see more details here).

10 Best Growth Stocks for the Next 5 Years

10. Block (NYSE:XYZ)

Average Upside Potential: 18%

EPS Growth Past 5 Years: 36.61%

Number of Hedge Fund Holders: 76

Investors cheered Block’s third-quarter report because growth finally showed up in profit. Adjusted operating income climbed 92%, and the shares surged the next day. Block runs Square for sellers and Cash App for consumers, and both contributed. Square’s gross payment volume grew at its fastest pace since early 2023, while Cash App lending originations rose 40%, a sign that the consumer side is leaning into credit.

Bank of America analyst Matthew O’Neill reaffirmed a Buy rating on November 4 and raised his price target to $117 from $115. He said the quality of growth continues to improve, and he is positive on early 2027, when management expects gross profit to grow 15%. That view matters because the company has spent years being judged on how efficiently it turns gross profit into earnings.

Costs remain the open question. A Justice Department accrual weighed on reported results, and GAAP operating income grew far more slowly than the adjusted figure. Our analysis of how Block’s lending-led gross profit growth squares with its costs takes up that question, including what the shift in mix means for margins.

9. Shopify (NASDAQ:SHOP)

Average Upside Potential: 18%

EPS Growth Past 5 Years: 28.70%

Number of Hedge Fund Holders: 82

Shopify’s pitch is that artificial intelligence sends shoppers toward merchants rather than away from them. Management said traffic from AI-driven sources rose 2.6 times in the third quarter, and orders tied to that traffic rose 3.3 times, evidence that chatbot-led discovery is already turning into sales. Shopify lets merchants run stores, payments and shipping from one dashboard, so any new buying channel flows through its checkout. Business-to-business volume also grew far faster than the platform overall, which widens the set of buyers that checkout can reach.

The report was not flawless. Subscription revenue and gross merchandise volume landed slightly short of expectations, and the shares dropped sharply on November 3 before recovering part of the loss the next day. Even so, RBC Capital Markets analyst Paul Treiber maintained an Outperform rating and a $200 price target after the results, one of several firms that stayed constructive as the company leaned into agentic commerce.

We recently looked at whether Shopify’s AI opportunity is bigger than it looks. Management has guided fourth-quarter revenue growth to the low 30s in percentage terms, which gives investors the next checkpoint for that thesis.

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