Top Growth Stocks (January 2025)

For this screener, the filters have been chosen to identify stocks with high growth potential and manageable risk. 

Beta: A Beta greater than 1 indicates that the stock is more volatile than the overall market, which often correlates with higher growth potential. 

EPS CAGR (5 Yr): The high EPS CAGR (Earnings Per Share Compound Annual Growth Rate) over the past five years exceeding 20% ensures that the companies have demonstrated substantial earnings growth, a key indicator of strong financial performance and future growth prospects. 

Dividend Yield: A dividend yield (DY) of less than 2% suggests that these companies reinvest most of their earnings into the business rather than paying dividends, which is typical for high-growth companies focused on expansion and capital appreciation rather than income distribution.

Stock Market: We prioritized US-listed stocks for this screener.

1. Perion Network Limited (PERI)
   Beta: 1.46
   Basic EPS CAGR (5Y): 51.3%
   Dividend Yield: 0.0%
   Perion Network Ltd. provides digital advertising solutions to brands, agencies, and publishers in North America, Europe, and internationally.
   
2. Axcelis Technologies (ACLS)
   Beta: 2.25
   Basic EPS CAGR (5Y): 39.5%
   Dividend Yield: 0.0%
   Axcelis Technologies, Inc. designs, manufactures, and services ion implantation and other processing equipment used in the fabrication of semiconductor chips in the United States, Japan, Europe, and Asia Pacific.
   
3. Salesforce Inc (CRM)
   Beta: 1.48
   Basic EPS CAGR (5Y): 23.5%
   Dividend Yield: 0.5%
   Salesforce Inc is a leading provider of cloud-based software solutions.
   
4. ACM Research (ACMR)
   Beta: 2.76
   Basic EPS CAGR (5Y): 56.1%
   Dividend Yield: 0.0%
   ACM Research, Inc., together with its subsidiaries, develops, manufactures, and sells single-wafer wet cleaning equipment for enhancing the manufacturing process and yield for integrated chips worldwide.
   
5. Toll Brothers (TOL)
   Beta: 1.54
   Basic EPS CAGR (5Y): 30.1
   Dividend Yield: 0.7%
   Toll Brothers, Inc., together with its subsidiaries, designs, builds, markets, sells, and arranges finance for a range of detached and attached homes in luxury residential communities.
   
6. Bon Natural Life (BON)
   Beta: 1.25
   Basic EPS CAGR (5Y): 63.4%
   Dividend Yield: 0.0%
   Bon Natural Life Limited, together with its subsidiaries, engages in the research and development, manufacture, and sale of functional active ingredients extracted from natural herb plants.
   
7. Netflix (NFLX)
   Beta: 1.27
   Basic EPS CAGR (5Y): 34.5%
   Dividend Yield: 0.0%
   Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages.
   
8. Wingstop (WING)
   Beta: 2.12
   Basic EPS CAGR (5Y): 26.5%
   Dividend Yield: 0.0%
   Wingstop Inc., together with its subsidiaries, franchises and operates restaurants under the Wingstop brand.

You can find growth stocks easily using Investing Pro. Here are the steps:

• Click on the Screener tool.
• Select ‘Beta (1 Year)’ as a filter parameter on the Screener page, and set the threshold value to greater than 1. 
• For U.S.-centric stocks, select ‘United States’ under the ‘Trading Region’ tab drop-down, and make sure to check (select) the ‘Primary Trading Item’ option.

• Add a filter for ‘Basic EPS CAGR (5Y)’ greater than 20%

• Add a filter for ‘dividend yield’ less than 2%

• You can then see the list of all the companies falling in the desired screener filters’ range arranged in a descending order.

Growth stocks are shares in companies expected to grow at an above-average rate compared to other companies in the market. These companies typically reinvest their earnings into expansion, research and development, and other projects to fuel continued growth.

Growth stocks are often contrasted with value stocks, which are shares in companies believed to be undervalued by the market. While growth stocks are expected to increase in value due to their potential for rapid growth, value stocks are expected to gain value as the market recognizes their intrinsic worth.

• Volatility: Growth stocks can be more volatile than the broader market.
• Higher valuations: Higher P/E ratios can make these stocks more susceptible to price corrections.
• Market sentiment: Investor sentiment can greatly affect growth stock prices, sometimes leading to overvaluation or rapid declines.

• Bull markets: Growth stocks tend to perform well as investor confidence is high and economic conditions are favorable.
• Bear markets: These stocks can be more vulnerable to downturns as high valuations and speculative investments are often the first to be sold off.

Most growth stocks do not pay significant dividends, as they prefer to reinvest earnings into the company to fund further growth. Investors in growth stocks typically seek capital appreciation rather than income from dividends.

Yes, there are many mutual funds and ETFs that focus specifically on growth stocks. These can provide diversified exposure to a range of growth companies and reduce individual stock risk.