As the economy goes into goldilocks mode, it’s high time to have a shortlist of the best growth stocks to buy now at hand. So our research team compiled a shortlist of the 5 best growth stocks across five different industries. Some of the names on the list will be very familiar to you, some less so.
What is a growth stock?
Growth stocks represent companies expected to grow their earnings at an above-average rate compared to peers and the overall market. Strong growth, especially when profitable, can lead to substantial capital appreciation. This makes growth stocks an attractive option for long-term investors looking to maximize their returns. These higher rewards tend to come with a higher degree of volatility compared to a Walmart type of stock.
What is a goldilocks economy and why is it favorable for growth stocks?
A Goldilocks economy is characterized by moderate inflation and steady economic growth. Its arguably an investor’s preferred scenario as a stable environment fosters investor confidence and encourages consumer spending. At the same time, borrowing cost will fall. So will discount rates underlying fair value calculations. Lower discount rates mathematically lead to higher valuations for growth stocks.
The 5 Best Growth Stocks To Buy Now
When researching for the shortlist of the 5 best growth stocks to buy now, our team focus on three big themes:
1. We do not want to overpay for growth. The best measuring stick to avoid overpaying for growth is the PEG ratio (Price to Earnings growth). By making sure that it is at or below 1, we select growth stocks at a reasonable price.
2. We want companies that are profitable. A big risk in growth investing is that growth is “bought” by extensive marketing rather than driven by popular products or services.
3. Finally, we are looking for stocks that show strong momentum.
These are the 5 best growth stocks right now, identified by our research team for you:
Keep on reading to learn what makes these stocks stand out.
First Solar FSLR 📈
Ziggma Score: 88
2025 Price/Earnings: 12.6x
2025 Revenue growth : 25%
2025 Net profit growth: 60%
PEG Ratio (2025 price and earnings): 0.21
First Solar provides photovoltaic (PV) solar energy solutions in the United State, Japan, France, Canada, India, Australia, and internationally. The company designs, manufactures, and sells cadmium telluride solar modules that converts sunlight into electricity. First Solar is headquartered in Tempe, Arizona.
Why FSLR is attractive
Despite the stock’s massive runup over the past six months, it still trades at only 12.6x 2025 forward earnings. We like the long-term structural demand for FSLR’s products, as solar power is no longer just the cleanest power source but also the least expensive.
First Solar is already a massive direct and indirect beneficiary of the subsidies doled out through the Inflation Reduction Act. It stands to benefit further from Biden’s protectionist stance on Chinese imports.
Pinterest – PINS 📈
Ziggma Score: 93
2025 Price/Earnings: 23.7x
2025 Revenue growth : 17%
2025 Net profit growth: 24%
PEG Ratio (2025 price and earnings): 0.97
Pinterest is a visual discovery and bookmarking platform where users can find and save ideas ranging from recipes and home decor to fashion and travel. The company generates revenue primarily through advertising by allowing businesses to promote their products and services via visually engaging “Promoted Pins” that appear in users’ feeds. Additionally, Pinterest offers shopping features that enable users to purchase products directly from the platform, further driving its monetization efforts.
Why PINS is attractive
The company has seen a significant increase in global monthly active users, reaching 518 million in Q1 2024. This further reinforces its platform’s attractiveness to advertisers. Pinterest has considerable scope for growth by expanding its presence and monetization efforts in international markets.
Pinterest’s management is getting a considerable push from famous activist hedge fund Elliott Advisors. Elliott has demanded several strategic changes to improve the company’s operations and performance. These demands include enhancing Pinterest’s monetization strategies, improving user engagement, and optimizing operational efficiency. As part of its campaign, Elliott has managed to obtain a board seat for one of its directors, Marc Steinberg who will seek to ensure the implementation of these strategic initiatives
Nvidia – NVDA 📈
Ziggma Score: 98
2025 Price/Earnings: 34x
2025 Revenue growth : 32%
2025 Net profit growth: 33%
PEG Ratio (2025 price and earnings): 1.03
Nvidia is the global leader in graphics processing units (GPUs) and artificial intelligence (AI) technology. The seeds for the company’s success were planted by the popularity of its products in the gaming industry. It since has diversified into many other applications, such as professional visualization, data centers, and autonomous driving. Nvidia was founded in 1993 and headquartered in Santa Clara, California.
Why NVDA is attractive
The booming demand for its chips by various applications, such as AI and data center computing, has driven a surge in Nvidia’s revenue in a matter of less than two years. Thanks to a considerable technological edge, Nvidia benefits from extensive pricing power. In just four years, the company’s EBITDA margin has nearly doubled to 57%.
The recently launched $25B share buyback is likely to be increased in due course as the company rakes in free cash – $15B in the past quarter alone.
We believe that analysts underestimate the underlying earnings power in Nvidia’s services and maintenance business.
Skechers USA – SKX 📈
Ziggma Score: 86
2025 Price/Earnings: 14.9x
2025 Revenue growth : 32%
2025 Net profit growth: 18%
PEG Ratio (2025 price and earnings): 0.83
Skechers U.S.A. designs, develops, markets, and distributes footwear for men, women, and children. Its products cover a large spectrum of footwear types comprising casual, casual athletic, sport athletic, trail, sandals, boots, and retro fashion footwear for men and women.
Why SKX is attractive
Skechers is seeing substantial growth in its direct-to-consumers sales, which increased by 24.3% in 2023. This growth is driven by both an increase in sales volume and higher average selling prices.
The company’s strategy to enhance its e-commerce platforms and expand its network of physical stores is paying off. So has its international expansion. International markets now represent over half of Skechers’ total sales.
Skechers is one of the most innovative companies in its space, which solidifies its competitive edge and brand recognition.
We like its attractive projected double digit growth of 25% in revenue and 18% in earnings for 2025, which the market currently prices at a very reasonable Price / Earnings ratio of 14.9x.
Argan- AGX 📈
Ziggma Score: 95
2025 Price/Earnings: 15.3x
2025 Revenue growth: 14%
2025 Net profit growth: 20%
PEG Ratio (2025 price and earnings): 0.78
Argan is a diversified engineering company headquartered in Rockville, Maryland. The company offers engineering, procurement, construction, and various operational services. It generatives revenue from alternative energy projects, industrial and pipe fabrication services and underground communication, power networks, and structured cabling. Its customer base includes both government agencies and commercial customers.
Why AGX is attractive
Argan is seeing strong demand for its engineering services, particularly from the reneawable energy sector, as well as from related sectors, as the US is in dire need of upgrading its infrastructure. AGX’s order backlog is in excess of annual revenue. Revenue growth is projected at 26% for 2024 and 14% in 2025. With earnings growth following closely, AGX’s PEG ratio for 2025 is well below 1 at 0.78x
Disclosure
Ziggma team members presently hold shares in some of the stocks mentioned in this article.
Important Notice
This article is not investment advice. We cannot predict whether these stocks will go up or down. Our analysis is centered entirely on publicly available information. Please do your own homework prior to making an investment decision.
