Who wouldn't like some high-flying growth stocks for their portfolio? (Well, as long as they keep flying high, of course.) Many investors love growth stocks for their higher-than-average growth potential (often not appreciating enough that they can fall hard, too).
If you're worried about the market crashing soon, you might favor value stocks, which typically have more limited downside -- and upside -- potential. But if you're drawn to growth stocks and you plan to hang on to them for a long time, you could do well. They might pull back in a market downturn, but then go on to (eventually) reach new highs.
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Here are five growth stocks, up 23% to 51% so far in 2025 (as of Nov. 10), to consider for berths in your long-term portfolio.
1. Shopify
Let's start with Shopify (SHOP 2.36%), which offers a platform that helps e-commerce businesses get up and running. It's been a terrific performer, averaging annual gains of nearly 50% over the past decade and 49% year to date.
There's a lot to like about Shopify, such as its light business model, which doesn't require lots of raw materials that might be affected by tariffs or global disruptions. Amazon is another e-commerce giant, but its business model requires a lot of labor and warehouses, among other things.
NASDAQ: SHOP
Key Data Points
Shopify's third quarter offered solid results, including 32% revenue growth and 18% free-cash-flow margin, marking nine consecutive quarters of double-digit free-cash-flow margin. And interestingly, per my colleague Jennifer Saibil, "Shopify's gross merchandise volume, or the amount of money it processes across its commerce empire, comes close to Amazon's stores and third-party sales figures: $87 billion versus $107 billion in the second quarter."
Shopify is expanding its scope, too, targeting larger retailers with its e-commerce ecosystem. The stock's forward-looking price-to-earnings (P/E) ratio of 85 is below its five-year average of 98 (although both those numbers are on the steep side).
2. Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing (TSM 0.64%) is not just a massive semiconductor company -- it's a special one, because while most chipmakers only design chips, Taiwan Semiconductor is a foundry, actually manufacturing them. It's the biggest chipmaker by far -- with a recent market share of 71%, up from 65% a year earlier.
The company has serious growth potential, given the proliferation of semiconductors in so many aspects of our lives. They're critical for artificial intelligence (AI), too. And Taiwan Semiconductor also makes chips for smartphones.
NYSE: TSM
Key Data Points
What about its valuation? Well, despite its having advanced some 51% year to date as I write this, its shares are not wildly overvalued. The stock's forward P/E was recently 24, a bit above the five-year average of 20.
3. MercadoLibre
MercadoLibre (MELI +0.19%) is often described as a cross between Amazon and PayPal, as it encompasses both a dominant online marketplace and a major fintech business. It serves Latin America, which is a huge and growing market and it's already, in its own words, "the leading company in e-commerce and financial technology in Latin America, with operations in 18 countries," and "a complete ecosystem of solutions for individuals and businesses to buy, sell, advertise, obtain credit and insurance, collect, send money, save, and pay for goods and services both online and offline."
NASDAQ: MELI
Key Data Points
The stock, up 23% year to date, seems appealingly valued, too, at recent levels, with a forward P/E of 31, well below the five-year average of 69. It should be of interest to long-term investors seeking businesses with great growth potential, especially those looking for investments based outside the U.S. for diversification.
4. ASML
Regarded by some as one of the best chip stocks to buy, ASML Holding (ASML +1.60%) specializes in making the lithography equipment needed for semiconductor manufacturing, and it's the only supplier of advanced extreme ultraviolet systems (EUVs). Its equipment etches intricate circuitry onto silicon wafers, and it's very costly equipment, too. But while customers may not buy its equipment frequently, they do supply recurring revenue to ASML for servicing and other related expenses.
ASML's stock was recently up 51% year to date, but its valuation has not gotten out of hand, with its forward P/E of 34 just about in line with its five-year average. If you're thinking that gobs of chips will be produced in the coming years, ASML should profit from that as chipmakers will need more lithography equipment.
5. iShares U.S. Technology ETF
Finally, here's a growth stock that's not actually a stock. It's an exchange-traded fund (ETF) -- a fund that trades like a stock -- and it's the iShares US Technology ETF (IYW 1.08%). It's perfect for those who want to profit along with growing tech stocks without having to do the work of studying lots of tech stocks to see which seem best.
The ETF tracks the Russell 1000 Technology RIC 22.5/45 Capped Index, which is focused on technology stocks. Its top holdings recently included Nvidia, Microsoft, Apple, and Broadcom. The ETF is up 29% year to date. There are other solid ETFs you might look into, as well, including some impressive growth-oriented ETFs.
