Investing in growth stocks can be a great way to earn life-changing wealth in the stock market. The key, of course, is to know which growth stocks to buy and when.
Despite increased volatility in the stock market in 2025, growth stocks continue to outperform. The S&P 500 Growth index climbed about 18.9% through the first nine months of the year. Its counterpart, the S&P 500 Value index, was up just 8% during the same period.
However, growth stocks don't always outperform during periods of volatility. In 2022, the S&P 500 Growth index fell 30% for the year, while the S&P 500 index dropped just 19%.
Picking the right growth stock can help you weather the downside while profiting in the long run from its potential. With these tools and strategies, you can position your portfolio for long-term success with growth stocks.
What is a growth stock?
Growth stocks are companies that increase their earnings faster than the average business in their industry or the market as a whole. Often, a growth company has developed an innovative product or service that is gaining share in existing markets, entering new markets, or creating entirely new industries.
The market tends to reward businesses that can grow faster than average for long periods, delivering handsome returns to shareholders in the process. The faster they grow, the bigger the potential returns.
Unlike value stocks, high-growth stocks tend to be more expensive than the average in terms of profitability ratios. Despite their premium price tags, the best growth stocks can still deliver fortune-creating returns to investors. That said, growth stocks can be much more volatile. Big drops in prices may take years to fully recover and catch up with the rest of the market.
High inflation puts pressure on growth stocks because it reduces the future value of their expected earnings. Supply chain constraints also affect the ability of some to expand, and other macroeconomic factors slow the entire economy. However, downturns can give long-term investors a buying opportunity when growth stock prices are low.
Top growth stocks in 2025
To provide you with some examples, here are 10 excellent growth stocks available in the stock market today.
| Company name | Company ticker | Market cap | Industry |
|---|---|---|---|
| Meta Platforms | NASDAQ:META | $1.6 trillion | Interactive Media and Services |
| Shopify | NASDAQ:SHOP | $213.7 billion | IT Services |
| Uber Technologies | NYSE:UBER | $176.8 billion | Road and Rail |
| Block | NYSE:XYZ | $39.3 billion | Diversified Financial Services |
| MercadoLibre | NASDAQ:MELI | $102.2 billion | Multiline Retail |
| Nvidia | NASDAQ:NVDA | $4.3 trillion | Semiconductors and Semiconductor Equipment |
| Netflix | NASDAQ:NFLX | $403.4 billion | Entertainment |
| Amazon | NASDAQ:AMZN | $2.4 trillion | Multiline Retail |
| Salesforce | NYSE:CRM | $245.7 billion | Software |
| Alphabet | NASDAQ:GOOG | $3.7 trillion | Interactive Media and Services |
As this list shows, growth stocks come in all shapes and sizes. They can be found in a variety of industries, both within the U.S. and in international markets. Although all the stocks on this list are from larger businesses, smaller companies can also be fertile ground for growth investors.
A great way to invest in a wide variety of small-cap growth stocks is via an exchange-traded fund (ETF), such as Vanguard Small-Cap Growth Index Fund ETF (VBK -1.96%). This fund tracks the performance of the CRSP U.S. Small Cap Growth index, which gives investors an easy way to invest in roughly 560 small-cap growth companies all at once.
The Vanguard Small-Cap Growth Index Fund ETF has an ultra-low expense ratio of 0.07%. This means investors will receive almost all the fund's returns, with only a small amount in fees going to Vanguard. (An annual expense ratio of 0.07% works out to only $0.70 in fees per $1,000 invested annually.)
How to find growth stocks
To find great growth stocks, you'll need to:
- Identify powerful long-term market trends and the companies best positioned to profit from them.
- Narrow your list to businesses with strong competitive advantages.
- Further narrow your list to companies with large addressable markets.
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