Investing in growth stocks is as risky as other choices but in our opinion, it can be a rewarding strategy, especially when focusing on profitable companies with a history of solid growth and promising future prospects. While the “Magnificent Seven”—Apple, Microsoft, Amazon, Alphabet, Meta, Tesla, and Nvidia—often dominate discussions, we wanted to focus this article in those other companies that have had solid growth over the last 10 years and that offer substantial growth potential, so here are five such companies to consider for your portfolio in 2025:
1. Advanced Micro Devices, Inc. (AMD)
Advanced Micro Devices (AMD) has emerged as a formidable competitor in the semiconductor industry, challenging giants like Intel and Nvidia in a battle that at the time is wining clearly Nvidia. However, over the past decade, AMD has demonstrated impressive revenue and earnings growth, driven by its innovative processors and graphics cards. The company’s focus on high-performance computing and data center solutions positions it well for continued expansion in the coming years. The analysts are projecting sustained growth, supported by AMD’s expanding market share and advancements in technology. Despite its significant appreciation in stock price, AMD’s valuation remains reasonable compared to other big companies, so that in our opinion offers potential for further appreciation.
Advanced Micro Devices Inc. (AMD)
Analysts price targets (Current Price: $125.37):
- High: $250.00
- Low: $145.00
- Average: $184.52
2. Salesforce, Inc. (CRM)
Salesforce is a global leader in customer relationship management (CRM) software. The company has consistently reported strong revenue growth over the past decade, fueled by its comprehensive suite of cloud-based solutions and strategic acquisitions. With businesses increasingly adopting digital transformation strategies, Salesforce is poised to benefit from the growing demand for CRM and enterprise software. Once again, the analysts anticipate continued growth, in this occasion, bolstered by the company’s expansion into new markets and innovative product offerings. Salesforce’s current valuation suggests room for stock price appreciation as it capitalizes on emerging opportunities.
Analysts price targets (Current Price: $332.90):
- High: $450.00
- Low: $286.00
- Average: $398.34
3. Adobe Inc. (ADBE)
Adobe has transformed from a traditional software provider to a cloud-based powerhouse, offering a range of products essential for digital media creation and marketing. Adobe has achieved consistent revenue and earnings growth, driven by its subscription-based model and continuous innovation. The increasing demand for digital content creation tools positions Adobe for sustained growth in the future. Analysts forecast continued expansion, supported by Adobe’s strong product pipeline and strategic acquisitions. Despite its robust performance, Adobe’s valuation remains attractive, and analysts are expecting some upside potential.
Analysts price targets (Current Price: $430.57):
- High: $703.00
- Low: $450.00
- Average: $604.33
4. Costco Wholesale Corporation (COST)
Costco has demonstrated consistent revenue and profit expansion, making it one of the best growth stocks for the next decade. Although it is considered a slow growth stock, its revenue jumped 63% on the last 12 months and they are focusing in expanding their profit-margin.
The company’s membership-based model and focus on high-quality products at competitive prices have fostered strong customer loyalty and repeat business. Analysts project continued growth, driven by Costco’s expansion into new markets and its ability to adapt to changing consumer preferences. Despite its steady appreciation in stock price, Costco’s valuation remains reasonable, offering potential for further appreciation in the longer term.
Analysts price targets (Current Price: $916.58):
- High: $1195.00
- Low: $900.00
- Average: $1068.13
5. ServiceNow, Inc. (NOW)
ServiceNow specializes in digital workflow solutions that enhance productivity and efficiency for enterprises. The company has also reported impressive revenue growth over the past decade, reflecting the increasing adoption of its platform across various industries. With the ongoing digital transformation across sectors, ServiceNow is well-positioned to capitalize on the demand for workflow automation and enterprise solutions. Analysts anticipate sustained growth, although the price target varies between a low of $716 and a high of $1300, the average of analysts falls on the $1089, so a potential upside of 10% over 2025 supported by the company’s continuous innovation and expansion into new service areas.
Analysts price targets (Current Price: $1073.77):
- High: $1300.00
- Low: $716.00
- Average: $1089.00
Conclusion
We like to have a diversified portfolio, so investing in profitable growth stocks beyond the well-known “Magnificent Seven” can provide diversification and the potential for substantial returns. Companies like the listed above have demonstrated strong growth over the past decade, that was our requirement for this article. In the same way we believe they are well-positioned for continued expansion in the coming years. However, and as always, it’s essential that you conduct thorough research and consider your investment objectives and risk tolerance before making investment decisions.
