3 Market-Beating Growth Stocks to Watch in 2025

Key Points

• Possible inclusion in the S&P 500 is a reason why investors should stay in love with AppLovin.  
• Taiwan Semiconductor has a moat that will be in place for years to come. 
• Vistra is well-positioned for where the demand for power will be for the next decade.  

When many investors think about growth stocks to buy and hold in 2025, they may consider names like NVIDIA Corp. NASDAQ: NVDAor Palantir Technologies Inc. NASDAQ: PLTR and call it a day. That may not be a bad strategy. Both of those technology stocks are widely expected to continue their torrid growth in 2025.

But we suspect that you’re looking for other opportunities in 2025. In that case, you’ve come to the right place. If you want, you can find such stocks in the technology sector. However, the combination of interest rate cuts, less regulation, and the potential for lower corporate taxes is likely to result in improved earnings for companies in many sectors.

At the time of this writing, there are only a few more trading days left in 2024. And there’s some suspicion that the market could face some headwinds in early 2025. Here are three growth stocks that delivered a market-beating performance in 2024. To be fair, many investors would love to see a little correction in these stocks. However, analysts believe these stocks are on pace for an encore performance in 2025. 

This Stock Could Be the Palantir of 2025

AppLovin Corp. NASDAQ: APPhas been a red-hot stock in 2024. The company is listed in the Business Services sector. However, at its core, AppLovin is a software company that uses machine learning to deliver advertising to targeted markets. That makes it one of only a handful of companies monetizing artificial intelligence (AI) and machine learning in a meaningful way. 

And by meaningful, we’re talking about revenue that is up 43% through the first three quarters of 2024. Plus, the company is now solidly profitable, with analysts projecting earnings growth of approximately 45% in the next 12 months.

Even with the stock dropping approximately 20% in December, it has had an incredible run. But when you understand why APP stock dropped, you’ll begin to see why it might have a trajectory like Palantir.

AppLovin was not added to the S&P 500 in December. That was a disappointment to retail investors who were looking forward to the bullish bump the stock would get as institutional investors bought the stock. However, many analysts believe that inclusion in the S&P 500 may come in 2025, which should keep retail interest strong.

This Company’s Moat Supports Strong Growth

Taiwan Semiconductor Manufacturing Co. NYSE: TSMis far and away the industry leader in the semiconductor foundry market and advanced chip manufacturing. The company is in the early stages of what analysts expect to be a multi-year expanded production cycle as demand for advanced semiconductor chips expands.

You can imagine that many chipmakers would be keen on finding another fabricator. However, the institutional knowledge combined with the cost of scaling production creates a situation that’s easier said than done. The reality is that TSMC has a wide moat that will be firmly in place for years to come.

That means that investors looking at the TSMC stock price growth of over 90% shouldn’t be deterred. This stock has room to run far above the analysts’ consensus estimate of $214. That’s a 6% upside from the stock’s closing price on December 27. However, several analysts are bidding the stock much higher, including Barclays, which raised its price target to $240 in November.

The Only Utility Stock You’ll Need to Own in 2025

Investors don’t typically put utilities stocks and growth stocks in the same sentence. However, Vistra Corp. NYSE: VST may be the perfect utility stock for the current economic and geopolitical realities.

Vistra operates as a fully integrated energy company operating in 18 states and the District of Columbia. In addition to generating power from traditional carbon sources, the company is also invested in wind, solar, nuclear, and energy storage projects. 

But that only tells part of the story. The markets in which the company operates include business from data centers, oil and gas companies, chip makers, and automakers. All these sectors are at the beginning of multi-year growth cycles. And that’s without the expected demand growth in nuclear applications.

VST stock is up 274% in 2024. However, at the midpoint of its 2025 guidance, Vistra is expecting earnings growth of around 15%. That forecast is likely a key reason why several analysts are offering price targets above the consensus price of $149.10.