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Now that high inflation has subsided and interest rates have fallen, you may be looking to reposition your portfolio toward growth. Let’s take a look at three sectors and six growth stocks that have the potential to help you achieve your long-term wealth goals.
Why focus on long-term growth stocks?
For patient investors, long-term growth stocks have upside potential. First, the long holding period minimizes transaction fees. Your taxes may also be lower, especially for growth stocks that don’t pay dividends.
Additionally, longer holding periods are easier to manage and can encourage higher returns. Investors who don’t time the market don’t need to monitor and evaluate every headline. You also don’t have to worry about market downturns. They can simply do nothing and wait for the market to recover.
Most importantly, long-term growth stocks can create real wealth through compound returns. Compound interest occurs when stock prices begin to rise. The gain-on-gain phenomenon increases the potential for growth over time without further contributions.
Top Growth Stock Sectors for the Next 10 Years
Economic trends shape the future of a growing economy. Understanding these trends will help you focus your research on the sectors with the greatest potential for expansion.
The outlook for technology, healthcare and energy is currently positive. The Bureau of Labor Statistics predicts high job growth in these fields based on three expected trends.
High demand for data processing and software supports technology growth. The medical field is expected to expand due to the aging of the population and the increasing incidence of chronic diseases such as heart disease. Increasing demand for electricity to power EVs and data centers will increase demand for energy, particularly from renewable energy sources such as solar and wind.
Criteria for selecting growth stocks
With sector trends in mind, we identified six top growth stocks by screening publicly traded U.S. companies using the following criteria:
Operating in the technology, healthcare, or energy sectors EPS growth greater than 20% Revenue growth greater than 10% Five-year EPS growth outlook greater than 10% Self Return on equity (ROE) above the company’s average over the past 10 years Debt-equity ratio (DTE) with an average analyst rating of Buy or Strong Buy of less than 1 Market capitalization of $10 billion or more
Taken together, these qualities represent a company with a history of growth, strong prospects, rising ROE, manageable debt, and the size to absorb economic downturns.
To finalize my picks for the best growth stocks, I ordered the resulting list from highest to lowest five-year EPS growth outlook. We then selected the top two from each sector we targeted.
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6 Top Growth Stocks for the Next 10 Years
The table below shows six of the best growth stocks in the technology, healthcare, and energy sectors. The table is followed by a description of each stock that summarizes the company’s business model, key metrics, and related business developments.
Table data source: StockAnalysis.com.
For more investment ideas, see Best Value Stocks and Best Stocks of 2024.
1. Dynatrace (DT)
Stock Price: $55.13 Earnings Growth: 22.3% EPS Growth: 154.6% 5-Year EPS Outlook: 38.6% DTE: 0.04
Dynatrace business overview
Dynatrace is a subscription-based technology infrastructure platform that monitors applications and microservices, protects them from security vulnerabilities, logs analytical data, and automates workflows to quickly resolve security issues. is operated. Dynatrace has customers around the world in financial services, retail, government, transportation, and software.
Why DT is a top growth stock choice
According to a report from Statista, global spending on digital transformation (the adoption of new technologies by businesses to increase efficiency) reached $1.85 trillion in 2022. This represents a 16% increase over the previous year.
Companies undergoing digital transformation need better tools to optimize system performance and prevent technology outages. Dynatrace is a leading contender in that huge market, which Insider Monkey estimates at $50 billion.
In its Q1 2025 earnings release, DT reported a 20% increase in annual recurring revenue on a constant currency basis compared to the same period last year. The company also increased non-GAAP operating margin by 100 basis points to 29% and increased free cash flow by nearly 84%.
2. Nvidia (NVDA)
Stock Price: $134.80 Earnings Growth: 194.7% EPS Growth: 142.5% 5-Year EPS Outlook: 37.4% DTE: 0.17
NVIDIA business overview
Nvidia provides high-performance graphics processing units (GPUs) for use in AI, autonomous driving, 5G, robotics, and gaming applications. Nvidia is fabless. That means the company outsources manufacturing to focus on design and innovation.
Why NVDA is a top growth stock choice
Nvidia has experienced tremendous growth over the past two years, going from a split-adjusted price of $16 per share to nearly $140. The company currently holds an estimated 70% to 95% market share for AI chips. This is an enviable situation, as Gartner predicts that spending on AI chips will increase from $53 billion in 2023 to nearly $92 billion in 2025.
Nvidia’s Q2 2025 highlights, reported in August, included a 154% quarter-over-quarter increase in data center segment revenue and a 168% increase in diluted EPS. The Data Center segment includes sales of NVDA’s AI-related solutions.
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3. First Solar (FSLR)
Stock Price: $211.49 Earnings Growth: 25.9% EPS Growth: 78.9% 5-Year EPS Outlook: 35.0% DTE: 0.09
First Solar Business Overview
First Solar provides photovoltaic (PV) solar energy solutions in the United States and around the world. The company’s thin PV modules have a lower carbon footprint than traditional crystalline silicon PV panels.
Why FSLR is a top growth stock choice
The International Energy Agency predicts that solar power will account for 80% of the growth in global renewable energy capacity between now and 2030. The construction of rooftop solar power systems and large-scale solar power plants is expected to contribute. First Solar is the largest solar panel manufacturer in the United States, primarily serving industrial applications.
First Solar’s stock price fell in early October after two analysts lowered their price targets. Analysts at Jefferies and Bank of America maintained their buy rating on FSLR, but noted some near-term headwinds. These include potential supply chain issues, labor shortages, regulatory concerns, etc. For long-term solar power investors, this decline will likely create a buying opportunity.
Highlights of First Solar’s second-quarter earnings reported in July included 25% quarter-over-quarter revenue growth and doubling diluted EPS compared to the same period last year.
4. Boston Scientific (BSX)
Stock Price: $87.10 Earnings Growth: 13.7% EPS Growth: 127.1% 5-Year EPS Outlook: 28.6% DTE: 0.53
Boston Scientific Business Overview
Boston Scientific makes medical devices that diagnose and treat a variety of conditions, including gastrointestinal disease, coronary artery disease, and some cancers. Customers include hospitals, clinics, clinics, and outpatient facilities around the world.
Why BSX is a top growth stock choice
At least four analysts have raised their price targets for BSX in recent weeks. One factor driving this excitement is Boston Scientific’s plans for early release of transcatheter aortic valve replacement (TAVR) data. Analysts speculate that the early release shows confidence in the company’s research results on a precise transaortic valve system for TAVR.
TAVR treats aortic valve stenosis less invasively than open-heart surgery. Grand View Research projects the global TAVR market to grow at a CAGR of 7.2% between 2024 and 2030.
Boston Scientific also recently completed its acquisition of Silk Road Medical. The transaction is expected to be accretive to BSX’s adjusted EPS from 2026 onwards.
In the second quarter of 2024, Boston Scientific grew revenue by 14.5% and EPS by 22% year-over-year.
5. Medpace Holdings (MEDP)
Stock Price: $347.91 Earnings Growth: 21.4% EPS Growth: 33.1% 5-Year EPS Outlook: 17.8% DTE: 0.17
Medpace Holdings business overview
Medpace is a clinical research organization that conducts clinical trials for customers in the biotechnology, pharmaceutical, and medical device industries. Our customers are primarily small and medium-sized biopharmaceutical companies that do not have the necessary resources to conduct clinical trials in-house.
Why MEDP is a top growth stock choice
Medpace’s price per share has fallen more than 20% since the company announced its July results. Analysts also lowered their price targets. The good news is that these developments are related to temporary situations. Analysts are primarily concerned about a slowdown in biotech funding and deal flows, as well as a decline in MEDP bookings this year.
UBS analyst Dan Leonard, quoted by Business Insider, believes Medpace will grow faster than its peers in the long term, even if short-term market conditions are bad.
In the second quarter of 2024, Medpace grew revenue by 14.6%, backlog by 13.7%, and diluted EPS by 42% compared to the same period last year.
6. Schlumberger Limited (SLB)
Stock Price: $44.78 Earnings Growth: 12.7% EPS Growth: 21.3% 5-Year EPS Outlook: 12.8% DTE: 0.63
Schlumberger business overview
Schlumberger provides technology services to the oil and gas industry. From flow measurement services to exploration data processing, the company’s software and hardware solutions are designed to improve and streamline operations for oil and gas companies.
Why SLB is a top growth stock choice
Similar to Medpace, analysts covering Schlumberger have lowered their price targets, but remain bullish on the stock over the long term. The immediate question mark is the outlook for crude oil prices. Lower oil prices could reduce production, which would be a headwind for Schlumberger. Despite the analyst downgrade, SLB’s average price target still represents a 42% upside.
Schlumberger recently increased quarterly revenue by 13%, adjusted Ebitda by 17%, and adjusted diluted EPS by 18% compared to the same period last year.
conclusion
Growth stocks that operate within expanding economic sectors can maximize your portfolio’s potential for appreciation. Once you have these companies in your portfolio, be patient and focus on the long term. Let compound interest work its magic and your net worth will visibly increase over time.
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