SoFi Technologies, Nu Holdings, Lemonade, E.l.f. Beauty, and Revolve Group are five growth stocks that could be great buys for 2025. SoFi has created a popular digital financial app that is rapidly attracting new customers. In the third quarter, revenue grew 30% year over year.
The company reported a net income of $58 million, a big improvement from the $276 million loss the previous year. SoFi added 756,000 new members in the quarter, focusing on students and young professionals with long-term earnings growth potential. Nu Holdings operates in Brazil, Mexico, and Colombia using a model like SoFi’s.
It has become one of the biggest banks in Brazil, with 56% of adults as customers. Revenue increased 56% year over year to $2.9 billion in the third quarter. Net income more than doubled to $553 million.
The stock’s forward P/E ratio is under 20, making it a bargain. Lemonade, the insurance disruptor, has regained favor by showing strong growth and an improving loss ratio. In-force premiums grew 24% year over year in the third quarter.
Customer count rose 17% to 2.3 million. Premium per customer increased 6%. The company’s loss ratio improved by 10 percentage points year over year.
The stock is up 191% this year but still has room to grow.
Top growth stocks for 2025
It trades at a P/E of 6.7.
E.l.f. Beauty is one of the fastest-growing cosmetics companies.
It is gaining share in makeup and skincare with affordable, trendy products. Sales increased 40% year over year in the third quarter, impressive given the industry’s struggles. As shoppers cut back, E.l.f.’s growth remains strong.
The company is profitable despite a tough economy. The stock trades at a reasonable 32 times forward earnings. Revolve Group is taking share from established apparel leaders.
It is getting back on a growth path after some difficult quarters. Sales increased 10% in the third quarter. Net income soared 238%.
Revolve runs an entirely online business. It uses AI in many areas and works with social media influencers and celebrities. The stock’s price-to-sales ratio of 2.4 suggests it’s reasonably priced for future growth.
These five stocks offer significant growth potential for long-term investors. Despite market uncertainties, the companies have shown substantial progress and resilience. This makes them attractive options for 2025 and beyond.
