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Growth stocks have powered a significant share of market gains in recent years.
Growth stocks can carry high valuations and suffer more short-term volatility due to market expectations.
Top growth stocks right now include ASE Technology, Seagate and Bloom Energy.
Growth stocks have powered a significant share of market gains in recent years, driven by innovation, digital transformation, and expanding global demand. These companies typically reinvest profits to scale operations, launch new products, and capture market share, emphasizing long-term expansion over immediate dividend payouts. From industry-defining technology firms to breakthrough healthcare and consumer brands, growth companies play a pivotal role in many investors’ portfolios.
That potential, however, comes with trade-offs. Growth stocks often carry higher valuations and can be more sensitive to interest rates, earnings expectations, and shifts in market sentiment. Price swings can be sharp, especially when companies fall short of lofty forecasts.
Should you buy a growth stock?
For investors focused on long-term capital appreciation and comfortable with short-term price swings, growth stocks can be powerful long-term wealth builders. Success depends on understanding how these businesses create value, recognizing when growth investing tends to outperform, and knowing how to evaluate opportunities while managing risk within a diversified portfolio.
This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.
The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank.
An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.
The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.
The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank.
A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.
The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%.
The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.
The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.
Value ScoreA
Growth ScoreA
Momentum ScoreA
VGM ScoreA
Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.
As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.
Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season.
The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest.
ASE Technology Holding is a scaled semiconductor packaging and test provider, and demand is shifting toward higher-value advanced packaging for AI and leading-edge chips. In Q1 2026, revenue rose 17% year over year and profit nearly doubled, signaling better mix and utilization than the prior cycle. Ongoing investment in advanced packaging should keep ASX central as chipmakers push heterogeneous integration.
Potential Risks
Assembly is cyclical, so a handset or PC pause can pressure pricing and utilization. Customer concentration and Taiwan exposure add program, FX, and geopolitical risk.
Forecast
A Zacks Rank #1 (Strong Buy) points to favorable estimate revisions. With Style Scores of A for Growth and Momentum and D for Value, the setup favors earnings traction with supportive tape. The Price, Consensus & EPS Surprise chart shows 2026-2027 consensus stepping higher after earlier trims, and recent surprises skewing green alongside the breakout.
This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.
The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank.
An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.
The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.
The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank.
A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.
The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%.
The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.
The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.
Value ScoreA
Growth ScoreA
Momentum ScoreA
VGM ScoreA
Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.
As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.
Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season.
The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest.
Seagate sells mass-capacity hard drives to cloud and enterprise customers, and AI workloads are increasing long-term storage needs. In fiscal Q3 2026, Seagate beat its guidance, posted a record margin performance and generated about $1.1 billion in operating cash flow, a sharp improvement from the year-ago quarter as nearline demand and mix strengthened. It also retired debt while returning capital.
Potential Risks
Hyperscaler orders are lumpy; hence, the digestion phase can hit volumes and pricing. Execution risk remains around next-gen capacity ramps and HAMR commercialization. After an explosive run, the stock is vulnerable to any sign that margins are peaking.
Forecast
A Zacks Rank #1 signals rising estimates. With Growth A but F for Value and Momentum, returns depend more on earnings follow-through than trend. The chart shows the 2026-2027 consensus stair-stepping higher amid repeated upside surprises, matching the price surge.
This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.
The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank.
An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.
The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.
The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank.
A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.
The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%.
The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.
The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.
Value ScoreA
Growth ScoreA
Momentum ScoreA
VGM ScoreA
Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.
As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.
Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season.
The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest.
Bloom Energy builds solid-oxide fuel-cell systems for on-site power, and growth is rising as data centers and industrial users prioritize reliability and cleaner generation. In Q1 2026, revenue jumped 130% year over year, gross margin improved, operating cash flow turned positive, and the company raised full-year guidance, showing better execution and firmer demand visibility. A growing installed base can lift service mix and earnings quality if deployments stay on schedule.
Potential Risks
Results can be lumpy because projects are large and timing-driven, and customer financing can tighten in a high-rate environment. Policy shifts affecting clean-energy incentives, plus technology and warranty exposure, could pressure sentiment.
Forecast
A Zacks Rank #1 highlights positive estimate revisions. With Growth A, Momentum C and Value F, the signal is fundamentally led rather than cheap. The chart shows 2026-2027 consensus stepping up with a beat-tilted surprise pattern, aligning with the breakout.
This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.
The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank.
An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.
The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.
The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank.
A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.
The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%.
The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.
The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.
Value ScoreA
Growth ScoreA
Momentum ScoreA
VGM ScoreA
Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.
As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.
Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season.
The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest.
SiTime designs MEMS-based precision timing chips, a category that can outgrow the semi cycle as networks, industrial gear, and AI systems demand cleaner signals. In Q1 2026, revenue increased 88% year over year and profitability expanded, indicating inventory normalization and design wins converting into shipments. An asset-light model and differentiated performance can create operating leverage as volumes recover.
Potential Risks
Timing demand is tied to customers’ build schedules, so a renewed inventory correction could hit orders. Competition from incumbents and pricing pressure remain, and customer concentration can magnify any program delay.
Forecast
A Zacks Rank #1 suggests estimates are moving higher. With Growth A and F for Value and Momentum, upside is more about execution than technical strength. The chart shows 2026-2027 consensus edging higher with mostly positive surprises into the run-up, even as the price spikes and retraces, implying elevated volatility around revisions.
This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.
The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank.
An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.
The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.
The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank.
A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.
The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%.
The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.
The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.
Value ScoreA
Growth ScoreA
Momentum ScoreA
VGM ScoreA
Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.
As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.
Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season.
The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest.
Comfort Systems USA installs and services mechanical and electrical systems, and growth is being driven forward by data-center, chip and institutional construction. In Q1 2026, revenue rose 56% year over year and EPS more than doubled, while management highlighted record backlog, underscoring demand and execution. A decentralized operating model and disciplined project selection have helped sustain margins through cycles.
Potential Risks
Construction spending can turn quickly, and any re-phasing in hyperscale or semiconductor projects could slow backlog conversion. Labor availability and wage inflation can squeeze job profitability, and acquisitions add integration risk.
Forecast
A Zacks Rank #1 reflects upward earnings revisions. With Growth A, Momentum C and Value F, investors are paying for growth rather than a bargain. The chart shows the 2026-2027 consensus rising steadily with frequent positive surprises, consistent with the uptrend even after a pullback from highs.
The Zacks Rank is a proprietary stock-rating model that uses trends in earnings estimate revisions and earnings-per-share (EPS) surprises to classify stocks into five groups: #1 (Strong Buy), #2 (Buy), #3 (Hold), #4 (Sell) and #5 (Strong Sell). The Zacks Rank is calculated through four primary factors related to earnings estimates: analysts' consensus on earnings estimate revisions, the magnitude of revision change, the upside potential and estimate surprise (or the degree in which earnings per share deviated from the previous quarter).
Zacks builds the data from 3,000 analysts at over 150 different brokerage firms. The average yearly gain for Zacks Rank #1 (Strong Buy) stocks is +23.70% per year from January 1, 1988, through April 6, 2026.
Selections for Best Growth Stocks are based on the current top ranking stocks based on Zacks Indicator Score, Style Scores and fundamentals. For this list, only companies that have average daily trading volumes of 100,000 shares or more were considered, as well as companies from the top 50% of all industries. All information is current as of market open June 9, 2026.
General Questions About Growth Stocks
What is a growth stock?
A growth stock represents a company expected to grow sales, earnings, or cash flow faster than the broader market. These firms often operate in expanding industries and reinvest heavily in research, marketing, and infrastructure to sustain momentum.
What are the benefits of buying growth stocks?
Growth stocks offer the potential for significant price appreciation, exposure to innovative business models, and long-term compounding. When successful, they can outperform more mature companies by a wide margin.
What are the risks of buying growth stocks?
Higher valuations, sensitivity to interest rates, and reliance on future earnings projections increase downside risk. If growth slows or expectations fall, share prices can decline sharply.
Growth vs. value stocks: What’s better right now?
Growth stocks tend to excel during periods of economic expansion and technological change, while value stocks often perform better when investors prioritize stability and income. Market leadership can rotate, making diversification across styles important.
Are growth stocks a good investment during economic uncertainty?
During uncertain periods, growth stocks may experience heightened volatility. Companies with strong balance sheets, recurring revenue, and durable demand tend to hold up better than speculative names.
How do growth stocks differ from dividend stocks?
Dividend stocks focus on returning cash to shareholders, while growth stocks reinvest profits to fuel expansion. Investors often choose growth for appreciation and dividends for income.
Are growth stocks suitable for beginners?
They can be, especially through diversified funds or established large-cap names. Beginners should avoid concentrating too heavily in speculative or unprofitable companies.
How do growth stocks perform during recessions?
Performance varies. Some growth companies with essential products continue to expand, while others tied to discretionary spending may struggle.
Look for consistent revenue growth, expanding addressable markets, competitive advantages, and strong management execution.
What metrics should I look at in growth stocks?
Common metrics include revenue growth rates, earnings growth, free cash flow trends, return on invested capital, and valuation ratios relative to growth expectations.
What ETFs contain the best growth stocks?
Growth-focused ETFs often track large-cap or sector-specific indexes, offering exposure to leading growth companies while reducing single-stock risk.
Should I diversify my growth stock portfolio?
Yes. Diversifying across sectors, company sizes, and geographies can help manage volatility and reduce reliance on any single trend.
Are growth stocks a good investment during economic uncertainty?
Quality growth stocks with pricing power and resilient demand can still perform well, but position sizing and diversification are critical.
What sectors typically produce strong growth stocks?
Certain sectors consistently produce growth leaders due to innovation, scale advantages, or long-term demand trends. Examples include:
Technology and AI: Companies benefiting from cloud computing, artificial intelligence, and software platforms, such as NVIDIA, Microsoft, Alphabet, and Amazon.
Consumer Discretionary: Brands and platforms capturing shifts in consumer behavior and digital commerce, including Tesla, Amazon, and Booking Holdings.
Healthcare and Biotechnology: Firms developing breakthrough drugs, medical devices, or diagnostics, such as Eli Lilly, Novo Nordisk, Vertex Pharmaceuticals, and Intuitive Surgical.
Communication Services: Digital advertising, streaming, and social platforms with scalable user bases, including Meta Platforms and Netflix.
Financial Technology: Companies modernizing payments, trading, and financial infrastructure, such as Visa, Mastercard, and Block.
Clean Energy and Electrification: Businesses tied to renewable power, battery technology, and grid modernization, including NextEra Energy, Enphase Energy, and Tesla.
These sectors frequently generate high-growth opportunities, though leadership within them can change over time.
Do growth stocks work for long-term or short-term strategies?
They are generally better suited for long-term investing, allowing time for innovation and expansion to translate into earnings growth.
What are common mistakes to avoid when investing in growth stocks?
Chasing hype, ignoring valuation, overconcentration, and selling too quickly during volatility are frequent pitfalls.
How to Purchase Growth Stocks
Do I need a broker to buy growth stocks?
Yes. Most investors use online brokerage platforms that offer access to individual stocks, ETFs, and research tools.
How much should I invest in my first growth stock purchase?
Start with an amount that fits your overall financial plan and risk tolerance. Many investors begin with smaller positions and add over time.
Strategies for Buying Growth Stocks
How often should I rebalance a growth-focused portfolio?
Rebalancing annually or semiannually helps maintain target allocations and manage risk.
When should I sell a growth stock?
Consider selling if the company’s fundamentals deteriorate, growth prospects fade, or the position becomes too large relative to your portfolio.
How do I track performance and assess whether a growth stock is still strong?
Monitor earnings reports, revenue trends, competitive positioning, and management guidance.
What tax implications come with selling growth stocks?
Selling at a profit may trigger capital gains taxes, with rates depending on holding period and income level.
Growth Stock Alternatives
Are index funds a safer alternative to picking growth stocks?
Index funds provide broad exposure and lower risk than individual stock selection, making them appealing for many investors.
What are conservative investment options if growth stocks are too risky?
Options include value stocks, dividend-paying equities, bonds, and balanced funds that emphasize capital preservation.
View the Zacks #1 Rank List
Strong Buy 
