Investing

3 Growth Stocks That Could Double by the End of 2025

Omor Ibne Ehsan

Published: January 16, 2025 12:11 pm

Growth stocks have been all the rage in the post-pandemic era, and there’s a good chance that they could continue spearheading the market’s gains. The current economic fundamentals look solid, and some believe it is almost too good to be true. Unemployment remains low-ish, at 4.1%. The economy seems to have defied the “Sahm Recession Indicator,” which was talked a lot about a few months back. The current odds of a recession are now at just 26%.

24/7 Wall St. Key Points:

• Most growth stocks are trading at nosebleed valuations in 2025.
• However, many investors are optimistic that they could run a lot higher.
• That’s because the macros are pretty good, and the Trump Administration is likely to loosen monetary policies. This should help growth stocks, including the ones featured in our brand-new “The Next NVIDIA” report.

So is time truly different, or are we just going through a 2007 moment? No one can tell for sure. If you do think that the party will continue for the coming years, growth stocks remain a good investment. Many of them are trading at nosebleed levels, but there are solid rebound opportunities. Let’s take a look at three growth stocks that could double by the end of this year:

PagSeguro Digital (PAGS)

PagSeguro Digital (NYSE: PAGS) is a payment-processing company. The company makes almost all of its revenue from Brazil and is solidly profitable for a startup still in its growth phase. It posted BRL 4.7 billion ($754 million) in revenue, up 18.8%, with a net margin of 11.3%.

However, when you take a look at the stock’s trajectory, it doesn’t reflect the fundamentals above. The reason is pretty straightforward as the market is pricing in Brazil’s fintech landscape. The fear about it has overshadowed the company’s financials. I suspect there’s also a bit of skepticism around future growth sustainability because many payment-processing companies have posted strong past numbers only to hit rougher patches once new entrants arrive or the macro environment shifts.

And indeed, growth numbers have slowed down here. Growth figures in USD are actually negative due to the devaluation of the Brazilian Real. Full-year 2024 EPS is expected to decline by 0.66% and full-year sales are expected to decline by 3.8%. Analysts do see a strong recovery this year.

Whatever exchange-rate fluctuations may imply right now, I can’t justify PAGS stock trading at just six times forward earnings. PagSeguro has minimal shareholder dilution, and even the bears here are starting to see the opportunity. Accordingly, the consensus Wall Street price target of $12.6 implies that the stock could double this year.

Advanced Micro Devices (AMD)

Advanced Micro Devices (NASDAQ: AMD) used to be neck and neck with Nvidia (NASDAQ: NVDA) at the peak of the 2021 boom cycle and AMD was the closest competitor to Nvidia. AMD hasn’t done badly since then, but Nvidia pulling ahead has completely overshadowed it and many investors don’t see why they should put their money in AMD when they can just buy NVDA. As a result, AMD stock is down 36% in just the past six months.

I wouldn’t be too much of a doomer here, though. When you stop comparing AMD to Nvidia, you’ll see the opportunity here. AMD is in a stronger position than some folks realize in areas like data center CPUs. Intel’s (NASDAQ: INTC) slip-ups have opened the door for AMD’s EPYC line, and AMD is capitalizing on that opening with designs that are both energy-efficient and performance-focused. AMD’s GPUs also remain a good lower-cost alternative.

Recent reports have been solid with 17.6% YOY top-line growth to $6.8 billion and 122.1% Data Center segment growth. Analysts see 26.2% sales growth in 2025 with 51.6% EPS growth.

Of course, it’s hard to see AMD’s stock double this year unless they overshoot these expectations with double digits. But considering AMD is down over 44% and analysts see a 52% upside, it could happen.

Aspen Aerogels (ASPN)

Aspen Aerogels (NYSE: ASPN) makes insulation products from super-light aerogel materials. Their biggest growth market these days is thermal barriers for electric vehicle (EV) batteries.

ASPN stock is also a turnaround play, as the stock is down over 56% in the past six months. This is mostly due to the huge public offering of 4.25 million shares and lingering fears about more dilution going forward since the company is still very unprofitable. Regardless, it’s not unusual for a small-cap EV-related company to have huge cyclical swings.

I believe ASPN stock could be bottoming out as investors realize Aspen’s expanded capacity could translate into potential annual revenues topping $1 billion in the not-too-distant future. Q3 revenue alone came in at $117.34 million and grew 93.1% YOY.

I wouldn’t be surprised to see the stock re-rate higher over the next year. Still, you should keep an eye on their capital expenditures. Analysts expect full-year 2024 profitability and if the company can deliver a big bottom-line surprise, Wall Street’s consensus price target of $29.6 with a 145% upside potential may just come true.