Growth stocks are shares of companies that are expected to expand their revenues and earnings, outperforming their peers and the overall market. However, not all growth stocks have the ability to provide outsized gains in the long run.
Here are a few standout names that are poised to deliver strong upside.
The first growth stock on my list is Karman Holdings (KRMN), an aerospace and defense company. It designs, tests, manufactures, and sells “mission-critical systems” for use in missile defense, space launch, hypersonic technologies, and related programs.
The company went public in February and has subsequently soared 204% from its $22 IPO price.
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Karman Holdings has wasted no time making its mark since going public. Revenue climbed 35% year over year to $115.1 million in the second quarter, while adjusted EBITDA increased 29% to $35.3 million. Earnings per share came in at $0.10, more than triple the prior-year level. A funded backlog of $719 million highlights long-term visibility. Growth was balanced across all its segments. Revenue increased by 22% for hypersonics and strategic missile defense, 39% for space and launch, and 46% for tactical missiles and IDS. This diversification ensures Karman isn’t leaning too heavily on any one segment.
CEO Anthony Koblinski emphasized the company’s positive trajectory, pointing out that index inclusions and new contracts are strengthening Karman’s position in the defense and space industries. For investors with a high-risk appetite, Karman’s early momentum suggests it could evolve into a key player in the next generation of aerospace and defense.
Overall, Wall Street rates this space stock a “Strong Buy.” Of the six analysts covering the stock, four rate it a “Strong Buy,” one rates it a “Moderate Buy,” and one rates it a “Hold.” Its average target price of $68.75 is roughly in line with its current trading price. However, the Street-high estimate of $100 suggests the stock has upside potential of 47% over the next 12 months.
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The second growth stock on my list is Alphabet (GOOG), Google’s parent company and a global technology powerhouse. Its primary source of revenue is digital advertising, but it also invests substantially in cloud computing, artificial intelligence (AI), and breakthrough technologies that have the potential to alter the future.
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Valued at $2.99 trillion, GOOGL stock has climbed 30% year-to-date, outperforming the tech-led Nasdaq Composite Index’s ($NASX) gain of 15.6%.
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In the second quarter, Alphabet’s consolidated revenue climbed 14% year-over-year to $96.4 billion, while earnings per share surged 22% to $2.31. Growth was broad-based, with double-digit gains in Search, YouTube, subscriptions, and Google Cloud. CEO Sundar Pichai emphasized that AI is now driving every part of the business, with innovations rolling out at record speed.
Google Services remained the business’s backbone, accounting for $82.5 billion in revenue, a 12% increase. Search increased by 12% to $54.2 billion, driven by gains in retail and financial services. Google Cloud was the main star, with sales jumping 32% to $13.6 billion and an operating margin that increased from 11.3% to 20.7%. Cloud’s backlog surpassed $106 billion, indicating strong demand for AI-powered products, Workspace, and business solutions. Several billion-dollar agreements signed in the first half reflect the segment’s steady progress. Alphabet ended the quarter with a strong balance sheet, holding $95 billion in cash and marketable securities. With AI fueling innovation across products, Alphabet is investing heavily in infrastructure to enable its next phase of growth.
Overall, on Wall Street, GOOGL stock is a “Strong Buy.” Of the 54 analysts covering the stock, 40 rate it a “Strong Buy,” five say it is a “Moderate Buy,” and nine rate it a “Hold.” GOOGL stock has surpassed its average target price of $241.53. However, its high price estimate of $300 suggests the stock has upside potential of 22% over the next 12 months.
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The third and final on my list of growth stocks is Micron Technology (MU). Valued at $181 billion, Micron is a semiconductor company that designs, manufactures, and sells memory and storage solutions used in everything from consumer electronics to advanced data centers. Fueled by a robust end to fiscal 2025, Micron stock has surged 85.5% year-to-date, wildly outperforming the broader market index.
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Micron Technology ended fiscal 2025 on a high note. Revenue surged nearly 50% year-over-year to an all-time high of $37.4 billion, while gross margins expanded to 41%. Data center sales emerged as the driving force behind Micron’s growth, accounting for 56% of total revenue and a 52% margin. High-bandwidth memory (HBM) stood out, delivering approximately $2 billion in Q4 revenue and establishing Micron as a top supplier of HBM3E and the next HBM4 generation. Collaboration with Nvidia (NVDA) and other hyperscale customers has solidified Micron’s position in powering AI servers and next-generation data centers.
Looking ahead, Micron is investing aggressively to meet rising demand. New fabs in Idaho, New York, Japan, and Singapore are in development, supported by CHIPS Act funding and strategic partnerships. Demand tailwinds from AI servers, enterprise workloads, AI-ready PCs, and smartphones with higher memory content are expected to sustain momentum into fiscal 2026.
Overall, on Wall Street, Micron stock has earned a “Strong Buy” rating. Out of the 36 analysts covering MU, 25 rate it a “Strong Buy,” five rate it a “Moderate Buy,” five recommend a “Hold,” and one says it is a “Strong Sell.” The stock is trading close to its average target price of $163.38. However, its Street-high estimate of $200 implies an upside potential of 28% over the next 12 months.
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On the date of publication, Sushree Mohanty did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
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