đ usncan Note: 6 Best Growth Stocks To Buy For August 2025
Disclaimer: This content has been prepared based on currently trending topics to increase your awareness.
Make sure you’re diversified and prepared financially for long holding periods.
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Bullish about stocks for the rest of 2025? Youâre not alone. Even as the August 1 start date for higher tariffs has arrived, the S&P 500, Dow Jones Industrial Average and Nasdaq Composite are trending up and flirting with new highs. Plus, analysts from Oppenheimer Asset Management, Goldman Sachs, Bank of America and RBC Capital Markets have raised their 2025 S&P 500 targets.
When market optimism is high, growth stocks can pad your wealth quickly. Let’s meet six top growth stocks that deserve a closer look.
How These Growth Stocks Were Chosen
The best growth stocks to buy for August are S&P 500 constituents that meet these criteria:
- Three-year revenue growth average of 5% or more, with growth in all three years
- Three-year EPS growth average of at least 10%
- Five-year EPS growth outlook of at least 10%
- Return on invested capital (ROIC) of at least 10%
- Positive analyst ratings with at least 10 covering analysts
The resulting stock list was ordered from highest to lowest EPS growth expectation, and the top six were chosen for inclusion.
The 6 Best Growth Stocks To Buy For August 2025
The table below identifies six growth stocks that fit the parameters noted above. Two of these stocks are also featured in: best stocks for 2025.
A review of each company follows. Metrics are sourced from company reports and stockanalysis.com, unless noted otherwise.
1. Howmet Aerospace (HWM)
Howmet Aerospace by the numbers:
- Stock price: $188.17
- Years of revenue growth: 3
- Three-year revenue growth: 14.1%
- Three-year EPS growth: 62.2%
- Expected five-year EPS growth: 24.6%
- ROIC: 13.3%
Howmet Aerospace Business Overview
Howmet Aerospace provides jet engine components, fastening systems and structural components for aerospace and defense applications. The company also serves the commercial transportation industry with forged aluminum wheels.
Why HWM Is A Top Choice
HWM stock is up 72.1% for the year, thanks to strong earnings and an upbeat outlook for 2025.
Howmet specializes in parts that support lightweight, fuel-efficient designs for aircraft and commercial trucks. This is an advantage in the current environment. Airline manufacturing activity has been light in recent years and fleets are aging. As a result, demand is growing for low-maintenance, fuel-efficient aircraft.
Howmet is relying on efficient operational execution to leverage the strong demand for its technology. This shows up in the financial statements as higher adjusted operating income margin and free cash flow. Some excess cash remains on the balance sheet, and some was used for debt repayment.
Improved liquidity and lower debt have strengthened Howmetâs financial position. Fitch recently confirmed this by raising the company’s long-term issuer default rating from BBB to BBB+.
After delivering a 46% increase to adjusted EPS in 2024, Howmet expects a 26.4% gain in 2025.
2. Nvidia (NVDA)
Nvidia by the numbers:
- Stock price: $176.75
- Years of revenue growth: 5
- Three-year revenue growth: 71.3%
- Three-year EPS growth: 102.6%
- Expected five-year EPS growth: 20.5%
- ROIC: 81.4%
Nvidia Business Overview
Nvidia designs high-powered GPUs and related hardware and software. The company earns most of its revenue from data center infrastructure products, including AI-capable GPUs. Since 2024, Nvidia has been the dominant market-share leader in the high-growth AI chips segment.
Why NVDA Is A Top Choice
NVDA stock is up 31.6% for the year and 1,601.8% over the past five years. Now the worldâs most valuable company, Nvidia has been delivering impressive quarter-over-quarter revenue gains since the second quarter of fiscal 2024âwhen AI chip demand began to skyrocket.
Nvidiaâs market position, client list and technological prowess put the company in a class by itself. While anything’s possible, it’s hard to imagine a competitor taking a meaningful share of Nvidia’s business.
Thatâs an enviable position because the demand outlook for AI infrastructure remains quite strong. Citigroup analyst Atif Malik recently projected the 2028 total addressable market for AI chips to reach $563 billion, up 13% from a prior outlook. And Google parent Alphabet has said it will invest $75 billion in its data centers this year.
For the quarter ended in April 2025, Nvidia reported 69% revenue growth and 33% non-GAAP diluted EPS growth versus the prior-year quarter.
3. Motorola Solutions (MSI)
Motorola Solutions by the numbers:
- Stock price: $429.97
- Years of revenue growth: 4
- Three-year revenue growth: 9.7%
- Three-year EPS growth: 17.7%
- Expected five-year EPS growth: 18.9%
- ROIC: 45.8%
Motorola Solutions Business Overview
Motorola provides video security, land mobile radio communication and command center solutions and technology. Most of the company’s revenue, 70%, comes from public safety customers, including police forces and 911 centers. The remaining 30% is split among enterprise customers in various industries, including utilities, hospitality, manufacturing and retail.
Why MSI Is A Top Choice
MSI stock is down 7.4% this year after two positive earnings surprises. Investors may have been put off by the companyâs conservative guidance for 2025’s first and second quarters.
A lower-growth expectation for two quarters isnât a dealbreaker for MSI because there are other things to like about this company:
- Visibility: Nearly half of MSI’s revenue is for recurring services. Ample multi-year agreements provide a healthy backlog and predictable revenues.
- Growth opportunity: Motorola has an active acquisition pipeline, having invested $7 billion since 2015.
- Capital allocation: MSI spends 55% of operating cash flow on share repurchases or acquisitions, 30% on dividends and 15% on capital expenditures.
In the quarter ending May 1, 2025, MSI delivered 6% revenue growth and 13% non-GAAP EPS growth compared to the prior-year quarter.
4. Amazon (AMZN)
Amazon by the numbers:
- Stock price: $232.79
- Years of revenue growth: 29
- Three-year revenue growth: 10.8%
- Three-year EPS growth: 43.4%
- Expected five-year EPS growth: 17.9%
- ROIC: 72.2%
Amazon Business Overview
Amazon is the world’s largest e-commerce retailer and the global market-share leader in cloud computing services. E-commerce delivers most of Amazon’s revenue, but the higher-margin AWS cloud computing business provides higher operating income.
Why AMZN Is A Top Choice
AMZN stock is up 6.1% for the year after recovering from a dip from March through May. Over the past 12 months, AMZN has gained 28%.
Amazonâs diversified business model has delivered revenue growth for years. Diluted EPS has been less consistent, but the 2024 result of $5.53 versus $2.90 in the prior year did make a statement.
Based on announcements made in Amazonâs first quarter report, the company is firing on multiple cylinders. It’s using AI to enhance the Amazon.com shopping experience as it expands the product set and geographic reach. The company is also growing its entertainment business and audience, with successful launches of Reacher Season 3 and LeBron James’ Mind the Game podcast. And AWS is broadening its AI and computing capabilities as it secures new contract wins with premier customers like Adobe and Nasdaq.
In the quarter ending on May 1, Amazon increased net revenue 9% and diluted 47.5% compared to the year-ago quarter.
5. Mastercard Incorporated (MA)
Mastercard Incorporated by the numbers:
- Stock price: $568.28
- Years of revenue growth: 4
- Three-year revenue growth: 13.5%
- Three-year EPS growth: 14%
- Expected five-year EPS growth: 16.5%
- ROIC: 13.3%
Mastercard Incorporated Business Overview
Mastercard processes digital payments in the U.S. and internationally. The per-transaction revenue model creates gains when spending across the Mastercard network increases or prices rise. Mastercard also has a growing services business encompassing security, marketing and other value-added services.
Why MA Is A Top Choice
MA stock is up 7.9% this year after two positive earnings surprises.
Mastercard has the second-largest market share in U.S. credit card processing after Visa. According to Capital One Shopping, consumers charged $2.78 trillion to their Mastercards in 2024. Looking ahead, the outlook for consumer spending for 2025 is mixed, with some analysts predicting a slowdown in the second half.
So far, Mastercardâs results show no signs of a spending slowdown. The company’s last earnings report noted higher gross dollar volume and higher cross-border volume. Mastercard has also made strides diversifying its business model with initiatives like:
- Agentic payments program Mastercard Agent Pay
- New partnership with corporate payment provider Corpay
- Collaboration with Paxos Global Dollar Network to enable stablecoins across the Mastercard network
Mastercardâs high operating margin in the upper 50s provides flexibility to pursue these and other growth initiatives.
For the quarter ending on May 1, Mastercard reported constant-currency revenue and EPS growth of 17% and 15%, respectively.
6. Microsoft (MSFT)
Disclosure: Author owns Microsoft stock.
Microsoft by the numbers:
- Stock price: $512.50
- Years of revenue growth: 8
- Three-year revenue growth: 11.9%
- Three-year EPS growth: $0.11
- Expected five-year EPS growth: 14.5%
- ROIC: 12.1%
Microsoft Business Overview
Microsoft develops and maintains productivity software, sells cloud computing services and provides gaming hardware and content.
Why MSFT Is A Top Choice
MSFT stock is up 21.6% for the year after two positive earnings surprises and several analyst price target increases.
Microsoft is the number two player in the cloud computing space, behind Amazonâs AWS. Modern platforms provide the environment for AI application development, training and deploymentâso this high-margin space benefits directly from the AI revolution.
Itâs not surprising that Microsoft’s ongoing investments in its cloud and AI offerings are driving profitable growth and substantial operating cash flow. The cash performance continues to provide the tech company with ample funding for growth initiatives and its modest dividend yield of 0.65%. (For higher-yielding dividend-payers, see best dividend stocks.)
For the quarter ending on March 31, Microsoft reported constant-currency revenue and diluted EPS growth of 15% and 19%, respectively.
Bottom Line
High-flying growth stocks can produce quick gains in your portfolioâif you time things right. But because the stock market always has surprises on tap, make sure you’re diversified and prepared financially for long holding periods. If you need help diversifying, see this list of best ETFs for 2025.
