How will stock prices evolve over the next 10 years? Top 4 high-growth stocks to buy

Over the next 10 years, the stock market is expected to experience significant volatility. However, there will still be potential stocks that offer high returns. Selecting the right stocks can help investors maximize profits while minimizing risks. Below are four stocks projected to have strong growth potential.

1. How to choose high-growth stocks

There is no universal formula for selecting the perfect growth stock, but several key factors can guide investors. Some seek stocks of small companies with breakout potential, while others prefer well-established market leaders such as Amazon or Google.

In this article, we focus on companies with a stable development history but ample room for expansion. The selection criteria include:

• a market capitalization ranging from $50 billion to $950 billion
• strong reinvestment in research & development (R&D) instead of paying dividends
• a price-to-earnings (P/E) ratio above 20, indicating the market’s confidence in the company’s long-term growth

2. Top 4 high-growth stocks to buy now

2.1. Meta platforms

Meta platforms (formerly Facebook) was founded by Mark Zuckerberg in 2004 and quickly became a dominant force in digital media. Owning Facebook, Instagram, and WhatsApp, Meta generates most of its revenue from digital advertising, leveraging its vast user data.

Recently, Meta has been heavily investing in the metaverse—a virtual and augmented reality platform aiming to revolutionize online interactions. Although the metaverse has yet to yield significant profits, the company is also expanding with Threads, a Twitter competitor, and advancing AI development to rival OpenAI’s ChatGPT.

With an R&D spending rate of 28%, Meta continuously innovates to maintain its market leadership. If these investments succeed, they could unlock new revenue streams, driving the stock’s strong growth in the coming decade. Even if new ventures fall short of expectations, the core value of Facebook, Instagram, and WhatsApp ensures Meta remains a solid player in the industry.

2.2. Vertex pharmaceuticals

Founded in 1989, Vertex pharmaceuticals is one of the leading biotechnology companies in the U.S., specializing in developing and commercializing treatments for severe diseases. The company is particularly recognized for its breakthroughs in cystic fibrosis (CF) treatment and continues to expand its research in areas such as cancer, chronic pain, and genetic disorders.

The healthcare sector is expected to grow at a faster pace than GDP over the next decade, driven by an aging population and increasing healthcare demands. Vertex has positioned itself at the forefront of this trend, allocating 37% of its revenue to R&D, ensuring a long-term competitive edge.

Over the past 12 months, Vertex has achieved an impressive 11.8% revenue growth and an earnings per share (EPS) forecast of $4.08 (up from $3.72). Notably, the company has surpassed analyst expectations for 10 consecutive quarters, reinforcing its strong growth potential for the future.

2.3. Synopsys

Synopsys, Inc. was founded in 1986 and is now one of the world’s leading companies in electronic design automation (EDA) and semiconductor IP solutions. With a strong reputation, Synopsys provides advanced software solutions, intellectual property (IP), and services that support businesses in designing and manufacturing chips and electronic systems. The company is known for its groundbreaking innovations that optimize chip design and verification performance—core elements driving the development of the semiconductor industry.

Synopsys’ tools and solutions play a crucial role in creating high-performance and energy-efficient chips. These products are widely applied across various industries, from computing and mobile devices to IoT (Internet of Things) systems. Amid the booming global demand for semiconductors—with McKinsey forecasting the industry to reach $1 trillion by 2030—Synopsys is well-positioned to capitalize on this trend. Technologies such as 5G, artificial intelligence (AI), IoT, and electric vehicles (EV) are accelerating the need for advanced chip design solutions, fueling strong growth for the company.

To maintain its leadership, Synopsys has made substantial investments in research and development (R&D), allocating up to 33.26% of its total revenue to R&D. This strategy enables the company to continuously innovate and enhance its products, driving revenue growth by 15.4% over the past 12 months. At the same time, the company’s gross profit has also recorded an impressive increase of 15.9%, underscoring the sustainability of its business model.

2.4. PDD Holdings

PDD Holdings, formerly known as Pinduoduo, was founded in 2015 and has rapidly emerged as one of China’s largest e-commerce platforms. PDD’s key differentiator lies in its unique group-buying model, allowing consumers to access lower prices when shopping together. The company primarily focuses on the agriculture and consumer goods sectors, directly connecting farmers and manufacturers with customers, thereby creating a sustainable and efficient commerce ecosystem. Thanks to this strategy, PDD has quickly gained significant market share, particularly in rural areas and lower-tier cities across China.

One of PDD’s major milestones was the launch of its e-commerce platform, Temu, in September 2022. With a competitive pricing strategy and aggressive marketing campaigns, Temu rapidly expanded into international markets such as the U.S., U.K., Australia, New Zealand, Spain, Italy, and France. As a result, within a short period, PDD’s stock price surged by over 50% in the past year and more than 120% since Temu officially commenced operations.

Financially, PDD has also made remarkable strides. The company’s revenue grew by more than 56%, while its gross profit increased by nearly 40%. Notably, with a current P/E ratio of 32.1—significantly lower than major e-commerce players like Amazon (P/E 79.8)—PDD still holds substantial growth potential in the future. The latest earnings report also revealed that the company’s EPS increased by 26% and is expected to rise by another 10% in the next reporting period.

Investing in high-growth stocks requires thorough research and a long-term vision. Given the potential of these stocks, investors may consider them to stay ahead of market trends. However, it is crucial to monitor developments closely and adjust strategies when necessary.