Skyrocket Stocks in 2025: 2 Growth Stocks Set to Soar

These two growth stocks are still just in the beginning of a major turnaround, and investors will want to get on board.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published January 17, 2025 4:20 pm EST

| More on: BBBEP.UN

As we navigate the investment landscape of 2025, growth stocks continue to captivate investors seeking substantial returns. These stocks represent companies poised to expand their revenues and earnings at an accelerated pace compared to the market average.

When evaluating growth stocks, it’s essential to consider factors such as robust revenue growth, innovative product lines, expanding market share, and strong management teams. Plus, a company’s ability to reinvest profits into further development and its position within burgeoning industries. Key indicators of potential growth. So, let’s look at some strong options.

3 colorful arrows racing straight up on a black background. — Source: Getty Images

Brookfield Renewable

Brookfield Renewable Partners (TSX:BEP.UN) stands out as a compelling option in the renewable energy sector. In the third quarter of 2024, the company reported record funds from operations (FFO) of $278 million, or $0.42 per unit. This marked an 11% increase from the prior year. The impressive performance underscores Brookfield Renewable’s capacity to generate consistent cash flow — a vital metric for assessing the health of growth-oriented companies.

Over the past decade, Brookfield Renewable has delivered substantial returns to its investors, with a total return of 328% after adjusting for dividends. This track record reflects the growth stock’s strategic acquisitions and organic growth initiatives, which have solidified its position as a leader in the renewable energy industry.

Looking ahead, Brookfield Renewable’s future appears promising. The growth stock aims to increase its FFO by 10% annually through 2028. Supported by a robust development pipeline and strategic partnerships. Notably, a landmark agreement with Microsoft to deliver over 10.5 gigawatts of new renewable energy capacity between 2026 and 2030 exemplifies its commitment to growth and innovation.

Analysts share a positive outlook on Brookfield Renewable, with an average 12-month price target of $43.94, indicating a potential upside of approximately 42% from its current trading price. This optimism is further supported by the growth stock’s strategic acquisitions and expanding global presence, positioning it well to capitalize on the increasing demand for clean energy solutions.

BlackBerry

Turning to BlackBerry (TSX:BB), the growth stock has undergone a significant transformation from its origins in mobile hardware to a focus on cybersecurity and software solutions. In the second quarter of fiscal year 2024, BlackBerry reported revenue of $132 million, with its cybersecurity segment contributing $79 million. This shift towards high-margin software services has been pivotal in stabilizing the company’s financial performance.

BlackBerry’s past performance reflects its successful transition into the software domain. The growth stock’s emphasis on cybersecurity and Internet of Things (IoT) solutions has enabled it to carve out a niche in these rapidly growing markets. Its QNX software, for instance, is now embedded in over 195 million vehicles, highlighting its penetration into the automotive industry.

Looking forward, BlackBerry’s future outlook is anchored in its strategic focus on cybersecurity and IoT. The global cybersecurity market is projected to grow significantly, and BlackBerry’s suite of artificial intelligence-driven security solutions positions it to capture a share of this expanding market. Furthermore, the growth stock’s partnerships with automotive manufacturers for advanced driver-assistance systems (ADAS) suggest the potential for sustained revenue growth.

Analysts have set an average price target of $6.50 for BlackBerry, indicating potential appreciation from its current price. This projection is based on the growth stock’s strategic initiatives and its foothold in high-growth sectors. However, investors should remain cognizant of the competitive nature of the cybersecurity market and monitor BlackBerry’s ability to innovate and adapt.

Bottom line

Both Brookfield Renewable Partners and BlackBerry present intriguing opportunities for growth-oriented investors in 2025. Brookfield Renewable’s strong financial performance, strategic partnerships, and position in the expanding renewable energy sector make it a compelling choice. Meanwhile, BlackBerry’s successful pivot to cybersecurity and IoT solutions, coupled with its established presence in these markets, offers potential for future growth. As always, investors should conduct thorough due diligence and consider their individual risk tolerance when making investment decisions.