3 Growth Stocks That Could Go Even Higher in 2025 and Beyond

Group 1: ServiceNow - ServiceNow's cloud-based digital workflow platform enhances operational efficiency and supports hybrid work environments through AI-powered tools [3][4] - The company reported a 23.5% revenue increase in 2023 and anticipates a 22.5% rise in 2024, with a projected CAGR of 19% over the next three years [4] - Analysts expect ServiceNow's EPS to grow at a CAGR of 28% from 2024 to 2027, indicating strong profitability [4] - Long-term growth is expected to be driven by new government contracts and increased usage of AI tools [5] - The stock is currently valued at 15 times this year's sales, reflecting its growth potential in the cloud and AI markets [5] Group 2: Toast - Toast provides a comprehensive digital solution for restaurants, including POS systems and cloud-based management services [6] - The number of restaurants using Toast grew from 48,000 at its IPO in 2021 to nearly 127,000, demonstrating significant market expansion [6] - Revenue increased by 60% in 2022 and 42% in 2023, with a projected CAGR of 24% from 2023 to 2026 [8] - Adjusted EBITDA is expected to grow at a CAGR of 129%, indicating strong financial health [8] - The stock trades at just 4 times next year's sales, suggesting it may be undervalued [8] Group 3: Affirm - Affirm specializes in buy now, pay later (BNPL) services, offering installment plans that appeal to younger and lower-income consumers [9] - The company does not charge interest on four-installment payments and offers competitive fees compared to traditional credit card networks [10] - Revenue grew by 46% in fiscal 2024, driven by an increase in merchants and the introduction of the Affirm Card [11] - Analysts project a CAGR of 28% for Affirm's revenue from fiscal 2024 to fiscal 2027, with adjusted EBITDA expected to turn positive in fiscal 2025 [12] - The stock is valued at 10 times this year's sales, reflecting its potential in the expanding BNPL market [12]