3 Top Growth Stocks to Buy and Hold for 2025

Susan Dziubinski: Hi. I’m Susan Dziubinski with Morningstar. Growth stocks looked about 24% overvalued coming into 2025, according to Morningstar. But that doesn’t mean that all growth stocks are overpriced these days. In fact, today we’re looking at three undervalued growth stocks that look attractive as long-term investments.

All three companies are taken from Morningstar’s Best Companies to Own list. Our Best Companies to Own list features companies with significant competitive advantages—or what we call wide economic moats. These companies also have predictable cash flows and are well positioned to endure economic uncertainty.

3 Top Growth Stocks to Buy and Hold for 2025

1. Rentokil Initial RTO
2. Taiwan Semiconductor Manufacturing TSM
3. Coloplast CLPBY

The first stock on our list of top growth stocks to buy and hold for 2025 is Rentokil Initial. Rentokil is the world’s largest commercial pest-control business, holding leading market shares in most of the countries in which it operates. We expect global trends of increasing urbanization and growing economic prosperity to drive increased spending on Rentokil’s pest-control and other services. And we expect those trends to lead to solid organic revenue growth for the company over the coming decade. We think the stock is worth $40.30 and shares trade well below that.

The second name on our list of top growth stocks to buy and hold in 2025 is Taiwan Semiconductor Manufacturing. Taiwan Semi is the world’s largest dedicated chip foundry. Management recently issued upbeat guidance for 2025 and beyond, expecting AI chip revenue to balloon from 15% of overall revenue in 2024 to 50% of total revenue by 2029. Although Taiwan Semi’s stock was up more than 90% in 2024, shares still look undervalued: We think the stock is worth $273 per share.

The final top growth stock to buy and hold in 2025 is Coloplast. Coloplast is a leading global competitor in ostomy management and continence care. And Morningstar thinks that the company’s long record of meaningful innovation has allowed it to carve out a wide economic moat. The aging populations in developed countries and the growing incidence of inflammatory bowel disease should lead to growing demand for the company’s products. We expect Coloplast to achieve 8% revenue growth annually through fiscal 2028. Morningstar thinks Coloplast stock is worth $14.10 per share.

For more stock ideas, be sure to subscribe to Morningstar’s channel and visit Morningstar.com.

Morningstar senior analysts Grant Slade and Debbie Wang and analyst Phelix Lee provided the research behind this report.

Watch 3 Top Blue-Chip Stocks to Buy and Hold for 2025 for more from Susan Dziubinski.