In a volatile market, growth stocks may seem like the least attractive options. That is because growth stocks are shares of companies that are still in their early stages of development and thus face greater risks. However, if the underlying businesses thrive, these stocks have the potential to generate eye-catching returns. Such returns cannot be expected from large, established businesses.
Here are two such growth stocks that Wall Street rates as a “Strong Buy” and believes will generate more than 300% returns over the next 12 months.
Growth Stock #1: Vaxcyte
Valued at a market capitalization of $3.9 billion, Vaxcyte (PCVX) is a clinical-stage biotechnology company focused on developing high-fidelity vaccines to prevent or treat serious bacterial infectious diseases. Growth stocks are frequently found in the biotech sector, which has more room for innovation, particularly now that artificial intelligence (AI) is boosting the sector.
Despite promising clinical trial results, Vaxcyte stock experienced significant volatility in 2025, reflecting the complex dynamics of the biotech sector and the overall market.
So far this year, the stock has fallen 64.4%, compared to a 10.3% drop in the S&P 500 Index ($SPX).
Its leading vaccine candidates are aimed at combating invasive pneumococcal disease (IPD), a major cause of illness and death worldwide. VAX-24, a 24-valent pneumococcal conjugate vaccine (PCV) designed to provide broader protection than existing vaccines, is currently in Phase 2 trials in infants.
In the fourth quarter, the company reported positive topline efficacy data from the VAX-24 Phase 2 study in adults aged 65 and up. The company has also begun a Phase 2 clinical study evaluating VAX-24 efficacy in healthy infants. Its other lead candidate, VAX-31, a 31-valent PCV, also achieved positive topline results in a Phase 1/2 study that assessed safety, tolerability, and immunogenicity in adults aged 50 and up. It is progressing to a Phase 3 clinical program for adults while also being evaluated in a Phase 2 study for infants. This progression represents a critical step towards potential commercialization.
Aside from pneumococcal vaccines, Vaxcyte’s pipeline includes candidates for other bacterial pathogens, such as VAX-A1, a novel Group A Strep vaccine candidate; VAX-GI, a preclinical vaccine candidate targeting Shigella; and VAX-PG, a therapeutic vaccine candidate designed to slow or stop the progression of periodontal disease.
As a clinical-stage biotech company, it reported a net loss of $137.1 million. Aside from $3.1 billion in cash, cash equivalents, and investments at the end of 2024, the company raised $2.2 billion through two follow-on financings in 2024. By 2033, the global market for pneumococcal vaccines could reach $13.3 billion. Once its candidates are approved, Vaxcyte has the potential to capture a sizable share of this growing market.
While the company’s clinical advancements and strong cash position look promising, market reactions have been unpredictable. As a clinical-stage biotech stock, it is best for investors with a high risk tolerance who are willing to wait for the company’s approved products to hit the market.
Despite the drop, analysts remain optimistic about Vaxcyte’s long-term prospects, rating it a “Strong Buy.” Nine of the ten analysts who cover the stock recommend it as a “Strong Buy,” while one says it is a “Moderate Buy.” The average analyst target price for PCVX is $128.44, representing a 341% increase from current levels. Furthermore, analysts have set a high price target of $163, implying that the stock could rise up to 462% in the next year. This upbeat outlook reflects confidence in the company’s pipeline and future growth prospects.
Growth Stock #2: Enovix
Valued at $1.15 billion, Enovix (ENVX) is a small-cap technology company that develops and manufactures advanced lithium-ion batteries. It meets the growing demand for reliable energy solutions in a variety of industries, including consumer electronics, electric vehicles (EVs), and defense applications. Enovix stock has fallen 46.4% year-to-date. Nonetheless, Wall Street expects the stock to recover due to its rapid growth.
Enovix’s revenue for the full year 2024 totaled $23.1 million, an impressive growth of 202% from 2023. The company expects significant revenue growth in the first quarter of 2025, driven by multiple strategic customer relationships. The adjusted net loss narrowed to $1.27 per share for the full year, compared to $1.38 in 2023. This indicates increased financial efficiency.
Revenue in the first quarter is expected to range between $3.5 million and $5.5 million, compared to $5.3 million in the year-ago period. It also expects to report an adjusted net loss of $0.15 to $0.21 per share, which is consistent with consensus expectations.
The demand for longer-lasting and faster-charging batteries in smartphones, laptops, and wearable devices creates a significant market opportunity for Enovix. The company's high-energy-density batteries can provide a competitive edge to manufacturers seeking to differentiate their products. In an unexpected new growth opportunity, the defense sector is showing strong interest in the company's battery solutions. Notably, conventional graphite battery products used in defense applications contributed to 2024 revenue. According to management, a sample purchase order from a key defense supplier was received in early 2025.
Recently, the company announced its plans to acquire a battery manufacturing facility and equipment in South Korea from SolarEdge (SEDG) in order to increase its manufacturing capacity. This move is expected to increase production, simplify the supply chain, improve gross margins, and increase sales, particularly in the defense and industrial sectors, between 2025 and 2026.
Overall, analysts have an average rating of “Strong Buy” for ENVX. Of the 13 analysts covering the stock, 11 have a “Strong Buy” rating and two have a “Hold” rating.
Based on its mean target price of $26.25, the stock has upside potential of 350% from current levels. Plus, its high target price of $100 implies an upside potential of 1,615% over the next 12 months.
