Growth Stock Gurus: 3 Picks That Will Impart Wisdom to Your Wealth-Building Strategy

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Cryptocurrencies, artificial intelligence (AI), and new stock issuance are just a few of the catalysts that are propelling growth stocks to incredible heights. These catalysts and a few others have led to some stocks doubling their share price during the first five months of the year. The impressive gains are likely to continue as the bull market rides on.

Growth stocks continue to be the best way for investors to achieve big gains, make money in the stock market, and grow their portfolio. Sourcing which stocks are likely to go parabolic requires that investors identify the catalysts that will drive a share price upwards, hopefully over the long term. We’re here to help find those winning stocks.

Here is growth stock gurus: three picks that will impart wisdom to your wealth-building strategy.

Robinhood Markets (HOOD)

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News arrives that online brokerage Robinhood Markets (NASDAQ:HOOD) is buying privately held cryptocurrency exchange Bitstamp for $200 million in cash. The acquisition is the largest deal in Robinhood’s 11-year history and moves it further into the trading of cryptocurrencies. Analysts say the purchase of Bitstamp puts Robinhood in direct competition with the largest crypto exchanges, Binance and Coinbase (NASDAQ:COIN).

HOOD stock rose 7% on news of the Bitstamp acquisition. The crypto exchange is expected to power the growth of crypto trading on Robinhood’s trading app and online platform. Bitstamp is already popular in Europe and Asia. It offers more than 85 tradable assets and includes products such as staking and lending. They expect to close the cash deal in the first half of 2025. HOOD stock is up 87% year to date.

Rubrik (RBRK)

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The stock of data software company Rubrik (NYSE:RBRK) has declined 13% since the company held its initial public offering (IPO) in April of this year. However, analysts remain bullish on RBRK stock. Citigroup (NYSE:C), for example, initiated coverage of Rubrik with a “buy” rating. Analysts at the bank say the software company can shake-up what they call a “sleepy” $30-billion market for backup storage.

Rubrik came to market with financial support from software giant Microsoft (NASDAQ:MSFT). The company sold 23.5 million shares during its IPO, raising $752 million and giving it a valuation of $5.60 billion. Founded in 2014, Rubrik generates more than 90% of its revenue from subscriptions. Microsoft first invested in Rubrik in 2021 when it was privately held.

Rubrik has committed to spend $220 million over 10 years on Microsoft’s Azure cloud platform. While still unprofitable, Rubrik’s finances are trending in a positive direction. In time the company, and its stock, should find their footing.

Vistra Corp. (VST)

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Electric utilities have been red hot this year, none more so than Vistra Corp. (NYSE:VST). The Texas-based electric utility and power producer has seen its share price rise 125% year to date. Over 12 months, VST stock is up 245%. The growth has been so meteoric that Vistra’s stock was added to the benchmark S&P 500 index on May 8, replacing Pioneer Natural Resources, the oil and gas company that’s been acquired by Exxon Mobil (NYSE:XOM).

Not long ago, Vistra was a small-cap stock. S&P Dow Jones Indices decided to add it to its benchmark index after Vistra’s share price more than doubled in the first few months of the year. Driving VST stock higher are expectations for increased power demand as companies ramp-up their power-intensive artificial intelligence (AI) models and applications. Demand for electricity is expected to rise significantly in coming years.

On the date of publication, Joel Baglole held a long position in MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.