With the firsts half of 2025 in the books, growth-minded investors may be wondering which big gainers still have gas in the tank. Undoubtedly, chasing hot stocks without doing any homework tends to be a bad idea since a higher share price tends to accompany more elevated expectations from Wall Street and just about everyone. It gets a lot harder to keep passing the bar and surprising to the upside once more folks have caught on.
In any case, the following three stocks have been really melting up in recent months, and they deserve a spot on the radar of high-growth investors. Of course, it’s best to pick up shares of such blistering firms after they’ve come in a bit. But if things have fundamentally improved with the growth story, I see no issue with initiating a starter position on strength. Let’s track three promising Q2 gainers and gauge how the stage looks as they march out of the second quarter into the second half.
Key Points in This Article:
- These stocks span financials, consumer discretionary and consumer staples.
- Shareholders of HOOD, ELF and FIVE enjoyed substantial gains in the first half of the year.
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Robinhood Markets
Robinhood Markets (
Whether we’re talking about tokenized stocks and ETFs that have paved the way for 24/5 trading or the firm’s innovative use of the blockchain, it’s clear that Robinhood has become one of the most innovative forces in the entire fintech scene of late. Indeed, Robinhood is using new financial tech to transform the trading landscape in profound ways. Going into the second half, investors are euphoric over the name as the $81 billion firm expands its crypto services across Europe while continuing to develop its Layer 2 blockchain network, Robinhood Chain, which is ready to hit the ground running.
Despite the red-hot Q2 gains, the stock doesn’t seem all that expensive (52.7 times trailing price-to-earnings (P/E)) for the type of blockchain innovation you’re getting and the timely expansion potential.
e.l.f. Beauty
e.l.f. Beauty (NASDAQ:ELF) shares may be flat on a year-to-date basis, but they’re up over 86% in the second quarter. Undoubtedly, the beauty company recovered from the painful 60% plunge to start the year. And while the name is still down 40% from all-time highs, I do see the disruptive cosmetics retailer as having the means to climb back to its past peak.
With the recent acquisition of Hailey Bieber’s Rhode in the books for a lofty $1 billion, e.l.f. is staying incredibly relevant among younger consumers, especially versus its industry rivals it seeks to disrupt. As e.l.f. continues to grow its brand portfolio while pivoting effectively to maintain its higher relative value proposition, I see the industry disruptor as having legs to run higher in the second half.
Of course, the stock’s getting a bit pricey (65.9 times trailing P/E) after nearly doubling in three months. Still, I wouldn’t stand in the way of the firm’s growth momentum as it continues its comeback.
FiveBelow
FiveBelow (NASDAQ:FIVE) is a fallen discount retailer that exploded 64% higher in the second quarter. Still down 41% from 2021 all-time highs, though, the firm still has a long way to go, especially as American consumers face mounting challenges in the second half. Despite the muted consumer, FiveBelow managed to clock in better top- and bottom-line results. And with an expansion plan that’s still a go, I certainly wouldn’t bet against the retailer now that the worst seems to be over.
Indeed, the company has a plan to tackle tariffs, and if it can maintain its value proposition with its primarily young consumer base (in many ways, FiveBelow rhymes with e.l.f. in that it’s a high-growth industry disruptor that’s found a way to resonate with younger audiences), I see the stock continuing higher.
At 27.9 times trailing P/E, the discount retailer still looks quite cheap given its improved operational track record and the fact that management is flooring it with its continued expansion. A high value proposition alongside an aggressive expansion with a leadership team that knows how to execute seems to be the formula for success, even in a softening economy.
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