The US stock market has the advantage of having large, global companies posting healthy growth.
If you are a growth investor looking for investment ideas, the US will be a great place to start looking.
Several attributes you should look out for include – a sturdy business model that can garner more business, a good track record of performance, and catalysts that can take the company to the next level.
With these characteristics in mind, here are four growth stocks with significant potential to do well.
Mercadolibre (NASDAQ: MELI)
Mercadolibre is the dominant e-commerce player in Latin America.
The company also runs a payments portal (Mercado Pago) and a logistics service (Mercado Envios), and has a fintech division that dishes out loans to borrowers.
Mercadolibre reported a strong set of earnings for the first quarter of 2025 (1Q 2025).
Revenue jumped 34.5% year on year to US$5.3 billion while operating profit climbed 44.5% year on year to US$763 million.
Net profit surged 43.6% year on year to US$494 million.
The e-commerce giant also generated a positive free cash flow of US$759 million for the quarter.
Mercadolibre also reported encouraging operating numbers for 1Q 2025.
The number of fintech monthly active users went from 49 million to 64 million, while unique active buyers increased from 53 million to 67 million.
Gross merchandise volume (GMV) passing through the company’s platform increased 17.3% year on year to US$13.3 billion.
Gross payment volume for its payment platform surged 43% year on year to US$58.3 billion.
On the fintech side, Mercadolibre reported a more than doubling of its assets under management to US$11.2 billion for the quarter.
In late May, the company announced that it would apply for a banking licence to expand its service offerings and build the largest digital bank in Argentina.
Toast (NYSE: TOST)
Toast offers a cloud-based digital technology platform for the restaurant community.
The company’s platform provides services such as point of sale, payments, operations, digital ordering, and team management.
1Q 2025 saw revenue increase 24.4% year on year to US$1.3 billion.
The business reported a small operating and net profit of US$43 million and US$56 million, respectively, reversing the prior year’s operating and net losses.
Toast also churned out a positive free cash flow of US$69 million, a welcome turnaround from the negative free cash flow in the previous year.
The company added more than 6,000 new locations in 1Q 2025, taking its total location count to approximately 140,000.
Toast also signed its largest deal in history with Applebee’s, an American casual dining restaurant chain.
Its annualised recurring run-rate (ARR) also climbed 31% year on year to US$1.7 billion, showcasing the traction that the business has in garnering new business.
Gross payment volume through its platform increased by 22% year on year to US$42.2 billion.
Toast continues to innovate to make its platform more attractive to current and future customers.
It launched a new Menu Price Monitor that provides monthly insights into menu pricing trends across the restaurant industry in the US.
Palantir (NASDAQ: PLTR)
Palantir is a software company with a platform that provides data integration, analytics, and knowledge-based decision-making.
Palantir announced an impressive set of earnings for 1Q 2025.
Revenue rose 39.3% year on year to US$883.8 million, with operating profit more than doubling year on year from US$80.9 million to US$176 million.
Net profit shot up 103% year on year to US$214 million.
The business also churned out significantly more free cash flow, going from US$126.9 million in 1Q 2024 to US$304.1 million in the current quarter.
Palantir’s total customer count grew 39% year on year to 769, while its commercial customer count jumped 46% year on year to 622.
The company closed 51 deals of at least US$5 million and 31 deals of at least US$10 million each.
Last month, Palantir inked a strategic product partnership with The Nuclear Company to deploy nuclear power across America and pioneer the modernisation of nuclear construction.
In the same month, Palantir collaborated with Accenture (NYSE: ACN) to help federal government agencies reinvent operations with AI.
Upwork (NASDAQ: UPWK)
Upwork is a work marketplace platform that connects job seekers to companies that are looking for talent.
The company offers more than 10,000 skills across AI, sales and marketing, customer support, finance and accounting, and more.
Upwork reported a robust set of earnings for 1Q 2025.
Revenue inched up 1% year on year to US$192.7 million, but operating profit nearly tripled year on year to US$38.7 million as sales and marketing expenses fell sharply.
Net profit doubled year on year to US$37.7 million.
The company also generated a positive free cash flow of US$30.8 million for the quarter.
Management sees continued strength in ads and monetisation as revenue from this segment increased 23% year on year.
Its Freelancer Plus subscription revenue also grew 20% year on year.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
