3 Breakout Growth Stocks You Can Buy and Hold for the Next Decade

As we approach 2025, investors are on the lookout for growth stocks with strong long-term prospects. While the market is filled with promising opportunities, not all stocks are created equal. In this article, we will explore three breakout growth stocks that have the potential to deliver significant returns over the next decade: Zscaler (ZS), Innodata (INOD), and SoFi Technologies (SOFI).



1. Zscaler (ZS)
Zscaler is a leading cybersecurity company that specializes in zero-trust network access. Its unique business model and cloud-native services have contributed to its impressive growth over the years. From fiscal 2019 to 2024, Zscaler's revenue grew at a CAGR of 48%, while its adjusted net income grew at a CAGR of 76%. Analysts expect the company's revenue to continue growing at a CAGR of 21% from fiscal 2024 to 2027.

Zscaler's stock has rallied nearly 250% over the past five years, and its strong financial performance has justified its higher valuation. With a market capitalization of over $40 billion, Zscaler is a well-established player in the cybersecurity industry. As the demand for cybersecurity services continues to grow, Zscaler is well-positioned to capitalize on this trend and deliver long-term growth for investors.



2. Innodata (INOD)
Innodata is an AI analytics company that provides task-specific microservices for preparing data for AI applications. The company's unique offering has gained traction among major tech companies, with five of the Magnificent Seven companies adopting its microservices. From 2019 to 2023, Innodata's revenue grew at a CAGR of 12%. However, analysts expect its revenue to rise at a CAGR of 42% from 2023 to 2026 as its clients process even more data for their AI applications.

Innodata's stock has been a strong performer in recent years, and its valuation reflects its growth potential. With a market capitalization of over $1 billion, Innodata is a smaller company with significant room for growth. As the AI market continues to expand, Innodata's unique data preparation services will be in high demand, making it an attractive long-term investment.



3. SoFi Technologies (SOFI)
SoFi Technologies is a fintech company that offers a one-stop digital shop for personal loans, credit cards, insurance services, and other financial products. The company's diverse range of offerings has contributed to its strong growth over the years. From the end of 2020 to the end of 2024, SoFi's number of members quadrupled from 2.52 million to 10.13 million. During this period, the company's adjusted revenue grew at a CAGR of 43%. Analysts expect SoFi's revenue to grow at a CAGR of 20% from 2024 to 2026, with its net income increasing at a CAGR of 9%.

SoFi's stock has been a strong performer in recent years, and its valuation reflects its growth potential. With a market capitalization of over $10 billion, SoFi is a well-established player in the fintech industry. As the demand for digital financial services continues to grow, SoFi is well-positioned to capitalize on this trend and deliver long-term growth for investors.

In conclusion, Zscaler, Innodata, and SoFi Technologies are three breakout growth stocks with strong long-term prospects. Their unique business models, innovative products, and ability to adapt to changing market conditions make them well-positioned to capitalize on the growth dynamics of their respective sectors. As the global economy continues to evolve, these companies' growth prospects remain promising, making them attractive long-term investments for investors seeking to buy and hold for the next decade.