These Growth Stocks Are Crushing the S&P 500 in 2025. Should You Buy Them?

Investors seeking returns in 2025 are finding little solace in the broader market. The S&P 500 has slumped 8% year-to-date amid volatility driven by President Trump’s tariff policies and Federal Reserve uncertainty. Yet a handful of high-growth stocks have defied the gloom, surging ahead with gains of 30% or more—a stark contrast to the index’s struggles. Let’s dissect the standouts and whether they’re worth buying now.

Palantir Technologies (PLTR): AI’s War Machine

Palantir’s +33% YTD return (as of April) has made it a standout performer. Its AI-driven analytics platform, critical for the U.S. military’s battlefield systems, is fueling explosive growth. Q4 revenue jumped 64% in commercial markets and 45% in government sectors, while profit hit $462 million on $2.9 billion in sales.

But here’s the catch: Palantir trades at a 548x P/E ratio—a red flag for overvaluation.

Investment Take: While Palantir’s tech is undeniably powerful, its sky-high valuation suggests it’s due for a correction. Aggressive growth investors might nibble, but most should wait for a pullback.

Uber Technologies (UBER): Beyond Ridesharing

Uber’s +22% YTD gain masks its true potential. The company is now a multibillion-dollar ecosystem, with autonomous ride-hailing partnerships (Waymo, WeRide), 30 million subscription users, and ventures into healthcare logistics and freight.

Profitability has also surged: $2.8 billion in operating profit in 2024. At a 23x P/E ratio, Uber’s valuation aligns with its 30% annual earnings growth trajectory—a rarity in today’s market.

Investment Take: Uber’s diversified model and reasonable valuation make it a core holding for growth portfolios. The stock is primed to outperform as autonomous tech scales.

FuboTV (FUBO) & Oklo (OKLO): Sector-Specific Winners

• FuboTV skyrocketed +220% YTD (through January) by dominating sports streaming with aggressive pricing and content deals. Its subscriber base is booming, but competition from Disney+, Paramount+, and Amazon could test its momentum.
• Oklo, a nuclear energy innovator, rose +96% early in 2025,受益于全球脱碳努力. Its small modular reactors (SMRs) are positioned to replace fossil fuels, a theme gaining regulatory and investor tailwinds.

Both stocks face sector-specific risks—cord-cutting for Fubo, regulatory hurdles for Oklo—but their sector dominance justifies attention.

The Bigger Picture: Growth vs. Value in 2025

The S&P 500’s decline underscores a critical truth: sector specialization matters now more than ever. While tech and energy innovators like Palantir and Oklo thrive, legacy sectors like utilities (GE Vernova fell -17.5%) and retail (Walmart at -5%) lag.

The key takeaway is clear: Avoid broad market exposure and focus on companies driving real-world innovation.

Conclusion: Buy the Best, but Mind the Risks

The growth stocks outperforming in 2025—Palantir, Uber, FuboTV, and Oklo—are proof that sector leadership and profitability trump market averages. However, their valuations demand caution:

• Palantir’s 548x P/E is a warning sign; wait for a pullback.
• Uber’s 23x P/E is fair for its growth rate—buy now.
• FuboTV and Oklo offer high upside but require sector-specific analysis.

The S&P 500’s -8% YTD return signals a shifting landscape. Investors who prioritize high-margin, scalable growth—like Uber’s $2.8 billion profit or Palantir’s defense contracts—will outperform those clinging to broad indices.

In short, these stocks are worth buying, but only if you pick the right ones—and avoid overpaying.