3 Brilliant Growth Stocks to Buy Now and Hold for the Long Term
May 18, 2025
Key Points
You may be surprised at how much wealth you can build by buying strong
growth stocks
and holding them over the long term. Investing in solid, growing businesses is one of the best ways you can earn the money needed to prepare yourself for a comfortable retirement. The key is to select enduring businesses that boast solid reputations, have a long track record of growth, and are run by savvy management teams. Ideally, they should also enjoy sustainable tailwinds that allow the business to continue growing its top and bottom lines.
Here are three such stocks that you can consider buying and owning for the long run.
1. ResMed
ResMed
(NYSE: RMD)
manufactures and sells cloud-connected medical devices that help people suffering from sleep apnea and chronic obstructive pulmonary disease (COPD). The company saw its revenue, operating income, and net income rise steadily over the years (see table below). Free cash flow also followed the same trajectory, soaring more than sixfold from 2022 to 2024.
Metric
2022
2023
2024
Revenue
$3.6 billion
$4.2 billion
$4.7 billion
Operating income
$1 billion
$1.1 billion
$1.3 billion
Net income
$779 million
$898 million
$1 billion
Free cash flow
$216 million
$574 million
$1.3 billion
Data source: ResMed. Fiscal years end Jun. 30.
The medical device company continued to report solid financial results for the first nine months of fiscal 2025. Revenue rose 9.7% year over year to $3.8 billion while operating income (excluding restructuring charges) improved by 22.7% year over year to $1.2 billion. Net income stood at $1 billion, up almost 29% year over year. ResMed also generated positive free cash flow of $1.15 billion, 31% higher than what the business churned out in the previous corresponding period.
There are good reasons why ResMed can continue to enjoy steady, sustainable growth in the years ahead. Management unveiled its 2030 targets during last year's Investor Day to drive growth and profitability. The company sees a significant market opportunity in the sleep health, breathing health, and health technology sectors and hopes to help more than 500 million people in five years. Consumers are now more health-focused and have access to wearable technology from
Apple
and Samsung, making acceptance easier for the treatment of sleep apnea and COPD. ResMed plans to grow and differentiate its sleep apnea franchise, expand into breathing health adjacencies, and invest 7% of its revenue to create a fully integrated digital ecosystem for health technology delivered at home.
The company is targeting high-single-digit revenue growth and earnings growth that will outpace revenue growth over the next five years. With a strong track record of delivering favorable health outcomes for its customers, ResMed's target looks achievable, enabling investors to enjoy many more years of growing revenue, profits, and free cash flow.
2. Curtiss-Wright
Curtiss-Wright
(NYSE: CW)
manufactures technologically advanced aerospace parts that are used in commercial power, process, and industrial markets. The engineering company boasts a solid track record of growing its revenue, operating, and net income (see table below). Free cash flow has also been steadily rising over the same period.
Metric
2022
2023
2024
Revenue
$2.6 billion
$2.8 billion
$3.1 billion
Operating income
$423 million
$485 million
$529 million
Net income
$294 million
$355 million
$405 million
Free cash flow
$257 million
$403 million
$483 million
Data source: Curtiss-Wright. Fiscal years end Dec. 31.
The business continued to do well in the first quarter of 2025, with revenue rising 13% year over year to $805.6 million and net income surging 32.5% year over year to $101.3 million. Operating margin for the quarter stood at 16%, and Curtiss-Wright declared a quarterly dividend of $0.21, a slight increase from the $0.20 paid out a year ago. The aerospace company expects sales to come in between $3.37 billion to $3.42 billion for 2025 for an 8% to 9.6% year-over-year growth. Operating margin is projected to improve to between 18.3% and 18.5%, and the business expects to generate free cash flow of between $495 million and $515 million.
There could be more growth coming for Curtiss-Wright. The company saw record new orders of $1 billion for its latest quarter, up 13% year over year. Management believes that the business is well positioned to capture the long-term secular growth trends across its end markets of aerospace and defense, and commercial nuclear. There will be increased U.S. and allied spending to modernize their defense systems, while nuclear power capacity is expected to double or triple by 2050 to support energy independence and energy decarbonization efforts.
During Curtiss-Wright's recent 2024 Investor Day, management introduced new three-year targets to grow revenue organically by 5% per year and achieve more than 10% annual earnings-per-share growth. Investors should feel confident that Curtiss-Wright's innovation and capabilities can enable the business to continue growing in the years ahead.
3. Hawkins
Hawkins
(NASDAQ: HWKN)
formulates, manufactures, and distributes industrial chemicals to businesses throughout the U.S. The company just released its fiscal 2025 results recently and displayed a solid track record of growing its top and bottom lines (see table below).
Metric
2023
2024
2025
Revenue
$935 million
$919 million
$974 million
Operating income
$88 million
$104 million
$119 million
Net income
$60 million
$75 million
$84 million
Free cash flow
$29 million
$119 million
$70 million
Data source: Hawkins. Fiscal years end March 31.
Hawkins has also paid out a dividend for 40 consecutive years, making it a good pick for investors who like a mixture of growth and income. The company's latest quarterly dividend stood at $0.18 per share, a 13% year-over-year increase from $0.16. Management is optimistic about fiscal 2026 with growth expected across all of Hawkins' business segments. Revenue is expected to surpass $1 billion for the first time in the company's history, allowing the business to continue to fund growth investments and pare down its debt.
Hawkins also has a strong track record of earnings-accretive acquisitions and completed four acquisitions in fiscal 2025 to support its water treatment segment. These purchases include Amerochem and Water Guard in North Carolina, Wofford Water Service in Mississippi, and Intercoastal Trading in Maryland. Fiscal 2026 started with yet another acquisition, that of WaterSurplus, which provides sustainable water treatment solutions throughout the United States. With this acquisition, Hawkins has completed 13 acquisitions over five years to grow its water treatment business.
The company plans to expand its specialty and value-added services and add new water treatment facilities every year. Meanwhile, management also plans to improve its supplier base while investing in higher-margin capabilities. Hawkins delivered a 25% earnings-per-share compound annual growth rate since fiscal 2021, and investors should be confident that it can continue to grow its revenue, earnings, and dividends for the foreseeable future.
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