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Investing.com -- Growth stocks with substantial upside potential can be challenging to identify in today’s market, but recent analysis from WarrenAI has uncovered five standouts offering impressive earnings growth combined with significant fair value upside.
The rankings highlight companies across different sectors that demonstrate exceptional growth metrics while still trading below their estimated fair values. Here’s a closer look at these top growth opportunities:
PROG Holdings, Inc. (NYSE:PRG) tops the list with staggering 110.5% EPS growth and a remarkably low P/E ratio of just 5.6x. The company offers a potential 63.8% fair value upside according to WarrenAI’s analysis.
With a strong return on equity of 34.3% and a minimal PEG ratio of 0.05, PROG Holdings presents what the analysis describes as "explosive, ultra-cheap" growth opportunity.
PROG Holdings recently reported strong second-quarter 2025 financial results, with both revenue and earnings per share surpassing analyst forecasts. Following the results, Raymond James raised its price target on the stock, and the company’s board declared a quarterly cash dividend of $0.13 per share.
Shift4 Payments, Inc. (NYSE:FOUR) secures the second position with 80.9% EPS growth and 44.1% operating income growth. Despite a higher P/E ratio of 26.2x compared to others on the list, the company’s growth trajectory appears to justify this premium, with WarrenAI projecting a 55.1% fair value upside.
The analysis labels Shift4 as the "fastest operational grower" among the ranked stocks.
Shift4 Payments announced it has completed the acquisition of Global Blue, making it a wholly-owned subsidiary. The company also amended its credit agreement with Citizens Bank, increasing its settlement line of credit facility to $125 million.
Bakkt Holdings, Inc. (NYSE:BKKT) shows impressive 71% EPS growth but comes with significant caution flags. The company posts a negative P/E ratio of -20.9x and negative ROIC, indicating substantial risk despite its 55.9% projected upside. WarrenAI characterizes BKKT as a "high risk, high growth" opportunity that represents a potential turnaround play.
In a recent strategic shift, Bakkt Holdings completed the sale of its Loyalty business to focus entirely on its digital asset infrastructure platform. The company also appointed Mike Alfred to its Board of Directors, and analysts at Benchmark raised their price target on the stock to $40.
PagSeguro Digital Ltd. (NYSE:PAGS) offers more moderate but still substantial 20.6% EPS growth with a lean 6.6x P/E ratio. The company presents a 58% upside potential alongside a 15.2% ROE. WarrenAI classifies PagSeguro as a classic example of "discounted growth" in the current market.
PagSeguro Digital reported an 11% year-over-year increase in total revenue for the second quarter of 2025, with diluted GAAP EPS rising by 14.2%. Following the report, Morgan Stanley raised its price target on the company’s stock to $7.00.
lululemon athletica inc. (NASDAQGS:LULU) rounds out the list as the "blue-chip" growth option. With 13.7% EPS growth, 30% ROIC, and 63.2% projected upside, LULU stands out as an established brand trading at what appears to be a discount relative to its growth prospects. At 11.5x P/E, the analysis suggests this combination of scale and growth potential may be undervalued.
Analysts have offered varied outlooks on lululemon athletica, with Baird downgrading the stock to Neutral due to growth concerns and Morgan Stanley lowering its price target. In contrast, firms including Bernstein and BTIG reiterated their positive ratings on the company.
The WarrenAI analysis indicates that investors seeking the fastest growth with some margin of safety might find PROG Holdings and Shift4 Payments particularly attractive, while lululemon offers a more established growth option at a potentially discounted price.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.