3 Unstoppable Stocks That Are on Track for Their 3rd Straight Year of 50% Returns or Better

Source Motley_fool

Key Points

  • These stocks are all popular options with retail investors.

  • They have experienced significant growth in a relatively short time frame.

  • They all score high on the Rule of 40.

  • 10 stocks we like better than Robinhood Markets ›

Generating a 50% return in one year is impressive. Doing it twice is amazing, and it might have you thinking that the stock is due for a letdown. But the stocks listed here are all on track to generate 50% returns for a third consecutive year in 2025.

Robinhood Markets (NASDAQ: HOOD), Palantir Technologies (NASDAQ: PLTR), and Sofi Technologies (NASDAQ: SOFI) have been among the hottest growth stocks to own since 2023. Here's a look at what's been behind their stellar gains in recent years, and if they still have more room to rise higher.

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Image source: Getty Images.

Robinhood Markets

In 2023, Robinhood's stock rose by 57%, and then 193% the following year. Thus far in 2025, it's up even more -- 209% (returns as of Nov. 21). The company's trading platform is a hub for investing, trading, and betting. Whether it's buying stocks, crypto, or now making predictions, it's become a one-stop platform for a wide range of users.

The company has proven to be more than just a meme stock that's popular with retail investors. It has been generating some incredible growth, with phenomenal top- and bottom-line results. Robinhood recently posted its third-quarter earnings, and its revenue doubled to $1.3 billion for the period ending Sept. 30. Its Rule of 40 score over the trailing 12 months has been 131%, which is a key metric many growth investors focus on that factors in sales growth and earnings. It has been experiencing significant growth since expanding its prediction markets business, and that has the potential to be a growth catalyst for the foreseeable future as the company is even open to acquisitions to help expand that area of its operations quickly.

Today, the stock's market cap is right around $100 billion, and it trades at a price-to-earnings (P/E) multiple of 48. It's an expensive stock to own, but with some exciting growth potential, I think a premium is justifiable for the business.

Palantir Technologies

Data analytics company Palantir Technologies has been another scorching-hot buy in recent years. Thus far in 2025, it's up around 115%, after skyrocketing 341% last year and 167% the year before that.

Retail hype is a big driving force with Palantir as its valuation is astounding, with a P/E multiple of around 380. A stock doesn't generate the type of returns Palantir does and trade at such a high valuation without strong support from retail investors. But that's not to say the company's results haven't been terrific; Palantir's sales rose by 63% in its most recent quarter (which ended on Sept. 30), totaling $1.2 billion. The company touts a Rule of 40 score of 114% as both its top and bottom lines have looked strong.

But with a high share count, the company's valuation is rich on a per-share basis. A lot of artificial intelligence (AI) growth has been driving the stock's gains and the risk is if that slows down, that could be its undoing. In recent weeks the stock has been giving back some gains as investors grow concerned about valuations.

Given the risks, I wouldn't buy into Palantir's rally, as tempting as it might be, as there does appear to be considerable room for the stock to fall significantly in the event of a sell-off in the markets.

SoFi Technologies

Rounding out this list of high performers is SoFi Technologies. It's been rallying 78% this year after rising 55% last year and 116% back in 2023. One thing that it has in common with the other stocks listed here besides its impressive gains is that it's a popular company with retail investors.

SoFi has evolved over the years from student loan origination to offering a wide variety of financial products and services for its customers. Its focus on speed and convenience has made it a popular app for young people to own, not unlike Robinhood. Its member count has soared from 3.5 million in 2021 to more than 12.6 million people today. Its Rule of 40 score is 67%, as it has also been experiencing tremendous growth.

It trades at a similar valuation to Robinhood, with its P/E ratio also around 50. Although it isn't a cheap stock to own, it can be a good one to hang on to for the long term, as it has proven to be a winner with retail investors.

Should you invest $1,000 in Robinhood Markets right now?

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*Stock Advisor returns as of November 24, 2025

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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