Growth Stock in 2025: Definition, Examples, and Growth vs. Value Stock

Australian investors are increasingly drawn to growth stocks in 2025, lured by the promise of high returns and the excitement of backing tomorrow’s market leaders. But what exactly is a growth stock, and how do these differ from the value stocks that have long been staples of diversified portfolios? In this guide, we’ll break down the essentials, spotlight real-world examples, and explain the current dynamics shaping growth and value investing in Australia.

What Is a Growth Stock?

A growth stock represents a company expected to grow at a significantly faster rate than the overall market. These companies typically reinvest earnings into expansion, innovation, or market share capture rather than paying substantial dividends. Growth stocks are often found in dynamic sectors like technology, healthcare, or green energy—industries where rapid change can create outsized winners.

• High revenue and earnings growth: Consistently posting double-digit gains quarter after quarter.

• Minimal dividends: Most profits are ploughed back into the business.

• Premium valuations: Often trade at higher price-to-earnings (P/E) ratios compared to market averages.

In 2025, growth stocks have been buoyed by Australia’s ongoing digital transformation, the green economy transition, and a renewed appetite for risk among younger investors.

Australian Growth Stock Examples in 2025

The ASX has no shortage of companies fitting the growth stock mould, especially as the nation’s economy pivots towards technology and sustainability. Here are a few standout examples attracting investor attention this year:

• WiseTech Global (ASX:WTC): This logistics software powerhouse continues to ride the global e-commerce boom, reporting revenue growth exceeding 30% year-over-year and expanding aggressively into new markets.

• Pro Medicus (ASX:PME): Specialising in medical imaging software, Pro Medicus has leveraged healthcare digitalisation trends to post impressive earnings growth and secure long-term contracts with major hospitals worldwide.

• Pilbara Minerals (ASX:PLS): With Australia at the forefront of the battery minerals race, Pilbara Minerals is capitalising on soaring lithium demand for electric vehicles, projecting production growth well above industry averages in 2025.

These companies share the classic growth stock characteristics: rapid expansion, innovative business models, and a willingness to prioritise reinvestment over short-term shareholder payouts.

Growth vs. Value Stocks: Key Differences and 2025 Trends

While growth stocks are all about future potential, value stocks are the market’s underappreciated gems—companies trading below their intrinsic value, often with steady dividends and established track records.

| **Characteristic** |**Growth Stock** |**Value Stock** | |



| Primary Focus |Capital appreciation |Income & price recovery | |

| P/E Ratio |High |Low | |

| Dividend Yield |Low/None |High | |

| Risk Profile |Higher volatility |Lower volatility | |

| Industry Examples |Tech, biotech, renewables |Banks, utilities, mature sectors | |

In 2025, the pendulum between growth and value investing continues to swing. After a period of dominance by value stocks in the wake of 2022’s market volatility and interest rate hikes, growth stocks are rebounding as the Reserve Bank of Australia signals a hold on further rate increases. This stabilisation, paired with strong innovation in sectors like AI and clean energy, has reignited investor enthusiasm for growth plays.

Key 2025 market shifts:

• Interest rate plateau: Lower rate hike expectations make future earnings more attractive, boosting growth stock valuations.

• Government green initiatives: Federal incentives for clean energy and tech are fuelling sector-specific growth.

• Global economic recovery: Australian growth companies with international exposure are benefiting from improved global demand.

Which Approach Suits You?

Growth and value stocks both play vital roles in a balanced portfolio. Growth stocks can deliver outsized returns—but also carry higher risk and price volatility. Value stocks, meanwhile, offer stability and income, making them attractive in uncertain markets. With the ASX offering a rich mix of both in 2025, savvy investors are blending strategies to capture the best of both worlds.