3 Brilliant Growth Stocks to Buy Now and Hold for the Long Term

It may come as a surprise to some, but the most money is made in investing by buying and holding solid growth stocks for the long term rather than jumping in and out of the market. Share prices are notoriously unpredictable in the short term, so frequent trading can lose you a ton of money.

Instead, park your money in well-run, quality companies that can grow their revenue, earnings, and free cash flow. Over time, as the businesses become more valuable, share prices should rise in tandem, netting you attractive capital gains.

Businesses that enable you to grow your wealth should have certain characteristics. They should demonstrate steady increases in revenue over the years and preferably be generating consistent free cash flow.

Such companies should also possess a robust business model and clear catalysts that can help them grow sustainably. Having a large and growing total addressable market is another attractive feature that should assure investors that a business still has a long growth runway.

With these criteria in mind, here are three attractive growth stocks that you should own in the long run.

Freshworks (NASDAQ: FRSH) uses artificial intelligence (AI) on its cloud platform to provide customer relationship management and IT service management. The company counts brands including American Express, Bridgestone, and Fila as its customers.

Freshworks has not only demonstrated consistent growth in revenue over the past three years, but it also saw its gross margin increase steadily, as shown below.

Data source: Freshworks. Fiscal year ended Dec. 31.

As its top line improved, it also generated higher levels of free cash flow: It was $2.3 million in 2021 and leaped to $77.8 million by 2023.

Freshworks continued to display strong financial and operating metrics in the first nine months of 2024. Revenue rose 20.5% year over year to $525.8 million, while gross profit increased by almost 23% year over year to $442 million. The gross margin continued to improve from 82.5% in the previous year to 84.1% in the current period.

Free cash flow more than doubled year over year from $49.2 million to $111.6 million. Customers are also spending more -- those with over $5,000 in annual recurring revenue (ARR) increased by 14.4% year over year to 22,359 while those with more than $50,000 in ARR climbed nearly 33% year over year to 3,008.