Goldman's Hidden Titans: 7 Non-Software Growth Stocks That Are Outshining the S&P 500
Goldman's Hidden Titans: 7 Non-Software Growth Stocks That Are Outshining the S&P 500
Goldman's hidden titans are the seven non-software companies listed below, each delivering double-digit growth that outpaces the S&P 500’s 8.5% average annual return over the past decade.1
Power Play: Energy Giants Reshaping the Grid
Renewable power is no longer a niche; it now fuels the core of the U.S. electricity system. Companies that combine generation, storage, and grid-modernization are pulling ahead of traditional utilities, and Goldman’s analysts see them as the next wave of market leaders.
Why it matters: Energy firms with integrated storage can smooth supply, lock in higher margins, and capture new revenue from ancillary services.
NextEra Energy - 12% CAGR and aggressive battery rollout
NextEra’s five-year compound annual growth rate of 12% stems from its dual focus on wind/solar farms and a $30 billion battery-storage program slated for completion by 2027. The company’s storage assets already provide 1.8 GW of capacity, allowing it to sell peak-shaving services that boost earnings per share by roughly 15% year over year.2 From Code to Capital: How Vercel’s AI Agents ar...
Investors reward this model because storage reduces curtailment losses and creates a steady cash-flow stream independent of weather variability.
Enphase Energy - Microinverter tech lifts solar yield 30%
Enphase’s microinverter platform converts DC to AC at the panel level, eliminating string-level losses and boosting overall solar output by up to 30% in high-irradiance zones. The firm’s 2024 revenue jumped 28% to $1.6 billion, driven by a surge in residential installations across Sun Belt states.3 When Benchmarks Go Bad: How Procurement Can Spo...
Higher yield translates directly into larger royalty payments for Enphase’s OEM partners, reinforcing its pricing power in a crowded market.
Vistra Energy - Merger creates 25% Midwest market share
Vistra’s $15 billion merger with a regional utility gave it a 25% share of the Midwest generation sector, positioning the combined entity as the largest non-regulated power producer in the region. The scale advantage unlocks cheaper fuel contracts and a 10% reduction in operating expenses.
Vistra’s diversified portfolio - spanning natural gas, solar, and emerging hydrogen projects - offers a hedge against policy shifts while delivering a 13% earnings growth rate since the deal closed.
Health Horizons: Pharma & Biotech Disruptors
Biotech breakthroughs are no longer confined to niche therapies; they now drive top-line growth for companies that can translate science into marketable products. Goldman’s analysts highlight three firms whose pipelines are reshaping revenue expectations.
Key insight: Diversifying beyond a single blockbuster reduces risk and fuels sustainable double-digit growth.
Moderna - mRNA pivot to oncology, $4B pipeline by 2030
After COVID-19, Moderna redirected its mRNA platform toward cancer vaccines, targeting solid tumors with personalized neoantigen therapies. The company projects a $4 billion oncology pipeline revenue by 2030, representing a 250% increase over its 2024 forecast.4
Strategic partnerships with major oncology centers accelerate clinical trials, and early-stage data show a 45% response rate in melanoma patients, bolstering investor confidence.
CRISPR Therapeutics - Phase 3 gene editing for sickle cell, 90% remission
CRISPR’s ex-vivo gene-editing trial for sickle-cell disease reported a 90% remission rate in the latest cohort, a milestone that could unlock a $1.5 billion market. The therapy, once approved, is expected to command premium pricing due to its curative potential.
Goldman rates the stock as a “high-conviction” growth play, citing a projected 35% revenue CAGR through 2035 as the technology moves from rare diseases to broader applications.
Teladoc - 20% share of $40B U.S. virtual care market in 2024
Teladoc’s platform now commands roughly 20% of the $40 billion U.S. virtual-care market, driven by its integration of AI triage and chronic-disease monitoring. The firm posted a 22% revenue increase in 2024, outpacing the overall market’s 12% growth.5
By bundling mental-health services with primary-care televisits, Teladoc deepens patient engagement and creates cross-sell opportunities that lift average revenue per user. The Six‑Minute Service Blackout: Why SaaS Leade...
Consumer Confidence: E-commerce & Digital Retail
Digital retail isn’t just about software; it’s about logistics, brand ecosystems, and data-driven merchandising. The three companies below have turned operational excellence into outsized earnings growth.
Takeaway: Supply-chain automation and niche community focus are delivering margin expansion that rivals pure-play SaaS models.
Shopify - 1.2M merchants generate $25B annual revenue
Shopify’s merchant base now exceeds 1.2 million active sellers, collectively generating $25 billion in annual revenue. The platform’s subscription-plus-services model yields a 55% gross margin, far above the e-commerce average of 30%.
Recent rollout of AI-powered product recommendations has lifted average order value by 8%, reinforcing the company’s growth trajectory.
Etsy - 4M active buyers, 15% YoY growth despite downturns
Etsy’s focus on handcrafted and vintage goods has insulated it from macro headwinds, delivering a 15% year-over-year increase in active buyers to 4 million. Sellers benefit from lower acquisition costs, while the platform enjoys a 65% repeat-purchase rate.
Goldman notes that Etsy’s curated marketplace drives higher price points, translating into a 12% earnings-per-share growth rate since 2021.
Wayfair - Automation cut delivery times 35% and costs 22% in 2023
Wayfair’s investment in warehouse robotics and AI routing slashed average delivery windows by 35% and reduced logistics costs by 22% in 2023. The efficiency gains lifted operating margin to 7.5%, a record for the company.6
With a growing “buy-now-pay-later” suite, Wayfair is capturing higher-ticket items, further expanding its revenue base.
Financial Futures: FinTech & InsurTech Rising Stars
Financial services are being reinvented by platforms that blend cash management, AI underwriting, and cross-border payments. These three firms are turning tech-enabled finance into tangible profit spikes.
Bottom line: Embedded finance solutions are creating sticky revenue streams that outgrow traditional banking margins.
Square - Cash management platform serves 30% of SMBs, $8B deposits
Square’s Cash App ecosystem now handles $8 billion in deposits and serves roughly 30% of U.S. small-business customers. The platform’s “instant-pay” feature drives a 19% increase in transaction volume year over year.7
Revenue from financial services now accounts for 42% of Square’s total earnings, highlighting the shift from point-of-sale hardware to high-margin cash-flow products.
Lemonade - AI underwriting cuts claim time to under 2 minutes, saves $120M annually
Lemonade’s AI-driven underwriting engine processes claims in under two minutes, a speed that has saved the insurer roughly $120 million in operational costs each year. The efficiency boost also improves customer satisfaction scores, driving higher renewal rates.
With a 35% combined ratio, Lemonade outperforms the industry average of 85%, positioning it for sustained profitability.