8 Growth Stocks to Buy That Aren’t Technology
Tech stocks have dominated headlines for years, but with valuations stretched, investors are asking: where else can real growth be found? The answer lies in overlooked sectors like healthcare, financials, industrials, and consumer services.
The Problem with Tech Right Now
The S&P 500 Information Technology Sector recently hit record highs, led by giants such as Nvidia and Microsoft. Valuations, however, have reached uncomfortable levels. According to FactSet, tech stocks trade at 27x forward earnings, well above the broader S&P 500 average of around 20x.
High multiples aren’t automatically bad, but they raise the bar. When expectations are already priced in, even strong earnings can leave little upside for investors. The PEG ratio (price-to-earnings relative to growth) is one way to measure this. Tech sits at around 2.0 PEG, which suggests investors are paying twice the expected growth rate for exposure.
For investors looking for value, that’s a tough pill to swallow.
Why Non-Tech Growth Stocks Deserve Attention
Growth opportunities exist outside of Silicon Valley. Citi and other strategists have pointed to non-tech sectors where earnings growth is near or above the S&P 500’s projected 10% for 2025.
These opportunities often cluster around structural economic themes:
- Healthcare innovation and medical devices
- Fintech and digital payments
- Consumer convenience platforms
- Industrials tied to infrastructure and clean energy
Companies in these spaces may not carry the tech label, but they share its best attribute: scalable earnings growth. The difference is that they often trade at cheaper valuations.
8 Growth Stocks Worth Watching Outside Tech
1. Boston Scientific (BSX) – The Medtech Powerhouse
Boston Scientific develops surgical devices, with a strong focus on heart-related treatments. Cardiovascular disease remains the leading global cause of death, creating long-term demand for its products.
- Analysts forecast 11% sales growth annually through 2027.
- EPS is expected to expand 14% annually, boosted by efficiency gains and buybacks.
- At ~31x forward earnings, the PEG is just above 2, meaning its valuation is reasonable compared to growth potential.
Investor takeaway: A defensive, secular growth play in healthcare with margin expansion and steady innovation.
2. Medtronic (MDT) – Scaling AI in Medical Devices
Medtronic, another medical device leader, has diversified offerings in diabetes tech, robotics-assisted surgery, and cardiovascular care. While its stock has lagged in recent years, innovation pipelines are robust.
- Medtronic is betting on AI-assisted surgical tools, aiming to improve efficiency in hospitals.
- Dividend yield of ~3.3% provides income alongside growth.
Investor takeaway: A slower-moving blue-chip, but patient investors get both yield and exposure to next-generation medical tech.
3. Boston Scientific’s Rival: Abbott Laboratories (ABT)
Not in Citi’s list but worth mentioning: Abbott dominates diagnostics and diabetes monitoring. Its FreeStyle Libre glucose monitoring system is the global leader.
- Revenue growth driven by aging demographics and rising global health spending.
- Diversified product base shields it from single-line risk.
Investor takeaway: A “healthcare growth plus safety” play for investors wary of volatility.
4. Uber (UBER) – Platform Beyond Ride-Hailing
Uber has evolved from a ride-hailing company into a diversified logistics player. Its Uber Eats and freight logistics arms are scaling rapidly.
- The company posted positive free cash flow for the first time in 2023.
- Analysts expect 20% annual revenue growth through 2026.
Investor takeaway: Uber is transitioning into a profitable growth platform, with logistics giving it long-term runway.
5. DoorDash (DASH) – Betting on Consumer Convenience
DoorDash has extended beyond food delivery into grocery, retail, and even alcohol. Consumer habits shifted permanently during COVID, and DoorDash is capitalizing.
- North American grocery delivery projected to grow at 11% CAGR through 2030.
- DoorDash controls over 65% of the U.S. food delivery market.
Investor takeaway: High-growth, albeit volatile, with strong potential as it diversifies its platform.
6. Pinterest (PINS) – Social Media with a Monetization Edge
Pinterest is a hybrid of social media and e-commerce. Unlike Facebook or TikTok, its users are already in a shopping mindset, making its ad platform uniquely attractive.
- Ad revenue expected to grow 15–18% annually through 2026.
- Its push into AI-driven search recommendations could significantly improve engagement.
Investor takeaway: Still under-monetized relative to Meta, offering upside if execution continues.
7. Equifax (EFX) – The Fintech Infrastructure Bet
Equifax may be best known for consumer credit reports, but it has quietly become a fintech infrastructure provider.
- Data analytics and identity verification are in high demand as digital finance scales.
- Revenue expected to rise 10–12% annually, with cybersecurity spending as a tailwind.
Investor takeaway: A financial-data growth story that benefits from both consumer lending cycles and fintech adoption.
8. Flowserve (FLS) – Industrial Growth with a Green Twist
Flowserve manufactures environmentally friendly industrial pumps used in energy, water, and infrastructure projects. With global governments pouring money into sustainable infrastructure, Flowserve is positioned to benefit.
- Infrastructure spending from the U.S. and Europe continues to rise.
- Demand for water efficiency technologies is growing as climate risks intensify.
Investor takeaway: A hidden ESG industrial play that combines steady growth with global policy support.
Key Metrics: Why These Names Work
What unites these stocks is a balance between growth and valuation.
- Earnings growth: Many are projected to grow EPS by 10–20% annually, faster than the S&P 500 average.
- PEG ratios: Most hover at or below 2.0, a level that suggests reasonable valuations compared to growth.
- Quality: High return on equity (ROE) and margin expansion signal operational discipline, reducing execution risk.
What Investors Should Do Now
- Diversify beyond tech – Don’t abandon it, but reduce concentration risk.
- Look for secular themes – Healthcare innovation, fintech adoption, and consumer convenience are long-term trends.
- Focus on valuation discipline – PEG ratios under 2x offer room for upside.
- Balance growth with income – Some names like Medtronic and Abbott also provide dividends.
Final Word
Tech has had a phenomenal run, but at 27x earnings, it’s priced for perfection. For investors seeking growth at a reasonable price, the real opportunities may lie in non-tech sectors quietly compounding earnings.
From Boston Scientific’s heart devices to Uber’s logistics platform and Flowserve’s green industrial pumps, these companies combine innovation with affordability. That’s the sweet spot growth investors should be hunting for in 2025.
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