These 2 Monster Growth Stocks Could Hit New Highs, Say Analysts

Is the stock market ready to keep climbing, or is a stumble ahead? After powering through the final stretch of summer, equities are sitting near record highs. But as we head deeper into September, a month that has historically been tough on investors, the question is whether now is the time to hit pause.

Wall Street analysts don’t necessarily think so. Many are highlighting certain stocks that have already delivered significant gains over the past year, while arguing that there is still room for further upside ahead.

With that in mind, we turned to TipRanks’ database to uncover 2 ‘monster growth’ stocks that some analysts believe could hit new highs. Let’s take a closer look.

Lumentum Holdings (LITE)

The first stock we’ll look at, Lumentum Holdings, is well-known in the tech world as a leader in high-performance industrial lasers, advanced diode lasers, and other photonic products. Lumentum’s kilowatt-class fiber lasers and ultrafast solid-state lasers have found application in a range of leading sensor systems, including 3D sensors and LiDAR systems, which are used in autonomous vehicles, advanced robots, and other practical applications of industrial AI. On the modern factory floor, the company’s laser devices and systems are used in precision machining and manufacturing, where they are able to measure and cut with the highest levels of accuracy.

In addition to its industrial applications, Lumentum has become an industry leader in applying photonic technology to cloud and networking systems – that is, the transmission and processing of data using light. The company has long experience in the field of indium phosphide chip technology, which can both emit and control light for signaling and data processing purposes, and is considered a vital enabling technology for AI systems, capable of transmitting data with the speed and volume required by the latest generations of AI tech.

Lumentum boasts that its optical components are vital to the function of ‘virtually every communications network in the world,’ a list that includes telecom networks, communications firms, and data centers. That last is especially important, as data centers are central to the rapid expansion of cloud computing and AI technology. Lumentum’s product line-up, including laser chips to transceivers to optical amplifiers, has proven essential – and better, the company’s products are amenable to flexible scaling while delivering consistent high performance.

All of this helps to explain why Lumentum’s stock has been rising in recent years. The shares are up 142% over the past 12 months, and 60% for 2025 so far. The company boasts a market cap of $9.3 billion, and generated $1.65 billion in total revenue for its fiscal year 2025, which ended this past June 28. The company’s fiscal 2025 revenue was up 21% year-over-year.

Drilling down a bit, to look at fiscal 4Q25, we see that the company’s quarterly revenue came to $480.7 million, up an impressive 56% year-over-year and beating the forecast by $10.8 million. At the bottom line, Lumentum realized a non-GAAP EPS of 88 cents, based on a net income of $63.3 million. This EPS was 7 cents per share better than had been anticipated.

LITE shares have come to the attention of Papa Sylla, from Citi, who sees plenty of room for the stock to continue posting gains. He writes, “We see LITE as not only an AI story (40%+ sales exposure) but as also a company with a strong margin expansion story (860/1450bps non-GAAP gross-margin and operating margin growths between FY2025 and FY2028E). As the need for faster and more reliable optical connection increases with AI, we think LITE’s 20+ years Indium Phosphide (InP) technology leadership should continue to bear fruit via innovation both on the laser front but increasingly on the module front. With that in mind, we model sales growing at a 29% CAGR over the next 3 fiscal years. With these growth assumptions we see +8%/+10% sales and EPS upside in FY2027E (Jun-2027)… Despite LITE being up 50%+ YTD, we continue to see further upside in the stock.”

Sylla’s Buy rating here comes alongside a $165 price target that implies an upside of 23% for the year ahead. (To watch Sylla’s track record, click here)

This stock has 17 recent analyst reviews on record, including 13 to Buy and 4 to Hold, for a Strong Buy consensus rating. However, given the strong gains, the $137.31 average price target suggests the stock will stay rangebound for the time being. With this in mind, watch out for either price target hikes or rating downgrades shortly. (See LITE stock forecast)

Roblox (RBLX)

Next on our list is a tech stock that your kids may have heard of. Roblox is a gaming and metaverse company that gives users an interactive game creation platform. Players have a variety of tools available, including AI-based features, to create, play, and share online games. The platform is designed to be interactive, allowing players to interact with each other in the game and in the creative process.

It’s more than just a game experience, however. Roblox bills itself as a multiverse provider, and its Roblox Studio, described as an intuitive design tool, can create immersive multiplayer experiences. The company has built a global community millions-strong, so think of this as an MMORPG, a massively multiplayer online role-playing game, but targeted at kids in their early teens or younger.

Roblox’s games and platforms have proven popular, and that popularity has helped push the company to a market cap of $89 billion. Over the past year, the company stock has gained 208%, and for the year-to-date, the gain stands at 130%. Last year, Roblox generated $3.6 billion in total revenue, up 28.7% from the prior year.

When a company shows that kind of growth, it is bound to come under scrutiny – and that is especially so for a company whose chief product is aimed at kids, especially in the digital realm. Protecting kids from cyber threats – particularly online predators – has become an industry in its own right. In recent months, Roblox has attracted attention in the form of lawsuits in this area.

Specifically, one complaint, in a Northern California Federal District Court, alleges that a child predator used the platform to exploit a 10-year-old in Michigan. This suit is backed by a petition filed by California Congressional Representative Ro Khanna. In another lawsuit, filed by Louisiana’s Attorney General, the AG alleges that Roblox has not met its obligation to protect underage users and that the platform is “overrun with harmful content and child predators because it prioritizes user growth, revenue, and profits over child safety.” These suits represent the tip of the legal iceberg that Roblox is facing; the company is facing increasing pressure over child protection issues on the platform.

We should note that the price of RBLX shares showed a dip in mid-August when news broke of the lawsuits, but the stock has since rebounded. As noted, the long-term gains remain strong.

In its 2Q25 financial release, the last quarter reported, Roblox showed bookings of $1.44 billion. This figure was up 51% from the prior year and beat the estimates by $170 million. The company’s earnings, in non-GAAP measures, came to an EPS loss of 41 cents, missing the forecast by 5 cents per share.

For Wedbush analyst Alicia Reese, the key here is Roblox’s underlying strengths and swift reaction to the allegations. She writes of the company, “Notwithstanding a slew of recent and forthcoming hit pieces and legal action, we view Roblox as the most compelling growth opportunity in the video game sector, given 1) management’s quick, decisive, and robust child safety response which should assuage investor concerns; 2) the flywheel from recent hit games; 3) developer incentives, infrastructure improvements, and AI-driven discovery that are driving massive platform growth; 4) genre expansion and aging up, which increase potential ad inventory; and 5) pricing optimization across games and regions, driving improved revenue streams.”

Reese, a 5-star analyst, rates this stock as Outperform (i.e., Buy). She complements that view with a $165 price target that points toward 24% share price growth in the next 12 months. (To watch Reese’s track record, click here)

Overall, Roblox keeps a Strong Buy consensus rating, based on 20 analyst reviews that break down to 16 Buys, 3 Holds, and 1 Sell. The shares are trading for $133.46, and the $146.90 average price target implies a 10% upside on the one-year horizon. (See RBLX stock forecast)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.