Using the TipRanks Stock Screener Tool, we identified three companies with high price-to-earnings (P/E) ratios, Strong Buy consensus ratings, and more than 40% upside potential over the next 12 months, making them compelling opportunities for growth-focused investors.
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An investment’s true worth comes from its expected future growth. A high P/E ratio can suggest overpricing, yet it often mirrors optimism about rapid earnings growth. The essential step is to compare current prices with the anticipated growth trajectory. Buying high P/E stocks means betting on companies with robust fundamentals, continuous innovation, and growing markets.
1) AppLovin (APP)
- P/E Ratio: 65.8x (96% above sector median of 32.2x)
- Average AppLovin Price Target: $773.44 (51% upside)
Analysts have become more bullish about AppLovin’s long-term outlook following its inclusion in the S&P 500 (SPX) index. AppLovin’s AI-driven platform dominates mobile game ads, unlocking multibillion-dollar opportunities and targeting 20%-30% annual revenue growth. Both AppLovin and analysts have rebuffed a short report alleging that its pre-IPO investors used illegal funds as the source of their investment and that AppLovin has become a vehicle for money laundering from Chinese and Southeast Asian criminal networks. Due to this, APP shares have lost nearly 17% over the past five days, which could present an attractive entry point.
2) Broadcom (AVGO)
- P/E Ratio: 69x (111% above sector median of 32.2x)
- Average Broadcom Price Target: $459.89 (45% upside)
Broadcom manufactures the vital custom chips and networking hardware that power large-scale AI infrastructures. The company holds a 55%–60% share of the custom AI chip market. CEO Hock Tan highlights surging AI chip sales, which grew 74% year-over-year and propelled record revenues, a momentum set to persist. Goldman Sachs noted that Broadcom’s partnership with Google (GOOGL) on TPU development is emerging as a major tailwind. As TPUs become more competitive, AVGO stands to benefit directly from rising demand for custom AI silicon.
3) Spotify (SPOT)
- P/E Ratio: 64.7x (269% above sector median of 17.2x)
- Average Spotify Price Target: $37.50 (47% upside)
Spotify boasts accelerating profitability, subscriber growth, and analyst upgrades amid recent price hikes. Monthly active users (MAUs) are projected to reach 745 million in Q4 2025, with premium subscribers hitting 289 million. Goldman Sachs recently upgraded the stock from a Hold to a Buy, stating that the 28% pullback in SPOT stock since the beginning of October 2025 offers an attractive buying opportunity, given the “long-term secular growth themes.”
To find more stocks like these, explore TipRanks’ Stock Screener Tool, which provides an updated list of stocks that can be filtered and scanned using various parameters.