Got $2,000? 2 Top Growth Stocks to Buy and Hold for Years

The bull market of the past year or more has reinvigorated investors' interest across a range of industries, and the performance of many top stocks reflects this reality. However, a share price moving upward or downward should never be the sole reason you buy (or sell) stocks.

Instead, it's important to evaluate each company on its merits to ensure it's the right fit for your personal portfolio and your overall investment strategy. If you have $2,000 to invest right now, here are two top growth stocks to consider.

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1. DexCom

DexCom (NASDAQ: DXCM) is one of the global leaders in the continuous glucose monitoring device (CGM) industry, a segment of the diabetes care space. The company's CGMs have use cases for a broad group of patients, including Type 1 and Type 2 diabetics, and even those with pre-diabetes.

Its CGMs are used to help customers track their blood glucose levels and minimize incidents involving adverse blood sugar events. These sensors have limited wear periods, so the company makes the most significant portion of its revenue by selling these disposable sensors. Similar to recurring revenue from a subscription service, DexCom's customers need to regularly purchase new sensor packs to maintain their CGM usage.

DexCom also makes money from hardware, such as reusable transmitter devices that read sensor data for patients. The average cost of a sensor device with insurance is $30, but can range upwards of hundreds of dollars per pack without coverage. DexCom continues to expand its relationships with government and private payers, enabling broader access for patients with commercial insurance options and those with government-sponsored coverage.

The company is working to expand its customer base -- an addressable market that is already extensive and growing as the incidence of diabetes spreads globally -- by launching new products like the Stelo. The Stelo was just approved by the U.S. Food and Drug Administration in 2024, and is the first-ever over-the-counter CGM approved by the regulatory agency.

This CGM is designed specifically for people with pre-diabetes and type 2 diabetes who are not on insulin. The Stelo also provides insights into how factors such as food, sleep, and exercise affect blood glucose levels. The Stelo has a 15-day wear time before the sensor needs to be replaced, similar to DexCom's flagship G7 CGM, which has a 10-day wear time.

While short-term factors such as above-average reimbursement rates for its G7 CGM device have delivered more moderate growth figures for DexCom on the financial front, the company is still bringing in impressive profits and cash. In the first nine months of 2024, DexCom delivered $2.9 billion in revenue with net income of $424.5 million. Those two figures were up 13% and 49%, respectively, compared to the same nine-month time frame in the prior year.

When DexCom released its preliminary results for the full-year 2024 in mid-January 2025, management said that revenue for the 12-month period was expected to be $4.03 billion. That would represent an 11% increase over 2023, a nice bump for a mature healthcare business like DexCom.

As DexCom's product lineup evolves, it increases its moat and competitive advantage in a crowded space. If the company can continue executing well, while growing its top and bottom lines, investors could reap long-term rewards. As an investor in DexCom myself, this is a stock I plan to hold for the long haul.

2. Cava Group

Cava Group (NYSE: CAVA) operates a chain of Mediterranean fast-casual restaurants across the U.S. Like other restaurant chains, Cava Group is heavily reliant on the trajectory of consumer spending, which can fluctuate amid changing economic landscapes.

The young restaurant chain has focused on attracting customers and growing same-store sales by offering a relatively simple menu of Mediterranean-style fare, based on fresh, seasonal ingredients. It's no secret that restaurants aren't exactly known for high profit margins, given the capital-intensive nature of their business model. However, Cava has managed to maintain above-average profit margins as it focuses on efficient expansion of its locations and its limited-service restaurant model.

While Cava locations do offer seating, the limited-service model means that customers order and pay for their food at a counter, or through an app, and then pick up their food themselves with minimal to no table service. This is a common model adopted by other big names in the quick-service restaurant category, such as McDonald's, Chipotle Mexcian Grill, and Starbucks.

In the third quarter of 2024, Cava reported restaurant-level profits of $61.8 million, a 42% increase from one year ago. Its restaurant-level profit margin was 25.6%. For context, the industry average for fast-casual restaurants is between 6% and 9%. Cava opened 11 net new restaurants in the recent quarter, growing its restaurant count by more than 21% on a year-over-year basis.

Overall revenue reported by Cava Group totaled $241.5 million, up 39% from one year ago. The company uses the power of delivery apps, including third-party apps and its Cava app, to increase its potential client reach.

As of Q3, 35.8% of its total revenue came from digital orders. From a bottom-line perspective, Cava Group is profitable under generally accepted accounting principles (GAAP), too. It reported its first profit in 2023. As of Q3, it reported net income of $18 million, more than twice its profits one year ago.

This is also a cash flow positive company. It generated free cash flow of $23.4 million in Q3 2024, with operating cash flow of $43.9 million. This company's financials are increasingly in fantastic shape, and its moderate approach to growing its restaurant count while staying true to its core brand seems to be working.

Investors who put cash into Cava Group should be comfortable investing in the restaurant sector, which is a discretionary segment for consumers. That said, there appears to be a lot of room for this business to run over the next five to 10 years and beyond, and well-diversified investors may want to consider taking a slice of the action.

Should you invest $1,000 in DexCom right now?

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Rachel Warren has positions in DexCom. The Motley Fool has positions in and recommends Chipotle Mexican Grill and Starbucks. The Motley Fool recommends Cava Group and DexCom and recommends the following options: long January 2027 $65 calls on DexCom, short January 2027 $75 calls on DexCom, and short March 2025 $58 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.