Growth is oxygen. But when it evaporates, the consequences can be severe - ask anyone who bought Cisco in the Dot-Com Bubble or newer investors who lived through the 2020 to 2022 COVID cycle.
Deciphering which businesses can sustain their high growth rates is a challenge for even the most seasoned professionals, which is why we started StockStory. That said, here are three growth stocks with significant upside potential.
Parsons (PSN)
One-Year Revenue Growth: +16.6%
Delivering aerospace technology during the Cold War-era, Parsons (NYSE: PSN) offers engineering, construction, and cybersecurity solutions for the infrastructure and defense sectors.
Why Are We Positive On PSN?
- Impressive 23.8% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Share repurchases over the last two years enabled its annual earnings per share growth of 35.3% to outpace its revenue gains
- Rising returns on capital show the company is starting to reap the benefits of its past investments
Parsons’s stock price of $74.40 implies a valuation ratio of 19.7x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Super Micro (SMCI)
One-Year Revenue Growth: +82.5%
Founded in Silicon Valley in 1993 and known for its modular "building block" approach to server design, Super Micro Computer (NASDAQ: SMCI) designs and manufactures high-performance, energy-efficient server and storage systems for data centers, cloud computing, AI, and edge computing applications.
Why Are We Bullish on SMCI?
- Annual revenue growth of 81.1% over the last two years was superb and indicates its market share increased during this cycle
- Earnings per share grew by 23.2% annually over the last five years, massively outpacing its peers
- Improving returns on capital reflect management’s ability to monetize investments
Super Micro is trading at $48.71 per share, or 15.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Insulet (PODD)
One-Year Revenue Growth: +23.5%
Revolutionizing diabetes care with its tubeless "Pod" technology, Insulet (NASDAQ: PODD) develops and manufactures innovative insulin delivery systems for people with diabetes, primarily through its Omnipod product line.
Why Should You Buy PODD?
- Business is well-positioned no matter the global macroeconomic backdrop as its constant currency revenue growth averaged 26.6% over the past two years
- Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 113% outpaced its revenue gains
- Free cash flow margin increased by 21.9 percentage points over the last five years, giving the company more capital to invest or return to shareholders
At $305 per share, Insulet trades at 68.2x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
