ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

3 Growth Stocks with Explosive Upside

VRT Cover Image

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.

Luckily for you, our job at StockStory is to help you avoid short-term fads by pointing you toward high-quality businesses that can generate sustainable long-term growth. Keeping that in mind, here are three growth stocks expanding their competitive advantages.

Vertiv (VRT)

One-Year Revenue Growth: +26.3%

Formerly part of Emerson Electric, Vertiv (NYSE: VRT) manufactures and services infrastructure technology products for data centers and communication networks.

Why Is VRT a Good Business?

  1. Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 19.6% over the past two years
  2. Free cash flow margin increased by 5.6 percentage points over the last five years, giving the company more capital to invest or return to shareholders
  3. Returns on capital are growing as management capitalizes on its market opportunities

Vertiv is trading at $163.31 per share, or 40.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

QuinStreet (QNST)

One-Year Revenue Growth: +78.3%

Founded during the dot-com era in 1999 and specializing in high-intent consumer traffic, QuinStreet (NASDAQ: QNST) operates digital performance marketplaces that connect clients in financial and home services with consumers actively searching for their products.

Why Will QNST Beat the Market?

  1. Impressive 37.2% annual revenue growth over the last two years indicates it’s winning market share this cycle
  2. Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
  3. Earnings growth has trumped its peers over the last two years as its EPS has compounded at 160% annually

QuinStreet’s stock price of $15.69 implies a valuation ratio of 14.5x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

Interactive Brokers (IBKR)

One-Year Revenue Growth: +18.5%

Founded in 1977 and known for its sophisticated trading technology and global reach across 150+ exchanges in 34 countries, Interactive Brokers (NASDAQ: IBKR) is a global electronic broker that provides low-cost trading and investment services across stocks, options, futures, forex, bonds, and other financial instruments.

Why Is IBKR a Top Pick?

  1. Impressive 22.7% annual revenue growth over the last five years indicates it’s winning market share this cycle
  2. Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 26.5% outpaced its revenue gains
  3. Annual tangible book value per share growth of 20.2% over the past two years was outstanding, reflecting strong capital accumulation this cycle

At $69.92 per share, Interactive Brokers trades at 35.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out 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 Kadant (+351% 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms Of Service.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.