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3 Growth Stocks for Long-Term Investors

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Growth is oxygen. But when it evaporates, the consequences can be extreme - ask anyone who bought Cisco in the Dot-Com Bubble (Nvidia?) 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 with significant upside potential.

ServiceNow (NOW)

One-Year Revenue Growth: +21%

Founded by Fred Luddy, who coded the company's initial prototype on a flight from San Francisco to London, ServiceNow (NYSE: NOW) is a software provider helping companies automate workflows across IT, HR, and customer service.

Why Are We Bullish on NOW?

  1. Growth in its current remaining performance obligations (cRPO) has averaged 22.3% over the last year, showing it has a steady sales pipeline that will drive future revenue
  2. Healthy operating margin of 12.9% shows it’s a well-run company with efficient processes, and its operating leverage amplified its profits over the last year
  3. Strong free cash flow margin of 32.1% enables it to reinvest or return capital consistently

ServiceNow is trading at $1,008 per share, or 15.6x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.

Comfort Systems (FIX)

One-Year Revenue Growth: +31.5%

Formed through the merger of 12 companies, Comfort Systems (NYSE: FIX) provides mechanical and electrical contracting services.

Why Will FIX Outperform?

  1. Sales pipeline is in good shape as its backlog averaged 30.5% growth over the past two years
  2. Earnings per share grew by 67.6% annually over the last two years and trumped its peers
  3. Returns on capital are climbing as management makes more lucrative bets

At $476.08 per share, Comfort Systems trades at 25.6x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Inspire Medical Systems (INSP)

One-Year Revenue Growth: +27.1%

Offering an alternative for the millions who struggle with traditional CPAP machines, Inspire Medical Systems (NYSE: INSP) develops and sells an implantable neurostimulation device that treats obstructive sleep apnea by stimulating nerves to keep airways open during sleep.

Why Do We Love INSP?

  1. Steady expansion of new domestic medical centers reflects a push to reach more customers in underpenetrated markets
  2. Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 26.7% annually
  3. Free cash flow margin jumped by 48.2 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

Inspire Medical Systems’s stock price of $138.20 implies a valuation ratio of 50.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. 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.

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