Growth is a hallmark of all great companies, but the laws of gravity eventually take hold. Those who rode the COVID boom and ensuing tech selloff in 2022 will surely remember that the market’s punishment can be swift and severe when trajectories fall.
The risks that can come from buying these assets is precisely why we started StockStory - to isolate the long-term winners from the losers so you can invest with confidence. On that note, here are three growth stocks expanding their competitive advantages.
Zscaler (ZS)
One-Year Revenue Growth: +25.5%
Pioneering the "zero trust" approach that has fundamentally changed enterprise network security, Zscaler (NASDAQ: ZS) provides a cloud-based security platform that connects users, devices, and applications securely without traditional network-based security hardware.
Why Are We Positive On ZS?
- ARR growth averaged 24.3% over the last year, showing customers are willing to take multi-year bets on its software
- Projected revenue growth of 19.9% for the next 12 months suggests its momentum from the last three years will persist
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Zscaler’s stock price of $270.40 implies a valuation ratio of 13.7x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Snowflake (SNOW)
One-Year Revenue Growth: +27.5%
Named after the unique architecture of its data warehouse which resembles a snowflake pattern, Snowflake (NYSE: SNOW) provides a cloud-based data platform that enables organizations to consolidate, analyze, and share data across multiple cloud providers.
Why Could SNOW Be a Winner?
- Average billings growth of 26.5% over the last year enhances its liquidity and shows there is steady demand for its products
- Platform plays a pivotal role in customer workflows as its net revenue retention rate punches in at 126%
- Notable projected revenue growth of 24.5% for the next 12 months hints at market share gains
At $195 per share, Snowflake trades at 13.6x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
Tradeweb Markets (TW)
One-Year Revenue Growth: +28%
Founded in 1996 as one of the pioneers in electronic bond trading, Tradeweb Markets (NASDAQ: TW) builds and operates electronic marketplaces that connect financial institutions for trading across rates, credit, equities, and money markets.
Why Will TW Outperform?
- Market share has increased this cycle as its 25.9% annual revenue growth over the last two years was exceptional
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 27.5% over the last two years outstripped its revenue performance
Tradeweb Markets is trading at $129 per share, or 35.8x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound 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-small-cap company Exlservice (+354% 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
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